Deep Engagement with Customers and Merchants through Advanced Analytics

Today, the level of data awareness that an acquirer possesses makes it far more powerful than an elemental payment gateway provider. As we know, merchant data as well as consumer data pass through the acquirer.

An agile acquirer with a strong Payment Platform application can become the differentiator in any payments ecosystem. Digital payments are here to stay, especially with omnichannel players like Toucan finance.

Digital payments have created a wealth of consumer data: Behavioral, transactional, and demographic.

Coupled with Cloud computing and Big Data, the level of analysis and prediction possible now is unprecedented. Not every merchant is able to use these tools and deliver customer convenience to the level of discernment a digital native expects. The value-added services an acquirer can offer fall into two categories.:
  • Customer data
    1. Loyalty and retention
    2. Intelligence shopping and cross sell opportunity
    3. Customer convenience
  • Merchant data
    1. Product exposure and advertising platform
    2. Lucrative product positioning

We will take a deeper look at these parallel lines of thoughts in this series. In this post, let us talk about customer data.

The key to deriving the best out of customer data analytics is sophisticated personalization balanced with full compliance on all the data privacy laws of the land. However, the alarming amount of consumer data that becomes available online behind every single click can be overwhelming to the merchant and remains under-utilized. Of all the touchpoints a customer has with a merchant, the most rigorously authenticated is its payment gateway. So how can this data be harnessed to provide a better customer engagement?

Understanding the Customer:
Payments data gives you a real time picture of your customer and the purchase. Applying the Recency, Frequency and Monetary Analysis Model on payment transaction data will help you segment and target your promotions with better accuracy. A customer’s lifetime value and their level of engagement can be pinpointed using the RFM metrics on the transaction data. Correlating purchases is yet another application of payment data analysis. Predictive analysis based on customer payment patterns can lead marketing executives to new insights and opportunities. Understanding demographics helps in creating lifestyle-based promotions.

Providing an Intelligent Shopping Experience:
Imagine customers not being able to complete their purchase just because the payment channel was confusing. Sometimes abandoned carts are a direct result of complicated payment channels. Toucan Payments have an intuitive interface that betters the customer experience at every level, while also providing a secure payments gateway. In addition to investing in an integrated User Experience, offers and promotions like free shipping and easy returns can encourage those shopping carts to their logical end.

Retaining the Customer:
An honest look at a customer’s payment channels, frequency and transaction values over time gives insight into the best customized loyalty program for the high spenders. It enables merchants to trace out the customers who have not been returning to them. This paves the way for a targeted survey. It also helps in offering a customized coupon.

Payments data analysis is a sure shot way to ensure cart to order conversions, new customer acquisitions and existing customer retention. Used in the right way, it allows you to offer the right promotions towards the right customer base at the right time.