ANALYTICS TIPS: 4 LESSER KNOWN METRICS YOU’RE IGNORING
We know, we know, there are a million lists of analytics tips out there. But we also know that those lists cover the same 5-10 analytics tips each time. So we dove into the most arcane analytics dashboards on our platform to compile this list of 4 metrics you might not have heard of that could really have an actionable impact on your business.
A BIN (bank identification number) is the first 4-6 numbers that appear on a credit card. The BIN is actually a code that can give you a baseball card’s worth of stats about the customer:
- The bank they use (ex: Chase or Wells Fargo)
- The brand of card (Visa vs Mastercard)
- The card type (debit or credit)
- The card category (ex: business or prepaid)
- The country of origin
So what? Well, some banks tend to be associated with a greater number of fraudulent customers, while other banks are more likely to be correlated with higher value customers. Once you know which customers are using which banks, you can route them through different processes. For example, if a customer is a member of Citibank with a Mastercard, we’ve found that on average, customers matching those traits have an average chargeback rate of 11.7%, so you could require that customers go through more verification steps during the purchase process, making it harder for them to fraudulently file a chargeback–did you know that a majority of chargebacks are caused by friendly fraud?)
Quarterly Tax Estimates
You can use your analytics to fine-tune your taxes to your benefit. If your business pays quarterly tax estimates based on your estimate of future gross revenue, you could be overpaying your taxes if you aren’t subtracting refunds, subscription cancellations, and chargebacks from your estimated revenue.
So save yourself the hassle and accurately estimate your revenue in the first place!
Decline Processing Time
When running a subscription business, you’ll find that from time to time, a customer credit card that has worked fine for the last few subscription cycles suddenly stops processing charges. There are a few possible reasons for this type of decline, like insufficient funds, an issue with the payment gateway, or a passed expiration date. Some of these decline reasons can be solved by simply trying to run the card a few more times, which is why many eCommerce platforms (including us,) offer a Decline Manager that automatically re-runs declined cards on subscription plans.
But there’s a secret to services like Decline Manager: you can schedule credit cards to re-run at certain times of day or days of the week, which can actually affect your level of success. There’s no one-size-fits-all time or day, but we’ve seen on average, our clients have higher success rates on Fridays, or the 1st, 15th, or 30th of the month. You can set up your business’ Decline Manager schedule to experiment with different times and days to see when you have the most luck.
Traffic Source In-Trial Cancellation Rate
When managing your marketing budget, the time will come that you need to assess how well your marketing spend is being put to work. And that time is early. If you’re paying for traffic, be it through Google AdWords, Facebook ads, or a fleet of affiliate marketers, you don’t want to waste your money on traffic sources that send irrelevant or unreliable customers who cancel early in their subscriptions or exhibit fraudulent behavior.
So before your advertising ROI drops, take a close look at your customers through the lens of your traffic source. We offer a dashboard designed specifically so you can measure the efficacy of your various traffic sources.
Why These Analytics Tips Matter
Don’t let these obscure analytics tips pass you by just because they aren’t well known. The devil is in the details, and you may find big results in these sneaky little numbers.
Now that you know the more arcane numbers to watch, read our last Analytics Month post for 4 Critical Daily Metrics You Should Be Tracking