Winning life time value of insulted customers
One of the most intriguing aspects of eCommerce is the amount of effort, time and money dedicated to bringing customers to the website compared to how little effort is made not to lose these customers to churn. Even the smallest of eCommerce sites will invest a fair amount in promotion, advertisement and advanced analytics but overall 70% of carts on the internet are abandoned, it is estimated that a third of these can be attributed to friction in the buying process.
Not all visits can be saved but working with FUGU allows the merchant to minimize the cart abandonment that result from friction by differentiating between transactions in terms of risk and evidence, which allows in turn to escalate friction (always framed as customer care) only with the minority that requires and deserves it, while allowing the vast majority a seamless experience.
Transforming pre-payment customer insults into post-payment customer care
This is more than an issue of revenue or a certain percentage of transactions that cannot be completed and are denied. What we sometimes fail to understand is the user experience of being unfairly denied. Research shows that customers take denial very personally turning very quickly against the merchant they feel has wronged them. Even if the merchant has legitimate reasons under current conditions to deny the transaction people still react furiously. The damage in this age goes well beyond the specific transaction that is lost, because it becomes a lifetime value loss. A customer denied by a smaller business will almost certainly turn to the bigger sites from which he will probably never return. Unfair denial as perceived by the customer can also lead to poor reviews on highly influential social platforms that are almost impossible to counter.
On the other hand fighting for a transaction offers the customer a positive experience that will keep him returning. FUGU achieves this by delaying denial until the point that the real risk is assumed. This leaves ample time for a variety of actions that will allow transactions that would have otherwise failed to be completed. The constant monitoring of risk and the collection of evidence is done automatically without increasing labor costs and the transaction is approved only when the merchant’s threshold of proof has been achieved. With these tactics the only customers lost are truly the ones you don’t want, while not losing even one hard fought customer lifetime value.