It is a great idea to measure product indicators. There are tons of metrics for products used by end-users, but what should be measured for a backend service?
There is an opinion that the payment service has only one metric and this metric is the uptime which should be included in SLA. But anyone who works with payments can disagree with this idea.
Let’s think about what can be measured for the billing system for a mid-size e-commerce site.
1. Commercial conditions with payment providers
The commercial condition is a core part of the contract and it has to be controlled by managers. Commission to the payments gateway can depend on several parameters. Here are parts of them:
- the amount of the cash flow;
- brand value;
- marketing cooperation between merchant and provider.
If an e-commerce app has many payment methods, it should be calculating the average. If there are no any additional parameters to measure payment option then cheaper is better. In that case, it makes sense to carefully redirect the traffic from being expensive to cheap. By this manipulation, it could be possible to decrease the average level of commission down to a few points.
Sometimes it is very easy to measure the conversion. Sometimes not.
Credit card conversion can be significantly increased with some simple steps (we will discuss it in an additional post). As for conditions it is possible to redirect the traffic from low-conversion payment methods to high-conversion carefully.
In practice, the conversion should be monitored and controlled periodically.
Some payment methods can help to conduct future one-click payments.
The good examples are:
- Store credit card number for future one-click payments.
- Link an e-wallet number to user profile.
- Monthly invoicing.
Fraud can become a very large problem in case if it is not controlled. But fraud level can be managed without any significant losses on conversion?. A level of the fraud is the very important billing metric.
For small products it is acceptable to have one payment
. For this reason, the uptime value for billing platform could be higher than uptime for the specific one.
So, we have discovered other things apart from the uptime. I am sure there are a lot of other metrics. If you have something to add, please contact me.