1. Leverage Real-Time Payments Intelligence to Identify and Keep Great Customers
March 2019
Parag Patil

2. Summary
When a new user signs up for a free trial or makes the first purchase, the two data points immediately available are – Device details such as IP address and Payment Info (i.e. card number). You can learn a lot about that user from the payment details to improve their experience and make them a loyal costumer while increasing their lifetime value (LTV).

3. Agenda What Can You Learn From Payments?
Payments Intelligence In The Acquisition Funnel.
Examples Of Merchant Applications.
How To Get Started?

4. What Can You Learn From Payments?
A card product can be uniquely tracked with the first nine digits and the issuer with the first six
Account range
Issuer (aka BIN) data
What is BIN?
Account range
Talking points:
What is BIN?
BIN vs. Actual Card Number
What is Account Range (i.e. Card Product)
Significance of A/C Range (more granular, higher accuracy, 4:1 ratio to BIN)
Issuer identification number (BIN)

5. What Can You Learn From Payments?
A sample file with card attributes, performance and account updater data
Merchant – Issuer Performance
Merchant – Peer Group Performance
AU Participation and Results
Card and bank characteristics (e.g. card product, funding source; corp./consumer; regulated: issuer country, etc.)
Different attributes in a sample file
Card Characteristics – Name, country, funding source,
Performance – approvals and decline trends, benchmark comparison
Account Updater – participation, trends such portfolio swap, issuer breach

6. Payments Intelligence in the Acquisition Funnel
Improve the customer’s journey by learning how they pay for the services
Acquire
Convert
Retain
Monetize
Improve Market Channel Strategy
Customize sign up flow for improved conversion
Reduce churn with Account Updater Data
Targeted Upsell based on Affluence
Payments can tell you a richer story about the customer
Acquire – High value customers and reducing fraudsters/window shoppers
Convert – For subscription/billing based merchants, improve the sign up process to convert from free trial to paying customers
Retain – Ensure better service and churn management to keep good customers
Monetize – Cross sell and Up sell based on the card attributes
Smarter Card Validation for Global markets
Incentivize to favored payment type
Customize experience based on chargeback trends
Reduce fraudster with improved filtering
Improve strategies to re-acquire churned customers
Smarter recycling strategies

7. Acquiring High Value Customers
Marketing and Signup process can be improved with payment attributes
A health supplements subscription merchant modified their marketing channel strategy when they identified they were attracting non-desirable demographic based on payment type leading to lower conversion and higher chargebacks.
A leading media subscription merchant optimizes card validation ($0 vs. $1) globally based on issuing country and funding source. This helps the merchant optimize customer acquisition internationally by increasing approvals by x%.
Example –
Nutraclick modified it’s acquisition via radio when it attracted younger demographic which would do the one month free trial and drop off. Additionally, they would cause chargebacks if they failed to cancel. Most of these new customers were using prepaid cards. Merchant realized the new channel was not a good ROI and changed their marketing channel to get target customers.
Netflix does intelligent account verification based on the issuer country and type of card. This helps them filter out fraudulent cards or better validate where they know the issuer behavior. Certain cards in some countries are not allowed to do online payments.
Acquire
Convert
Retain
Monetize

8. Acquiring High Value Customers
Marketing and Signup process can be improved with payment attributes
A social networking merchant customizes the sign up process for customers depending on the type of card – prepaid vs. others. The result being higher conversion of prepaid card users.
An online storage provider modifies the sign up process if they see a customer sign up with Corporate card vs. Consumer card. This helps them provide the optimal products and features for the customers.
Example –
1. Ancestry changed their customer acquisition strategy based on the type of card being used by new customer. Their onboarding and messaging differs based on the card type being utilized.
3. Dropbox offers different onboarding experience based on the card type (consumer vs. corporate) to tailor the offering more to customer needs
4. Many subscription based merchants will allow for prepaid non- reloadable cards if there is sufficient balance available
Acquire
Convert
Retain
Monetize

9. Improve Fraud Strategy with Reduced False Positives
Adding payment attributes to fraudulent transactions can improve targeting
A Government telephone services for inmates implemented a fraud rule which resulted in high declines for legitimate customers.
To improve the fraud targeting, merchant studied payment attributes and identified that fraudulent transactions were tied to a specific corporate type card.
The result being false declines dropped approx. 3 times and improved customer experience.
Additional examples include, merchants can use payment attributes to filter certain cards. E.g. don’t use international issuers for local markets, don’t accept prepaid non-reloadable cards for recurring billing or subscription
Acquire
Convert
Retain
Monetize

10. Retain Best Customers And Reduce Payments Churn
Adding issuer behavior to your customer attributes can help improve the CLTV
A leading online survey software provider reduces payment churn by monitoring the Account Updater participation of issuers and communicating with customers.
A top credit bureau service improved recycling by 14% by identifying the bad AU updates for certain issuers and correlating with approvals. They also closely track chargeback by issuers to determine which BINs to recycle.
Acquire
Convert
Retain
Monetize

11. Retain Best Customers And Reduce Payments Churn
Trending customer behavior by the card type and issuer can help predict their behavior
One of the country’s leading radio subscription provider tracks customers behavior by card type to regain customers entering non-pay (i.e. churned customers)
Depending on the card type, they adopt different strategies. E.g. Discover card users tend to be loyal to the brand and will use a different Discover card for subscription
They also look at chargeback rates by issuers to determine which customers to get out of non-pay (churn)
Acquire
Convert
Retain
Monetize

12. Improve Cross Sell and Up Sell Strategies
Certain cards can indicate the affluence of the customer
A health supplements subscription merchant offers services in varying tiers.
Identifying the cohorts of customers based card characteristic such “Affluence” helps them with a more targeted campaign.
Affluence can be determined based on certain card qualification requirements such as income and spend.
Acquire
Convert
Retain
Monetize

13. How to get started? Talk to your processor for a BIN file
Capture the low hanging fruits with minimum investment
Talk to your processor for a BIN file
Add card product attributes to your customer info
Learn from your peer merchants
Attend Industry events such as Payments Ed

14. Questions?