The Power of Data: Unveiling Global Business Opportunities through Transaction Insights
In an era where data is the new currency, understanding and utilizing transaction data can be the key differentiator for businesses worldwide. This blog, inspired by insights from the Finextra & Ingenico sentiment paper, delves into the realm of converting transaction data into actionable insights. Experts like Lewis Sun and Philip Glickman provide invaluable perspectives on harnessing this data to not only enhance customer experiences but also navigate the complex regulatory environments across different countries. From improving product offerings to optimizing operations, this blog explores how businesses can leverage data analytics to gain a competitive edge in the global market.
From Transaction Data to Actionable Insights
As Lewis Sun - Head of Domestic & Emerging Payments for Global Payments Solutions at HSBC - states in Finextra & Ingenico co-authored sentiment paper “Payments: The key to unlocking new ecosystems and why merchant services are on the up"
With the ocean of data we are surrounded with, it goes without saying that leveraging that data is now key for merchants to run their businesses.
Turning transaction data into actionable insights offers numerous business benefits:
- Enhanced Customer Understanding: Transaction data reveals patterns in customer behavior, preferences, and spending habits. This understanding allows businesses to tailor their products, services, and marketing strategies to better meet customer needs.
- Improved Product and Service Offerings: By analyzing transaction data, businesses can identify which products or services are most popular, leading to more informed decisions about inventory management, product development, and service enhancements.
- Increased Sales and Revenue: Insights from transaction data can guide businesses in creating targeted marketing campaigns and promotions, potentially leading to increased sales and revenue.
- Optimized Operations: Data insights can help streamline business operations, from inventory management to staffing needs, by predicting busy periods or identifying inefficiencies.
Let’s take some concrete examples; with receipts and store management.
In a blog from Mark Dillon, that details how digital receipts is the start of a new relationship for customers, we get concrete examples of what are the data that can be extracted from one single receipt and how it can be leveraged as an action.
For instance, exploring just key data points (like the payment method, the basket average cost ect.) can significantly enhance direct communication with consumers, tailored to their behaviors. While large supermarkets and retailers have long utilized such strategies, smaller businesses faced challenges due to data capture complexities and associated system management costs. However, the advent of new digital receipt technologies overcomes these hurdles, offering a more comprehensive data set, including detailed basket information, beyond the basic Recency, Frequency, and Monetary analysis. This advancement opens up new opportunities for smaller outlets in customer engagement and personalized marketing.
When it comes to store management, data collected at the Point-Of-Sale can be leveraged to understand what the most popular products are or detect peak hours. With this type of info, store managers can better manage their stock levels and anticipate queues. In this blog from Francisco Gil Barez, you can learn more about how Android Payment terminals can support merchants with their data.
More than data
Going further, Philip Glickman, formerly Managing Director at J.P. Morgan, extends the topic :
Glickman rightly points out the significant challenge posed by varying regulations in different countries. For example, countries like India and Indonesia mandate that certain types of data infrastructure be located within their borders. This requirement introduces additional layers of complexity and cost for providers who aim to maintain a global presence. It necessitates a delicate balance between standardizing operations and tailoring strategies to comply with local regulations. This scenario underscores the importance of flexibility and adaptability in the design and implementation of data management systems. Companies must be agile enough to meet local requirements without compromising on the uniformity and quality of the customer experience. This dynamic highlights a key aspect of modern business data management: navigating the intricate web of global regulations while striving for operational efficiency and customer satisfaction.
Conclusion
As we reflect on the insights from industry leaders like Lewis Sun and Philip Glickman, it becomes evident that mastering transaction data is crucial in today's interconnected business world. Their perspectives emphasize not only the immense potential of leveraging this data for growth and customer engagement but also the importance of navigating the diverse regulatory landscapes of different countries. This exploration underscores the need for businesses to be both data-driven and adaptable, balancing global operational aspirations with local compliance demands.
