Enhancing eCommerce Profitability: Leverage Your Business Intelligence
One important advantage that online businesses have over traditional brick-and-mortar stores is the ability to collect detailed information about what customers do when they visit the Web site. Online merchants can not only see which products individual customers purchase, but they can also gain visibility into the pages they visit, how long they spend on the Web site, how often they abandon shopping carts, and many other types of information.
If you add features or change the design of your Web site, you can almost immediately measure how these changes impact customer behavior. You can also analyze shopping patterns and payment data, and use that information to personalize your marketing strategy to individual consumers.
There is a great deal of valuable information contained within each purchase transaction, including:
• Preferred payment types—by geography, by demographic, by order size
• Average ticket size—by payment method, by geography, by demographic
• Customer spending patterns—by payment method, by geography, by demographic
• Customer purchasing frequency—by payment method, by geography, by demographic
• Promotional effectiveness—by payment method, by geography, by demographic
• Fraud data—chargebacks by payment method, by geography, by demographic, by
• Return data—by payment method, by geography, by demographic
With such large volumes of purchase data running through eCommerce sites every day, the challenge is how to cost effectively access and analyze the data to extract useful insights.
In this pursuit, payment processors offer a range of reporting and business analytic tools. Merchants may leverage powerful capabilities including:
• Dashboard reporting
• Key Performance Indicator (KPI) reporting
• Transaction query
• Chargeback analysis
• Return analysis
• Interchange analysis
• Payment method analysis
In addition, the merchant’s order management, fulfillment and CRM systems capture and store critical consumer and purchase data. This data can be combined with payment data to conduct sophisticated analysis provide powerful answers to important business questions.
Use your payments partner as a strategic resource to tap into this data and gain insights and intelligence into ways you can further develop your business.
This is the fifth and final article in a First Data series about payment-related strategies that can enhance a merchant’s online services, open new markets and help increase profits.