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 and payment data 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 payment insights into consumer shopping habits. Through these payment 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 learning consumer purchase patterns, 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 create buyer personas that provide 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.
Customer profile data 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 shopping 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 payment analytics service from Trust Payments, TRU Insight, not only ticks all these boxes but excels in offering an analysis of customers’ spending habits, leveraging the principles of recency, frequency, and monetary value (RFM). Through using TRU Insights dashboard businesses gain access to transactional trends and consumer behaviour data that can provide 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.
Have a question?
What is a payment insight?
A payment insight refers to the analysis and understanding of payment data to gain valuable information and insights about consumer buying behaviour, preferences, trends, and patterns related to their payment activities.
What is payment data?
Payment data is the information collected from various payment methods such as credit cards, mobile wallets, online transactions, etc. This data includes details like the amount spent, transaction frequency, time and location of purchases, and other payment-related information.
Why is payment data important?
Payment data is important because it provides businesses with valuable insights into consumer behaviour and preferences. It helps businesses understand customer purchasing patterns, which can inform decision-making related to product offerings, pricing strategies, marketing campaigns, and more. It allows businesses to make data-driven decisions to enhance customer experiences and drive business growth.
What is consumer shopping patterns?
Consumer shopping patterns refer to the recurring behaviours and trends that customers exhibit while making purchasing decisions. These can include preferences for particular products, specific brands, discounts, certain channels or platforms, regular shopping times, etc.
How do you identify customer buying patterns?
To identify customer buying patterns, businesses can employ various methods such as analysing payment data for insights, conducting surveys and interviews, utilising CRM systems and leveraging web analytics.
How do I create a buyer persona?
To create a buyer persona, start from collecting customer data, including demographic information, payments data and any other relevant information about the target audience. Then segment the data by identifying common characteristics. Once the audience is divided into different groups, give each segment a name. Add details like background, interest and goals, and the buyer personas are ready for use.
Why create a buyer persona?
Creating a buyer persona is important because it helps businesses understand their ideal customers in a more personalised and detailed way. It allows businesses to tailor their marketing strategies, product offerings, and overall customer experience to match the specific needs, preferences, and pain points of their target audience. This can lead to more effective marketing campaigns, improved customer engagement, increased sales, and enhanced customer satisfaction.
