Solution Portfolio - Page 105



THE OLD WAY – MONITORING COSTS
Another learning from our discussions with payment leaders is that successful
management in Payments is predicated upon the ability to set goals and objectives
and pursue them single-mindedly. As mentioned above, a few years ago the main
focus of online businesses was on cost reduction as their key priority. As a result their
key performance indicators (KPIs) mainly covered acceptance costs.
THE NEW WAY – MEASURING PERFORMANCE
Payments Managers that we interviewed explained that there has been a
considerable evolution in the way performance for Payments is measured. There is
now a much broader measure of performance from many perspectives. It is
important to monitor a wider set of KPIs because these provide vital clues to how the
overall Payments function is performing. Some key performance indicators are:
ALTERNATIVE FORMS OF PAYMENT (AFOP)
Drop-off at time of payment sign-up / end of payment process (% voluntary)
AFOP – usage patterns
AUTHORISATION
Conversion rates
Approval rates for card authorisations (broken down by country of issuance
and/or by card issuer)
Response times
Real-time monitoring of re-directs
Number of attempts per payment method
FRAUD AND CHARGEBACK
Fraud losses
Chargeback “win” rate
FINANCIAL
Cost per transaction
Payments P & L
Lifetime value
RELATED TO THE USER EXPERIENCE
This might include “soft” KPIs based on consumers’ comments collected via
the merchant’s own Customer Service centres (e.g. reporting of instances when
payment is mentioned as a reason for complaints)
The 7 Habits Of Successful “New” Payments Leaders
Best practices and insights by industry front runner
25

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