An omnichannel approach to commerce seeks to make transitions from one channel to the next seamlessly, providing the customers with a friction-free experience from search to receipt.
Research shows that omnichannel shoppers are more valuable than those who only engage with retailers in one place. They spend on average 4% more money every time they are in a brick-and-mortar store, and spend 10% more when shopping online, comparing to shoppers who interact with a brand on just one channel, like via television ads or only on social media. Supermarkets, restaurants, hotels and sports shops that once relied solely on POS payments have embraced a large number of new digital channels which resulted in a channel explosion.
And the reality is that the consumers benefit from omnichannel shopping experience, and vice versa. The retailers are creating a seamless and hustle-free experience that integrates different forms of technology, answering in that way customers’ needs, and presenting themselves as modern, perceptive and responsive. In the same time, they gain customer loyalty.
Omnichannel gives organizations a strategic capability to get close to their customers they couldn’t even have imagined 20 years ago.
Customers can shop wherever and whenever they choose, also choosing the way they pay and have the goods delivered to them, which in turn improves the sales. And by interacting with companies through channels like social media or e-mail newsletters, they get more personalized offers, while retailers collect valuable consumer data which they might use to attract new customers. In short, it’s a win-win situation from that perspective.
An ever-expanding choice of payment methods and devices are an answer to the growing demand for omnichannel shopping, but they are also creating a number of challenges, including heightened exposure to risk and increased complexity for fraud management.
Consumers operate across a number of channels, but they are not the only ones. Fraudsters are too, and not only that, their methods are fast-changing and constantly adapting to technological changes. That’s why it’s essential to employ omnichannel fraud management tools which are smart and flexible.
“The future of fraud detection technology is that it will become more reliant on increased information of better quality. The technology will need to take a more holistic view across as many channels as possible – not just financial transactions – but any transactional data that will help in the detection of possible fraud”, said Simon Breeden, Senior Fraud Solutions Consultant at NCR Limited.
To be able to use true omnichannel detection is a significant challenge. Mr. Breeden explains, “If it were easy, everyone would be doing it! The challenges lie in being able to associate different vertical silos of information horizontally, across all the channels, therefore creating an accurate cross reference grid of information pertaining to an individual.”
According to ACI Worldwide and Forrester research, merely 46 percent of merchants use fraud management solutions across all purchasing channels because the problem with a holistic approach to fraud detection has many layers. Merchants want to find a solution but 65 percent of them believe they lack adequate fraud management tools, and they also lack skilled employees with adequate competencies needed to deal with omnichannel fraud.
“The future of fraud detection technology is that it will become more reliant on increased information of better quality. The technology will need to take a more holistic view across as many channels as possible – not just financial transactions – but any transactional data that will help in the detection of possible fraud”, concludes Mr. Breeden.