Visa Consulting and Analytics

Issuer Acquirer Retailer

Next
 Analytics and Information
services: Issuer menu

Analytics menus Next

Back
Issuers - Visa data driven insights

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

- Performance Hotspots
- Bespoke Analysis
Insight
Analytics menus Back Next
 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

Executive Level Comprehensive reports at the highest aggregation level • These reports assist in analysing
Decision performance and delivering to a plan
maker Insights at the respective portfolio level or business unit • Plan vs. Actual
Senior Management level • P&L
Services level
• Key performance indicators
Manager level Information at a granular level for the individual teams

Solution set to help a client acquire customers in a cost- • Targeting sourcing to maximise revenue
Acquisition effective manner • Assessing market potential
• Increasing usage & balance per customer
Marketing Customer Origination Strengthen the relationship with existing customers for a long- • Increasing cross-sell ratio
services Account management
lasting revenue stream

Customer Value Improve campaign profitability by targeting Pricing, Product

Optimisation offering & Promotional channel factors

Account Origination
Assess the risk associated with applicants for controlled • Reducing credit losses
portfolio risk exposure and risk based pricing • Early detection of credit stress in the portfolio
Risk • Accurate forecasting of losses
Continuous monitoring of risk behaviour of customers on
services Account Management book • Building collection efficiency
• Risk-Revenue trade-off analysis
Suit of solutions to effectively track delinquent customers for
Collections & Recovery optimal collections and recovery

Evaluation of processes, to check analytical readiness

Diagnostics • Basic infrastructure for any data driven
Analytical
analytics and decision making
infrastructure Platform and tools Data warehouse, creation of data marts, evaluation of tools like
• Enabling selection of cost optimised tools
SAS/SPSS
People & Projects and platforms including people needs
Proven methodologies, people augmentation solutions
Analytics menus Back Next
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

Behavioural Outputs
Customer Transactional Location lifestyle &
Attitudinal

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

Analytics menus Back Next

 Analytics and Information
Services: Acquirer menu

Analytics menus Next

Back
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
Other
Transactions
transactions
at merchant at competitors
(fraud)

Merchant
Sector of
transaction

Merchant
e- Spend Category
Commerce Behaviour Code Aggregation of
transactions across
accounts to identify
Types of
purchase patterns
payments
captured Card details
DCC (Credit/Debit)

Country of
transaction
Domestic/
POS Chargeback International
transaction

Analytics menus Back Next

The global acquiring market

Est €17 billion in net revenue, with Europe accounting for €4.5 billion*

Largest Domestic Markets

Estimated Acquiring Revenue by Region
Est. Acquiring
Market
Revenue (billions)

U.S. € 6.5
Europe
North € 4.5B
America Asia Brazil € 2.0
€ 6.5B Pacific
€ 3.5B China €1.5
Africa,
Middle East U.K. € 1.0
<€ 1B
Latin France € 0.7
America
€ 2.5B Canada € 0.7

Japan € 0.7

Germany € 0.5

Including credit and debit generally

Source: First Annapolis Consulting, circa 2009.
accepted card volume.
Analytics menus Back Next
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.

Increasing influence of non-banks, slow Niche strategies will work well for years to
Changing consolidation of the market and the come, while key value-added services will
coordination of major pan-European Growth become revenue significant and cross-
Competitive banking groups are altering the competitive Opportunities border expansion will be a key focus for
Landscape landscape growth.

Ease of barriers to entry, decline of Pricing tactics, interchange management

Evolving Interchange rates and the termination of and processing outsourcing represent a
Profit
Scheme and numerous local schemes are shifting the huge opportunity for the whole of Europe
scheme environment Enhancement
Regulatory
Opportunities
Environment

Acquirers of tomorrow will require a broad

Increased Acquirers in the west are often
set of products and connections to
Operating compete (e-commerce, mobile, wireless, Cost and challenged by low pricing margins,
Complexity contactless, etc) Efficiency 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 Back Next
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 Payment
Credit Risk
Benchmarking Processing
Reporting
Optimisation

Cross Border Value Added Services

Payment Trends Reporting Bespoke Analysis
(DCC, 3D Secure, etc)

eCommerce
Reporting

Analytics menus Back Next

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
Analytics menus
Specialised Reports Analysis & Intelligence
Cross Border
Interchange reporting
Payment Trends
•Interchange paid by card programme, fee type, cardholder domicile and
channel Payment Processing
•A quarterly summary of your interchange to help you quantify the impact of Optimisation
different technologies to your interchange. •In-depth review of your
Authorisation and Clearing &
Settlement parameters
Credit Risk Reporting
•Detailed assessment to identify
•Chargeback, decline, and fraud rates by merchant sector implications to your overall
•An in-depth review of your credit risk and fraud performance and trends business performance, such as
relative to the market approved fraudulent transactions,
good cardholders declined, and
increased cardholder disputes
Value Added Services Reporting
•DCC performance
•3D-Secure details Bespoke Analysis
•Comparison of volumes by POS terminal type •Working with Visa Consulting
Analytics experts you can have
•An in-depth review of your value added services portfolio performance
customised analysis carried out
relative to the market
based on your specific business
needs
e-Commerce Reporting •Define your own requirements to
• Share of e-Commerce merchants and growth maximise the profitability through
improved customer management
•Merchant Sector distribution and growth strategies and tactics
•Chargeback and decline, rates by merchant sector
•An in-depth review of your e-Commerce performance relative to the market
Back Next
 Analytics and Information
Services: Retailer menu

Analytics menus Next

Back
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 Other
Transactions Transactions transactions
at merchant at competitors (fraud)

Merchant
Sector of
transaction

Merchant
MOTO Spend Category
Behaviour Code Aggregation of
transactions across
accounts to identify
Types of
purchase patterns
payments
captured Card details
ECI (Credit/Debit)

Country of
transaction
Domestic/
POS Chargeback International
transaction

Analytics menus Back Next

How much do you know about your shoppers?

