1. HIMANSHU THAKUR (B.Tech 2nd Year , Chemical Engineering, DTU)
OM SHANKER SAHAY(B.Tech 2nd Year, Mechanical Engineering, DTU)
CASE STUDY COMPETITION
TEAM NAME- 646619-U250WE4H
2. Why this problem is critical and needed to be addressed?
The problem is critical because it affects businesses and their subscribers in both B2C and B2B markets, leading to reduced
customer loyalty, revenue loss, and increased churn.
Online payment and subscription fraud is a growing concern for businesses and consumers worldwide. Here are some
recent statistics on online payment fraud:
• According to a report by Juniper Research, online payment fraud losses are expected to reach $20 billion by 2021, up
from $11 billion in 2019.
• In the US, the Federal Trade Commission received over 4.7 million reports of fraud in 2020, with total losses exceeding
$3.3 billion
• According to a report by Subscription Insider, subscription-based businesses lose an average of 3.2% of their revenue to
fraud each year.
• The 2020 Sift Digital Trust and Safety Survey found that subscription-based businesses have a higher fraud rate than
other types of businesses, with 48% reporting an increase in fraud over the past year.
The most common types of online payment fraud include account takeover fraud, phishing scams, and friendly fraud (also
known as chargeback fraud). Account takeover fraud is a common type of fraud in subscription-oriented businesses, where
fraudsters gain access to a subscriber's account and make unauthorized purchases.
3. Relevant problems for Subscription-oriented businesses:
Credit card fraud: when a fraudulent purchase is made using a
stolen credit card. This can lead to monetary losses and damage
to the brand reputation.
Subscription abuse: It occurs when subscribers exploit the
system to gain unauthorized access or consume more services
than they are entitled to. This leads to revenue loss and reduced
profitability.
Account takeover: It occurs when a hacker gains unauthorized
access to a subscriber's account, enabling them to make
unauthorized purchases or access sensitive information. This can
lead to monetary loss and damage to the brand reputation.
Identity theft: Identity theft occurs when a hacker steals a
subscriber's personal information and uses it for fraudulent
activities. This can lead to monetary loss, damage to the brand
reputation, and legal liabilities.
Prioritization
1.Account takeover: This should
be the top priority as it can lead to the
most significant losses for both the
business and subscribers.
1.Credit card fraud: This should
be the second priority as it can also
lead to significant monetary losses and
damage to the brand reputation.
1.Subscription abuse: While
subscription abuse can lead to revenue
loss, it may not have as significant an
impact as the previous two problems.
1.Identity theft: While identity
theft can lead to significant losses, it
may not be as relevant to subscription-
oriented businesses as the other
problems listed above. However,
businesses should still take steps to
prevent identity theft to ensure the
safety of their subscribers.
Scope
4. Why should Zuora address this problem? How can Zuora add value and create
differentiation?
Zuora should address this problem because the Subscription economy is rapidly growing, and businesses
are transitioning from traditional selling models to digital channels. This growth has resulted in an
increase in fraudulent activities, resulting in a loss of trust, monetary loss, and brand reputation damage.
Customers and businesses alike want a safe and secure environment, and Zuora has the expertise to
provide that.
Zuora can add value and create differentiation by providing businesses with a comprehensive solution
that safeguards them against fraudulent activities. Zuora's subscription management platform can
identify fraudsters and prevent them from subscribing to a business's services, lowering the risk of
financial loss. Additionally, Zuora can provide a frictionless experience for customers by streamlining the
subscription process, reducing the likelihood of churn. This will differentiate Zuora from its competitors
and establish its position as the industry leader
Zuora is a cloud-based subscription management platform that allows businesses to manage their
subscription-based services, including billing, invoicing, revenue recognition, and financial reporting. It
provides a range of tools and functionalities for businesses to manage their subscriptions, including
Subscription management , Billing and invoicing , Revenue Recognition, Analytics and reporting
5. 1. Identity Verification: One of the most effective ways to prevent fraud in subscription-based businesses is by verifying the
identity of subscribers. This can be done by using identity verification services, such as government-issued ID verification, email
verification, or phone verification.
2. Fraud Detection Algorithms: Fraud detection algorithms can be used to analyze subscriber behavior and detect patterns of
fraudulent activity. This can help identify fraudulent accounts and prevent further fraud.
3. Payment Verification: Ensuring that payment information is valid and up-to-date can help prevent fraud. This can be done by
using payment verification services, such as verifying credit card details or using address verification systems.
