Reducing online fraud: THG Ingenuity X Dermstore

Dermstore challenges

£1.5M recouped in revenue

63.8% reduction in fraud check delays

Prior to migration, on any given month, Dermstore’s referral rate of 9.24% caused a delay in fraud checks because an order would be waiting in the queue for on average 29 hours before an analyst could manually review it and make an informed decision.  

This caused a 68% decrease in the number of orders requiring manual review, which cut down the time an order was being held in the queue from 29 hours all the way down to 10. 

As a result, this enabled the business to release its order shipments to consumers at a much faster pace. With fewer order flows interrupted and more transactions being approved, Dermstore recorded a substantial improvement in customer retention and customer satisfaction.

96.6% reduction in chargeback rate

During the peak of the 2020 holiday period, Dermstore was hit with a spike in chargebacks.  

After migrating to the THG Ingenuity's platform in early 2021, Dermstore’s chargeback rate reduced from 3% in December to an all-time low of 0.1% by April 2021.

81.5% reduction in false positive
rejection rate

False positives are notoriously known as the “Silent Revenue Killer”. Clients using our fraud detection solution typically have very low false positive rates and by deploying the solution, Dermstore’s false positive rate rejection rate of 34% was cut down to single digits.

Given the large volumes that needed to be processed, Dermstore was able to leverage the platform's advanced capabilities in making more accurate decisions. 
 
As a result, Dermstore’s false positive rejection rate was successfully reduced from 34% down to 6.3%, subsequently causing a considerable increase in revenues for the brand.