For 60 years, Daytona and its parent company Neumasur have kept Argentine drivers rolling. Since 1962, the company has built a stable of global and regional tire brands, including Bridgestone and Firestone, for the passenger vehicle and pickup truck markets. The company sells these tires and other auto parts through its Daytona ecommerce store and 18 Daytona retail and service centers across the Buenos Aires metro area.
Daytona started making plans to further the company’s digital transformation more than a year before the pandemic struck in March 2020. With a sudden need to meet higher customer demand for online shopping, “we grew in a short time what we had planned to do in three years in terms of infrastructure,” said Diego Martinoli, Daytona’s Ecommerce and Marketing Manager. “To do that, we had to quickly identify what didn’t work and change it.”
As online order volume rose, it became clear that Daytona’s fraud prevention and chargeback management processes no longer worked. “The volume of fraud wasn’t much, but it was unacceptable because it generated more work for our team, looking through files and responding to chargeback requests.”
0
2
employees freed from chargeback & fraud management
78.6%
average monthly approval rate (Sept. 2021 – Feb. 2022)
The Challenge: Free Ecommerce Team from Fraud & Chargeback Management to Focus on Customer Experience
Daytona’s previous fraud prevention service provider was underperforming even before the pandemic hit, Marinoli said. “We didn’t have a good experience with them at the product level or after orders were approved. There was a lot of bureaucracy for us to deal with when we contested chargebacks.” From March 2020 on, his team found themselves pulled away from their core tasks to deal with fraud-related research and paperwork. “Our focus is to sell tires, parts, and service, but we had two of the five people on our team dealing just with chargebacks and fraud prevention. It created a lot of wear and tear on the team.”
The high number of chargebacks created other problems, too. In Argentina, as in many emerging ecommerce markets, comparatively high rates of fraud, slow in-house manual reviews, and false declines negatively impact the customer experience. “When a customer finds an online purchase on their account that was fraud, it generates distrust of that company,” Marinoli said. “It gives the impression that the brand is not serious about protecting them.” False declines also undermine brand trust by offending good customers, who often take their business elsewhere after a rejection.
“We’re always seeking to innovate and to improve the customer experience, so we started looking for options.” When Daytona connected with ClearSale, the company’s unique approach to fraud prevention and the ease of its implementation prompted Marinoli to give ClearSale a test run.
The Solution: ClearSale Total Guaranteed Protection
Daytona needed a fraud prevention system that prevented chargebacks. They also needed a solution that avoided false declines by correctly identifying good orders, even those from brand-new online consumers and from experienced ecommerce buyers who were shopping with Daytona for the first time.
ClearSale’s Total Guaranteed Protection solution brought Daytona more than 20 years of card-not-present fraud prevention experience, earned in some of the world’s most dynamic eCommerce markets. ClearSale’s proprietary, AI-driven statistical technology, backed up by the world’s largest team of CNP fraud analysts, combined with the company’s Total Guaranteed Protection chargeback insurance, delivered what Daytona needed.
ClearSale’s unique algorithm allowed it to evaluate customer behavior and history, where available, to accurately assess which orders were obviously fraud, which were clearly good, and which orders needed review by the company’s expert analysts.
With ClearSale handling these critical tasks seamlessly behind the scenes, Daytona quickly realized a suite of benefits, including:
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Higher order approval rates and fewer false declines, leading to more revenue and a better customer experience.
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No chargebacks. If Daytona does experience a fraud chargeback, ClearSale’s Total Guaranteed Protection program will cover the costs.
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Continuously improving service. As ClearSale’s AI-powered fraud controls learn Daytona customer behavior, they refine order screening parameters, reduce the number of manual reviews required, and accelerate the order approval process.
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Fraud screening that supports a variety of eCommerce payment options, including Daytona’s 12- and 18-month installment plans.
ClearSale also created a better employee experience for the Daytona ecommerce team by taking fraud and chargeback tasks off their plate. “Our people are now back to solving operation issues. ClearSale has given us the tranquility we need to focus,” Marinoli said.
The Results: No More Chargebacks, More Employee Time for Core Tasks, More Order Approvals
The first result of working with ClearSale was an increase in order approvals, Marinoli said. From September 2021 through February 2022, Daytona’s average monthly approval rate was 78.6%. That resulted in more revenue for Daytona and a better experience for good customers who might have been declined by Daytona’s previous fraud prevention solution.
Crucially, ClearSale kept approval rates high even when Daytona’s online store saw a dramatic spike in attempted fraud in November 2021. During that month, the total value of fraud attempts was six times higher than October 2021. ClearSale was able to maintain an above-average approval rate of 82.8% for November 2021 without allowing a single chargeback.
During the six-month period and after, Daytona incurred no chargebacks, which made a dramatic difference for the ecommerce team. “ClearSale delivered a 180-degree change in our order approval process. Before, we were spending too much time on order screening and chargeback management. Now, we save time, approve more orders, and we’ve had zero fraud,” Marinoli said.
Marinoli is free to steer the ecommerce team’s drive for better CX, too. “I no longer worry about fraud, because on top of what ClearSale does for us now, I know that they will continue to improve over time as they learn more about our customers. We feel that ClearSale is a good strategic partner, and we recommend them to our colleagues because they offer cost-effective, quality service.”
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