2. Different types of payment data<\/a><\/p>\n\t 3. How your business can use payment analytics<\/a><\/p>\n\t 4. 3 tips for analyzing payment data effectively<\/a><\/p>\n\n\n\n <\/p>\n\n\n\n Payment analytics are systems you use to gather and analyze data from payments to your business. You might assume that such information might be limited to, say, what was purchased and how much was paid, but that\u2019s not the full picture.<\/p>\n\n\n\n Let\u2019s say, for example, that you\u2019re collecting analytics on subscription payments for an internet phone service<\/a>. Even that fairly predictable transaction generates a vast number of data points, such as the most popular subscription packages, the preferred payment methods, and the renewal frequencies. <\/p>\n\n\n\n All these can tell you an awful lot about the state of your business. For an ecommerce business, payment analytics would highlight their most popular items, geographical customer distribution, rates of purchase, and so on. So, you should be starting to see how payment analytics offer valuable context.<\/p>\n\n\n\n With so many potential data points for even a simple transaction, it helps to categorize the broad types of information. So, here are the different types of data you\u2019ll be looking at with payment analytics:<\/p>\n\n\n\n Collecting and leveraging all this data effectively can pose significant accounting challenges<\/a>. But with the right systems in place, you can clear those obstacles and reap the business benefits of payment analytics.<\/p>\n\n\n\n <\/p>\n\n\n\n Image sourced<\/a> from mckinsey.com<\/p>\n\n\n\n Now that we\u2019ve established what payment analytics are, let\u2019s go over the various benefits and applications they have for businesses. Knowing how you can apply information from your analysis, in fact, helps establish which data points are essential for your business.<\/p>\n\n\n\n If you\u2019ve ever shopped online, the term \u201ccart abandonment\u201d should be pretty self-explanatory. Sometimes, you add things to your cart, then either change your mind or forget about them. It\u2019s important not to overwhelm people with information during the checkout process, as this adds to stress by increasing cognitive load.<\/p>\n\n\n\n Churn, simply put, is the loss of subscribers for a subscription-based service. People cancel their payment plans for all kinds of reasons, so some degree of churn is inevitable. However, if you notice an unusual spike, it can indicate problems with your retention strategy.<\/p>\n\n\n\n With payment analytics, you can pinpoint whether high rates of churn and cart abandonment happen at particular times of the year or are associated with specific products. In these cases, you might need to do something to incentivize people to stick around, such as special purchase offers for ecommerce, or exclusive content for subscription holders.<\/p>\n\n\n\n It may seem like a minor point, but understanding payment data can even benefit facility management for your business<\/a>. For instance, assessing product popularity can help you organize and stock your warehouses more effectively.<\/p>\n\n\n\n Let\u2019s say, there\u2019s a decline in people buying computer monitors, whereas the rates of TV purchases remain consistent. By uncovering this insight through payment analytics, you can adjust stock levels accordingly in pursuit of greater profit. And if some products frequently get matched in the same orders, you can streamline shipping logistics by storing them in the same section.<\/p>\n\n\n\n There are even benefits for office infrastructure. For instance, you might notice your remote marketing team is working equally or more profitably than office-based colleagues. As a result, you could scale back office costs and invest in your remote and hybrid infrastructure.<\/p>\n\n\n\n <\/p>\n\n\n\n Image sourced<\/a> from insiderintelligence.com<\/p>\n\n\n\n Conversion rates show how many of your website\u2019s visitors are actually purchasing products or setting up subscriptions. As such, they don\u2019t tell you a lot about why things are happening but, despite their simplicity, they\u2019re still very useful to your organization.<\/p>\n\n\n\n That\u2019s because a sudden dip in conversion rates is a clear sign something\u2019s wrong. So, keeping track of conversions over time through payment analytics can help you react quickly. Long-term conversion analysis also means you can establish your busiest and quietest points in the year, and refocus your marketing efforts accordingly.<\/p>\n\n\n\n Whether you\u2019re running an ecommerce store independently or through ecommerce hubs like Shopify<\/a>, customer loyalty is everything. So, when your conversions take a hit, what can you do to bring people in and make them want to stick around?<\/p>\n\n\n\n The answer to that depends largely on your customers. Which is why you need to run their data through your payment analytics process. And it\u2019s not just about the items or the subscription features they like. Those things are only the beginning.