3 ways to balance fraud prevention with good CX
Why customer experience matters
Businesses can deliver an excellent customer experience (CX) if they leave a customer with a positive impression of their brand, products, and services across all stages of their customer journey. Please do this by listening to the voice of the customer and understanding the various touchpoints they undergo during their customer experience journey.
A good customer experience strategy matters as it sustains the growth of your business by encouraging brand loyalty which increases revenue. For example, Salesforce reports that 67% of individuals indicate that they would pay more for better customer experience.
What is the impact of fraud prevention on good CX?
While the importance of customer experience management has increased, so has fraud prevention for businesses. Preventing fraud is a top priority at 70% of firms for two main reasons: loss of revenue and customer confidence. However, businesses currently implement complicated or outdated fraud prevention measures which create frustrations along a customer journey and erode good CX.
These systems are often supported by multiple security hurdles which cause ‘high friction’ for customers leading to less engagement and revenue. So, how can you balance fraud prevention with good CX to create a ‘frictionless’ experience?
3 tips to balance fraud prevention with good Customer Experience
Create a seamless customer experience
All customers are different and want to use a channel of their choice when communicating with companies. Millennials, generation X and generation Z prefer to use mobile apps as their first choice as opposed to other digital channels. Alternatively, traditionalists/baby boomers want to use text/SMS or online portals as their first choice.
Although customers communicate through different channels, businesses should create a seamless customer experience model by developing a single thread of conversation for this customer. In this way, any team member can view the entire customer journey, regardless of whether they work and where the conversations happened. In this way, team collaboration allows customers to complete any action on any customer experience platform.
For instance, as part of their fraud prevention process, businesses should ensure that new customers can save their desktop application as a draft for completion later on an app or by phone. In this way, customers can pick up where they previously stopped through any channel without starting from scratch.
Additionally, when existing Citibank customers use a click-to-call function within their banking app to phone customer service, their app security credentials can be viewed without needing to be verified again. Another customer experience example is the Bank of America, which allows customers to start an ATM withdrawal online and then use their debit card or smartphone to finish the transaction at the ATM.
Use an integrated identity verification (IDV) approach
Around 59% of firms are still dependent on insecure and outdated forms of IDV, such as knowledge-based authentication (KBA). Further authentication layers in addition to legacy such as these systems will lead to false rejections. For instance, this might involve users being locked out of their accounts as the data that businesses hold is no longer accurate.
A better fraud prevention plan involves the use of an integrated IDV approach is a mix of online, offline, and device-based methods that establish a complete picture of any customer. Adopting an integrated IDV approach can involve the use of passive authentication methods such as behavioral biometrics and mobile network operator (MNO) data.
Like MNO data, behavioral biometrics, which can develop personalized data based on a person’s typing rhythm, mouse movement, or screen swipes, can also be used across various channels. Biometrics can also strengthen your customer experience framework and fraud prevention process as it can achieve authentication in 5 seconds which is 80% faster than with passwords and PINs!
Device-based methods such as device-to-identity linkages and identity verification through MNO data can reduce false rejections and improve the customer experience journey. For instance, a fraudster cannot open back-to-back accounts from the same device without setting off an alarm.
Be transparent about security and act on customer experience feedback
Businesses can gain support for fraud prevention procedures by continually communicating the value of security and trust to their customers and employees. As 92% of customers want control over the information that is collected about them, asking them for permission to use their data can lead to customer experience improvement.
As part of a fraud prevention program, companies can develop robust privacy policies that educate customers on the safeguarding and use of their data. Employees also need to be trained on the importance of security so that they can also help inform the customer.
Furthermore, asking for customer experience feedback on your existing fraud prevention strategy can also improve customer experience. As 87% of customers believe in their ability to solve problems on their own, using this as part of your customer experience strategy will show that you value their input.
Businesses can balance fraud prevention with good CX by giving customers control over their data, using an integrated IDV approach across multiple channels, and using customer feedback.
You might also be interested in
Alon is an Israely product and marketing executive with a track record in leading customer centric product management and inbound marketing strategy. While improving user engemenemt and customer, I help Start Ups achieve product market fit and expand their online footprint. I specialize in technology, entrepreneurship, customer experience.