To improve the decision-making process for order acceptance, a technique called email risk scoring is used. This technique includes steps such as email address validation and name verification, taking into account various factors. It is also possible to determine whether an email address is on a blacklist for potentially fraudulent transactions. In today’s article, we will try to explain the importance of risk scoring in email marketing. Let’s get started!
About Email Marketing
Before talking about email risk scoring, let’s talk a little bit about email marketing. Email marketing is a direct marketing method preferred by businesses and organizations to digitally promote their products and services to a specific target audience. This method stands out as an innovative, low-cost and effective marketing strategy. Email marketing, which continues its development with Web 2.0, has now become an indispensable part of strategic marketing activities. Marketing emails sent to consumers in a measurable, creative and optimized way increase interaction. Email marketing has an important place among digital marketing strategies and has many advantages such as high conversion rate, cost effectiveness and scalability. This method provides a simple, cheap and effective way to achieve business goals such as increasing customer loyalty, building brand loyalty, finding new customers, advertising and increasing sales. It also helps businesses attract more traffic and potential customers by integrating with other digital marketing channels. Let’s take a closer look into the benefits of email marketing together.
The Benefits
E-mail marketing provides various advantages to businesses. Firstly, email marketing offers businesses the opportunity to reach their target audience directly. As the algorithms of social media platforms change frequently and the organic reach of businesses decreases, direct email communication offers a more reliable way for businesses. Since the email list is fully under the control of businesses, they can more easily reach and interact with their target audience. Through customized campaigns and promotions, you can deliver content targeted to your audience’s interests and preferences.
In addition, email marketing offers businesses the opportunity to increase brand loyalty and strengthen customer relationships. Email communication allows you to interact directly with your customers and can make them feel closer to your brand. By offering offers such as special campaigns, discounts or loyalty programmes, you can motivate your customers and encourage them to make repeat purchases. At the same time, email marketing allows businesses to build a better relationship with their customers and offer products and services that better suit their needs.
Email marketing is also a cost-effective marketing strategy. While traditional marketing methods can often be costly, there are low or no shipping costs for email marketing. You can reach your target audience directly via email without having to invest in media tools or advertising space. This saves businesses money on their marketing budgets and makes it possible for them to reach a wider audience. In addition, email marketing strategies can offer a high return on investment despite their low cost. Research shows that email marketing can offer up to 24 times the average return on investment.
The effectiveness of campaigns can be easily measured with metrics such as open rates, click-through rates and conversion rates. Using this data, campaigns can be optimized and more successful results can be achieved. At the same time, thanks to email marketing, you can track participation in campaigns, better understand the needs of the target audience and target them more effectively. Due to its measurability and analysis capabilities, email marketing enables businesses to make a more efficient and effective investment compared to other marketing strategies. Let’s continue with the importance of risk scoring and why you need it.
Risk Scoring
One way to use data to make better decisions about accepting orders is by utilizing Risk Scoring, where factors such as address, and verification of social profiles are taken into consideration. Additionally, you can check if a specific mail address is blacklisted for phony transactions. Emails play an important role in detecting and preventing fraud. From opening online bank accounts to filling out card forms, registering social media, and conducting all types of transactions – people commonly use their emails in these everyday online activities. It has now become a usual requirement for making purchases to provide an email address. Personal email is especially the first barrier against fraud. In most cases, one uses the corporate email for the business while personal emails are mostly used on a personal level for activities like online shopping. Therefore, there are important reasons to use this technique.
Why You Need It
It is a technique where user information is used to find and stop fraud. The method allows you to decrease your chargebacks, that is, reduce the financial damage through fraudulent transactions. Fraudsters can be blocked even before they make a purchase of products and services using stolen card details from your website. Also, email risk assessment helps protect your users. Moreover, if an attack like account hijacking or unauthorized access attempts occurs in the system, you can check whether email addresses of users in the system have been changed; by doing so, it is possible to prevent these attacks as well. Through this process, identification of suspicious-looking email addresses flags potential fraud attempts and provides protection for customers. Email risk assessment, in addition to this, helps you prevent bonus abuse. This is because such programs are at risk of exploitation, especially where you use them as a marketing tool to attract new users by giving out promotional vouchers or referral programs. You can then capture negative users and prevent abuse during the registration phase using email address assessment. In closing, email risk assessment is also important to improve the KYC process. The information gathered from the email assists in authenticating your users’ identity and therefore helps prevent any legal fines. In this manner, you will be able to avoid fines and achieve better compliance in governance. Considering the advantages it provides, it would not be wrong to say that it makes a lot of sense to use this technique.