<\/p>\n\n\n\n Payment analytics can tell you a surprising amount about people. For example, you might notice products with sustainably sourced packaging are selling better than equivalent competitors. This suggests you should have your own sustainable packaging and other green initiatives in place, which boosts customer retention by appealing to their ethical concerns as consumers.<\/p>\n\n\n\n As the old adage goes, you can please some of the people some of the time, but not everyone all the time. So, you\u2019ll inevitably encounter customers who aren\u2019t satisfied with their purchase or experience.<\/p>\n\n\n\n <\/p>\n\n\n\n Image sourced<\/a> from clearlypayments.com<\/p>\n\n\n\n Analyzing chargeback rates through payment analytics can expose a number of issues for your business, especially if you request more information from customers seeking refunds. You might uncover, for instance, issues with products or service reliability, or faults with your delivery process, meaning goods arrive damaged or compromised.<\/p>\n\n\n\n Unfortunately, though, not all refund requests are in good faith. Chargeback payment analytics are a key part of fraud detection for your business. Cross-referencing chargeback data with customer purchase histories can help identify suspicious trends. With an established system of rules, you can also flag and block problematic transactions.<\/p>\n\n\n\n Knowing what information to process and why is great, but you also need to analyze it efficiently, especially if you have large volumes of payment data to process. So, here are three tips for making your payment analytics more effective.<\/p>\n\n\n\n <\/p>\n\n\n\n Image sourced<\/a> from statista.com<\/p>\n\n\n\n Payment analytics produce massive quantities of raw data because you\u2019re collecting information from all over your business: invoices, website data, banking interactions, and so on.<\/p>\n\n\n\n Therefore, it\u2019s important to get everything organized and in one place. Of course, you could outsource it to an external data handler, but if you want to be fully in control, you should use a self-service portal in combination with your accounting software.<\/p>\n\n\n\n There are almost countless data points stemming from payment analytics. Overall, that\u2019s a good thing, but with a sea of information at your disposal, you need to sift for the most relevant insights.<\/p>\n\n\n\n What these are depend on your goals and the type of business you\u2019re running. For example, if you\u2019re a B2B tech company offering virtual PBX VoIP<\/a> subscriptions, chances are that you have very different priorities than a consumer-focused subscription model or an ecommerce store.<\/p>\n\n\n\n Let\u2019s compare this B2B company to a meal kit delivery service. Both would prioritize the number of subscribers, but a B2B service would also care about the sizes and sectors of client businesses. By comparison, the meal kit company would be more concerned with things like subscriber churn or the popularity of specific meals.<\/p>\n\n\n\n All payment analytics are potentially useful, but it\u2019s important to find your key data points and move secondary or tertiary points into the background.<\/p>\n\n\n\n In theory, you can compile these reports as often as you like. However, the longer you leave it, the more time you\u2019ll waste playing catch-up in the end. Regular payment analysis reports are an important part of long-term strategic financial planning<\/a>. So, you need to find the cadence that works for your organization.<\/p>\n\n\n\n We recommend implementing monthly payment data reports as an ongoing measure, but it\u2019s also worth engaging in deeper analysis as a quarterly measure. This makes sure you have a moving picture of seasonal trends and changes over time.<\/p>\n\n\n\n <\/p>\n\n\n\nWhat are payment analytics and why do they matter?<\/span><\/h2>\n\n\n\n
Different types of payment data<\/span><\/h2>\n\n\n\n
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<\/figure><\/div>\n\n\n\nHow your business can use payment analytics<\/span><\/h2>\n\n\n\n
Reducing churn and cart abandonment<\/h3>\n\n\n\n
Improving infrastructure efficiency<\/h3>\n\n\n\n
![\"SVOD\"](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2023\/10\/svod.jpg\")
<\/figure><\/div>\n\n\n\nUsing conversion rates as a health check<\/h3>\n\n\n\n
Understanding customers to increase loyalty<\/h3>\n\n\n\n
Chargeback rates and fraud detection<\/h3>\n\n\n\n
![\"Chargeback](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2023\/10\/chargeback-rate.jpg\")
<\/figure><\/div>\n\n\n\n3 tips for analyzing payment data effectively<\/span><\/h2>\n\n\n\n
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<\/figure><\/div>\n\n\n\n1. Centralize your payment data<\/h3>\n\n\n\n
2. Prioritize the right data for your business<\/h3>\n\n\n\n
3. Set an ongoing report frequency<\/h3>\n\n\n\n
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