can fraud alerts raise customer loyalty?
TRANSCRIPT
Can Fraud Alerts Raise Customer Loyalty?Find out in “The Sizzling Maui Beach Chair Mystery”
©2014 Fair Isaac Corporation. All rights reserved. 2
The Sizzling Maui Beach Chair Mystery!
“Who done it?” (And who done it right?)
Julie, a top executive at a Paris-based consulting company, is vacationing on Maui. She goes into the Walmart store at Kahalui to pick up a couple of beach chairs. This should be a quick, easy purchase—she’s impatient to get to the beach—but there’s a problem…
©2014 Fair Isaac Corporation. All rights reserved. 3
The Sizzling Maui Beach Chair Mystery!
Julie’s credit card is deniedProbably because she’s never been to Maui before or made a purchase at this store
Whatever the reason, Julie isn’t happy. And she’s more impatient than ever to get to the beach.
She pulls another card from her wallet…Will the same thing happen again?
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The Sizzling Maui Beach Chair Mystery!
Bank B approves the transactionJulie heads to the beach and…
Arriving at the beach, Julie receives a self-serve auto alertShe taps a button to confirm it was actually she who made the purchase at Walmart. Now the bank knows Julie is in Maui, and Julie knows the bank is looking out for her.
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Feeling confidence in this card, Julie uses it for the rest of her vacation purchases.
How did Bank B get it right?
©2014 Fair Isaac Corporation. All rights reserved. 6
How Bank B got it right
This bank delivered superior service by understanding Julie and the best way to reach her
Score
DetectionCustomer transactions
Action
ResolveInterveneDecideAssess
Quick Operational Feedback
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How Bank B got it right
Advanced analytics like FICO’s Behavior Sorted Lists enrich Julie’s cardholder profile with detailed knowledge of her typical transactional behavior. With these insights, the fraud model is able to make a more refined decision.
Because the beach chair purchase at Walmart is not typical, the fraud risk score rises. But because Maui is consistent with Julie’s profile as a high-end spender, the risk is moderate. Fraud case management rules approve the transaction, then trigger an action to check with Julie to make sure the transaction was legitimate.
Favorite restaurant
Favorite ATM & amount
Favorite florist
Favorite fashion boutique
©2014 Fair Isaac Corporation. All rights reserved. 8
How Bank B got it right
An intelligent omnichannel communications manager determines that the best way to reach Julie in this instance is an auto-alert via SMS to her smartphone
A proximity check on her mobile phone location shows that she is roaming internationally. That further mitigates risk (if her phone were still in France while the transaction occurred on Maui, the likelihood of fraud would be much higher). It also indicates that the best way to reach Julie quickly is via her smartphone. Julie’s contact preference and past response behavior points to SMS as the best channel—but the auto-alert could also be sent via email or as a voice message.
©2014 Fair Isaac Corporation. All rights reserved. 9
Happy ending: Fraud checks can raise customer loyalty
Like Julie, most cardholders who receive auto-alerts are happy with the experience
Source: Results of surveys conducted by several European banks that are using FICO automated communications management for fraud alerts and self-serve resolution
91%happy with
auto-resolution
89%said the service
had increased their confidence in using
their card
78%agree strongly
that it’s improved quality of service
94%would recommend
service to family and friends
©2014 Fair Isaac Corporation. All rights reserved. 10
Happy ending: Fraud checks can raise customer loyalty
What if you could achieve 95% customer satisfaction with:
*Results based on a FICO client who wishes to remain anonymous.
30%fewer declines*
250%more fraud cases resolved
without adding staff*
Results like these can be your story too
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Earn a special place in the sun with your customersLearn more:Download the white paper on this topic:
Insights #64: Can Fraud Alerts Raise Customer Loyalty?Check out our blog:
Banking Analytics Blog
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