Machine learning solution for real time fraud detection and verification

Case Study

Machine learning solution for real time fraud detection and verification

Challenge

In an increasing online world and many devices / channels for placing an order, customer fraud is becoming the biggest reason for margin erosion. In the last two years, online order fraud is growing twice the rate of online sales and the industry average ranges from 14 – 27%.

As retailers grapple with this problem and implement varied solutions for fraud-detection and verification, the most common problem is “false positives” – orders which are not fraud but classified as fraud. This is resulting in loss of a different kind – declining customer satisfaction and increasing customer frustration; During the holiday season such scenarios will lead to a significant loss of loyal customers.

Approach

Convergytics deployed a machine learning solution built on a big data enabled data layer to enable accurate fraud detection in real time. The solution which used a combination of unsupervised, supervised and heuristic analysis increased prediction of accuracy from 82% to nearly 93%. 

 

The different levels of fraud severity have helped in implemented less intrusive tiered verification process.

Result

Our client has realized in nearly $200 Million in savings in the last holiday season and has seen an uptick in the customer satisfaction by 14%.

Savings up by

$200 Million

Uptick in the Customer Satisfaction by

14%

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Augmented intelligence to enable dynamic customer journey orchestration

Case Study

Augmented intelligence to enable dynamic customer journey orchestration

Challenge

Many retailers are zeroing in on a strategy to better understand and map how customers use multiple channels to evaluate and purchase. Every purchase journey is unique and understanding today’s winding, end-to-end shopping journey is even challenging; now if a marketer has to orchestrate a strategy to best engage a customer in the purchase journey, it becomes even more challenging

Retailers today are faced with the challenge of managing large volumes of data and create a 360 view of the customer. Lack of an integrated view is a major deterrent to help retailers understand where the customer lies in the purchase journey, what his shopping preferences and how best to engage them with personalized targeting – all these are resulting in an incoherent targeting strategy

Approach

For a leading retailer, Convergytics developed an augmented intelligence framework built on a foundation of Customer 360 to enable dynamic, real time journey orchestration. The solution enabled our client to be proactive in engaging customers and implement a real time marketing activation strategy; the solution is now central to all marketing efforts and drives accelerated conversion through personalized offers to each customer

Result

As a result of the engagement, the retailer saw an increase in sales by 23%. In addition to the incremental sales, customer targeting strategy evolved from a siloed, reactive approach to a centralized and real time targeting with ability to engage customers with personalized content (right product, right offer and right channel) 

Increase in sales by

23%

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