Payments help the world go round. Our ability to make payments and purchases allows us to complete a host of day-to-day tasks. Without payments, simple jobs such as visiting the supermarket, buying a coffee or filling the car with fuel would not be possible.
For a long time, payments have simply been considered as units that allow us to use a product or service – the essentials that keep our daily lives running. In reality, payments offer businesses a host of information about their customers and their behaviours that can help them in a range of ways. Many businesses rely on payment data to inform big elements of their business model and professional approach. Therefore, ignoring the value of payment data could really see a business undershoot their potential. Some even argue that the data gathered via a payment is just as valuable to a business as the funds exchanged via the payment itself.
For the majority of businesses, reviewing and incorporating payment data into their business model can be overwhelming and bring about many tricky-sounding questions, like how can payment data help my business? What does payment data tell me about my customers? How can payment data inform by business plan?
In this blog from PSD Codax, we offer a broad outline of what payment data is, some of its advantages and how it can be used to further the success of your business.
What is Payments Data?
Payments data is data collected about customers and their behaviours by a third-party payment provider. Payment data is regulated by laws and payment method rules to protect customers whilst also helping businesses to better understand their audience through access to insights about customer information and customer activity. Payments data might allow a business to gain information about which of their products or services is in highest demand, it may even allow a business to understand who is most interested in which of their products or services. This information about customer behaviour allows businesses to identify key areas of importance within their product, service, strategy and make informed decisions about any key changes.
Payments data can work in a similar way to data collected by entertainment and social media platforms. In these contexts, ‘viewing data’ is used to give us recommendations based on what we watch or look at most frequently. Data is a great way of establishing what your customers like, which in turn allows businesses to give them more of what they’re interested in.
Many card reader and card payment systems include payment data services within their packages, allowing its users to track customer trends. If a business plays close attention to the information they are receiving about their customers over a long period of time, payment insights can play a huge role in helping businesses make decisions about what sales strategies, marketing projects and promotions would be most desirable for their customers at that time.
Advantages of Payments Data
Payment data offers a host of advantages for a business, as we discuss below.
Tailored Customer Experience
One of the main advantages of payments data is that it allows businesses to offer a more tailored experience to their customers. Creating a product/service that demonstrates an understanding of customer’s needs makes customers feel valued and increases their likelihood of bringing repeat custom.
Without payments data, it can be tricky for businesses to be sure of what their customers want. This data offers tangible figures that help businesses assess customer needs. In a study conducted by the data experts at Accenture, it was found that 91% of customers expect businesses to provide services that demonstrate regard for customer needs. With 41% of customers suggesting that they would withdraw custom from businesses they felt failed to do so.
Gain an Edge Over Competitors
When compared against a business that fails to make adequate use of their payment data, a business that makes the most of this resource opens itself up to gaining an edge over competitors. By understanding the customer and their needs in greater detail, businesses are able to provide an optimally tailored service to their customers. A business who carefully considers payment data can host optimally timed events, promotions and loyalty schemes that when executed well can play on the weaknesses of competitor businesses.
Fit for Businesses of All Sizes
Another important advantage of payments data is its ability to offer a richer understanding of customers for businesses of all scales, whether that be small businesses or large corporations. Different payment businesses will offer packages that fit a range of budgets and allow small businesses to grow, instead of only helping the big get bigger.
Optimising Business Performance
With these advantages combined, payments data allows a business to optimise their performance and understanding of their customer base. Gaining more information about purchasing trends may also allow businesses to create more purposeful promotions and deals that adhere to the demands of their customer.
Payments data can also offer businesses insights into times/seasons of peak busyness or demand, allowing them to make the appropriate amount of preparation as to guarantee customers a high quality service/access to products.
Learn More with PSD Codax
Here at PSD Codax, we specialise in developing market leading access control systems for car washes and the forecourt trade. Our customers range from the major oil companies, forecourt operators, and leading supermarket chains around the world, to the regional and individually-owned car wash operators in your neighbourhood.
For an informal discussion on how we can help you better understand customers with payments data, get in touch with us today.