Enhancing the customer experience and delivering to more customers nationwide
Chargebacks, false declines, and cart abandonment rising
As Living Spaces continued expanding its digital commerce offerings, Living Spaces realized that chargebacks weren’t the only issue. The amount of revenue lost to false declines and cart abandonment multiplied, thanks to a legacy approach to fraud decisioning that relied on rules based on address verification. This meant sending legitimate transactions into manual review – overwhelming the customer service team and frustrating good customers.
An automated approach that does away with rules
Through the partnership with Forter, Living Spaces was able to implement a fully-automated approach that did away with the rules – leading to more approved transactions while also decreasing the number of chargebacks. And the shift away from rules also meant changing how the team operated. The customer service team, previously having to be constantly thinking about fraud and handling manual reviews, could now focus on the quality of customer service and providing the support needed for various other types of customer inquiries.
A better furniture shopping experience, positively impacting the bottom line:
- Increased approval rate from 92% to over 99%
- Increased top-line revenue by over 8%
- Reduced chargeback rate from over 50bps to below 6bps
- Reduced manual review rate from 25% to 0%, allowing the team to focus on customer service