In the dynamic world of consumer promotions, businesses strive to engage customers, drive sales, and build brand loyalty.
One common tactic to achieve these goals is offering promotions, like Spend & Win contests, lucky draws, rebates, and discounts.
However, with the rise of digital technology, fraud has become a growing concern in this space.
According to Ravelin, 31% of respondents cited promo abuse as one of their top fraud risks alongside online payment fraud and account takeover.
Fortunately, receipt verification platforms are emerging as a powerful solution to combat fraud and ensure the integrity of consumer promotions.
Understanding the Fraud Challenge
Consumer promotions are meant to incentivize genuine purchases, but some unscrupulous individuals exploit these offers for personal gain.
They might submit counterfeit receipts, manipulate dates, or use multiple identities to claim rewards, costing businesses substantial amounts of money and eroding trust with honest consumers.
Consumer fraud can distort ROI figures because your promotion numbers will be inaccurate. This means your decision-making will be compromised because you’re relying on wrong data.
Using innovative technology such as SKALE’s Smart Receipts platform ensures that FMCG promotions are fair and gives a good shopper experience because the receipts are verified quickly, and the rewards are handed out right after receipt verification. Instant gratification matters.
Receipt Verification Platforms: A Solution that Works
Receipt verification platforms use cutting-edge technology to verify the authenticity of purchase receipts, significantly reducing fraud risks.
SKALE’s Smart Receipts platform allows for automatic verification of purchase receipts through the Optical Character Recognition (OCR) technology. OCR technology extracts data from scanned or uploaded receipts to ensure the receipt’s legitimacy.
In this way, FMCG brand not only can minimize the need for human interference to save time and resources, but it also minimizes the risk of fraud.
SKALE’s algorithm can detect duplicated and tampered receipts. This means shoppers cannot game the system.
Below are other features of SKALE’s Smart Receipts Platform:
- Data Validation: The platform cross-reference data like purchase date, store location, and product details with a trusted and robust database that was built during the setup phase to confirm the receipt’s accuracy.
- Anti-Duplication Measures: SKALE’s Smart Receipts technology can detect duplicate submissions from the same individual, preventing multiple claims on a single purchase.
- Geo-Location Verification: By verifying the location of the purchase, the platform ensures that the receipt aligns with the customer’s claim.
- Consumer Device ID: SKALE’s Smart Receipts platform also detects fraud by checking the shopper’s device ID. So, if they register for another account but use the same device ID, then they cannot proceed and try their luck once again to win a prize.
- Timestamp Authentication: Receipts are checked for timestamps, ensuring that they are timely and valid.
Benefits of Receipt Verification Platforms
Implementing receipt verification platforms offers several benefits:
- Cost Savings: By reducing fraudulent claims, businesses save money that would otherwise be paid out illegitimately. Imagine handing out rewards to fraudulent winners.
- Enhanced Trust: Honest customers appreciate the effort to ensure fairness, which strengthens brand trust and loyalty.
- Data-Driven Insights: Receipt verification platforms generate valuable data that can inform marketing strategies and enhance the customer experience.
- Streamlined Processes: Automation simplifies the verification process, reducing administrative burdens.
Fraud can undermine the effectiveness of Consumer Promotions
Aside from mitigating fraud risks, real-time receipt scanning platforms like SKALE’s Smart Receipt improve customer engagement because the value exchange is instant, as compared to manual verification which is delayed and susceptible to human error and fraud.
By using technology to validate purchase receipts, FMCG brands can protect their promotional efforts, build trust, and continue to engage their customers with confidence in the integrity of their Spend and Win contests.
Embracing these platforms is a step towards a brighter, more secure future for consumer promotions.