Payments are changing so quickly that small businesses have difficulty keeping up. Any business hoping to differentiate itself, gain a competitive edge and increase revenue needs to have the ability to monitor, support and adjust payments.
Therefore payment insights are essential if you have an ambitious growth plan. A good start will save you time and money in the long run.
Types of useful payment insights
McKinsey says smart payment providers now have access to a multitude of payment data. As a result, they are gaining insights into consumer shopping habits. Through these insights, payment gateways can detect fraud, understand spending trends, and help businesses reach underserved customers and generate new revenue.
Here are the most useful types of payment insights your business can leverage from payments data:
1) Customer shopping patterns
Data from payments provides a real-time snapshot of your customers and their purchases. It helps you understand your customer segments, their behaviour, and what works best for them.
Knowing your frequent customers, their average transaction amounts, and whether they prefer doing their shopping online or in-store can help you better serve them. By doing this, you will be able to get a clear understanding of their behaviour and figure out how to make them loyal to your business.
2) Customer profiles
With this wealth of data, your business can build a deeper and richer understanding of your customers.
Personalised payment insights help you understand and engage customers when they want to, instead of relying on a transactional approach that does not matter to them.
It will help you reach out with marketing offers at their convenience and at a time that makes sense for your customers, making the process a win for both your business and your customers.
3) Payment performance by currency
To serve international markets and customers better, companies offer local payment methods and tailor payment options based on region.
You will be able to better target your efforts to reach and serve your key markets by understanding the performance of different currencies used by your customers.
Additionally, you will be able to keep them satisfied by allowing them to make purchases in their currency both online and in-store through dynamic currency conversion.
4) Reasons for cart abandonment
When consumers look for the best price, they often have several websites open. If several retailers offer the same price, their choice may depend on the speed and efficiency of the payment process.
The average online purchase takes 22 clicks. Increasing adoption of one-touch payment methods like digital wallets has resulted in high cart abandonment rates for merchants using generic checkout processes.
Smart payment data insights can help you identify why customers aren’t making purchases, including buggy checkout pages, poor mobile optimisation, a lack of preferred payment methods like digital wallets, a lengthy two-step authentication process, or fraud prevention methods that aren’t reliable.
5) Payment method preference
A growing number of payment methods and mobile options have made it easier to make a purchase, especially with the growing popularity of new payment methods.
Optimising payments begins with understanding where you’re losing clients because there is friction in the payment experience and when there are limited payment options.
In the aftermath of the pandemic, QR codes, wallets, contactless payments, and buy-now-pay-later options will remain in high demand.
Using a smart payment provider, analyse how consumers use these options at the checkout. You will learn what payment options your customers prefer and optimise your checkout process.
Choose the right payment insights partner
When choosing a payment insights partner, you need to look at four key elements: ease of use of the service, time invested in setting up and managing the payments insights process, expertise you need and, of course, price.
We believe that our newest service from Trust Payments, TRU Insight, ticks all these boxes and offers a dashboard that provides easy access to transactional trends and consumer behaviour data that can give businesses a better understanding of their customers. All packaged in a series of monthly quick-to-view PDF reports.
Contact us to learn more and start gathering payment insights today.