Businesses can utilize many types of data in their marketing strategies to understand their target audience better, such as user demographics and interests. One powerful data source is payment marketing.
Payment marketing involves collecting and analyzing user payment data for business purposes. Each transaction contains valuable information, like items purchased and payment methods, which are helpful for a business’ growth strategy.
This article will cover the benefits of payment marketing and what payment marketers need to learn to drive success.
Why Every Business Needs Payment Marketing
Payment marketing offers valuable, quantitative information about customer behavior, which can bring various benefits to businesses. These include:
- Better decisions. Insights into customer shopping habits can be a key driver for better business decisions and marketing campaigns. For instance, schedule more shifts during the end of the month if you regularly see higher transaction volumes around that period.
- Improved customer experience. Payment analytics help streamline operations and deliver a better experience. For example, if you discover that shoppers in specific locations prefer mobile payments, consider investing in mobile terminals to drive more sales.
- More revenue and profits. Analyzing spending trends can reveal best-selling items and repeat purchases, which you can emphasize on your landing pages and email marketing campaigns for more exposure and revenue.
Now that you know the benefits of payment marketing, it’s time to integrate this marketing strategy into your eCommerce website and acquire payment data. To build a successful online store, remember to also check the cost to host a website in addition to your marketing efforts.
What Payment Marketers Should Learn
This section covers five aspects you should master as a payment marketer.
Latest Fintech Trends
Financial technology, or fintech, refers to computer programs or software that improve and automate financial processes for businesses and consumers. This can range from mobile payment apps to complex blockchain networks.
Integrating the latest fintech industry standards helps you deliver seamless transactions. Consider the following:
- Practice safe online payments. Check which payment transaction data you can process for business purposes and inform users about how you use their data.
- Accept payments from cryptocurrencies. Integrating crypto payments like Bitcoin and Ethereum modernizes your business and attracts a broader customer base.
- Apply mobile technology for online and in-person payments. This includes mobile wallets like Apple Pay and Google Pay and wireless credit or debit cards.
- Partner with digital banking services. Boost brand awareness and sales by giving rewards or special offers to users of digital banks. Some popular examples are Monzo and Revolut.
Customers’ Purchasing Behaviors
Buying behavior refers to the actions consumers take before purchasing a product or service. This may include checking search engines, engaging with social media posts, and filling in payment data.
Analyzing customers’ purchasing behavior helps marketers understand what influences their buying decisions. That way, businesses can create more suitable content, campaigns, and products.
Some major factors that influence people’s buying behaviors are:
- Cultural influences. These relate to customers’ religious or cultural beliefs.
- Social factors. Family, friends, and social media can influence how a person perceives a brand or product.
- Personal situations. These include their age, marital status, and income.
- Psychological factor. Refers to an individual response to a marketing message, depending on one’s values.
Payment Marketing Tools
The right resources help make your workflow more efficient. Consider the following tools before developing your payment gateway and planning payment marketing campaigns:
- Google Analytics. Install this tool to identify your website’s user journey, such as detecting if a user enters the payment page but doesn’t convert.
- SurveyMonkey. Use it to create a customer behavior survey to understand what influences your target market’s purchasing decisions. SurveyMonkey provides a question bank related to customer attitudes and turns the findings into a graphical report.
- Corefy. This tool makes managing payments more efficient by gathering real-time data from multiple payment providers on one dashboard.
- Payline Data. This payment processing tool keeps customer data secure, collects payments through invoices, and accepts payments from iPhone and Android devices.
- Mailchimp. Mailchimp facilitates email marketing automation based on customer behavior, such as sending product recommendations after a customer buys an item from the same collection.
Evaluating a campaign’s performance is important to understand what works and what needs improvement for future projects. Some essential payment metrics to track during your data analysis are:
- Successful and unsuccessful transactions ratio. Checking the transaction rates helps determine users’ purchasing capability and whether the payment gateway works well.
- Conversion rate. Divide the number of all conversions in a certain period by the total number of people visiting your site.
- Average revenue per user. Identify which geographical or demographic groups drive the most revenue. These metrics help you understand which users are worth pursuing for future acquisition campaigns.
- Churn rate. This metric is mainly relevant to businesses using a subscription model as it measures how many people decide to continue their subscription and the lifetime value of each subscriber.
Performance Marketing Channels
Organic strategies like content marketing, search engine optimization (SEO), and social media marketing are excellent for driving engagement and attracting customers.
However, it can take time to see the desired results, so marketers may need to combine them with performance marketing solutions, such as:
- Affiliate marketing.
- Native advertising.
- Social media advertising.
- Search engine marketing.
These channels generally require marketers to understand users’ browsing activity, search history, and engagement to get maximum results. Knowing users’ payment data can also help marketers have a more precise segmentation in performance marketing.
Successful marketers should have sufficient resources to make data-driven decisions and improve cash flow. With payment marketing, you can acquire payment insights like purchasing habits and preferred payment methods.
To get the most out of customers’ payment data, a payment marketer should learn:
- The payments landscape and trends.
- The purchasing behavior of current and potential customers.
- Payment marketing tools and metrics.
- Performance marketing platforms.
Hopefully, this article helps you better understand payment marketing and structure your future marketing efforts.