Investigating the Decrease in Credit Card Payment Amounts: A Comprehensive Case Study Approach

Product analytics is a critical tool in understanding consumer behavior and identifying trends within a business. A few weeks ago, I came across a case study where the credit card payment amount per transaction had decreased for a financial company. The initial step in addressing this issue is to gather qualitative data from stakeholders and perform a comprehensive investigation to determine the root cause. In this article, we will walk through the steps of conducting an investigation, starting with a conversation with management.

Communication with Management

The first step in investigating a decrease in credit card payment amounts is to have a conversation with management. This can provide valuable insights into any changes in company procedures or external factors that may have influenced the data. A potential conversation with a manager might go like this:

Initial Questioning

How have you noticed the decrease?
Specifically, did this decrease occur at a company-wide level, or is it an anomaly in one particular branch or department?

Are there any recent changes in company procedures or policies that could have affected transaction amounts?
For example, any updates to card acceptance policies, changes in payment processing, or modifications to the payment interface on the company’s website.

Have you observed any patterns in the payment amounts, such as increases or decreases on specific days or times of the day?
Understanding if the issue is consistent or sporadic can help narrow down potential causes.

Are there any marketing campaigns or promotions that could have influenced consumer behavior?
Marketing efforts might encourage lower payment amounts or higher frequency of transactions.

Collaborative Problem-Solving

Management's input is crucial in forming a collaborative problem-solving approach. By discussing these points, you can begin to piece together the puzzle of what might be causing the decrease in payment amounts. For instance, if management notes a recent change in card acceptance policies, this could provide a starting point for further investigation.

Company-Wide Analysis

After gaining insights from management, the next step is to conduct a company-wide analysis. This involves reviewing data and performing both qualitative and quantitative assessments.

Data Review

The data review should include the following aspects:

Historical Transaction Data
Analyze the data from the previous months or years to identify any anomalies or trends. Look for patterns that may have been missed initially.

Frequency Distribution
Examine the distribution of transaction amounts. Are there more transactions with lower amounts or is the decrease consistent across all amounts?

Customer Segmentation
Split the data by customer segments, such as age, location, or purchase history. This can help identify if the decrease is affecting certain groups more than others.

Time Series Analysis
Conduct a time series analysis to understand if the decrease occurred suddenly or over a period of time. This can shed light on the potential cause.

Customer Feedback and Support Inquiries

Customer feedback and support inquiries can provide invaluable insights. Analyze responses to reviews, call center data, and customer surveys to identify any common complaints or concerns. These insights can point to both consumer behavior changes and potential issues within the company’s services or products.

Technical and Operational Audit

A comprehensive investigation should also include a technical and operational audit. This involves reviewing the following aspects:

Technical Audit

Payment Processing Systems
Examine the payment processing systems for any recent updates or changes. Are there any bugs or issues that might affect transaction amounts?

Card Acceptance Policies
Review the policies around card acceptance to ensure there are no accidental reductions in payment amounts due to policy changes.

Middle and Back Office Systems
Check the middle and back office systems for any potential discrepancies or errors that might be impacting transactions.

Operational Audit

Point of Sale (POS) Systems
Inspect the POS systems to ensure they are functioning correctly and are not rounding down transaction amounts.

Customer Service and Support
Evaluate the processes and procedures within customer service and support. Are there any specific inquiries or complaints that seem to correlate with the decrease in transaction amounts?

Data Collection and Integrity
Verify the accuracy and integrity of the transaction data to ensure it has not been tampered with or misrepresented.

Conclusion and Recommendations

Once the investigation is complete, the findings should be summarized and presented to management. This will typically involve:

Summary of Findings

The root cause of the decrease in credit card payment amounts.

Any patterns or trends observed within the data.

A detailed analysis of customer feedback and inquiries.

The outcome of the technical and operational audits.

Recommendations for Action

Based on the findings, recommend specific actions to address the issue and prevent similar issues in the future.

Outline any necessary changes to procedures, policies, and systems.

Highlight potential improvements in customer service and support to better address customer concerns.

In conclusion, investigating a decrease in credit card payment amounts requires a multifaceted approach that includes communication with management, comprehensive data review, and thorough technical and operational audits. By following these steps, financial companies can effectively identify and address the root cause of the issue, thereby improving the overall performance and customer satisfaction of their transactions.