Unchecked chargebacks can have a devastating impact on your e-commerce business. Not only do you lose out on the value of a sale, but your business may suffer from additional fees and reputational damage. Major payment processing platforms may even choose to ban you, causing potentially severe financial penalties.
Fortunately, you can limit and even reverse the damage caused by unnecessary and fraudulent chargebacks with the right customer relationship management (CRM) system. Advanced CRM systems have come a long way in recent years and now include a variety of capabilities, from sophisticated alert and information transmission systems to AI-powered predictive insights driven by complex data analytics.
What are chargebacks and how can they damage my business?
A chargeback occurs when a customer contacts their bank to dispute a payment. Many customers file chargebacks due to fraudulent activity. For example, someone may request a payment cancellation if their credit card has been stolen or if a merchant failed to deliver an online purchase.
However, many individuals initiate chargebacks for less scrupulous reasons, committing what’s essentially theft in the process. In addition, a payment processor may stop working with you if you receive an excessive number of chargebacks.
Because chargebacks are adjudicated by credit card companies, these disputes can turn into a frustrating experience with limited transparency.
How advanced e-commerce CRMs can reduce chargebacks and fraud
Utilizing an advanced CRM system for your business can help you identify problem customers and suspicious transactions early on. These systems can also help you deal with legitimate problems in a timely and efficient manner by connecting employees across teams and verticals for a more cohesive response.
The importance of early detection
Advanced CRM systems can help you detect potential fraud before it becomes a problem. For example, sophisticated systems can help centralize your data. In turn, you can use this aggregation to glean actionable insight and identify emerging patterns pertaining to returns and chargebacks. These patterns can inform your overall business strategy in two key ways:
- Identify frequently returned items: Not all chargebacks are the result of fraud. In fact, many chargebacks are made in good faith by customers who’ve received substandard products or services. A CRM system can help you quickly and efficiently identify which products have the highest return rates. You can also get actionable tips on how to improve your offerings through notes left by customers and service representatives.
- Spot suspicious activity quickly: An advanced CRM system can help you quickly identify buying patterns that depart from the ordinary. For example, CRM software can raise an alarm if a regular customer suddenly makes a large purchase that deviates drastically from their normal buying patterns.
Improve operational efficiency and coordination
Integrating an advanced CRM system into your current operational framework can improve efficiency by enhancing coordination across your organization. Frontline customer service staff can leave notes and directly communicate with important stakeholders who might not otherwise have an opportunity to directly interact with this portion of the business.
Get detailed documentation on every stage of the buying process
An advanced CRM system can provide detailed documentation on every stage of the buying process. From the initial transaction records to payment authorizations and shipping records, you’ll have all the information you need to dispute a chargeback in one place.
Use Konnektive LLC to prevent chargebacks and fraud at your e-commerce business
Konnektive LLC offers a powerful suite of tools that you can use to identify, reduce, and even prevent chargebacks and fraud. From powerful automations to horizontal integrations and plug-in capabilities, Konnektive’s CRM makes it easy to stop chargebacks at the source.
Save money and prevent fraud with Konnektive’s CRM. Set up your free demo today and take back your business.
