Magic Mind Case Study

NoFraud & Skio Power Subscription Growth for Magic Mind

1.07%

Increase in order approval rate

$0

Lost to fraudulent chargebacks

200 hours

Hours saved each quarter

“NoFraud didn’t just protect our revenue, they also helped us make the most of our digital acquisition efforts — and the platform completely paid for itself within the first quarter. By reducing chargebacks and false declines, we’ve been able to approve more orders and save our team hundreds of hours on manual review. The ROI was immediate. Pairing that with Skio’s automated subscription management has streamlined our operations and kept customers engaged, allowing us to focus on growth and maximize our time.”

Matthew Faris, Customer Experience Lead at Magic Mind

Magic Mind, a direct-to-consumer subscription brand that offers mental performance drinks for sustained energy and clarity, has quickly become a go-to solution for those looking to enhance cognition and lower stress. As Magic Mind expanded into retail and launched new products, operational complexity and challenges around subscription management and fraud prevention emerged.

To address these growing pains, Magic Mind partnered with Skio, a leading subscription management platform for Shopify brands, to optimize their subscription offerings, and NoFraud to resolve issues related to fraudulent transactions and false declines. Together, these platforms helped Magic Mind streamline operations, protect revenue, and focus on scaling their business.

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Challenges

As Magic Mind expanded, they faced critical challenges that not only hindered their ability to scale but also threatened their ability to build trust with customers and protect their brand equity. High fraud exposure, manual processes, and ineffective subscription management became major blockers. Without the right systems in place, they risked losing revenue and damaging customer relationships. Here are the three key challenges they had to overcome in order to continue their upward momentum.

  1. False declines. False declines were a major issue. All medium- and high-risk orders were automatically declined, causing legitimate customers to be rejected due to overly conservative fraud protection measures. This led to missed revenue opportunities, customer dissatisfaction, and an increase in customer acquisition costs (CAC).
  2. High fraud exposure. While Magic Mind had a below average chargeback rate of 0.30% for their industry, it was still an unnecessary drain on resources that hindered their growth trajectory. Additionally, orders that required manual review became a time-consuming process that increased operational costs. The company needed a more accurate fraud prevention solution that could keep bad actors from continuously taking advantage. 
  3. Subscription management complexity. With multiple products and cross-selling opportunities, managing complex subscription logic became increasingly difficult. Magic Mind needed an efficient system to personalize customer experiences, automate promotions, and optimize churn prevention strategies.

Solutions

To address the growing challenges of scaling operations and preventing revenue loss, Magic Mind needed solutions that would streamline their subscription management and reduce the impact of fraud. By leveraging the right tools, they could optimize their processes, protect their bottom line, and focus on delivering an exceptional customer experience. Here’s how Skio and NoFraud helped Magic Mind overcome key challenges.

Skio: Streamlining Subscription Management

  • Flexible, automated subscription management. Skio empowered Magic Mind with robust tools designed for seamless subscription management. Through Skio’s platform, Magic Mind automated key aspects of their subscription flows, such as enabling one-click upsells, cross-selling their new sleep product, and managing product swaps with ease. This allowed them to run personalized promotions during high-traffic events like Black Friday, driving higher retention and conversion rates. Additionally, Skio’s native Shopify integration offered Magic Mind the flexibility to implement customized workflows tailored to their business needs, ensuring smoother operations and scalable workflows.
  • Customer-centric customization. With Skio’s advanced segmentation capabilities, Magic Mind was able to create dynamic customer groups based on behavior, such as engagement history and purchase patterns. This allowed them to offer tailored experiences, such as targeted discounts, personalized renewal reminders, and loyalty perks, which significantly reduced churn. The ability to segment and customize at a granular level helped Magic Mind elevate their customer experience and foster stronger brand loyalty.

NoFraud: Optimizing Fraud Prevention and Approving More Orders

  • Approve more legitimate orders to capture more revenue. NoFraud’s advanced, AI-powered fraud detection system enabled Magic Mind to approve more legitimate orders while minimizing false declines. By accurately identifying fraudulent transactions and approving valid ones, NoFraud significantly reduced missed revenue opportunities. This not only safeguarded Magic Mind’s bottom line but also lowered customer acquisition costs (CAC) by ensuring more genuine customers completed their purchases, ultimately improving customer satisfaction and loyalty.
  • Free up time by offloading manual reviews. NoFraud’s team of fraud analysts took over the manual review of flagged transactions, reducing the burden on Magic Mind’s internal team. With only 0.5% of orders requiring manual intervention, Magic Mind relied on NoFraud’s experts to make precise decisions, freeing up valuable resources and allowing their team to focus on core business activities rather than time-consuming fraud investigations.
  • Eliminate fraudulent chargebacks and related costs. NoFraud provided Magic Mind with full chargeback protection, resulting in $0 lost to fraudulent chargebacks. By proactively preventing fraudulent orders from being processed, NoFraud eliminated the costly disputes and fees associated with chargebacks, offering Magic Mind peace of mind and stronger financial protection.

Impact

By optimizing fraud prevention with NoFraud, and streamlining subscription management with Skio, Magic Mind has achieved significant improvements in operational efficiency and revenue retention. Here’s a look at the tangible impact and how they continue to drive Magic Mind’s success today.

Reduced False Declines: 1.07% More Revenue

NoFraud’s advanced fraud prevention platform has helped Magic Mind boost its order approval rate to 99.5% — a 1.07% increase from its prior solution. By using real-time, AI-driven fraud detection, NoFraud has been able to accurately differentiate between fraudulent and legitimate orders, drastically reducing false declines. This has ensured that more legitimate transactions have been approved, directly increasing Magic Mind’s revenue. Additionally, NoFraud’s comprehensive fraud protection has minimized the risk of chargebacks, protecting Magic Mind’s bottom line while delivering a seamless customer experience and maximizing order throughput.

