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Data Server For Driving Payment Strategies

E-commerce payments are evolving rapidly, and merchants and consumers alike are demanding enhanced customer experiences, improved security, and greater efficiency. To stay competitive in this landscape, the key lies in effectively using and analysing the data at your disposal.

The first step is to ensure you’re collecting all relevant data points and transforming this data into actionable insights that can drive your payment strategy. If you run an e-commerce business, consider if you can confidently answer the following questions:

• What is your average order value?
• Which payment methods are most popular?
• What currencies do your customers prefer?
• How frequently do customers make purchases?
• Is there a seasonal trend in your transactions?
• What are your approval rates?
• What are the main reasons for transaction declines?
• What are your chargeback and refund rates?
• What is your cart abandonment rate?

Understanding these data points is crucial for making informed decisions and should play a central role when implementing new products, selecting providers, and refining processes. Here are some areas where data can drive positive change:

Customer Experience
• Analysing customer preferences enables you to tailor your payment options, which may mean adding more currency options, diversifying payment methods, or streamlining checkout with features like one-click purchases or pre-filled details for returning customers.
• Safely capturing and tokenising card data can also simplify future purchases, enhancing convenience.
• Reviewing chargeback and refund data to understand their root causes helps you adapt strategies that maximise revenue while boosting customer satisfaction.

Risk Management
• By examining previous transaction data, you can create typical customer profiles that help flag unusual transactions, allowing for more proactive fraud prevention.
• Implementing velocity limits and other preventative measures based on historical data can reduce exposure to fraudulent activity.

Operational Efficiency
• Data on payment preferences and approval rates allows you to optimise offerings and quickly address any issues with specific methods or processors.
• Understanding transaction fees associated with different payment options helps you manage costs and make strategic decisions about which methods to promote.

Customer Insights and Engagement
• Payment data reveals patterns that enable you to personalise rewards, run loyalty programmes, and identify high-value customers.
• Sharing these insights with marketing can drive targeted campaigns, including retargeting for cart abandonment and re-engagement mailers to improve conversion.

Embracing data-driven strategies in your payment’s ecosystem doesn’t just enhance the customer experience but also builds a strong foundation for security, operational efficiency, and customer loyalty. Transforming payment data into insights allows your business to stay competitive and responsive in a fast-evolving market.

Written By Matt Booth Sales Director 2