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Coupon fraud solution

How Retailers Can Ward Off Coupon Fraud During Black Friday and After

Coupons drive revenue. Surveys show that 71% online shoppers take advantage of coupons and deals during holidays and Black Friday sales. Moreover, a coupon offer could nearly triple conversion rates. Still, coupon fraud is common and risks undermining the marketing goals that drive coupons at best, and cause real losses at worst. The tools to stop coupon fraud lie with retail software solutions.

The retail industry is facing a growing wave of coupon fraud

It may seem innocent at first glance: double or repeated usage of a discount coupon. But misuse of coupons is costing retailers huge sums. The Forter Fraud Attack Index 2018 also suggests that incidence of coupon cheating is rapidly on the rise. There are plenty of tactics that consumers can use to try and get more than their fair share out of the coupons that retailers send them.

Customers can simply try to re-use coupons, which is particularly easy in cases where coupons are issued digitally or where customers scan coupons themselves, at a self-service machine. Craftier consumers will go as far as to register random email addresses in order to get additional, unique discount coupons to use – dumping their accounts as soon as they’ve placed their order.

Advanced tactics include creating and abusing referrer accounts in order to make repeated use of referral discounts, or trying to trick vendors into handing out underserved vouchers by intentionally abandoning carts. With a wide range of strategies at their disposal, some crafty retail customers will undoubtedly try and double or triple up on generous coupon discounts.

growing wave of coupon fraud

Digital coupons done right can stop coupon fraud

This does not mean that vendors are defenceless – instead, with the right strategy, retailers can ensure that discounts are always used as intended. At the core of a coupon fraud prevention solution is digital coupons that are engineered to block any attempts at double usage. A digital solution can be as flexible as print coupons – and doesn’t require huge investments from retailers either as digital coupons can be scanned using the same POS equipment that currently processes print coupons.

Digital coupons can use a multi-layered approach that is simply more capable of limiting double use and fraud than comparable paper coupons. A typical, effective, and simple process would look like this:

  • Customers download a digital coupon to their smartphone, using an app developed for the retailer.
  • Behind the scenes, a multi-layered coupon configuration is in place that acts to protect the intentions of the retailer.
  • Sophisticated technology assists reliable coupon redemption, including the triggering of a mobile device camera which in turn leads to a coupon code getting uncovered.
  • Redemption triggers full and irreversible deletion of the coupon, making sure that consumers cannot manipulate retailer intentions.

That said, digital coupon solutions are not just about restricting the use and preventing the abuse of coupons – digital coupons can also drive further retailer, customer interaction in today’s omnichannel retail environment.

Coupon fraud solution open

Driving revenue and customer satisfaction with digital coupons

Replacing classic, printed coupons with their digital cousins not only prevents fraud, but also helps drive revenue because digital coupons are capable of far more detailed data collection. However, digital coupons are technology-driven, and retailers are not always equipped with the required technological know-how.

At ELEKS we have extensive experience in developing software solutions for the retail industry. The company has recently obtained a US patent for a secure digital coupon solution enabling direct customer interaction, full personalization and foolproof incentive management.

Get in touch with us to discuss how technology can help you prevent coupon fraud and support customer engagement in an omnichannel retail world.

The Evolution of Retail Technology
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