$0 Lost to Fraudulent Chargebacks

Thanks to NoFraud’s comprehensive chargeback management and chargeback protection guarantee, Magic Mind has lost $0 to fraudulent chargebacks. NoFraud’s team fully manages the chargeback process, taking over disputes and reducing the administrative burden. By automating fraud detection and chargeback management, NoFraud has minimized financial risks and operational costs, freeing up Magic Mind to focus on strategic growth. With complete protection against fraud-related losses, the company has been able to confidently scale its business, building trust with customers through smoother, more secure transactions.

Reduced Operational Costs: Gaining 200 Hours Back Per Quarter 

NoFraud’s powerful AI enables quick and accurate decisions, drastically reducing the need for internal manual review. When flagged transactions require further attention, NoFraud’s team of fraud analysts handle the manual reviews, removing that burden from Magic Mind. Additionally, NoFraud has taken on the task of fighting chargebacks on their behalf. By offloading these repetitive fraud-related tasks, Magic Mind has been able to reclaim valuable time — 200 hours per quarter — and redirect resources toward growth and customer engagement.

Enhanced Subscription Experience

Skio’s powerful automation tools allow Magic Mind to engage more effectively with customers by offering personalized promotions, discounts, and upsells at key moments in the subscription lifecycle. With Skio’s one-click upsell features, Magic Mind is able to easily introduce new offerings like their sleep product to existing subscribers, driving higher conversions without adding complexity. Skio’s native Shopify integration has enabled Magic Mind to manage complex subscription models — such as product swaps, bundled offerings, and flexible billing cycles — with minimal friction. Additionally, features like customer self-management and seamless pause/resume options have improved the overall user experience, resulting in increased customer satisfaction and retention. This level of customization and automation has helped Magic Mind to scale efficiently while maintaining a highly tailored subscription experience for each customer.

By partnering with Skio and NoFraud, Magic Mind has been able to grow their subscription and retail operations by safeguarding against fraud and ensuring smooth customer experiences. These platforms empower the brand to grow faster, retain more revenue, and continue delivering on their promise of providing clean, sustainable energy solutions.

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Customer Testimonials

Praise From Some of Our
Successful Customers

dailysale.com
“5 stars across the board! We switched to NoFraud a year ago and not only did my approval rate increase drastically but pricing was also a lot more competitive. The integration is seamless and literally worked out of the box with zero changes to our current workflow.”
marika logo
“NoFraud has been absolutely amazing. Before NoFraud, we were suffering from a barrage of fraud attempts, which resulted in tens of thousands of dollars of chargebacks. Once you install this app, fraudsters will give up hope. I think it’s a no-brainer.”
Wine Chateau Marketplace
“Implementing NoFraud has vastly improved our business operations, not only by significantly reducing chargebacks and false positives, but by turning our inefficient fraud prevention process into a simple pass/fail decision that saves us loads of time and stress.”
nixplay logo
“This is some of the best money we have ever spent. Integrating the app was quick and smooth, the support is fantastic and far superior to the service offered by some of their competitors. Our fraudulent orders have dropped by almost 60% since integrating NoFraud as compared to Signifyd and all orders that are charged-back are quickly reimbursed.”
Designer Optics Logo
“I switched to NoFraud from another guaranteed fraud prevention provider. My approval rate improved, pricing was more competitive, NoFraud customer support is superb and the user interface is intuitive and informative. My only regret is that I did not make the change sooner.”
Hak5 Logo
“Normally not one to write reviews but absolutely must applaud NoFraud. I switched over from a big name competitor that dropped the ball huge on support. I’ve had no such issues with NoFraud — their support agents has been super responsive. The sales folks answered my every detailed question — even digging into API documentation. Their onboarding team was top notch. I was up and running super quick! Very happy.”
JNA logo
“The NoFraud app is really easy to install and set up. NoFraud’s analysis has been much more effective than the standard default Shopify fraud analysis. It catches fraud missed by Shopify and passes orders that Shopify said were high risk. Best part is, you can contact NoFraud and speak with someone.”
PCmag logo
“The team at NoFraud are amazing. They have been a strong partner against the fraudsters. Right before we signed up we were hit with several thousand dollars of Mule Fraud. The addition of this app has definitely saved us money. Worth every penny. I would totally recommend them.”
Judith Leiber logo
“We can’t say enough wonderful things about the team at NoFraud. They are extremely responsive, knowledgeable, and easy to work with. The peace of mind we get from knowing that they are handling the fraud check process is invaluable. NoFraud’s system consistently delivers accurate order ratings and recommendations.”
Kaged logo
“NoFraud has been fantastic. We switched from Signifyd and haven’t looked back. Better rates, vastly simpler customer service, easier touch points for service/help, chargeback protection and filing on our behalf (this was huge — of the few chargebacks we’ve gotten, NoFraud takes care of them and we’re good to go!). Super fast verifications (if/when needed). Great staff. All in all, definitely recommend going with this app!”
UMZU logo
“Excellent communication. Easy to use service. Available to resolve and questions or concerns that arise in a timely manner.”
Monoprice
“NoFraud’s ability to extend internationally is great since we have no experience or knowledge in international sales. Without NoFraud, we’d have to learn everything there is to know about fraud detection in another market.”
“When I did a chargeback audit over the last 5 years before NoFraud, I saw that had I been a NoFraud customer for 10 years, I could’ve bought a boat with all the savings.”
“We didn’t realize how much money we were leaving on the table until we used NoFraud.”
“Turning NoFraud on was like a magic switch. Poof! All of a sudden our fraud problems disappeared.”

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