PetSmart acquired Pet360 for $130 million in cash and up to $30 million more in future performance-based payments.
A new risk management tool cuts down the time the retailer spends manually reviewing orders.
PC Mall Inc. says it will save nearly $250,000 this year after switching to CyberSource Corp.’s Decision Manager System.
The online-only computer and electronics retailer previously used CyberSource Advanced Fraud Screen, which provides a fraud risk score based on factors such as disparities between a cardholder’s billing and shipping address, unusual purchase patterns and the purchase time of day.
Using only that system the retailer manually reviewed 50% to 60% of its web orders that received less than a designated score. That required hours of staff time and meant it took longer for the retailer to send consumers an order confirmation, says Daniel Reid, credit manager at PC Mall, No. 98 in the Internet Retailer Top 500 Guide.
“The scoring model worked, but it was slow,” he says.
That’s why PC Mall switched to CyberSource’s Decision Manager System last September. After inputting a variety of criteria, such as the risk score and order value, into the system, the decision manager automatically reviews and approves most of the site’s orders.
The retailer reduced the number of orders it manually reviews to 20% to 30%, says Reid. And that speeds along the customer experience, he says.
“It used to be that our customers would have to wait two to three hours for us to manually review an order and approve it,” he says. “Now it’s less than an hour, and sometimes just minutes, which means the customer gets their confirmation much, much faster.”
Moreover, the retailer has cut its fraud rate 10 basis points, which Reid attributes to his staff’s lower manual review caseload. “We can pay closer attention to the orders and focus on those that need the extra verification,” he says.
The automation has also allowed the retailer to reduce its staffing by 30%, which, along with the time savings from reducing the manually review caseload, corresponds to about $250,000 in savings, says Reid.