Why precise enriched transaction data matters
Post Summary - Relevant Facts
At Snowdrop, we care about delivering the highest possible match rate for our payment customers. Typically, we match some 95% of banking payments back to the merchant where the transaction took place – be it online or in-store. We take pride in these results and are often told we deliver a significantly better match rate than our rivals.
Occasionally we are asked, “do premium match rates really matter?” They do. The cost of a poor customer experience is enormous not only for the bank but for consumers too.
In the United Kingdom, for example, around 10 to 15% of all calls coming into a bank’s call center are queries about a misunderstood transaction. At an average cost of £12 per customer call, these messy transactions quickly become a considerable cost for any bank. At other customers located in Europe and Southeast Asia, the average cost per call is less than the cost in the UK, but the overall transaction volumes are about the same.
But call center’ costs are just one price of inaccuracy. A bank must often initiate a lengthy chargeback process to understand what has occurred. This process can be so onerous that many banks instead automatically refund users for transactions that fall below certain values. In the UK, for example, one bank automatically refunds consumers up to £10 per transaction. At another bank in SE Asia, they refund up to an equivalent of US$ 40 USD.
When added up, we estimate that the price of inaccurate transactions often costs a bank millions of dollars in calls, refunds and chargebacks each year.
That said, the real cost is greater: the loss of consumer engagement. Today, consumers have an increasing choice of digital banks and payment services. Without clear, accurate information and insights, they may not be your customers for very long.
As many know, the process to switch from one bank to another is getting easier all the time. Users no longer need to be physically present in a branch in order to open an account. Instead, challenger banks have shown how simple users can create a new account in just a few steps with a mobile device and a few documents such as an ID card to identify the user’s identity.
In short, there is a big price for inaccurate data that does not benefit from highly precise location and enriched transaction information.
Want to know more?
Snowdrop Solutions is a Google Maps Premier Partner with over eight years’ experience working with leading companies to solve complex location challenges. We offer expertise, insights and owned technology which combined help our customers bring to life enhanced consumer experiences.
We deploy location data to build consumer trust. When information is not displayed in a clear way it can cause confusion and anxiety for customers: we simplify people’s lives by enabling our customers to deploy location enriched user interactions that build trust.
If you want to know more about how to add location-based services to your business, you can contact us by filling out the form below.