4. Smart Contracts: Smart contracts can be used to automate subscription management and billing processes. This can help
reduce the risk of fraud by ensuring that subscribers are charged correctly and only for the services they receive.
5. Transaction Monitoring: Monitoring transactions in real-time can help identify suspicious activity and prevent fraud. This can
be done by using real-time monitoring tools or partnering with a fraud detection service.
6. Customer Service: Providing excellent customer service can also help prevent fraud by making it easier for subscribers to get
help with any issues they may have. This can help reduce the risk of chargebacks and refund fraud.
Methods by which we can avoid fraud in subscription based businesses
Methods by which we can avoid fraud in subscription based businesses
6. Blockchain technology has the potential to help subscription-based businesses
address fraud by providing a secure and transparent way to store and manage
transaction data. Here are some ways that blockchain can be used to avoid
fraud in subscription-based businesses:
• Immutable Ledger: Blockchain's distributed ledger technology can help
prevent fraud by providing an immutable and tamper-proof record of all
transactions.
• Smart Contracts: Blockchain's smart contract technology can help
automate subscription management and billing processes, reducing the risk
of fraud. Smart contracts can be programmed to execute payments
automatically and enforce subscription terms, ensuring that subscribers are
charged correctly and only for the services they receive.
• Identity Verification: Blockchain-based identity verification systems can
help prevent subscription fraud by verifying the identities of subscribers and
ensuring that they are legitimate.
• Decentralized Payment Systems: Blockchain's decentralized payment
systems can help prevent chargeback fraud by providing a secure and
transparent way to process payments. Transactions are validated and
processed by a decentralized network of nodes, reducing the risk of
fraudulent chargebacks.
• Transparency: Blockchain's transparent nature can help increase
transparency and accountability in subscription-based businesses.
Subscribers can see all transactions on the blockchain, ensuring that they
Blockchain Technology
7. • Develop a unique value proposition: Develop a clear and compelling value
proposition that differentiates your solution from others in the market. This could
include features like real-time monitoring, automated fraud detection, or blockchain-
based security
• Create marketing collateral: Develop marketing collateral that clearly explains the
benefits and features of your solution. This could include a website, brochure, white
paper, or demo video.
• Establish partnerships: Identify potential partners, such as subscription
management software providers, payment processors, or identity verification services.
Building partnerships can help you reach a wider audience and expand your solution's
capabilities.
• Attend industry events: Attend industry events, conferences, and trade shows to
network with potential customers and partners. These events can also be a great
opportunity to showcase your solution and build awareness.
• Leverage digital marketing channels: Use digital marketing channels, such as
social media, email marketing, and search engine optimization, to reach your target
audience and drive traffic to your website.
• Offer free trials: Offer free trials or demos of your solution to potential customers.
This can help build trust and increase the likelihood of conversion.
Strategy to make my solution market friendly
8. Pricing & Packaging:
Zuora should offer a tiered pricing model based on the number of subscribers or transactions processed. The pricing
should be competitive with other subscription management solutions in the market. Zuora should also offer add-ons for
additional features such as two-factor authentication, continuous monitoring, and customer education.
Marketing/Communication Plan:
• Social media campaigns - Zuora should leverage social media to create awareness of its solution and its benefits.
• Influencer outreach - Zuora should reach out to influencers in the subscription management industry to endorse its
solution.
• Content marketing - Zuora should create blog posts, whitepapers, and case studies that highlight the benefits of its
solution.
• Email marketing - Zuora should send regular emails to its subscribers to keep them informed of the latest
developments and new features.
“Zuora’s advanced fraud detection algorithms and machine learning capabilities ensure
that your business stays one step ahead of fraudsters."
9. Key Performance
Indicator(KPIs)
Customer acquisition rate -
The number of new customers
acquired over a given period.
Subscriber churn rate - The
percentage of subscribers
who cancel their subscription
over a given period.
Fraud prevention rate - The
percentage of fraudulent
activities prevented by
Zuora's solution.
Customer satisfaction rate -
The percentage of customers
who are satisfied with Zuora's
solution.
Revenue growth rate - The
percentage increase in revenue
generated by Zuora’s subscription
management solution over a given
period.
10. How to drive adoption and gather feedback?
Feedback and Support Channels: Provide
channels for users to provide feedback and
support. This can be in the form of online
forums, chat support, email support, or phone
support
User Groups and Communities: Create user
groups and communities to foster engagement
and collaboration among users. These
communities can help users solve problems,
share feedback, and provide support.
User Reviews and Testimonials: Encourage users
to leave reviews and testimonials on your
website or other review sites. Positive reviews
can help build credibility and trust with potential
users.