Get 360O view

of your shoppers

What YOU may know What WE know

about your shoppers? about your shoppers?

• Where do they come

from? • What is their total monthly spend?

• How often do they shop? • Where else do they spend?

• How much do they spend? • How loyal are they to you?

• What products do they • What is the value share of different

buy? retailers?

Analytics menus Back Next

How much do you know about your shoppers?

Who are my Shoppers?

º Affluence, Life Stage
º Married , #Children, region
º Promotion Sensitivity
º Price Sensitivity
º Shopping Mission
º Shopping Time of Day
º Time spent in store
º Weekday/Weekend Shopper

The Visa USP

What else do they do?
What do they buy? º Other places where they shop/spend
º Major categories bought º Overall shopping frequency
º Top categories likely to be purchased º Total monthly spend, share of wallet
º Private Label spend º Do they shop with other merchants? If yes,
what is my value share vis-à-vis them
º Have my Inactive shoppers switched?

What is their value?

º Spend, clicks, value
º Recency, Frequency, Monetary
º Shopper Loyalty
º Attrition Probability
Analytics menus Back Next
º Life Time Value
Integrating Retailer’s data with Visa data

Retailer data
Retailer Data
Transaction
Customer Information
Store
Redemption
Campaign
Feedback

Intelligence
Consumer Intelligence Competition
Shopper Behavior Intelligence
Consumer Segments My Value share vis-à-vis
Competition
Category and
Promotional preferences Competition Loyalists
Visa data Value & Potential Competitive
Benchmarking vis-à-vis
consumer Loyalty
VISA Data Data
POS Mart

E-channel Category Intelligence Channel Intelligence

Merchant Category Penetration Catchment Area
Country of Usage behavior behavior
Transaction Shopper Profile Assortment
Promotion behavior Store Layout
Price Sensitivity Store-specific
Promotions

Analytics menus Back Next

Retailers - Visa data driven insights

- Market Benchmarking

We are in a unique Benchmarking

- Analyst Insight
position to inform our
clients about
- Operational effectiveness
• Declines
performance analysis
• Chargebacks
across key metrics,
customers behaviour, - Share of wallet analysis
trends & market Analysis • Shopper spend profile
insights • Secondary spend analysis
- Contactless Performance Analysis

- Catchment area analysis

- New store planning
Insight
- Bespoke Analysis

Analytics menus Back Next

Retailers - Visa data driven insights

We can support your need to develop, refresh or strengthen decision making

using your data at all levels

Analytics Solutions Benefits

• Customer profiling • Solution set to enrich retailer’s customer

understanding
RFM • Customer life flows
Segmentation • Psychographic analysis of customers
& analysis • Customer journeys revealed preferences
• Segmentation

• Key performance benchmarks • Benchmarking the retailer against

Competition • Share and rank of spend/transaction amongst top retailers competitors
Benchmarking • Average transaction amount per card • Highlighting areas of improvement

• Average ticket size

• Based on the analysis retailers can run

• Seasonality and trending analysis campaigns in: a) High growth categories
Spend
to ride on the growing trend or; b)
forecasting • Time series analysis
Declining categories to retain revenues

Analytics menus Back Next

Retailer – your data driven insights

Analytics Solutions Benefits

• Dashboards • These reports assist in analysing performance and

Decision delivering to a plan
• Customer lifetime value
maker • Forward looking estimate of each customers’
services • Cardholder portfolio evaluation
revenue potential
• Retention/Attrition management

• Response model
• Benchmarking the retailer against competitors
Marketing • Applicant pool segmentation
• Highlighting areas of improvement
Services • Early activation programs
• Card/Account upgrade programs
• CLTV program

• Based on the analysis retailers can run

• Seasonality and trending analysis
Risk Services campaigns in: a) High growth categories to ride
• Time series analysis on the growing trend or; b) Declining categories
to retain revenues

• Data hygiene test

• Basic infrastructure for any data driven analytics
Analytics
• Data management, strategy and architecture and decision making
Infrastructure
• Creation of data-marts • Enabling selection of cost optimised tools and
platforms including people needs
• Build, operate & transfer (BOT) framework

Analytics menus Back Next

 Retailers – your data driven insights

Analytics Solutions Key Business Questions Answered

• How many different segments of shoppers do I have?
CRM • Behavioural Segmentation • How does each segment behave?
segmentation • Customer Lifetime Value • How do we target them differently based on purchase habits?
• Who are the buyers of proprietary brands/ Private Label brands?

• Are shoppers responding to everyday value?

Pricing • Shopper Price Sensitivity
• What is the price elasticity in different shopper segments?
sensitivity • Pricing Optimisation
• What is the right gap between proprietary brands and national
brands?
• What should be my price strategy to maximise revenue and profits?

• Which categories/ brands are sensitive to promotions?

• Targeted Price Reduction
Campaigns & • What discount bands work well for national brands/ Private label?
promotions • Promotions Optimisation
• Which products should be promoted for key shopper segments?
• Which products should be promoted for price-sensitive shoppers?

Merchandising & • Market Basket Analysis • What set of products do my shoppers buy together?
store layout • Brand Switching Analysis • What is the best store layout to enhance shopping experience?
• Store Layout Optimisation • How should the store assortment differ based on catchment areas?
• Are my shoppers brand loyal? Do they switch brands on promotions?

Analytics menus Back Next