Unlocking the hidden potential of payment data
Payment data is often underutilized and undervalued. Here’s how businesses can harness its potential to turn transactions into revenue.
In the fast-paced world of digital commerce, many businesses realize their data is a vital source of customer insight. However, mining this treasure trove of information isn’t always easy. Payment data — transaction information such as the order value, payment method used, and buyer details — often goes untapped, underutilized, and undervalued.
Collaborating with your payment processor to access insights from digital transaction data gives your team a clear understanding of customer preferences, needs, and behaviors. With this knowledge, your business can make smart, data-backed decisions to lower acquisition costs and raise checkout conversion rates.
This article explores how businesses can uncover the useful metrics stored within payment data to be more strategic. Additionally, we’ll outline how Paysafe’s platform leverages data to optimize the payment process and maximize sales.
The useful metrics held within your payment data
Digital payment transaction data includes a variety of helpful metrics for building a rich understanding of your customers and improving the performance of your checkout. Here are some of the most valuable metrics to track and why they matter:
Popular payment methods: Identify which payment options your customers prefer and prioritize these options at the checkout to reduce friction.
Authorization rates by payment method: Learn which methods yield the highest success rates. If there has been a drop-off in authorizations, quickly identify the problem and work with your payment processor to resolve it.
Chargeback rates: Minimize unnecessary chargebacks by identifying practices or payment flows that may trigger them.
Speed of settlement: Faster settlements improve your business’s cash flow by providing quick access to funds. Track how settlement times vary between payment options and reduce operational delays.
High-transaction periods: Monitor when transaction volumes spike to plan inventory levels and run timely promotions.
Purchasing patterns: Understand the type of customer buying a particular product to refine your marketing and personalization efforts.
Average order value (AOV): Spot trends in purchasing power and measure the benefit of upselling goods and services.
Turning payment data into insights
Getting to grips with your business’s payment data can seem like a mammoth task. But by analyzing patterns in payment behavior, you can uncover growth opportunities, craft highly personalized experiences, and enhance marketing efforts to raise customer satisfaction.
To begin the process of transforming transaction data into meaningful insights, your business must take three key actions:
1. Establish data ownership and governance
Rather than seeing data regulations as a barrier, view them as a useful framework for safely leveraging untapped datasets. As a first step, you must understand who owns the data and ensure any systems you put in place adhere to data privacy standards.
2. Take a holistic view of your data
Payment data, while critical, tells only one part of the story. Combining it with the information stored within other business systems, such as your web analytics tool and CRM, creates a single bird’s-eye view of key business metrics.
3. Invest in the right technology
Most businesses don’t have the tools and expertise to turn large volumes of data into constructive insights. So, it’s essential to consider which payment processors and platforms can bridge the gap, making your data digestible and impactful.
Payment data as a strategic lever
Turning data into insights can lead to significant shifts in strategy that fuel business growth. Here’s how your business can use payment data analytics to streamline operations and boost revenue.
Minimize revenue loss from checkout abandonment
Understanding when and why customers abandon their baskets will help you decide how to elevate the checkout experience and improve performance. For example, you might reroute transactions to improve authorization rates or promote high-converting payment options that offer a seamless way to pay.
Fine-tune marketing initiatives and stock control
Use purchasing trends to refine your marketing strategy and inventory management. Focus on showcasing your bestsellers and ensure sufficient stock for popular products.
Spot regional consumer trends
Insights into spending behaviors and payment preferences by geography can help you tailor the payment experience by location. These regional breakdowns are especially helpful for honing performance as you expand into new markets.
Build personalized customer experiences
Leverage payment data to determine how demographics like age and gender impact customer preferences and use that knowledge to provide unique offers or customized shopping experiences.
How Paysafe unearths the value of data
Paysafe’s platform helps businesses like yours unleash the full potential of their payment data. Through a suite of reporting and analytics tools, our technology provides the insight you need to rocket past your growth goals.
Here’s how we support businesses to acquire customers and drive sales.
Real-time reporting: Monitor your transactions in real time to get instant insights into authorization rates, settlement times, and more.
Acceptance optimization: Paysafe actively works to improve your payment acceptance rates through data-driven approaches such as:
• KPI monitoring and reporting to keep tabs on authorization performance.
• Recommendations for tailoring the user experience based on customer interactions.
• Smart transaction routing powered by machine learning minimizes declines.
Third-party integrations: Paysafe’s single, secure API makes combining payment data with information stored in other systems simple. So, getting a 360-degree view of your data is hassle-free.
Payment insights: The driving force behind business growth
Personalized, frictionless payment experiences are no longer a pipe dream for ambitious businesses; they are what customers expect. To remain competitive, companies need to establish a clear picture of their payment data and adjust their approach based on the spending patterns it reveals.
Your data is packed with valuable insights that hold the power to transform your strategy. By leveraging it effectively, your business can clamp down on operational inefficiencies, enhance customer experiences, and pave the way for long-term success.
Ready to see how payment data could ignite growth for your business? Contact Paysafe today.
