Solution Portfolio - Page 66



3%
20%
45%
15
%
17%
0
1-5
6-10
10-15
more than 15
Figure 18: The number of KPIs used to measure payment performance
In our last study, merchants identied that using too many measures can disrupt the value of analytical
insight. Our survey ndings identied that the 38% of merchants use 11-15 KPIs, which include range of
implementation from real-time monitoring to yearly analysis.
Merchants tend to measure Authorisation KPIs in real-time; Response times (35%), Number of attempts per
payment method (28%), Approval rates for card authorisations (25%) and Re-directs (25%). This is not
surprising as authorisation can have severe impact on revenue but is a process that Payment managers do not
have direct control over. Consequently, measuring authorisation in real-time provides tangible insights into
platform performance, which enables Payment managers to review performance and implement changes
accordingly.
Payment KPIs analysed daily include a mix of Authorisation and Fraud & Chargeback measures. These
include: Fraud losses (34%), Approval rates for card authorisations (29%) and Conversion rates (28%).
Certain authorisation measures are more meaningful when data is captured over a time-period, rather than in
real-time (e.g. conversion rates). In addition, as e-commerce merchants expand, they face increased exposure
to fraud and must adapt their strategy to meet this challenge.
The Figure 16 illustrates KPIs that tend to be less popular with Payment managers includes: Customer effort
score, Net promoter score, Lifetime value, Customer satisfaction. Traditionally, such measures have been
used to assess the overall performance of a service experience, not specically that of payments.
Consequently, managers may source more meaningful data from more ‘payment’ focused measures.
The Impact of the Payment Function Today
The Quantitative Insight Into the 7 Habits of Successful “New” Payments Leaders
22

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