This plan outlines key metrics essential for a payment institution's success, focusing on both quantitative and qualitative aspects. Monitoring the Customer Transaction Volume helps to track business growth, as high-performing companies often see annual increases of 20%. For instance, improving the user experience and expanding partnerships can drive more transactions.
The Transaction Approval Rate is critical to maintain user trust, with top institutions achieving over 95% approval rates. Strategies like enhancing fraud detection and optimizing payment systems are vital here.
Net Revenue Margin, indicative of profitability post expenses, ranges between 30% and 50%. Cost reduction and negotiating favorable terms with financial partners can significantly impact this metric positively.
Customer Satisfaction Score, ideally over 80%, reflects service quality. Regular surveys, responsive customer service, and transparent processes can boost scores in this area.
Finally, Average Transaction Value, usually between $50 and $100, can grow through promotions and loyalty programs that encourage larger purchases.
Top 5 metrics for Instituição de Pagamento
1. Customer Transaction Volume
The total number of transactions processed by the payment institution over a given period
What good looks like for this metric: Varies widely; high growth companies see 20% annual increase
How to improve this metric:- Increase customer acquisition through marketing
- Improve user experience to encourage repeat transactions
- Expand partnerships to access a wider customer base
- Offer promotions or discounts to drive transaction volume
- Enhance payment options to support diverse needs
2. Transaction Approval Rate
The percentage of successful transactions approved compared to total transaction attempts
What good looks like for this metric: Typically over 95% for competitive institutions
How to improve this metric:- Enhance fraud detection accuracy
- Optimise payment processing systems
- Collaborate with banks to iron out common approval issues
- Monitor transaction decline reasons closely
- Regularly update customer payment information on file
3. Net Revenue Margin
The net revenue generated as a percentage of total revenue post expenses
What good looks like for this metric: Ranges from 30% to 50%
How to improve this metric:- Reduce operational costs
- Increase service charges where feasible
- Negotiate better rates with banks and card networks
- Optimise risk management to reduce losses
- Focus on high-margin products or services
4. Customer Satisfaction Score
A measure of how satisfied customers are with the service provided, often derived from surveys
What good looks like for this metric: Aim above 80% satisfaction
How to improve this metric:- Enhance customer service response times
- Conduct regular feedback surveys
- Implement suggestions from feedback
- Regularly update and simplify user interfaces
- Maintain transparency in fees and processes
5. Average Transaction Value
The average amount of money handled per transaction
What good looks like for this metric: Dependent on industry; typically between $50 and $100
How to improve this metric:- Encourage bulk purchases or payments
- Promote higher-value products or services
- Implement loyalty programs for higher spends
- Offer tiered service packages at different price points
- Cross-sell products to increase transaction value
How to track Instituição de Pagamento metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
