Your payment analytics can offer a number of valuable insights that can be harnessed to help you to streamline business operations, promoth growth and revenue and keep customers happy. Here are five key ways that consistently diving into your payment analytics can improve your business outcomes.
- Accurate forecasting
In order to reach your sales targets, you’ll have to accurately forecast sales and other financial transactions. You can dive into the data around specific products to gauge their performance, using this information to influence marketing decisions. Promotions, sales and other schemes can then be created to help reach sales targets, with historical payment data allowing you to forecast trends. - Identifying suspicious activity
Payment fraud can be incredibly detrimental to a business, which is why it’s important to regularly monitor your payment analytics to catch any instances of fraud. You will be able to quickly pinpoint any atypical behaviour from your customers, such as someone shopping far away from their usual location or purchasing items outside of their normal price range. Harnessing the power of these analytics will prevent financial losses, and improve customer satisfaction. - Personalising the customer experience
Personalisation is a huge drawing card for customers, with your payment analytics allowing you to personalise the payment process as well. Improving the navigation of an online store’s checkout page can improve the conversion rate by 18.5%, with small changes like personal greetings improving customer loyalty and retention. Your invoicing, payments and CRM data can all be used to analyse customer relationships and trigger custom messages that add a personal touch to the checkout experience. - Improving commercial operations
Data analytics can also be used to improve commercial operations more generally, such as revealing whether rewards programs have been effective in increasing purchases and website visits. This information, sometimes referred to as merchant analytics, can help you finetune your commercial operations, measure and monitor how processes are running, and alert you of any inconsistencies or bottlenecks. - Determining your customer lifetime value (CLV)
Customer lifetime value is a metric that reveals how much a particular customer can be expected to spend with your business over their lifetime. The higher the CLV, the greater your profits will be. Delving into your payment analytics will allow you to uncover a customer’s average purchase value, their average purchase frequency, and the average customer lifespan. These figures can then all be multiplied to calculate the CLV, and inform your customer retention efforts. This is an incredibly valuable insight, as improving customer retention by just 5% can increase profits by more than 25%, while the cost of attracting a new customer is five times more than retaining an existing customer.
The world of payment analytics offers countless valuable insights to businesses which can be used to enable efficiency, boost productivity, influence better decision-making, reduce costs, and so much more. Ensure you are using a payments monitoring system with a powerful database to make the most of these insights.
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