Are you looking to embed payment acceptance within your SaaS platform? Or perhaps you want to monetize payments to create new revenue streams and improve the payment experience for your users and their customers.
Payment integrations provide businesses with real-time insights into their financial performance, allowing them to make better decisions about how to optimize their operations for greater profitability. With the right payment integration solution, businesses can maximize their revenue by reducing costs and improving efficiency.
As experts in the payments and SaaS space, we have a few pointers to help guide you down this journey. It starts with taking a look at the metrics that matter so you can build new streams of revenue and provide the best user experience.
Metrics that Matter
1. Net Revenue
Net revenue is an important financial metric used to measure the profitability of a business. It is the total amount of money earned from sales minus direct expenses for goods or services.
Net revenue can be used to determine the overall health of a company, as well as its ability to make informed decisions that benefit growth and development. Benchmarking and measuring this metric before and after your payments integration is complete helps you determine how much ancillary revenue the solution produced.
2. Net-New Acquisition
Net-new acquisition measures how many new opportunities your business was able to acquire. By keeping a close eye on this metric, you can determine how many new deals were influenced by payments after the integration is complete.
3. Payment Attachment Rates
Payment attachment rates measure how successfully you were able to get your current and new customers to adopt payments through your platform. This metric helps you determine how widely your payment integration is used by your customers.
At Clearent, we have marketing and sales support teams in place to help drive payment attachment for both your current and net-new users.
4. Churn Rates
Churn rates help you determine how many customers or subscribers stopped doing business with you. On average, it takes 5 to 7x more effort to land a new customer than to retain a current one. Your business should strive to achieve a perfect balance between churn and growth to remain profitable.
5. Rule of 40
This metric provides a high-level view of the health of your business. To calculate, you add the percentages of your growth rate and your profit margin. Combined, both should exceed 40% to ensure that your team is operating at the highest possible rate.
Here at Clearent by Xplor we understand these payment KPIs and how they function within the SaaS world that you and your users live in.
Measuring them is one area where we can provide guidance, but it’s important to keep in mind that you have to continue to market payments to drive its success. We have expert sales and marketing teams in place to support existing and net new bases so you can continue to focus on your users’ experience while hitting new revenue milestones.
We hope that this checklist has helped you dig a little deeper into the metrics that can help you determine ROI as you plan the next phase of your payment acceptance strategy.
If you have questions, please reach out. We’ve integrated payments into hundreds of applications and would be happy to share the tricks of the trade.
About Clearent by Xplor
Clearent is a leading full-service payments solution provider that supercharged its success through the merger with software powerhouse Transaction Services Group. The resulting company is Xplor Technologies who serves over 800 partners and 62,000 businesses who process over $32 billion dollars. We are the first global company integrating smart software, seamless payments, and commerce accelerating technologies. Our mission is to help customers achieve more growth, faster. To learn more, visit clearent.com.