Payment Marketing Analytics - Something to Watchout in 2013

How to Push Messages Real-Time at Point-of-Sale or Payment

Payment Marketing is catching up now. This provides the Bank / Retailer to push messages / offers on real-time to their customers.

What is Payment Marketing?

Payment marketing is a mode of marketing using the Customer's payment card information and provide the customers with relevant offers / promotions etc. with the help of a layer built on top of the existing POS Terminals.

We have already seen the importance of Payment card companies in the field of marketing. This is another layer of it

How it Works?

The lifecycle of Payment Marketing revolves around understanding the customer through analytics. Swipely, a Payment marketing technology integrates with the payment network and collects data whenever the payment is made. The data is analysed and the insights are fed back to the marketing
system, which can be used to

• Send Personalized Messages (Thank you message etc)
• Cross-Sell products/Services
• Inform corrective actions

The above can be expanded based on NBA strategy. The advantages of Swipely is the ease of upgrading - no hardware / software is required and no changes in customer's payment m

echanism

DriveItNow uses the Credit, Criteria and Collateral to provide real payments

Payment Card Industry - Crucial for Real-Time Next Best Action (NBA) - Big Data

How to Collect Data (Big Data) for Real-Time Next Best Action (NBA)

Data is more vital for sending Promotional Messages, Recommendations or Any Action for any Customer / Segment

The main focus for any retailer/bank/airline/hospital is to build a comprehensive customer signature. The customer signature provides vital information of the customer in the form of :

• Demographics
• Geography
• Behavioral
• Location
• Purchase Behavior
• Social behavior

Collecting this data and rolling up accounts to 70% of Customer Analytics. However, there is always a limitation to it. The customer might shop only specific items with the Retailer / avail certain services from the Bank. If the Retailer / Bank is a specialized one (like Apparel/Jewelery) the information for individual customer will be limited to few tens / hundreds of records /year.

Payment GatewayLocation Based Offer / Message using NBA

 

To overcome this a Bank / Retailer can have alliance with Loyalty firms / use syndicate data etc. The Credit Card / Payment gateway company holds the key.

Take a case of the customer shopping in a high-end Apparel retailer, a Jewelery shop and have paid using Credit card in both places.

The Credit Card company doesn't have the Transaction level information but knows that Customer X has shopped for the following in the same locality

a) Apparel
b) Jewelery

If this information can be used prudently by the speciality footwear store in the same location. Probably the customer might be interested to drop -in provided he / she knows about the store. If the Footwear retailer forms an alliance with Credit card company and push appropriate messages, the sales would definitely go north!

+MasterCard for example collects and stores the transactional data from the customer for data analysis. Customers have the option to opt out.

Credit Card Industry

 Companies like BeyondAnalysis use the Payment Card  (Visa, +MasterCard )'s Transaction data and provide the Retailers like  +Waitrose information about the customers who are purchasing from other supermarkets as well. This information would be limited to aggregate level and not at an individual level there by protecting the privacy of the individual and at the same time generating necessary customer insights