Holland Watch GroupConverting luxury goods retailer to full automation
Since its incorporation, Holland Watch Group (HWG) has quickly expanded from a devoted Swatch e-commerce website to a global online watch retailer with a stronghold in the European market. Despite a strong online presence, HWG believes in the ‘bricks and clicks’ business model, providing the convenience of an online store together with the security of physical stores for consultations and repairs.
Its ability to provide efficient product delivery service as well as a wide range of popular watch brands differentiates it from its competitors, making it a leader in its field.
- Merchant faced low revenue as a result of high cost of managing fraud and limited transaction volumes
- After CashShield, manual reviews are completely eliminated with instant and secure delivery of results
- Increased acceptance and unique acceptance rates
- Substantial revenue growth since adoption
At a glance
Increase in number of transactions
Unique Acceptance Rate
HWG’s main export is luxury watches, all of which are therefore expensive and largely big ticket items. In consequence, the cost of any fraudulent transaction or unauthorized chargeback was extremely high, even though the fraud risks of a physical goods retailer is often lower compared to its digital goods counterpart.
As with what most companies did, HWG set up an in-house fraud verification team and relied completely on manual reviews. Since every single transaction that was submitted to the website had to be manually reviewed, this led to a severe decrease in user experience, with unnecessary long waiting periods for genuine customers. At the same time, since each fraud verification officer could only process that many transactions a day, daily transaction volumes were restricted. Both problems combined to limit business potential to receive more transactions from genuine customers.
THE SOLUTION & RESULTS
With CashShield’s fully automated service and self-developed unique risk management algorithm that generates decisions, manual reviews were completely eliminated, while all results were instantly delivered within milliseconds. Since the tedious and costly manual review process was removed, HWG was able to save on cost and resources to use them more efficiently elsewhere.
Rather than a risk adverse approach to concentrate on lowering fraud to zero, CashShield is designed to optimize sales. Its optimized A.I. solution ensures that once integrated, it is programmed to boost sales immediately, without any ‘down time’ for our machine to start learning. Upon connecting to our API, HWG has managed to achieve significant increase in approved transactions, up 645.53% in the first two months. Its unique acceptance rate has also increased, averaging at 99% each month.
At the same time, CashShield managed to shift HWG out of the 3DS system (notorious for higher cart abandonment rates and lower conversion rates due to its poor user experience) to accept only 3DS transactions.
While reducing the cost of managing fraud as well as fraud losses (with our 100% Chargeback Protection), CashShield has also managed to allow for greater revenue growth. Not only does the removal of manual reviews and streamlined user experience contributed to more accepted transactions daily, since HWG no longer has to worry about fraud risks, they can accept more transactions and allow for limitless expansion globally.
Not only does the removal of manual reviews and streamlined user experience contributed to more accepted transactions daily, since HWG no longer has to worry about fraud risks, they can accept more transactions and allow for limitless expansion globally.