We recently kicked off a holiday blog series by discussing the cart abandonment issues that plague eCommerce businesses of all sizes this time of year. While cart abandonment is often the result of poor customer experience, it’s important to understand the various points of friction that diminish the customer experience. In this post, we’ll discuss how online fraud can ruin your holiday cheer—and how to stop it.
The holiday season brings eCommerce companies the best 3 months of revenue for the entire year. But with that added revenue comes increased transactions and a dramatically higher rate of online fraud.
Studies show that online fraud increases 40% during the holiday season. And during the 2016 holiday season, online With brick-and-mortar stores almost ubiquitously shifting to EMV chip readers instead of magnetic strips, reports show that eCommerce sites will start taking the brunt of fraud cases (rather than the rate simply dropping).
You likely already spend time analyzing eCommerce transactions to uncover any fraudulent activity; however, the heavy volume of transactions this holiday season requires you to prepare more thoroughly or risk diminishing your customer experience (CX) and losing revenue.
Why Are Online Fraud and Customer Experience Connected?
When we think of the eCommerce customer experience, the immediate thoughts are page speed, form design, search functionality, etc. These are elements of your website that directly affect how customers execute transactions and experience your business.
Online fraud has a more indirect effect on customer experience, but can affect CX nonetheless. If you aren’t prepared for increased online fraud pressures, your own website can fall victim to an attack.
You might still receive the revenue for their completed transactions; however, your customers might find that your eCommerce site was the cause of their online fraud problems. This will likely cause you to miss out on any revenue next year or in the coming months from these customers. Customers who are compromised will see the customer experience as negative, impacting your holiday revenue (potentially) for years to come.
Many eCommerce companies will claim that they’re well-prepared for online fraud, but the reality is that the processes that worked throughout the year aren’t sufficient for the holiday season. This holiday season, don’t be one of the eCommerce companies that is unprepared for online fraud—find a different way to safeguard your customer experience.
Don’t Leave Your Customers Out in the Cold—Stay Ahead of Online Fraud
Hackers have an uncanny ability to stay one step ahead of cybersecurity solutions, making it difficult for eCommerce companies to stay secure (especially when traffic spikes during the holidays). It would be nice if your security solutions kept all attackers at bay, but the reality is that you must be ready to spot fraudulent activity if it occurs.
Luckily, fraudulent transactions have some common suspicious characteristics you can look out for—repeated log ins, suspicious quantities, unusual addresses, frequency of ordering, etc. The real problem is analyzing transactions at scale to improve your ability to identify fraud.
With the right customer experience analytics solution, you can leverage a combination of event analytics, real-time capture of 100% of journeys and open data/custom reporting capabilities that make it easier to identify and prevent fraud. And when your customers can trust your website, you’ll start to see the revenue rewards for your customer experience efforts.
This shopping season, a customer experience analytics solution will be the key to a successful holiday revenue party. If you want to learn more about the customer experience problems you might encounter during the holiday shopping season (and how a customer experience analytics solution works to solve them), download our free ebook, Optimize the Customer Journey During the Holiday Season and Throughout the Year.