Data-Driven CX: The Key to Addressing Friendly Frauds and Enhancing Customer Satisfaction
A year ago, I purchased a treadmill that included a subscription fitness app, free for the first six months. Around the same time, I also subscribed to a subscription music app. However, I soon realized that I wasn’t using either the fitness app or the music (I like my local NPR channel), both of which were on monthly subscription plans. I contacted the merchants/seller and requested to cancel the services and stop charges to my card. It was a straightforward process.
Interestingly, many customers, just like myself, come to appreciate the value of their purchase only after receiving the product or service or upon seeing the charge on their statement.
Digital Sale and Payments
Customers are the focal point of every business, and efforts to improve customer experience and satisfaction are leading to significant benefits. A wide variety of products are created for an even wider range of digital generations, i.e. from the Baby Boomers to the GenZs.
The availability of different payment methods such as Credit cards, Account to accounts, Instalments /BNPL, Wallets, Rewards, Social Currencies (Emerging) are helping customers plan finances effectively to spend more and wisely.
Customer friendly experience
While Brands work on products, they also have a major task at hand of keeping up with the expectations of every generation of customers. The Boomers to Zs, all look for quality, price and product reviews. The Zs and Xs also look for the brand’s social media footprint, and social responsibility.
Issuers developed solutions to protect customers against fraud transactions, by covering card theft and fraudulent transactions etc.
Brands created store /shopping policies to safeguard the interests of the customer and promote loyalty, an example of such a policy is “no questions asked returns/refunds”.
All in all, this encouraged customer to feel safer with the merchants and enjoy the buying experience.
Risk Exposure for Merchants – The Friendly Frauds
While merchants created customer-friendly policies for returns and refunds, it is worth noting that more than half of customers who detect a discrepancy in their statement opt to report a fraudulent transaction to their bank instead of directly contacting the seller or merchant.
TSYS and CB911, estimate that the chargebacks cost merchants approximately $40 billion annually. The Merchants face reputational damage, negative customer sentiment, increased bank charges, and reduced credit scoring and could spend as high as $190 to settle each dispute.
Cybersource reports that Friendly Frauds are now the top reason affecting merchant.
Merchant experience is equal to Customer Experience
A customer aware of the store policies, or someone loyal to the brand will tend to work with the Merchant/Seller to resolve any issue. Customers should have access to detailed information about the purchase, charges, policies etc. Customers should feel comfortable contacting them for any product or payment-related queries.
Simplifying and improving customer service, usability and accessibility will benefit customers and indirectly the Brand / Merchant.
LexisNexis has reported that merchants who adopted chargeback solutions have consistently observed declines in dispute cases.
Invest in Solutions
Merchants and banks should implement solutions that are customer-friendly to improve the shopping experience and maintain customer loyalty.
Solutions designed for different customer segments should consider historical transaction data. Analyzing this data can lead to the development of customer services and technology solutions that enable early alerts and enhance fraud detection and prevention, helping merchants manage chargebacks.
With the exponential growth in digital payments, the number of disputes is expected to increase. Brands and merchants that adopt data analytics-driven, customer-centric solutions with AI assistance can significantly reduce chargebacks.
Is friction in your digital sales process causing customer frustration and chargebacks?
Ready to revolutionize your digital sales, enhance customer experience, and prevent fraud in your financial operations?
Apexon is here to help. Our solutions blend human-centric design with cutting-edge technology to optimize your business for success. Whether you’re looking to streamline payments, improve customer satisfaction, or minimize chargebacks, we’ve got you covered.
Apexon empowers businesses to create a seamless customer experience and minimize chargebacks through our data-driven, human-centric solutions. Our solutions are deeply rooted in Human-Centric and Customer-Centric experience, supported by technology.
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