7 reasons to view analytics provided by a credit card payment processor
The following is a guest post by John Rampton, founder and CEO, Due.
Big Data has permeated nearly every industry as more data becomes available. Thanks to the various technology platforms that collect that information, we know what customers want.
There are now thousands of data points that can be analyzed and studied to look at everything related to a business. When you change your perspective you can provide valuable insights that can drive real change.
Within credit card payment processing, there is a significant amount of data available. This data can be beneficial in many ways.
Some data is private and cannot be collected and stored for use. Watching for the aspects of these transactions you can use, will help you provide service for many reasons,
Here are these seven reasons that you should consider:
1. Understand your customers’ behavior:
The data available from a credit card processor identifies specific types of consumer and business spending behaviors. You can customize your accounts according to this data.
Developing your marketing campaigns to directly address behaviors grows revenue. These considerations will result in greater sales. You can now target your customers when and how they are most amenable to making a purchase. This provides information for optimizing your marketing efforts.
This knowledge can involve anything. You may design a new product or service and know when and where to market them.
Additionally, if you are experiencing a slowdown in sales, the data will provide insights into what is wrong. You can also relate to the customer experience better.
You'll know more accurately if you are delivering what your customers want. You will be aware of signs of a bigger economic issues on the horizon. You will see more clearly where you need to adjust your strategy and marketing.
2. Personalize offering based on data results:
Your data also reveals specific interests and needs in individual customers that you can leverage. Addressing needs to increase engagement with customers will grow your business.
Everything is about personalization right now and probably into the future. Using these analytics will show you how to do these personalizations in ways you may have never seen before.
Specific promotions can be sent out related to where these customers are located. You'll know when to encourage them to make a purchase. This builds sales more quickly than if you didn’t have this information.
3. Use trends and patterns to get new customers:
What your other customers do in terms of purchase behavior tends to reflect larger trends that are coming. This information provides you with a strategy to go after others in your target audience.
Similar marketing tactics can be used on these targets that you have been using with regular customers. The data you are consulting is using predictive analysis to determine what these prospects will most likely respond to.
4. Benchmark your information against the competition:
What your data reveals in terms of volume, spending per transaction, and return purchases can be compared. You can view what your competition is doing. You can gauge if you are accurate or if you could be doing things differently.
While you don’t want your competition causing you to become reactionary in your responses, it is good to always consider them in the overall big picture.
5. Uncover suspicious activity:
The data from credit card processing is becoming increasingly important as a tool to fight fraud. When combined with artificial intelligence, this data is being analyzed quickly to uncover areas of purchase activity.
You will know what is outside the norm for customers that have previously bought from a company. This is typically a sign of potential fraud that can proactively be shut down in its tracks.
For example, if a customer is identified as not shopping in a particular area or is buying outside of their normal price range, a credit card processor can help identify that activity as a fraudulent transaction. Through these analytics, companies will be able to save themselves a lot of lost money.
6. Reduce chargebacks:
The ability to detect suspicious activity and patterns in data can also assess whether or not a transaction might result in a chargeback.
The last thing you want is a chargeback causing a loss of merchandise and revenue. Using analytics to track each transaction reveals anomalies. This information can help you reject that transaction, and save your business from another chargeback.
Being able to use the data this way can also help you maintain a lower rate and fee schedule to save you further money.
7. Determine how to make improvements in the overall business:
The data should be viewed as business intelligence. This provides all the answers you need to improve your company’s relationship with customers. You'll find financial performance, and be able to use strategic planning.
For example, the data can assist you in making decisions about risk in your business. You will better understand when to adopt new technology. You will be able to see a clearer picture of what type experiences you should create to retain the most customers.
The best analytics tools from credit card payment processors are those that combine the ability to analyze, predict, and strategize. Covering all aspects of the customer lifecycle will maximize your returns.
Using this data and its research capability enhances your customer service. This data holds tremendous power that can provide a significant advantage for your business. This data was never available before because of our reliance on paper-based payment systems.
It is well worth the effort of looking at these analytics to understand what they mean. Beyond that, the best move you can make is then to act on what those analytics are telling you.
About the Author
John is best-known as an entrepreneur and connector. He was recently named #2 on Top 50 Online Influencers in the World by Entrepreneur Magazine and a Blogging Expert by Time.
John currently advises several companies in the San Francisco Bay area.