How to Scale Your Lead Generation Campaigns without Scaling Fraud and Its Risks
How to scale your lead generation campaigns without scaling problems such as fraud, TCPA violations and its risks?
Most B2C companies generating leads have never experienced the luxury of knowing which lead may convert and which lead will never ever convert, simply because it is fraudulent. Some companies have added bot detection, but these detections are still circumvented by human operated fraud. Some have added CAPTCHAs to their landing pages to prevent bots from filling out contact forms. Unfortunately, in lead generation the profits are high enough that fraudsters are able to afford paid CAPTCHA solver services, eg. 2captcha, and you didn’t solve your fraud problem. Humans, however, will be annoyed by CAPTCHAs as it affects their user experience. It only creates friction and frustration. Some hate CAPTCHAs so much that they immediately close their browser tab and you’ve lost a prospect.
So, what does work?
Frictionless fraud detection that detects both bots and human operated fraud and conveys the fraud status in real-time with low latency to you. The fraud status needs to be conveyed to you prior to making the call. This prevents you from following up on fraudulent leads. The fraud detection needs to be accurate, preventing flagging real humans as fraud (ie. false positives) and thus missing business. It also needs to prevent fraud slipping through (ie. false negatives). To some this may sound like science fiction or wishful thinking, but this is what our clients experience. The result is:
You know upfront which generated lead is real, and which lead is fraudulent
Your call center only contacts real leads submitted by humans interested in your product or service
Your campaign data and analysis of the campaign’s audience and performance will be based on ‘clean data’
Clean data means you will be optimizing towards humans
Fraudulent leads often result in contacting someone without their written consent, violating the TCPA act. The callees are simply the victim of data breaches and you are the victim of lead generation fraud.
Mitigating risks enables you to scale your lead generation campaigns without scaling the problematic parts and thus becoming an unmanageable risk. Though, the problematic parts will scale similarly, flagging them in advance as fraud prevents you from calling these fraudulent leads. This prevents you from becoming a victim of litigation costs. We all know that TCPA settlements are steep, and nobody wants to be on the frontpage of tcpaworld.com having a headline: ‘... sued in a TCPA class action’!
In short, what are your risk mitigation mechanisms:
Include lead generation fraud detection on your contact forms as the first line of defence
Check prospect’s contact data: Is it on the litigator scrub list? In the Do Not Call Registry?
Check whether the contact data does checkout with verification services
Obtain ‘proof of consent’ for every generated lead you are going to follow up
How does it work?
Figure 1 shows the four parties actively involved when generating leads in B2C, these are:
You. You want human prospects attracted by and interested in your product or service.
Your in-house marketing campaigns, affiliates, agencies, social media platforms, search engines, linear TV, CTV, programmatic, mailing lists, magazines, SMS / text messaging, etc.
The visitor arriving at your landing page. This can be organic traffic, or paid traffic (2)
Fraud detection by Oxford BioChronometrics
As you (1) only want to pay for human visitors viewing your ads and arriving at your landing page (3), you’ll need to verify these visitors using a fraud detection (4). This enables you to assess whether the affiliates, social media platforms, search engines, etc. (2) bring you real humans or bots, fraudsters and crooks.
A. You will run your digital marketing campaigns, a weekly mailing, buy keywords and pay per click, or hire 3rd parties and pay per click or generated lead, etc.
B. Visitors, prospects clicking on your ads, links in emails, etc. are redirected to your landing page
C. The landing page contains a contact form to be filled out
D. The Oxford BioChronometrics fraud detection tag is present on the contact form and inspects the session
E. The findings of the fraud detection tag are conveyed to Oxford BioChronometrics for analysis
F. Interested prospects fill out the contact form with their contact details.
G. You will receive the fraud detection status associated with the contact form prior to making the call. Your call center will only contact the prospect to close the deal if the lead is genuine. Besides the fraud status you will also record proof of consent, check the do-not-call list, check the lead data with verification services.
H. You aggregate the numbers per source per month and only pay for human traffic. You either get a refund or credit traffic. You refuse to pay for fraud, make sure for each source your contract contains such a clause.
How does this setup help you?
You save up to 10% - 20% of your digital marketing budget, depending on your fraud levels. Secondly, you don’t follow up on fraudulent generated leads. These fraudulent leads truly look genuine, but the contact data is typically based on stolen PII data. That means you are contacting someone without express consent, which is costly in case you call someone who will sue you. The bare minimum of a TCPA settlement is $500 but in reality it is much much more. At scale, if only 1% of the fraudulent generated leads is going to sue you (that’s ~1% of ~1% and thus ~1 in 10,000 generated leads), you have a serious problem. Mitigating this is a must!
The most undervalued one is you get clean data, this is your long-term gain: Analysis will enable you to know what works to attract quality: Humans, not fraudsters. Knowing what drives your audience, what works and what not (with real humans), that’s what also enables you to scale!
I’m sure you still might have questions like: How to implement the detection tag? How to connect to the fraud status API? How can the fraud status be associated with a specific contact form? How to integrate the fraud status in your pipeline? How to setup a test in order to validate your claims? How to know which source is fraudulent?
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