Visa Consulting and Analytics

Transcription

1 Visa Consulting and Analytics Issuer Acquirer Retailer

2 Analytics and Information services: Issuer menu

3 Issuers - Visa data driven insights We are in a unique position to inform our clients about performance analysis across key metrics, customers behaviour, trends & market insights Benchmarking Analysis - Portfolio Dynamics - Market Benchmarking - Analyst Insight - Operational Effectiveness Declines Referrals Chargeback's - Cardholder Spend Profiling - Contactless Performance Analysis - Usage Performance Analysis Insight - Performance Hotspots - Bespoke Analysis

4 Issuer menu - your data driven insights We can support your need to develop, refresh or strengthen decision making using your data at all levels Analytics Solutions Benefits Decision maker Services Executive Level Comprehensive reports at the highest aggregation level These reports assist in analysing performance and delivering to a plan Senior Management level Manager level Insights at the respective portfolio level or business unit level Information at a granular level for the individual teams Plan vs. Actual P&L Key performance indicators Marketing services Acquisition Customer Origination Account management Solution set to help a client acquire customers in a costeffective manner Strengthen the relationship with existing customers for a longlasting revenue stream Targeting sourcing to maximise revenue Assessing market potential Increasing usage & balance per customer Increasing cross-sell ratio Customer Value Optimisation Improve campaign profitability by targeting Pricing, Product offering & Promotional channel factors Risk services Account Origination Account Management Collections & Recovery Assess the risk associated with applicants for controlled portfolio risk exposure and risk based pricing Continuous monitoring of risk behaviour of customers on book Suit of solutions to effectively track delinquent customers for optimal collections and recovery Reducing credit losses Early detection of credit stress in the portfolio Accurate forecasting of losses Building collection efficiency Risk-Revenue trade-off analysis Analytical infrastructure Diagnostics Platform and tools People & Projects Evaluation of processes, to check analytical readiness Data warehouse, creation of data marts, evaluation of tools like SAS/SPSS Proven methodologies, people augmentation solutions Basic infrastructure for any data driven analytics and decision making Enabling selection of cost optimised tools and platforms including people needs

5 Issuer menu - external data driven insights Delivering insight through linking transactional data to purchase behaviours to create the unique propositions that only Visa can deliver Customer Transactional Location Behavioural lifestyle & Attitudinal Outputs PR / Market Trends Market Potential/Share Bricks vs. Clicks Growth & Contraction Activity & Utilisation Segmentation Economic Recovery Channel Preference Geographical Reporting Acquisition Retention/Cross Sell Multi Channel Marketing

6 Analytics and Information Services: Acquirer menu

7 Key behaviour insights from Visa data Visa data captures the granular details on the transactions done by Visa cardholders across the globe. Types of transactions captured Transactions at merchant Transactions at competitors Other transactions (fraud) Merchant Sector of transaction Types of payments captured e- Commerce DCC Spend Behaviour Merchant Category Code Card details (Credit/Debit) Aggregation of transactions across accounts to identify purchase patterns POS Chargeback Domestic/ International transaction Country of transaction

8 The global acquiring market Est 17 billion in net revenue, with Europe accounting for 4.5 billion* Estimated Acquiring Revenue by Region Largest Domestic Markets Market Est. Acquiring Revenue (billions) North America 6.5B Latin America 2.5B Europe 4.5B Africa, Middle East < 1B Asia Pacific 3.5B U.S. 6.5 Brazil 2.0 China 1.5 U.K. 1.0 France 0.7 Canada 0.7 Japan 0.7 Germany 0.5 Source: First Annapolis Consulting, circa Including credit and debit generally accepted card volume.

