Tracking customer spend in an omnichannel or multiprocessor environment

Discover how to effectively track customer spending across multiple channels and payment processors. Learn about the challenges of fragmented payment systems and explore solutions like the Payment Account Reference (PAR) to gain a unified view.

Stripe logo
Stripe
•
Andrew Robinson
•9 min read•beginner•
--
•View Original

Overview

The article discusses the challenges merchants face in tracking customer spending across various channels and payment methods in an omnichannel environment. It introduces the Payment Account Reference (PAR), a 29-character identifier that helps link transactions without compromising sensitive payment data, thereby improving customer insights and operational efficiency.

What You'll Learn

1

How to utilize the Payment Account Reference (PAR) to track customer spending across multiple channels

2

Why using PAR can enhance customer data security and compliance with PCI DSS

3

When to implement PAR for better customer insights in omnichannel retail

Key Questions Answered

What is the Payment Account Reference (PAR) and its purpose?
The Payment Account Reference (PAR) is a 29-character alphanumeric identifier created by EMVCo to help merchants link transactions and accounts securely. It allows for better visibility into customer activities without exposing sensitive payment information, thus enhancing operational efficiency and customer experience.
How does PAR improve customer tracking across different payment methods?
PAR provides a unified reference that links transactions made through various payment methods, such as physical cards and digital wallets. This consistency allows merchants to maintain a cohesive view of customer spending, even when payment methods or processors change.
What are the key benefits of using PAR for merchants?
Using PAR offers several benefits, including enhanced customer profiles for personalized marketing, cross-channel visibility for better data analysis, reduced security risks by minimizing PAN storage, and resilience to account changes, ensuring continuity in customer transaction tracking.
How does PAR help in maintaining continuity despite card replacements?
PAR remains consistent even when customers replace their cards, as it links transactions to a stable identifier rather than a specific PAN. This allows merchants to track customer spending history without disruption, fostering a seamless customer experience.

Technologies & Tools

Payment Technology
Payment Account Reference (par)
Used to link transactions and accounts securely without compromising sensitive payment data.
Security Standard
Pci Dss
Regulates the security of payment data and compliance requirements for merchants.

Key Actionable Insights

1
Implementing the Payment Account Reference (PAR) can significantly enhance your customer data strategy.
By adopting PAR, merchants can create a unified view of customer transactions across various channels, which is essential for effective personalization and targeted marketing.
2
Utilize PAR to reduce your compliance burden related to PCI DSS.
Since PAR is a non-financial reference, it minimizes the need to store sensitive payment data, thus simplifying compliance efforts and enhancing security.
3
Leverage PAR for better insights into customer behavior across different payment methods.
With PAR, you can track customer spending patterns more accurately, allowing for improved marketing strategies and customer engagement.

Common Pitfalls

1
Failing to implement a unified tracking system can lead to fragmented customer data.
Without a system like PAR, merchants may struggle to connect transactions across different channels, resulting in lost insights and missed opportunities for personalization.
2
Over-reliance on sensitive data storage increases compliance risks.
Storing sensitive payment information can lead to significant PCI compliance burdens; using PAR helps mitigate these risks by reducing the need for such data.

Related Concepts

Omnichannel Retail Strategies
Payment Tokenization
Customer Data Security