Signifyd is again the leading commerce protection provider to ecommerce’s largest brands, according to Digital Commerce 360, which called Signifyd the top Payment Security and Fraud Prevention Solution Provider for the third year in a row.
Digital Commerce 360 lists the industry’s top vendors in its annual “Leading Vendors to the Top 1000 Retailers” report, which also explores new ways in which online merchants are deploying ecommerce tools and technology to increase profits and better serve their customers.
While the report’s rankings are important in pointing merchants to the best ecommerce vendors to help them succeed, it also explores merchants’ thinking through a detailed survey. This year’s survey illustrates how difficult it is to juggle all the competing requirements for digital commerce companies to be successful and how important it is for an ecommerce business to view entire customer journeys when making tech investments.
Consider the following findings in this year’s “2024 Leading Vendors to the Top 1000 Retailers” report:
- Retailers will spend more on technology in 2024 — 63% said so.
- Equal numbers will pay to increase conversion and improve customer experience — 57% in both cases.
- 48% said technology spending for improved payments and payment security had effectively increased conversion in 2022.
- One in 10 placed improving payments and payment security among their top five 2024 priorities.
Where digital commerce companies are spending in 2024
You probably see where this is going. The surveyed retail leaders said they wanted to increase conversion and provide better customer experience. The vast majority said that’s where they’d be spending their money. A smaller number — only 10% — said improving payments and security, including fraud protection, was a priority.
That’s a disconnect. Here’s why: Investing in a future-focused payment stack is a key to increasing conversion and providing a better customer experience. An often-quoted study from 451 Research found that poor payment strategy — limiting payment options and incorrectly declining legitimate orders — cost retailers $36 billion annually.
That’s a lot of cart abandonment and lost conversion. And the customer experience? The damage there goes without saying. OK, we’ll say it: When a legitimate customer is turned away for no good reason — and that experience accounts for $16 billion of 451 Research’s number — it’s a bad user experience. Bad enough that a sizable portion of those customers are finished with the retailer who turned them away.
Furthermore, 451 Research discovered during the COVID-19 pandemic that retailers who considered payments a “strategic area of focus” were in a better position to succeed than those who were not.
Optimizing payments is a key to better user experience
In fact, of the retailers who said payments was “a highly strategic area of focus, 55% said at the time that the COVID-19 outbreak was having a positive impact on their sales,” 451 Research reported in “Payments in the (New) Roaring Twenties.” Among those who described payments as somewhat or not at all strategic, only 25% said the pandemic was having a positive effect on sales, according to the report.
Signifyd Chief Customer Officer J. Bennett made a similar point in an interview included in DC 360’s “2024 Leading Vendors to the Top 1000 Retailers,” explaining that the job of risk intelligence teams goes well beyond stopping fraud.
“Instead of stopping loss, they’re charged with maximizing conversions and minimizing bad approvals,” Bennett said in a Leading Vendors report Q&A. “When they do this successfully, customer satisfaction scores go up. The best risk management teams are now seen as a driver of business growth rather than a cost center that needs to be managed.”
In short, risk intelligence teams at successful retailers are focused on maximizing conversions and contributing to a customer experience that brings customers back repeatedly and builds long-term customer value.
DC360 listed Signifyd among the best ecommerce vendors for the third time
The 2024 report marks the third year in a row that Signifyd was listed as the No. 1 solution provider offering payment security and fraud prevention for the largest online retailers in the United States. The list is assembled based on the number of customers a solution provider has among Digital Commerce 360’s Top 1000 retailers, based on revenue.
The continued success comes at a time when payments and risk are rapidly evolving. As ecommerce has grown as a portion of retail sales during and since the pandemic, fraud and policy abuse have grown with it. All of which has led to a new breed of risk intelligence professionals.
“The retailers that are successfully managing these risks are working more cross-functionally within their organizations than ever before,” Bennett told Digital Commerce 360 for its report. “They’re working with marketing to understand the promotions they’re pushing and the customers they’re trying to attract; with the payments team to understand loss prevention and with operations to understand fulfillment.”
Signifyd’s third consecutive appearance on Digital Commerce 360’s list comes amid a series of accolades, including being named to Fast Company’s 2023 Most Innovative Companies list for its work in artificial intelligence and among Deloitte’s 2023 Technology Fast 500 winners.
Feature image by Signifyd
Could the leading payment security and fraud prevention vendor help you with the challenges you face?