Customer Story

Magnum Inc.

Company: Magnum Inc.
Location: Miami, FL
Industry: Beauty Products
Employees: 50
Client Since: 2014

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Challenge overview:

  • Faced chargeback rate of over 4%
  • Lost over $900,000 in chargebacks & fraud across multiple organizations
  • Previous provider not able to reduce chargebacks, with a win rate less than 35%
  • Looking to pinpoint root causes of chargebacks & see ROI in real-time

Solution:

  • Implemented FPR-360 tool to identify root causes of chargebacks
  • Identified traffic providers driving bad traffic & recommended blocking traffic from those providers
  • Recommended client increase customer service call answering time & had fulfillment center track return or refused shipments
  • Fought chargebacks using Smart Chargeback Representment

Key outcomes:

  • Recovered over $600,000 in 2016 with a win rate of 64%
  • Reduced chargebacks by 30% with FPR-360 tool & other prevention strategies
  • Increased customer retention by 19%
  • Reduced true fraud chargebacks by 11%

Switching Providers Pays Off

Magnum Inc. is an e-commerce business specializing in beauty products.


Challenges

When Magnum Inc. came to us in 2014, they were facing a chargeback rate of over 4%, resulting in over $900,000 in lost revenue from chargebacks and fraud across multiple organizations.  Their previous provider was not able to reduce chargebacks and had a win rate of less than 35%.  They were looking for a way to identify the root-causes of their chargebacks and wanted a way to track savings and ROI in real-time.

We switched from another chargeback company, mainly due to transparency issues, not getting reports on time, and also not having easy access to their support team.

Enter Chargeback Gurus

The Gurus began fighting chargebacks using Smart Chargeback Representment and implemented our FPR-360 tool to identify the root-causes of chargebacks.  This way, we would not only fight and recover chargebacks, but prevent them from happening in the first place.

We identified the traffic providers who were driving bad traffic to their site and recommended that they block traffic from these providers.  We also recommended that they increase customer service call answering times and had fulfillment track return or refused shipments.

Results

After making the switch to Chargeback Gurus, chargebacks were reduced by 30% with the help of the FPR-360 tool and the prevention strategies that were put into place.  They were able to recover over $600,000 in 2016 alone, with a win rate of 64%.  Additionally, the Gurus were able to increase customer retention by 19% and reduce true fraud chargebacks by 11%.

They have helped us recover over $100,000 annually across several of our companies by winning chargebacks and also by providing better analytics to help prevent them.