Payment analytics help businesses to consolidate payment data from different sources, like mobile, online, check, cash, or card to a centralized platform. By leveraging on payment analytics, your business can gain valuable insights on its payment, cost, and revenue trends, thus helping you to make informed decisions, and also avoid flatulent activity.
How can your business benefit from payment analytics?
Before turning into payment analytics tools, it’s essential to identify what you want to accomplish for your business. Here are some of the common reasons why you should use payment analytics for your business:
- Improve your cash management
- Gain insights into costs
- When you want to reduce your overall expenditure
- Comparing your expenditure patterns across different areas of your business
- Facilitating efficient payments
- Checking whether you are compliant with contract terms
As a business owner, you can rely on payment analytics to identify and mitigate risks associated with fraud, as well as data security. With this, we get one question: are you doing the proper payment analytics for your business?
Here are a few things to help you in answering this question.
Merchant analytics
When we mention merchant analytics, we mean the use of data analysis to streamline commercial operations, as well as boost customer brand loyalty. Those providing payment services can monetize data provided by analytics, and this assists merchants to have a better understanding of the market. Moreover, it helps in creating customized campaigns.
As a merchant, you can regularly evaluate your reward programs to check its effectiveness in boosting the number of purchases and visits. Thus, we can say that merchant analytics can assist you in streamlining the process of moving a product from one point to another.
Well, this sounds very simple. However, merchant analytics allows business owners to monitor and measure the operations of a process, and alert them of bottlenecks and abnormalities—thanks to new technology. This, in turn, allows them to fine-tune the performance of their business. You can apply merchant analytics in your business to ensure that SLA’s and KPI’s are met.
Social media analytics
As a business, you can collect social media data via open-source platforms like Facebook and Twitter. This will enable you to build machine learning algorithms to analyze both the positive and negative sentiments of your payment system.
When you do this for multiple products, you will be able to take the necessary actions on the negative sentiments, as well as resolve any customer problems via social media platforms.
Fraud and risk management
Payments analytics can assist you in fraud detection and management. This happens by analyzing the patterns or anomalies that might indicate possible fraudulent activity. Most payment analytics tools will allow you to conduct fraud analysis, an essential step towards preventing fraud for your business.
One amazing feature about most payment analytics tools such as Enterprise billing platform Kansys is the ability to monitor your current dispute statistics and rates. With these tools, you can easily understand the reasons for your chargebacks, which helps you to understand whether there is a concentration for single or numerous codes. This will assist you to prevent disputes that might come from friendly fraud or related trends in a better manner.
Projecting transaction volumes
The projection of financial sales and transactions is essential if you want to reach your target market. With proper payment analytics, you have easy access to real-time data analytics, and you can access this data whether online or offline.
For instance, if you run an e-commerce platform, payment analytics can assist you to monitor the performance of a specific product. You can even proceed to narrow down this analysis to know the location of the users.
By getting insights to this information, you can design your business in a manner that it provides the products needed by your customers and stop buying/providing products that don’t move. Thus, you can start running adverts or providing promotions for certain products to boost sales, as well as help in reaching targets. Moreover, payment analytics will provide you with historical data, which should assist you in predicting future transaction trends.
Personalizing your checkout process
Today, online retail is becoming very personalized. However, online payment is lagging way behind in this. Businesses are designing every aspect of online transactions to meet the individual needs of their clients. But, payment transactions remain to be relatively the same. A recent study conducted by Finextra shows why it’s essential for businesses to have an easy checkout experience.
In one of their studies, it was revealed that improving the navigation of the online checkout process can boost conversion rates by up to 18.5%. Even the slightest changes, like greeting every customer personally can make them feel appreciated. Thus, can eventually influence their choice to remain loyal to your business.
How you conduct your financial payments and transaction has a significant effect on the performance of your business. Unfortunately, most businesses that gather data via payment analytics don’t know how to leverage it. However, it’s essential to note that learning how to leverage this data can go a long way in boosting the performance of your business.
Incorporating different payment processes into a single platform
Advancements in technology have led to the growth in contactless payment systems. However, we are not close to where physical cards will be phased out. Today, digital transactions are still done through various payment options like debit, credit, or wire transfer.
This, however, comes with numerous challenges because of the diversification and technicality of these payment options. But, with payment analytics, you can easily integrate everything into a single and centralized platform.
With the payment analytics tools available in today’s markets, you can maximize and optimize your marketing efforts by leveraging customer data to the advantage of your business. Thus, payment analytics can assist you to integrate these payment options into a centralized platform. This, in turn, will streamline the process, thus reducing the possibility of making errors.
