(4/4) How to Choose & use™ your payment services
Submitted by Andre Malinowski on Fri, 10/07/2011 - 08:46 in
This short blog is the last one out of a series of four, addressing steps a merchant organization should take to choose & use their payment service provider.
Conversion rates don’t lie
Define some metrics for measuring the performance of your new payment strategy upfront. Remember, in the first step we gathered information about your industry and the characteristics of your products, including transactional information, channels and such. Now it’s time to evaluate those measures and determine whether they still make sense for the new payment process, or if it’s time for some fresh measures. The measurements really only depend on what is important to determine whether you are fulfilling your E-commerce strategy and if successful. Simple, but meaningful primary metrics which quickly give you the information needed are the conversion and growth rates. Secondary metrics such as chargeback rate and fraud ratio are also to be considered. Keep it simple!
Choose & use
You've created your payment strategy of the future, and defined your measurement system – now it’s time to choose & use your new or additional PSP. Shortlist the potential PSP’s, evaluate your results to determine which of the PSP’s are meeting expectations for your E-commerce strategy. Take a decision and don’t forget, choosing and using the right PSP is a collaborative exercise.
Following these basic steps will take you a long way toward improving how you deliver your products and services and convert shoppers to buyers.