Integrated Payments Revenue Success
Key Metrics to Track Your Integrated Payments Revenue Success
How successful is your integrated payments partnership? There are a bewildering amount of metrics you can use to analyze your current partnership model at every level. It can be difficult to accurately measure how each area of your company is doing in relation to goals or projects. Use these key metrics to track your integrated payments revenue effectively.
Customer Acquisition Costs
Are you losing customers at a rapid pace? Are they leaving because your current integrated payments partner is a hassle for them to work with? How much is a harmful partnership potentially costing you? In order to measure how much you pay for each individual customer, you need to use a customer acquisition costs, or CAC, calculation. Simply add the following to get an idea of how much it costs for each customer:
- Advertising and marketing costs
- Customer onboarding and training costs
- Other expenses
Divide the total by the number of new customers you’ve gained within a set time frame. Depending on how high that number is, this helps you determine how much it’s costing you to replace the customers you are losing. Even if it’s not a high number, any customer loss due to a third-party partner can be detrimental to your business.
Lifetime Total Value
Once you’ve determined the cost of gaining customers, you should also calculate the cost of keeping them. A customer’s Lifetime Total Value, or LTV, is useful to discover whether you should focus on creating a strong following of loyal customers, or continue to advertise aggressively for primarily new customers. Your integrated payments revenue can easily be put to work by focusing on either existing or new customers – whether that be through product development or financially incentivized promotions.
Your company’s churn rate will be the final metric to calculate. The churn rate indicates the number of loyal customers you’re losing. You can calculate the rate by month, year or whatever time frame is most practical for your business. An important question to ask yourself is “does your integrated payments revenue make up for the loss of customers?”.
Improve Your Revenue with an Integrated Payments Partnership
Our integrated payments team can help you create a tailored payments program for your company. Contact us today to see how you can implement a successful payments program and track your integrated payments revenue success.
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