TheRetailer_Autumn_2019

The process starts with identifying where the leaks are. Building a dashboard that provides an end-to-end picture can be useful. Often different teams have insight into where the losses are, but they are sometimes siloed, making it difficult for any one person in the organisation to have the full picture. The example above is for illustrative purposes. Different retailers in different verticals are bound to have different leakage numbers. But the graphic shows how, little by little, (and sometimes not so little) sales and revenue are lost along the way. Stricter SCA, if not managed properly, for instance, could cause an even bigger spike in losses in the pre-authorisation and authorisation stage, where basket-abandonment lowers the percentage of orders that make it through. Once a retailer has a clear picture of where it stands, the next step is to establish a benchmark. How does a particular retailer’s revenue leakage compare to the average leakage in its particular vertical? There is a whole industry of consultants — including industry players such as Visa — who can help with the benchmarking process.

Armed with the knowledge of how it compares to industry averages, the retailer can then begin to focus efforts on the trouble spots that bring the greatest return or otherwise have the greatest urgency, as in the case of SCA. In some ways, framing the SCA requirements in the context of eliminating revenue leakage, has a side benefit. The framework simplifies the challenge and brings it into line with larger initiatives. After all, when viewed through the lens of revenue leakage, implementing effective and frictionless SCA is really just about picking up found money.

ED WHITEHEAD //ed.whitehead@signifyd.com //0203 542 4060

the retailer | autumn 2019 | 33

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