May 24, 2017
UPDATED March 1, 2020
Transaction Select is our value added service that provides clients the ability to set, by campaign, risk acceptance block rates for customers. By blocking customers (pre-authorization and before CPA) that have a risk accepted probability of refund, chargeback, or in-trial cancel, the feature increases Average Cycles and overall CLTV.
The feature allows you to build multiple Transaction Select profiles and assign them at the campaign level, giving you the ability to select the block rate – low, high, or anywhere in between – for each campaign.
Transaction Select is a managed service. This Managed service leverages sticky.io’s proprietary algorithm to block undesirable customers in the most efficient and effective manner. This algorithm has been designed and trained by our Data Scientist team to maximize the protection of your business and limit possible negative effects to conversions. With the Managed service, you simply turn the feature on, set your risk tolerance level, assign campaigns, and our blackbox algorithm does all the hard work.
In Analytics, users will see detailed reporting displaying the benefits of Transaction Select. The Transaction Select Dashboard shows many details regarding the benefits of the feature including the number of customers blocked, the financial benefit of blocking those customers, and the CLTV and Rebill / Recurring Rate benefits to your overall business.
Specifically, it will display the economics of the Control Group (see below for details on the Control Group), the benefits of using the Transaction Select Un-Managed feature (if you are using Un-Managed), and the benefits of using the Transaction Select Managed feature. Additionally, reporting will clearly indicate the results/impact of Test Configurations so users can tune their settings before taking Profiles live.
Using Multiple Risk Mitigation Providers
It is important to note, Transaction Select does not replace Anti-Fraud risk mitigation tools such as Kount. Where Kount (or other anti-fraud tools) works to block fraudulent transactions, Transaction Select works to block customers with a set probability of performing actions that work against the economics of your business; such as: refunding, charging back, cancelling within trial, etc. As such, we have provided clients the ability to use multiple Risk Mitigation providers on campaigns as they see appropriate.
If you do choose to use multiple Risk Mitigation providers. Transaction Select has been purposely designed to add extremely little time to the execution process, specifically it will return a decision in 250 to 400 milliseconds; a similar full-turn time as Kount. If a user attempts to use more than three (3) Risk Mitigation providers on single Campaign, the sticky.io Platform will warn you of the risk of increasing transaction times beyond our recommendation. You can add as many providers as you feel appropriate, but we do recommend you do so with full understanding of the increased execution processing time and its potential effect on your specific business. If you have questions about the potential addition of execution time for a specific provider please contact Client Support and they will assist you in understanding the impact (and potential benefits) of your desired settings.
Additionally, the sticky.io Platform will not allow you to add the same provider to a single campaign twice – you will be warned via a popup message and the platform will prevent the action.
Configuring Transaction Select
In order to configure Transaction Select, you will just need to navigate to Settings > Providers and select "Add New Provider Profile" from the Actions drop-down menu. Select 'Risk Mitigation' as the type, select Transaction Select from the Provider drop-down list, and fill out the required parameters.
These parameters are briefly described here for your reference:
Alias: This is where you give your custom profile a name.
Legacy: This is the legacy objective for increasing customer lifetime value (no longer recommended).
In Trial Cancellation: The "In-Trial Cancellation" model blocks incoming customers that have a higher probability of in-trial cancellation. It will be most effective when applied to campaigns running free trial offers that have high cancellation rates but it will not reduce chargeback or refund rates.
Prevent Chargebacks, Refunds and In-Trial Cancellations: The "Improve CLTV" model blocks incoming customers that have been flagged as having a high likelihood for in-trial cancel, refund or chargeback and will be most effective on subscription campaigns where chargeback and refund rates are high.
Low: The low setting will still let through some risky customers but will have the least impact on conversion rates. This will also generate the smallest financial benefit of the three levels because it blocks the fewest customers.
Medium: The medium setting optimizes the total financial benefit with a cautious conversion impact by blocking the costliest customers, while keeping the total number of blocks relatively low. This is the setting for those that want to maximize profits and can afford a moderate impact to conversion.
High: The high setting blocks customers, thereby keeping the exposure to risky customers as low as possible, at a cost of the greatest impact on conversion rates. This profile should be applied for those who are not getting enough blocks on the low and medium levels, or for those who can afford a large impact to conversion and wish to minimize their exposure to poor quality customers.
Alias: This is where you give your custom profile a name.
After you have configured your Risk Management Provider account into your Platform, you will assign it at the campaign level. This means that it will not be automatically enabled on all your campaigns; instead, you will assign it to those campaigns that you choose to assign the risk mitigation protection to.
The whitelist will allow you to configure internal email addresses you wish to bypass Transaction Select for testing purposes, this will to allow trusted emails to never be blocked by Transaction Select.
Note: this is not to configure a customer email you think is safe, but rather bypass any internal emails you never want to have blocked.
Whitelist Email Addresses
To assign Transaction Select to campaigns, go to Risk Mitigation Provider profiles located under Payment Systems > Risk Mitigation providers. To the right of the profile under features click on the ‘flag’ icon and you will be presented with a pop-up to add emails. You will need to enter the email address as illustrated below and click on the (+) to add it to your list. To delete an email from the whitelist simply select the email from the list and select the delete icon. You also have the option to upload a CSV file of whitelisted emails.