9 Challenges facing Acquirers The card acquiring business remains a smaller market than issuing, but offers strong cash flow and growth potential for those strategically committed to the business. Changing Competitive Landscape Increasing influence of non-banks, slow consolidation of the market and the coordination of major pan-european banking groups are altering the competitive landscape Growth Opportunities Niche strategies will work well for years to come, while key value-added services will become revenue significant and crossborder expansion will be a key focus for growth. Evolving Scheme and Regulatory Environment Ease of barriers to entry, decline of Interchange rates and the termination of numerous local schemes are shifting the scheme environment Profit Enhancement Opportunities Pricing tactics, interchange management and processing outsourcing represent a huge opportunity for the whole of Europe Increased Operating Complexity Acquirers of tomorrow will require a broad set of products and connections to compete (e-commerce, mobile, wireless, contactless, etc) Cost and Efficiency Acquirers in the west are often challenged by low pricing margins, while those in the east struggle with operating efficiencies and profitability. A well-run acquiring business can generate strong, low risk cash flows. Analytics Home menus

10 Acquirer analytics services Visa is in a unique position to deliver performance analysis against key metrics, industry behaviour and trends Turnkey Reports Specialised Reports Analysis & Intelligence Interchange Reporting Market Benchmarking Credit Risk Reporting Payment Processing Optimisation Cross Border Payment Trends Value Added Services Reporting (DCC, 3D Secure, etc) Bespoke Analysis ecommerce Reporting

11 Visa data driven insights for an Acquirer Turnkey Reports Market benchmarking Merchants Share of merchants and outlets KPIs chargeback to sales, fraud to sales, year-on-year growth in pos turnover Provides Pan -European and Country-level statistics where the Acquirer is located in a different European country than the merchant Cross Border payment trends Cross Border Top Ten by: Merchant Sector, by Acquiring Market, by Merchant Location Transactions by channel Designed to provide business insights and a 360 degree view of your performance relative to the market Specialised Reports Cross Border Interchange reporting Payment Trends Interchange paid by card programme, fee type, cardholder domicile and channel A quarterly summary of your interchange to help you quantify the impact of different technologies to your interchange. Credit Risk Reporting Chargeback, decline, and fraud rates by merchant sector An in-depth review of your credit risk and fraud performance and trends relative to the market Value Added Services Reporting DCC performance 3D-Secure details Comparison of volumes by POS terminal type An in-depth review of your value added services portfolio performance relative to the market e-commerce Reporting Share of e-commerce merchants and growth Merchant Sector distribution and growth Chargeback and decline, rates by merchant sector An in-depth review of your e-commerce performance relative to the market Analysis & Intelligence Payment Processing Optimisation In-depth review of your Authorisation and Clearing & Settlement parameters Detailed assessment to identify implications to your overall business performance, such as approved fraudulent transactions, good cardholders declined, and increased cardholder disputes Bespoke Analysis Working with Visa Consulting Analytics experts you can have customised analysis carried out based on your specific business needs Define your own requirements to maximise the profitability through improved customer management strategies and tactics

12 Analytics and Information Services: Retailer menu

13 Key behaviour insights from Visa data Visa data captures hundreds of details on the transactions done by Visa cardholders across the globe Types of transactions captured Transactions at merchant Transactions at competitors Other transactions (fraud) Merchant Sector of transaction Types of payments captured MOTO ECI Spend Behaviour Merchant Category Code Card details (Credit/Debit) Aggregation of transactions across accounts to identify purchase patterns POS Chargeback Domestic/ International transaction Country of transaction

14 How much do you know about your shoppers? Get 360 O view of your shoppers What YOU may know about your shoppers? What WE know about your shoppers? Where do they come from? How often do they shop? How much do they spend? What products do they buy? What is their total monthly spend? Where else do they spend? How loyal are they to you? What is the value share of different retailers?

