Today, the most successful businesses invest heavily in data analytics. Businesses are using the exponential growth of data from suppliers, customers, and more to gain insights to improve core operations and achieve their objectives, and payment data is no exception. Most businesses already use their payment data to understand better their performance, such as margin, profit, and transaction volume. However, each payment also provides greater insight that you can leverage to make informed decisions and run your business more effectively and efficiently.
Investing in AP automation and other payment solutions provides you direct access to payment-related information that you can use to identify money-saving opportunities and make smarter business decisions to guide your day-to-day operations. Here are key ways payment analytics can help improve your business operations and achieve long-term success:
Enhance Customer Satisfaction
Leveraging payment analytics provides you with powerful insights that you can use to streamline the entire payment process and enhance customer experience. This helps you build lasting, loyal relationships with your customers. By analyzing your transaction data, you can track how customers engage across the available payment methods. This allows you to understand the usage statistics and conversion rates per payment channel to ensure that the provided options are efficient and sufficient for your customers. This also allows you to remove payment methods that customers don’t use, saving you the costs of supporting them.
Payment analytics also allow you to identify failed payments in real-time, so you can quickly check the error and provide the customer with an alternative payment method immediately, enhancing customer satisfaction. Having access to every transaction allows you to promptly solve customer complaints related to purchasing a product, improving your customer service capabilities.
Reduce your shopping cart abandonment rate
An estimated 69.8% of shopping carts were abandoned by shoppers in 2021. And one of the main causes of shopping cart abandonment is friction in your checkout process. Using your payment analytics, you can better understand issues preventing your customers from completing their purchases. Analyzing your transactional data, you can separate reasons for shopping cart abandonment on the customer’s side from those you or your payment provider can fix. For example, some of the reasons for shopping cart abandonment that requires actions on the customers’ side include lack of funds, incorrect payment details, and an expired payment card.
Payment analytics can help you know your customers’ actions during checkout and how long it takes them to identify UX issues that prevent them from completing their purchases or lowering conversion. Payment analytics can also reveal problems with your payment provider, such as prolonged payment processing or downtimes causing customers to abandon their carts. This way, you can fix or modify your payment process and checkout page to increase conversion and reduce shopping cart abandonment.
Chargebacks can be disruptive for your business in so many ways because you may end up losing the revenue from the product sale, shipping costs, and the product itself. Payment analytics help you identify which transactions often lead to chargebacks, so you can take appropriate measures to avoid them in the future. Some of the actions you can take to reduce chargebacks and other types of fraud include improving your security protocol, enhancing customer service to minimize customer disputes, improving deliveries, and combating sources of friendly fraud.
There are many ways payment analytics can help you improve your operations and grow your business. Not only can payment analytics help you gain visibility into operational efficiency, financial patterns, and supplier relationships, but also gain insights to help you improve business operations and achieve success.
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