A Clever Way to Improve Mobile Commerce Conversions for Electronics Retailers
Retail eCommerce spending via smartphones and tablets boomed in Q4 of 2016, up 45% over 2015. In fact, mobile accounted for 21 percent of total digital commerce dollars spent in the quarter, mobile’s highest recorded share of online sales ever.
And guess what? Mobile fraud is keeping pace. In 2015, the number of fraudulent transactions on mobile devices increased by 142% compared to 2014. And there’s no slowdown in sight, with CNP fraud losses projected to soar 80% by 2020.
For online Electronics retailers, this presents a dilemma. Customers and their money are obviously pouring in via the mobile channel, and you want to capture those orders. Yet with mobile fraud also soaring, you also risk higher fraud losses.
This is where the clever part comes in. There are fraud prevention solutions out there that actually help improve mobile conversion rates (while reducing fraud)! How is this possible?
Here are three of the ways the right fraud prevention solution can help online Electronics retailers boost sales through the mobile channel:
- More precise mobile screening technologies. Mobile devices introduce new factors that complicate the user verification process. But with more accurate, more precise mobile screening, you can better quantify the risk and approve more orders with greater confidence. Look for these essential mobile screening capabilities:
- Know if a mobile device is being used for a transaction. Enterprise-class fraud solutions determine if a mobile device is being used, which provides clues about the customer/fraudster that can be helpful in assessing fraud risk, including if the person is using a mobile app or mobile browser.
- Identify what type of mobile device is being used. Different mobile devices have different fraud and purchase profiles. For example, iPads generally have higher average ticket sales than Android smartphones. Use this knowledge to automate decisions about whether to approve, decline or review.
- Pinpoint the “real” location of the mobile device. Mobile devices often use proxy IP addresses or connect through carrier network IPs. This can distort the actual location of the device. If you lack the ability to gather true location data, fraudsters have another opportunity to mask their activity. Look for proxy piercing technologies that reveal the true device location so you can fight fraud better.
- Determine if the device is a pre-paid device. Pre-paid devices are used by fraudsters at a higher rate than other mobile devices. Knowing whether or not a transaction originates from a pre-paid device lets you better quantify the risk of fraud.
- Know if the phone number being used is a forwarded number. In account takeover schemes, fraudsters will forward a customer’s phone calls to their (fraudster’s) phone. If a merchant or bank calls to validate a transaction, the fraudster can take the call and (fraudulently) approve the transaction. But technology that alerts you when a phone number is a forwarded number lets you take steps to thwart this scheme.
- Associate other transactions with the device. This capability is often called “order linking” and can reveal if a mobile device involved in a transaction has been associated with prior fraudulent behavior.
- Know if financial information has been compromised. This “Persona” technology (powered by AI machine learning) goes beyond “order linking” to not only link the device to past transactions, but the credit card, IP address, geo-location and more.
- Mobile-centric “decisioning” engine. Armed with precise mobile screening data, a true enterprise-class solution can apply mobile-specific rules and algorithms to better weigh fraud risk in mobile orders. For example, a transaction that might appear suspicious and merit a decline if originating from a desktop can be approved by a mobile-centric decisioning engine that is able to factor in ALL the mobile signals. The result is higher mobile order approval rates without increased fraud losses
- Faster mobile checkout. A frequently-quoted study found that 57% of consumers would abandon a web page after waiting three seconds for it to load. The same study also reported that every extra 100 milliseconds in load time results in approximately a 1% drop in sales. Yet ad hoc mobile fraud tools can add multiple seconds to the shopping cart refresh and load times, resulting in lost sales. Conversely, fraud solutions capable of rendering sub-second assessments help speed load times for mobile shopping carts, resulting in less abandonment and higher mobile conversion rates.
Are you like over 90% of online Electronics retailers that say mobile commerce is “very important or somewhat important” to their growth strategy? Then find out how clever mobile fraud prevention can help boost mobile sales, reduce mobile fraud and slash mobile fraud mitigation costs in the eBook: 7 Fraud Myths That Cost Online Electronics Retailers.