Preventing Feedback Fraud with AI-Driven Data Validation for a Renowned Auto Dealership

The Challenge: False Feedback Undermining CX Efforts

A leading car dealership network was facing a critical issue with fraudulent customer feedback. While they were actively collecting NPS® and customer satisfaction survey data, the integrity of this data was compromised due to widespread manipulation by dealership employees.

Common Feedback Fraud Tactics in Dealerships

🚩 Substituting Customer Contact Information: Employees entered their own phone numbers instead of actual customer details, allowing them to manipulate responses.

🚩 Interception of Customer Surveys: Employees requested customers to forward survey emails or SMS links, filling out the surveys themselves with inflated ratings.

🚩 Pressuring Customers for Positive Ratings: Some employees proactively called customers, requesting (or even demanding) higher satisfaction scores.

These practices not only skewed the data but also eroded customer trust, directly impacting customer retention and overall CX strategy.

The dealership needed an urgent solution to ensure data integrity, enhance customer trust, and drive actionable CX improvements.

The Solution: Leveraging Advanced CX Data Analytics to Detect and Prevent Fraud

Numr Research implemented a multi-layered fraud prevention strategy to ensure that customer feedback was authentic, accurate, and actionable.

Step 1: Eliminating Incentives for Inflated Ratings

📌 Stopped Rewarding or Penalizing Employees Based on Customer Satisfaction Scores

• Instead of focusing on NPS® as a performance metric, Numr shifted the focus to response rates and resolution of complaints.
  
  
• This change removed the motivation for employees to manipulate feedback, ensuring that genuine customer sentiment was captured.
  
  

Why this works:
🚀 Encourages honest responses rather than forced high ratings.
🚀 Strengthens Customer Experience ROI by aligning incentives with actual service improvements.

Step 2: Eliminating Telephonic Surveys for Better Accuracy

📌 Discontinued Expensive and Manipulable Phone Surveys

• Telephonic surveys were unreliable since results fluctuated based on the quality of the tele-caller.
  
  
• Employees could coach customers or even fill out surveys on their behalf.
  
  

Why this works:
🚀 Ensures unbiased, digital feedback collection.
🚀 Reduces Customer Acquisition Cost (CAC) by investing in more effective CX tools.

Step 3: Implementing AI-Powered Text Analytics to Detect Fraudulent Patterns

📌 Used Text Analytics to Identify Repetitive Feedback Comments

• If an employee submitted multiple responses, patterns of repeated phrases or similar wording revealed fraud.
  
  
• AI-driven CX data analytics flagged suspicious feedback for manual review.
  
  

Why this works:
🚀 Improves customer experience metrics by ensuring feedback reflects real sentiment.
🚀 Enhances customer satisfaction by addressing real concerns instead of fake positive reviews.

Step 4: Using IP Tracking and Cookies to Detect Manipulation

📌 Tracked Device and Location Data for Survey Submissions

• Numr’s system monitored IP addresses and device cookies to detect if multiple surveys were being submitted from the same location.
  
  
• Any suspicious patterns triggered an alert, preventing fraudulent submissions.
  
  

Why this works:
🚀 Prevents bulk submission of fake surveys from dealership offices.
🚀 Ensures accurate CX data analytics, leading to better customer journey optimization.

Step 5: Measuring Survey Completion Time to Identify Suspicious Behavior

📌 Tracked Average Survey Completion Time to Detect Rapid Submissions

• If a survey was completed too quickly, it indicated an insider rushing through responses.
  
  
• Numr flagged surveys completed at unnatural speeds, helping to weed out manipulated entries.
  
  

Why this works:
🚀 Increases reliability of customer feedback, ensuring that improvements are based on genuine concerns. 🚀 Strengthens customer retention strategies by addressing authentic service gaps.

The Key Insight: Response Rate Matters More Than Ratings

While detecting fraud was crucial, Numr’s research highlighted an even more important CX strategy—shifting the focus from ratings to response rates.

📌 Why Response Rate is a Critical CX Metric

• A higher response rate reflects greater customer engagement and brand trust.
  
  
• Encouraging customers to provide honest feedback instead of high ratings ensures more accurate insights.
  
  
• Businesses with a high response rate have stronger relationships with their customers, leading to:
  ✅ Higher Customer Lifetime Value (CLTV)
  ✅ Lower Customer Acquisition Cost (CAC)
  ✅ Better ROI of CX initiatives
  
  

By focusing on improving customer experience rather than inflating ratings, the dealership was able to build long-term customer loyalty and trust.

The Result: A Fraud-Free, Data-Driven Approach to Customer Experience

Numr’s fraud prevention measures transformed how the dealership collected and analyzed customer feedback, leading to measurable CX improvements.

📊 Eliminated fraudulent feedback, ensuring CX data analytics were accurate and reliable.
🚀 Increased genuine customer engagement, improving response rates by 35%.
🔄 Strengthened customer retention, as trust and transparency improved.
💡 Optimized customer journey insights, leading to faster issue resolution and service improvements.
💰 Enhanced ROI of CX initiatives by making data-driven decisions based on real customer feedback.

Conclusion: Trustworthy Feedback is the Key to Sustainable Growth

By eliminating feedback fraud and prioritizing genuine customer insights, the dealership was able to:

✔ Make informed business decisions that actually improved customer satisfaction.
✔ Increase Customer Lifetime Value (CLTV) by fostering stronger customer relationships.
✔ Lower Customer Acquisition Cost (CAC) by boosting referral potential.
✔ Maximize ROI of CX efforts through accurate, actionable feedback insights.

Accurate feedback isn’t just about surveys—it’s about trust. Numr helped this dealership ensure that every CX decision was based on real customer sentiment, setting the foundation for long-term success in a competitive market.