15 How much do you know about your shoppers? What do they buy? Major categories bought Top categories likely to be purchased Private Label spend Who are my Shoppers? Affluence, Life Stage Married, #Children, region Promotion Sensitivity Price Sensitivity Shopping Mission Shopping Time of Day Time spent in store Weekday/Weekend Shopper The Visa USP What else do they do? Other places where they shop/spend Overall shopping frequency Total monthly spend, share of wallet Do they shop with other merchants? If yes, what is my value share vis-à-vis them Have my Inactive shoppers switched? What is their value? Spend, clicks, value Recency, Frequency, Monetary Shopper Loyalty Attrition Probability Life Time Value

16 Integrating Retailer s data with Visa data Retailer data Retailer Data Transaction Customer Store Redemption Campaign Feedback Information Intelligence Visa data VISA Data POS E-channel Merchant Category Country of Transaction Consumer Intelligence Shopper Behavior Consumer Segments Category and Promotional preferences Value & Potential Category Intelligence Penetration Usage behavior Shopper Profile Promotion behavior Price Sensitivity Data Mart Competition Intelligence My Value share vis-à-vis Competition Competition Loyalists Competitive Benchmarking vis-à-vis consumer Loyalty Channel Intelligence Catchment Area behavior Assortment Store Layout Store-specific Promotions

17 Retailers - Visa data driven insights - Market Benchmarking We are in a unique position to inform our clients about performance analysis across key metrics, customers behaviour, trends & market insights Benchmarking Analysis - Analyst Insight - Operational effectiveness Declines Chargebacks - Share of wallet analysis Shopper spend profile Secondary spend analysis - Contactless Performance Analysis Insight - Catchment area analysis - New store planning - Bespoke Analysis

18 Retailers - Visa data driven insights We can support your need to develop, refresh or strengthen decision making using your data at all levels RFM Segmentation & analysis Competition Benchmarking Analytics Solutions Customer profiling Customer life flows Customer journeys Segmentation Key performance benchmarks Share and rank of spend/transaction amongst top retailers Average transaction amount per card Average ticket size Benefits Solution set to enrich retailer s customer understanding Psychographic analysis of customers revealed preferences Benchmarking the retailer against competitors Highlighting areas of improvement Spend forecasting Seasonality and trending analysis Time series analysis Based on the analysis retailers can run campaigns in: a) High growth categories to ride on the growing trend or; b) Declining categories to retain revenues

19 Retailer your data driven insights Decision maker services Analytics Solutions Dashboards Customer lifetime value Cardholder portfolio evaluation Retention/Attrition management Benefits These reports assist in analysing performance and delivering to a plan Forward looking estimate of each customers revenue potential Marketing Services Risk Services Response model Applicant pool segmentation Early activation programs Card/Account upgrade programs CLTV program Seasonality and trending analysis Time series analysis Benchmarking the retailer against competitors Highlighting areas of improvement Based on the analysis retailers can run campaigns in: a) High growth categories to ride on the growing trend or; b) Declining categories to retain revenues Analytics Infrastructure Data hygiene test Data management, strategy and architecture Creation of data-marts Build, operate & transfer (BOT) framework Basic infrastructure for any data driven analytics and decision making Enabling selection of cost optimised tools and platforms including people needs

20 Retailers your data driven insights CRM segmentation Analytics Solutions Behavioural Segmentation Customer Lifetime Value Key Business Questions Answered How many different segments of shoppers do I have? How does each segment behave? How do we target them differently based on purchase habits? Who are the buyers of proprietary brands/ Private Label brands? Pricing sensitivity Shopper Price Sensitivity Pricing Optimisation Are shoppers responding to everyday value? What is the price elasticity in different shopper segments? What is the right gap between proprietary brands and national brands? What should be my price strategy to maximise revenue and profits? Campaigns & promotions Merchandising & store layout Targeted Price Reduction Promotions Optimisation Market Basket Analysis Brand Switching Analysis Store Layout Optimisation Which categories/ brands are sensitive to promotions? What discount bands work well for national brands/ Private label? Which products should be promoted for key shopper segments? Which products should be promoted for price-sensitive shoppers? What set of products do my shoppers buy together? What is the best store layout to enhance shopping experience? How should the store assortment differ based on catchment areas? Are my shoppers brand loyal? Do they switch brands on promotions?