Payment analytics has infiltrated almost every industry to from tech to healthcare to education. Almost everything we do leaves a digital footprint which contributes to a huge amount of data ready for analyzing. Once insights are taken from the data, they are used in making very important business decisions.
Businesses are learning more and more about their customers through analytics. Payment analytics is one area of business that can be greatly improved on. In a Business Insider annual report, they state, “Payments is about transferring information from one party to another, and nearly every stakeholder in the industry benefits when that process runs on digital rails.”Whether it’s a service or product that you provide, financial transactions are essential to any venture.
More and more companies are moving to a mobile contactless platform. Even Visa noted in its most recent earnings call that it expects to see 100 million Visa contactless cards issued in the United States by the end of 2019. Payment analytics are becoming integral for every business, so here’s how you can continue to grow your business through them.
Integrating Different Payment Functions Into One Platform
Mobile contactless platforms are growing, but we are not yet near the point of physical cards disappearing. Even digital transactions are made through multiple payment options like credit, debit, or even through a wire transfer.
This can pose several challenges due to the complex and diversified platforms available. Payment analytics can help you with integrating everything to one centralized platform.
One ongoing challenge for businesses is gaining a 360-degree view of their customers. This is partly because they have an issue integrating data from different sources into one main source. As a matter of fact, only 17% of companies report having achieved a single view of their customers. Having various, disparate data sources make it difficult to implement data driven marketing.
Our Maverick Bankcard Business analytics software(Bizlitix) will give you the tools to optimize and maximize your marketing efforts by leveraging customer data to your advantage.The business and payment analytics can help you with the integration to one centralized platform. It can minimize errors and make it a more streamlined process.
Use Payment Analytics To Forecast Transaction Volumes
Forecasting financial transactions and sales is vital to reaching your target market. Real time data analytics are available to almost every company whether online or at a physical location. For example, e-commerce platforms can look at how well one specific product is performing commercially.They can even narrow it down more to where the users are coming in from.
Knowing this information, retailers can design their business so that they offer the products their customers want and stop offering/buying products which don’t sell. In this case, you can start running advertisements or offering promotions for specific products to increase sales and help reach targets. The historical data available via payment analytics should help you easily predict the future trends.
Fraud And Risk Management
CFO Innovation explains that data analytics can be applied to fraud detection and management, by looking at ‘anomalies or patterns that may be indicative of fraudulent activity’.
Data analytics allows investigators to effectively analyze voluminous datasets to detect anomalies or patterns that may be indicative of fraudulent activity. In addition to detecting fraud that has already occurred, data analytics techniques can also identify red flags in areas where fraud has the potential to occur, thus giving organizations the opportunity to prevent fraudulent activity before it even takes place.
Our Bizlitix software has Fraud Analysis as one of its tools and this is a great example of how data or payment analytics helps prevent fraud. One feature of this tool is the ability to see your current dispute rates and dispute statistics. You can see the reasons for chargebacks to understand if there is a concentration for one or multiple codes to better prevent disputes that may arise from friendly fraud or other related trends.
Merchant analytics simply means using data analysis to improve commercial operations and increase customer brand loyalty. Payment providers can monetize the data given by analytics to help merchants understand their market and create more personalized campaigns. Now merchants can regularly evaluate their rewards program to see if its effective in increasing the number of visits and purchases.
In more simple terms, merchant analytics help fine tune the process of getting a product from point A to point B. Now this may sound pretty simple but thanks to all the new technology, merchant analytics allows you to measure and monitor how a process should be running, alerting you to abnormalities and bottleneck, thus allowing you to fine tune performance. Merchant analytics are used across many industries to make sure KPI’s and SLA’s are being met.
Use Payment Analytics Help Personalize Their Checkout
Online retail has become highly personalized except for one segment – payments.
While everything else is designed to attend to a customer’s singular needs, payment transactions have remained relatively the same. A study cited by Finextra shows how important it is for businesses to create a user-friendly checkout experience. One study they did showed that improving the navigation of an ecommerce checkout process improved the conversion rate by 18.5%. The smallest changes such as personally greeting each consumer, can make them feel valued, which ultimately influences their decision to remain loyal to a retailer or not.
The way you conduct financial transactions and payments could lead to significant growth for your business. However, many businesses that collect data are yet to understand how to leverage it. The findings from market intelligence firm IDC Research were shared by Maryville University, and they project that there will be 180 trillion gigabytes of data produced each year by 2025. This may sound like a lot of data, but in reality only a small fraction of stored data is actually analyzed and used efficiently.
For more useful insights regarding payments and growing your business, schedule a free consultation with our team of experts today!