Analytics product is the procedure of analyzing how users or customers engage with a service or product. In other words, it enables teams and business owners to track, visualize, and analyze behavioral data and user engagement, to improve and optimize a service or product. It can also include data on customers’ purchasing habits and whether they are new or repeat.
As you can notice, product analysis provides quantitative and valuable information into customer behavior, which can help you determine what payment types are most accepted, such as a retail merchant account, cash discount program, or surcharge. Let’s see what a third-party payment processor is and what metrics or reports can surface when you use an analytics product.
What is a Third-Party Payment Processor?
Most payment processors you have probably heard of are a third party to your business. A third-party payment processor helps you receive payments online from your clients without setting up your own retail merchant account with a bank. Most stores prefer third-party payment processors due to the following reasons:
- It is more economical to process your transactions through a third party as compared to setting up your own retail merchant account, especially if your business is small
- You might avoid the set-up cost or monthly fees needed for a merchant account
- Small businesses with low sales volume do not get the full benefits of a merchant account.
Although payment processors are highly cost-effective, there are some fees you need to know, including monthly statement fees, start-up fees, annual fees, and other fees. While there are various fees associated with payment processors, you can now eliminate all the fees, including transaction fees, through a cash discount program. All the money you can save by having these fees minimized or eliminated will ensure that your payment options are streamlined while catering to the needs of your customers.
What Metrics Can I Reveal if I Use An Analytics Product?
You can still use analytics products to help you track various payment-related metrics, including but not limited to:
- Transaction amounts and values, telling how much customers are spending and how to improve
- Payment types and methods so you can fully understand your customers’ payments preferences and needs
- Transaction volume and velocity, which can provide insights into how people purchase
- Chargeback rates, so you can reduce or minimize unnecessary chargeback costs and enhance the customer experience
A great benefit of applying analytics products is identifying trends in commonly used payment types. The same goes for using a cash discount program or surcharge, as you may see trends in cash vs. credit, and use this information to choose what is best for you and your customers. Examining payment trends in your business can also help you streamline your operations.
Moreover, you can improve customer loyalty. Encouraging repeat business is just as crucial as gaining new customers. Whether you are a small, medium, or large business, your clients are bound to demand quicker and more flexible modes of payment. It is also easy to integrate a third-party payment processor into your business operation, as it can ideally blend with your customer relationship management system, billing system, or accounting methods.