Hot Topic Inc. is responding to rapid e-commerce growth by bolstering its authentication process for online orders.
The specialty mall retailer of officially licensed entertainment and music merchandise has seen a sharp increase in digital sales in recent years across both its Hot Topic and Box Lunch banners. However, Hot Topic found this growth also burdened its manual fraud review process and resulted in many legitimate orders being mistakenly rejected.
To rectify this situation, Hot Topic decided to replace its manual rules-based assessment process with the Signifyd Commerce Protection Platform, which is based on data collected from the Signifyd Commerce Network data of more than 10,000 global retailers.
Nearly all online purchases made on the Hot Topic and Box Lunch e-commerce sites are made by consumers previously seen across Signifyd’s Commerce Network. This enables Hot Topic to instantly recognise new customers as legitimate, rather than turning them away. In addition, Signifyd’s machine learning models provide full order automation, while Hot Topic’s previous manual review process took up to 24 hours to process orders.
Since implementing the Signfiyd solution, Hot Topic has seen online purchase approval rates rise to over 99 per cent while 94 per cent of previously declined orders were subsequently approved. After accurately separating fraudulent orders from legitimate ones, Hot Topic obtained millions of dollars in found revenue and improved its overall customer experience, aiding efforts at building loyalty.
