Payment KPIs Managing by the Numbers Jennifer Dailey- Helgestad, Sr. Manager Payments Business Operations, AMAZON Sravanthi Konduri, Director, Marketing Analytics, SIRIUSXM

Managing By the Numbers “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.”- Dr. H. James Harrington Content represent the views of the speakers and not necessarily the companies they work for.

Overview Customer Experience Purchase KPIS Post Purchase KPIS Finding the sweet spot Measuring the Health of Your Partners Additional KPIs to consider Marketing Opportunities Content represent the views of the speakers and not necessarily the companies they work for.

Customer Experience…Everything starts with the customer Know your customer (Digital Customer, Non-Digital Customer, Hybrid Customer) Analyze the customer journey holistically (aggregating call center and website info) vs. measuring each transaction individually Good customer journeys fuel growth Journey Needs Metrics Browse and Select Price, Duration, Delivery method, Reputation, Easy to respond Response channels, page views, reviews , ratings Purchase (Payments Data) Payment options, secure transactions, satisfaction guarantee Channel based purchase funnels performance (website, agent, remit slips) Retention Deliver on the product promise Renewal, recommendations, Upsell, cross-sell, Loyalty Content represent the views of the speakers and not necessarily the companies they work for.

Customer Experience and Payment KPI’s… Purchase Event – the most important part of the customer journey. The customer will dictate their payment strategy. Some KPIs to consider Acquisition rates by method of payment Take rates of alternate payments (Paypal / Invoice) Opt-ins for recurring payments / one-time payments/ billing reminders Balancing strategy and execution (operational agility): ROI Segmenting declines and approvals Card types (debit, credit, prepaid, brand) Method of acquisition -- does it matter for your business? Post purchase: First-time decline vs. habitual/recurring declines Billing frequency Price points Customer attributes (tenure/life stage, engagement with the product(s)) Content represent the views of the speakers and not necessarily the companies they work for.

Customer communications (Proactive) We use the data to analyze and communicate with the customer to incrementally improve the approval rates: HABITUAL / RECURRING DECLINES How do we identify the habitual trends? # of declines Time lapsed since their last decline (tied to billing frequency) How to identify the true (habitual) customers declines % customer initiated exits after decline Using alternate methods to exit decline Time to exit the decline stage and the patterns Do we message the habitual decline customer differently? Do we pre-emptively nudge them? FIRST TIME DECLINES What are the reasons for the first time decline? Is there a pattern in reason codes? upcoming bad expiry date *Data provided does not include Amazon or SiriusXM information. Content represent the views of the speakers and not necessarily the companies they work for.

Customer communications (Proactive) – Cont. Some common metrics to track through the customer payment life cycle: Do they participate in updater ? % customers participating in updater over time (for forecasting) Updater response trends: Create action plans specific to updater responses (cards identified as cancelled / with no subsequent update) Non updater participants: Do they respond to direct mail / email or outbound call? How many updated pre/ post billing and see if we can modify behavior Bill Due Date Vs. Payment Date Method and channel of payment: Is there a preferred channel? *Data provided does not include Amazon or SiriusXM information. Content represent the views of the speakers and not necessarily the companies they work for.

Post Purchase- Approval Rates *Data provided by a Global Processor and does not include Amazon or SiriusXM information. Content represent the views of the speakers and not necessarily the companies they work for.

Approval Rates- Using Bin Level Information *Data provided by a Global Processor and does not include Amazon or SiriusXM information. Content represent the views of the speakers and not necessarily the companies they work for.

Bin Level Improvement Opportunities *Data provided by a Global Processor and does not include Amazon or SiriusXM information. Content represent the views of the speakers and not necessarily the companies they work for.

Bin Level Improvement Opportunities *Data provided by a Global Processor and does not include Amazon or SiriusXM information. Content represent the views of the speakers and not necessarily the companies they work for.

Optimizing the strategy (Test, Test, Test) PAYMENT DATA Approval Rates Chargeback Data Decline code data Pre-Auth Data DECLINE DATA/ UPDATER DATA Updater disposition data Optimize your rehit strategy Segments to include COMMUNICATIONS  RESULTS Use the disposition data from Updater program to communicate with your customers Use Pre-Auth to communicate prior to due date DATA Data provided by a Global Processor and does not include Amazon or XM information. Content represent the views of the speakers and not necessarily the companies they work for.

Finding the sweet spot Understand the base to determine baseline “What is normal for your business?” Set the right Retry strategy Test into what works best for your segments : # of attempts to exit Manage your chargeback rate: Total chargeback $$/ Total Billed Optimize the process for Account Updater: Frequency / Which accounts or segments to include? Which banks participate Vs. don’t participate and managing the communication streams How do you understand industry movements? Partner is key Content represent the views of the speakers and not necessarily the companies they work for.

Measuring the Health of your Partner… “In God we trust, all others must bring data.” - W. Edwards Deming Content represent the views of the speakers and not necessarily the companies they work for.

Measuring the Health of your Partner… Availability Force Majeure Maintenance Response Time What it really means Round Trip or not TPS Reporting/Online Tool Content represent the views of the speakers and not necessarily the companies they work for.

Other Post Purchase KPIs to consider… Refund to Sales Ratio Chargeback to Sales Ratio Content represent the views of the speakers and not necessarily the companies they work for.

Other Marketing Opportunities Using Updater Return Data to design your campaigns Pre Renewal campaigns Levering dispositions from updater-type products to design campaigns to capture updated payment information Post sale/purchase/renewal communications Testing your way into right timed communications Leverage disposition/ decline codes to personalize/tailor campaigns Content represent the views of the speakers and not necessarily the companies they work for.

Thank you! Jennifer Dailey- Helgestad, Sr. Manager Payments Business Operations, AMAZON Sravanthi Konduri, Marketing Analytics, SiriusXM If you have any questions about the presentation, go to our LinkedIn Group (the Payments Education Forum) and request an invitation (this is a closed group specifically for the payments industry). Content represent the views of the speakers and not necessarily the companies they work for.