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

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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 / 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.