Integrating management of customer value and risk in e-commerce

Increasing turnover in e-commerce is inherently linked with a rising risk of payment fraud. Online retailers (e-tailers) aiming for a company-wide value orientation shouldactively manage this risk. However, by applying current approaches such as adding an overall risk premium to average prices or restricting accepted payment methods, extraturnover potentials remain unco nsidered since customer-specific value and risk properties are neglected. In this contribution, a novel approach for transaction-specificcustomer management for e-tailers is proposed, taking customer-pecific risk and turnover potential into consideration—fully automated and in real time. Therefore, riskturnover combinations are calculated representing risk and value potentials of a singlecustomer as well as risks associated with different payment methods. Based on these risk-turnover combinations, a new approach for an optimal, customer- and transactionspecific selection of payment methods becomes possible. Finally, calculated riskadjustedprices aim to realize a given product base price and can be directly used for customer risk management or for adapting an e-tailer’s major marketing or pricing strategy

کلیدواژه ها:

Customer management ، Risk & value management ، online retailer ، Payment fraud risk ، Risk-adjusted prices INTRODUCTION