Case Study
Reducing Chargebacks: How Common People Enhanced User Clarity for Auction.com
The Organization
Auction.com
Auction.com is a prominent online marketplace where users can bid on bank-owned properties. To participate in the bidding process, users are required to submit a non-refundable deposit, demonstrating their commitment.
Industry
- Real Estate
- Online Marketplace
Location
United States
The Challenge
Auction.com
Auction.com faced a significant challenge: many users were unaware that the deposit required to place a bid was non-refundable. This lack of clarity led to frequent credit card chargebacks, adversely affecting the company’s merchant score. The dual challenge was to:
- Clarify Terms and Conditions: Make the non-refundable nature of the deposit more explicit.
- Reduce Chargebacks: Incorporate explicit acknowledgment of this condition into the checkout process without deterring potential bidders.
The Solution
Redefining the Checkout Experience
Common People collaborated with Auction.com’s marketing and legal teams to tackle this issue through several strategic steps:
Explicit Terms and Conditions:
- Enhanced the clarity of the terms and conditions regarding the non-refundable deposit, ensuring users were fully informed before proceeding.
User Experience Design:
- Developed wireframes and designed a new checkout workflow that included an explicit acknowledgment step for the non-refundable deposit. This step ensured users consciously agreed to the terms without scaring them away.
- Employed content design principles to craft a user-friendly yet legally sound acknowledgment process within the checkout flow.
Collaboration with Teams:
- Worked closely with both marketing and legal teams to determine the precise language to be used, ensuring it met both user clarity and legal requirements.
The Result
Reduced Chargeback Claims and Improved User Awareness
- Reduction in Chargebacks: The new checkout flow successfully reduced the number of chargeback claims by preventing users who were unaware or not serious about bidding from completing the process.
- Improved User Awareness: Users were better informed about the non-refundable nature of the deposit before placing a bid, leading to a smoother transaction process and improved user satisfaction.
Result Data:
- Significant reduction in chargeback claims