DICK’S Sporting Goods
In search of a fraud solution that could increase revenue, streamline operations and improve customer experience, DICK’S Sporting Goods turned to Cybersource.
Fraud management strategy drives growth
The company first implemented our Decision Manager solution in their Golf Galaxy and Field & Stream business in 2014, then extended the solution to all DICK’s channels three years later.
Here’s how we teamed up to accelerate eCommerce growth:
Accepting more good orders with Decision Manager
49%
30%
REDUCTION IN MANUAL REVIEW
15%
DECREASE IN CHARGEBACKS
Background
DICK’S Sporting Goods is a leading omnichannel sporting goods retailer with more than 700 stores in 47 states. Over the past several years, DICK’S has significantly expanded its eCommerce business.
Beyond building web-based sales channels for all three brands plus a mobile app for DICK’S, the company has enabled a variety of omnichannel experiences, including buying online and picking up in-store.
Challenge
As DICK’S expands its eCommerce presence, effective fraud management continued to be a top priority. “We want to keep our manual review rate as low as possible while passing through as many orders as we can,” says David Lund, Vice President of Loss Prevention at DICK’S. “At the same time, we want to minimize friction and deliver the best possible experience for our athlete customers.”
To address these goals, the company implemented Cybersource’s Decision Manager fraud solution for its Golf Galaxy and Field & Stream businesses in 2014 and has been successfully using this solution for more than five years.
Unlike Golf Galaxy and Field & Stream, the company had completely outsourced eCommerce and fraud management for DICK’S channels. But then, in 2017, company leadership decided to make a change. “We wanted to control our own destiny,” says Lund. “By outsourcing, we didn’t have access to our own information, and we weren’t making decisions on our own orders. We wanted to bring eCommerce in-house so we could manage the site, the customer experience, and our own future relative to orders and chargeback rates.”
Solution
After deciding to bring fraud management back in-house and considering several fraud management alternatives, DICK’S turned again to Cybersource and adopted Decision Manager.
“We had a few years to refine our craft at Golf Galaxy and Field & Stream before ramping up for DICK’S,” says Lund.
Reducing rejected orders and boosting revenues
By implementing Decision Manager and drawing on Cybersource’s expertise to help optimize fraud rules, DICK’S reduced its rejected orders by 49 percent during the first year, which resulted in increased accepted revenue. “With Decision Manager, we can make sure that when an athlete comes to our site, that athlete can place an order with minimal friction,” says Lund.
Reducing manual reviews
DICK’S is also improving the efficiency and effectiveness of manual review. In one year, the company has sent 30 percent fewer orders to manual review while increasing its review reject rate by 16 percent. In other words, reviewers are spending more time on the orders that should be scrutinized, rather than wasting time reviewing legitimate purchases.
Driving down chargebacks and reducing direct losses
Layering a rules-based approach onto machine learning models has helped DICK’S drive down the number of chargebacks by 15 percent, which in turn has decreased dollars lost. “By reducing chargebacks, we’ve been able to give some revenue back to the company,” says Lund.
Supporting an expanding business
Lund continues to develop new strategies and investigate technologies that can further improve fraud management and athlete satisfaction. “With our commitment to have buy online, pickup in-store orders ready in one hour, we are leveraging Cybersource’s Decision Manager to achieve increased operational efficiency.”
Key takeaways
Increased revenue by reducing rejected orders
Gained scalability for greater transaction capacity
Improved the customer experience by reducing false positives
Key Takeaways
Increased revenue by reducing rejected orders
Gained scalability for greater transaction capacity
Improved the customer experience by reducing false positives
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