If you are a business owner of a business that is subscription-based, you know how indispensable business metrics and analytics are. Transaction success rates are vital because they indicate the degree of payments that have been approved. Getting paid or payment settlement is undoubtedly the most important aspect of your business but, going below the surface is not going to do you any harm. Transaction success rates are often disregarded for being unimportant but you may be surprised to know how they impact your business in various ways. Through this blog, we will go over everything that does not meet the eye.
The transaction success rate of your business is computed by dividing the total number of approved transactions by the total number of transactions that were attempted. This is computed over a given period of time. Online payments are rapidly increasing in popularity over time. These days, whether it is a product or a service, we complete the transaction digitally. Digital transactions are easy to execute, rapid, and hassle-free. But if you are a business owner, you know that not all these attempted transactions are successfully approved in the end. Your transaction rate is directly proportional to how seamless your service is. It reflects how you get paid for the goods and services that you offer.
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What is the Transaction success rate?
The transaction success rate is the rate of online payments that are successfully completed out of the attempted payments. It indicates the number of payments a business received for every 100 transactions made to the business by the customers. These payments can be made on a website or an app. Let us try to simplify this with the help of an example. Suppose, out of 100 attempted payments, your business was able to receive 60 successful payments, the transaction success rate will be 60%. A lot of studies say that customers do not re-attempt a payment if it has failed once. If your payment gateway does not offer smooth execution to your customers, the transaction success rate of your business can fall substantially.
With the growing competition, you should leave no stones unturned. These days, end consumers expect a streamlined and hassle-free transaction mechanism. A single extra step or an error in the payment can leave them frustrated. The result would be that they would not re-attempt the payment and stop visiting your domain altogether. This is usually called cart abandonment. This phenomenon will dramatically impact your business negatively. If you do not have an optimised payment gateway integrated with the checkout page, you would not be able to retain the customers. In turn, this will induce negative reviews from the customers.
What should be done to combat these issues? The faster you understand that the transaction success rate of your business is directly associated with your pre-existing goods and services, the better. Now that you have understood the meaning of the transaction success rate, let us try to understand its importance and scope.
Why is The Transaction Success Rate important?
With the radical digitisation of businesses, digital payments have become a vital source of revenue for businesses. It is safe to say that, a high transaction success rate safeguards the financial fitness of your business. The transaction rate basically is the number of successful purchases made per hundred purchases. It is not a herculean task to understand that a higher transaction success rate means a higher number of goods and services were sold.
This means your business was able to generate a higher extent of revenue. A higher degree of revenue generation is beneficial for any business, undoubtedly. The more you earn through your business, the more you will be able to expand it and the more driven you will feel to go on. This can be achieved only with a smooth check-out process. Customers are lazy entities. They do not bother re-processing a failed payment. Instead, they will find a service provider that offers them a smooth check-out experience. Hence, to sum up, the importance of the transaction success rate; helps determine the number of successful purchases that your business was able to make. It can be influenced due to a number of factors.
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What should be done to boost the transaction success rate of a business?
If you are worried about the minimal transaction success rate of your business, worry not. You can take a few simple yet significant measures to boost the transaction success rate of your business. Read on.
- Smoothen the checkout process: This is the greatest influencing factor for the transaction success rate. The smoother the process of checkout, the higher the transaction success rate. Because a smooth checkout process lessens the chances of customers canceling their payments. This also avoids the phenomenon of abandonment of the cart. An arduous process will just repel the customers.
- Do not delay the payment: Payment comes first. Avoid redirecting users to pages that require them to fill in a lot of personal information. We all live busy lives. Nobody wants to waste time writing their personal details only to buy a product. Curate a page that has slots for the basic details of the customers and keeps its minimum. Try to optimise the page to save a few more seconds.
- Try to optimise a website that allows guest checkout: The factor that leads to the highest extent of card abandonment is not allowing a guest checkout. Many websites require the customers to create an account in order to make themselves avail of the website’s services. Try to avoid this. People like hassle-free operations. Create something that will just collect the personal data of your customers for the sake of delivery operations and would not make them create an account.
- Save the customer’s payment information: As we discussed above, customers are lazy entities. They would not appreciate the UPI IDs or credit and debit card numbers repeatedly. Try to integrate an auto-fill feature to fill in the payment information of the customer. This practice will make the shopping experience easier for your customers.
We have enlightened you about the Whats and Hows of the Transaction success rate. It is now your duty to customise and execute your operations well in order to induce positive responses from your customers. Also, you must strive to increase the quality of your goods and services. That is the best way to boost the transaction rate of your business and retain customers in the long run.