Key Payment Data Points That Your Business Should Value
For making any business-related decision, it is important to consider all the available information.
The efficiency of the decision very well depends on the usage of the available data. The data available for making these decisions should be correct and relevant.
Based on the data chosen, it can send you up the stairs of success or it can keep you guessing what went wrong.
The same goes for payment processing. Accepting online payments does not stop after simply transferring the funds from the customer’s bank account to the merchant’s.
Usually, the information generated by the payment processing solution is immensely useful and doesn’t get treated with priority.
When used constructively (and correctly), this data can be proved to be highly useful in making business decisions.
Why you should treat payment data as a priority?
Payment data points can improve your business’s payment strategy. Nearly all PSPs provide the data and insights as a part of the package.
It is crucial that you utilize this data to elevate your strategies.
Here are some payment data points which should be considered, monitored, and used as support for business strategies.
The first and foremost point to consider is ‘conversion rate’, after all attracting more customers and converting them to brand loyalty is the main point of the business.
Your payment setup might be the key to the conversion rate. If the customer finds the whole process too lengthy or tedious, chances are the customer may move to the next best shop abandoning the cart.
The analytics can help you pinpoint where exactly customers are leaving your payment page.
With these statistics, you can take action on restructuring or revamping the page and all the fields present on the page.
This can also be used to reassess the payment page, if the payment method is converting well, for checking how other payment types are getting the results.
A chargeback can be considered the biggest pitfall for any business. Not only there is the possibility of losing a customer, but you can also lose business revenue.
In addition, if the PSP and bank levy the charges, the business might take a further hit.
Considering the strain that can be put on the business, a chargeback is an important key point that needs to be considered.
You have to monitor keenly, when the chargeback is requested and what was the reason behind it.
The Sooner you get the information, the better. The infamous chargeback data over time can give you much more payment insights.
You can compare and test PSPs against one another, and can determine what type of chargebacks your business may face in the future.
There are many reasons for the failure of online payments.
Maybe your customer does not have sufficient funds in the account, maybe your anti-fraud tool picked up something from the transaction, maybe the customer’s card is expired, and many more.
But whatever the reason, the authorization rate is also known as the success rate is one of the very important key pointers to consider and to keep in mind.
When informed of transaction failure during the purchase mode, i.e. in real-time, there are high chances the customer would retry paying immediately.
You can use automation, or you can use your PSP’s AI tools to learn and schedule payments. In simple terms when payment failure rates reduce, the cart abandonment rates reduce with it.
Payment settlement and clearing is another important key payment data point you should value.
With other important insights, the time taken to transfer the funds to your account can help you identify the clients who are more supposed to pay late.
You can weave your collection policy accordingly. You can easily automate the process by knowing the clearing times of different PSPs and payment modes.
Customer is the king and always will be. Though as before discussed, the conversion rate is without a doubt an important data point, you have to mind the satisfaction of existing customers.
You have to deeply study the market and research your customer base.
Analyzing the data such as what payment modes customers prefer, what products customers prefer, how these preferences vary from region to region, etc. you can keep tabs on the market and product matrices.
With the data and insights, you can build a strategy that is customer-centric. You can experiment with the data by introducing more facilities like different payment methods, different marketing strategies, etc.
This not only helps you in winning new customers, but it can also help retain old ones.
It’s crucial to consider these data points to elevate the sales as every aspect of your business and payment strategy depends on these payment data points.