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According to Statista, 2.14 billion people around the world bought goods and services online in 2021, a rise from 1.66 billion back in 2016. This pretty much shows that customer shopping behaviors are shifting to the digital space and the ripple effect is that payment processing is also becoming quite the norm in the era of electronic transactions. This presents yet another opportunity for businesses to drill into payment processing data for insights! Well, payment analytics will help you get information such as payment methods, volume, velocity, transaction amount, chargeback rates, and more. This kind of data will give you the insight you can leverage to grow your business and run it more effectively and efficiently. Here are some of the ways you can leverage payment analytics to improve your business:
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It helps you Identify the Best Payment Method
For starters, payment analytics will help you track how your customers use your available payment methods. It will help you understand their payment needs and preferences. This information will help you tailor to their needs and even remove payment methods that your customers do not use. In fact, this will save you on the cost of supporting payment methods that might not be very useful. You can even get to identify their patterns and leverage new payment methods that might serve your business better.
Assists you in identifying the Reasons for Payment Failure
Payment analytics will also make your payment technology better by analyzing and identifying real-time failed transactions. You can even troubleshoot problems before they occur, ensuring your customers get a streamlined payment experience. Moreover, the analytics may provide recommendations on resolving a payment failure, thereby helping to resolve it quickly. You will enhance customer satisfaction by identifying payment failures and resolving them fast.
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Improve the Loyalty of your Customers
Remember, customer loyalty is paramount for the success of any business. Loyal customers do not only make repeat purchases but also recommend your business to their friends and family. The beauty is that payment analytics tools like HPS-Worldwide.com will help track repeat and new customers. This information will help you get an insight into the impacts of your marketing techniques. For instance, if you notice a decline in repeat purchases, you can craft initiatives on customer retention.
Help you Optimize your Resource Allocation
Data on transaction volume and velocity can give you an insight into how often your customers purchase. In addition, you can determine the peak periods of your business. For instance, you may notice that most of your customers make most purchases during the last weekend of each month. This information can help allocate more resources to cater for extra shifts and more workforce during the peak periods of your business.
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Improve your Customers’ Experience
Last but not least, payment analytics will also give you metrics like the chargeback rate. A high prevalence of chargeback rates could indicate a negative customer post-purchase experience. It could indicate customer dissatisfaction like poor order fulfillment, bad customer service, or mismatched product expectations. The chargeback metrics will help you scrutinize your business for areas that need improvement to enhance the customer experience.
Payment analytic tools are now a must-have if you are looking to turn your payments to invaluable insights. Payment analytics will not only help you gain visibility into your operational efficiency, performance, and financial patterns. It is time to tap into your payment data to gain the desired insights to improve your business!