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LibraryblogManaging marketplace customer churn | how big is the problem and how can you fix it?

Managing marketplace customer churn | how big is the problem and how can you fix it?

Marketplaces have always faced a delicate balancing act between securing their platforms and ensuring friction-free customer experiences. New research, however, reveals the size of the challenge, with customers routinely dropping out of the sales funnel when confronted by frustrating processes

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Author
Chris Hooper
Director of Content at Veriff.com
September 29, 2023
Onboarding
Marketplaces
Identity Verification
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Smart automation eases customer frustration at key touchpoints

Marketplaces have always faced a delicate balancing act between securing their platforms and ensuring friction-free customer experiences. New research, however, reveals the size of the challenge, with customers routinely dropping out of the sales funnel when confronted by frustrating processes.

The analysis, published by BusinessWire, reveals a toxic mix of overly complex and lengthy procedures, with identity verification named by more than a quarter of businesses as the single biggest trigger of customer churn.

Faced with such a pressing CX challenge, more and more ecommerce firms are turning to smart automation to maximize both platform security and customer conversion/retention rates.

The benefits of smart automation

Market-leading automated solutions verify customer identity in a swift, seamless, and secure way. This accelerates the customer journey, reduces customer frustration and churn, while also maximizing trust levels and the number of legitimate customers a marketplace can onboard. 

Finding the perfect identity verification solution can be tough, however. Not only must it ensure customer interactions are fast and pain free, it must also achieve high accuracy rates, integrate with the marketplace’s existing tech stack in a non-disruptive way, maintain a secure environment and mitigate any impact to the company’s existing apps. 

Introducing Identity Verification (IDV)

A solution known as identity verification (IDV) is now at the forefront of efforts to verify legitimate customers. This approach involves the customer taking photos of government-issued identity documents (such as a driver’s license and passport) and then taking a selfie of themselves in real time. Market-leading IDV solutions, such as Veriff’s, can complete this verification process in just six seconds, while recognizing identity documents from across the globe.

IDV involves no laborious form-filling by the customer, no manual processing by the marketplace and no long wait times for either party. Customers are also spared the fuss and frustration of being locked out of their accounts because they’ve forgotten their mother’s maiden name or their favorite food.

Market-leading IDV solutions, such as Veriff, are already achieving game-changing improvements for firms in a wide range of sectors, from finance to ecommerce. Forrester recently analyzed the performance of Veriff’s IDV solution, and found that a company partnering with Veriff:

  • Reduced revenue lost to fraud by 20%, saving the company $7.4m over three years. 
  • Enjoyed customer experience benefits valued at $18.4m by Forrester over three years, and a total return on investment of 195%.
  • Could save $11m over three years, thanks to efficiencies linked to automation. 

Veriff’s solution is a particularly good fit for the marketplace sector, offering a winning formula of speed, processes, reliability, uptime, expert guidance, support, security, data protection (encryption of data at rest and in transit), cloud security, data privacy & support of GDPR requirements, which sets it apart.

Our IDV platform puts market-leading identity verification within your reach. Plus, you can also tailor your verification processes to suit your marketplace and brand.

If you’d like to learn more about how we can create an identity verification process for your business, get started with us today and book a personalized demo.

Learn more

Our IDV platform puts market-leading identity verification and high trust well within your reach. Plus, you can also tailor your verification processes to suit your industry and brand. If you’d like to learn more about how we can create an identity verification process for your business, get in touch with us today and book a personalized demo.