We practice various strategies to build business one of them is using customer data, and this is one of the oldest ways of business developments. But it is hard to break down the amount of information that is available and useful to your business, like understanding your customer better.
Why payments data?
For better understanding Lets consider this situation:
Suppose a customer who has once purchased from you on your e-commerce website through online payment and the same customer comes at your business place like store or restaurant or hotel and pays you using his credit card and gives you email address for e-receipt and you scan their loyalty card. Now check what all data you got:
- They have shopped online on your e-commerce website.
- How frequent is a customer for your business
- Customer’s email address
- Details of credit card issuer
Now suppose customer forgets their loyalty card and you cannot recognize them while checkout, by checking earlier transactions made online or offline means in store, you will be able to help recall all details of your customer using the card alias. There is no need to worry about data regulations such as PSD2 and GDPR has been over major concerns.
Now let’s look at how to learn more about customer behavior using payments data.
1. Addressing customer needs with real-time research
Having knowledge of customer’s requirements at the right time is very difficult, but field research and focus groups may help you understand customer needs and this will allow you to figure out to give simulative response for products in your business. Time is the only problem in this kind of action and you will need to change these things with time. These are also costly and take a lot of resources and the information quickly becomes out of date with time.
Payment data plays a vital role in business and provides you all necessary information of the customer needs and you will always have the best perception of what your customer needs and when he needs.
Payment data also lead to a very crucial aspect of the business that is loyalty. The loyalty of a customer will lead to a successful business. Payment data helps to find out which customers are a frequent visitor. And within this segment you may then start to analyze the average transaction amount you customer is spending may be online or on-site and this behavior also tells loyalty of the customers. Now you have knowledge of your valuable customers you can start to prepare your strategy.
2. Optimizing store performance
Performance of a store can be measured in many ways and mostly this depends on store size and sales data. Payment data here also plays a vital role in getting précised details of sales and this will lead to measure store performance.
Let us suppose, there is only a single store to analyze performance, this is easy to count on new and returning customers it’s attracting to your store and also this will tell you level of returns and refunds to expect.
Now if there are many stores to analyze performance, with similar strategy and performance profiles for optimization in interior layouts, promotional offers or in-store innovations like self-service kiosks etc. And stores with different performance can share learnings such as how to increase spend on fewer visits or differentiate experiences for high traffic sites.
These all will lead to huge business expansion as you will have all detailed data in front of you. Payment data will, in turn, lead to finding out the exact location of next stores for expansion of your business. You have customer delivery details that can let you know maximum customer at a place. And once you have figured out the exact location of the opening store or distribution center, you can test with pop-ups to make sure you are right inventory. And when all this is done you can open a store with the right price point, payment methods and channels offered.
3. Use data to keep customers coming back for more
Payment data now will also help you to find the customers that have not shopped for a while with you, so this will help you in customer retentions. Retaining customer is about surfacing relevant messages in the right place and at right time. Those who have not shopped with you for a while you can apply right loyalty bonuses, personalized offers or even survey them. By doing this you may have a good retention ratio of customers and hence you will lead growth in business. You can channelize and manage price point for your customer under the list of retention so that they are back shopping with you.
Payment data also helps to simplify cross-channel customer experiences by storing information in one place, check below example:
A retained customer makes an online purchase for example t-shirt, but he is not satisfied with the product and customer wants to exchange it quickly as he has to go out for party and customer wants to look best out of it. Now they go to the nearest store but they realize that payment receipt is not there with them. Now if they have used a credit card for payment then sales assistant can find the history out of the payment data. The customer gets an exchange of goods and also refund on a partial amount. Based on the full order history a real-time discount is applied and refund amount is given to the customer.
In this scenario Customer is fully satisfied and happy, the store is also happy because the customer got appropriate service on time and is retained. Payments data is central to any business and brings actionable customer insights that can really help you grow your business.
Under applicable data protection laws, assent from your customers may be required for the previously mentioned utilization of personal data of your customers. We prescribe counseling your legal or privacy division to enable you to out with these GDPR matters.
Here iPayTotal will play a vital role by providing e-Commerce Merchant Accounts for worldwide online business. Get engaged in prudent planning make the most of what you have to offer in the world of e-commerce with iPayTotal.
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