Payoneer, a payment service company, was founded in New York in the year 2005. It is a profitable company and receives venture funding. It features in the top 100 of Inc. 5000’s financial services company. It’s forte is in e-commerce with its cross border payment platform. It has clients in over 200 countries across the world. It is also ranked 34th in Deloitte’s Technology Fast 500. With the platform provided by Payoneer, business professionals in developed and developing markets can make and receive payments with ease. Their service is fast, secure, easy, flexible and low cost. Various leading companies like Google, Airbnb, Getty images, etc. rely on Payoneer’s platform for making their payments.
Payoneer’s Business Objectives
Payoneer had launched its new service for freelancers and professionals. They could make and receive cross border payments over this platform without much hassle. After doing so, they faced a few challenges which needed to be attended to, in order to succeed in further growth. They intended to expand their business in various countries and hence had to take into consideration their local languages as well. The challenges that they faced were as follows:
- In order to reach out to potential customers in remote locations where money transfer still seemed expensive and logistically difficult, they needed to look at ways to overcome this hurdle. Awareness of the platform had to be created and for doing the same local language support was required. The potential customers had to be made aware of this service being available in their country. Awareness campaigns had to be set up for the same.
- They did not have any search inventory for this new service. Hence, potential users were not likely to search for the same online. They were more likely to search for services which they were aware of. The availability of a new service had to be brought to their notice and that too in a language that is known to them and supported by their systems. It was required at this point in time that Payoneer took additional efforts to create required awareness among its potential users.
- Since the service required an on-going investment, the value of the client could only be assessed over a long period of time i.e. few months or years. Risk over a one time investment is almost nil as compared to an on– going investment, since the investor may terminate the service before time. A user might register to avail of the service and may not continue the service in the future. This will lead to loss of ROI as the amount spent to acquire this customer would still need to be recovered. It was important to retain a customer and avoid churn. This could only be made possible by ensuring that the customer is satisfied with the service.
The factors for measuring performance were as follows:
- User registration – No. of users registered for the service.
- Card Activation – No. of users who actually activate the card after registration.
- Money loaded on the card – determines the value of the customer.
- On going use of the card – this determines the loyalty aspect of the service.
Approach / Strategy Adopted By Payoneer
In order to successfully overcome these challenges, Payoneer had to come up with a comprehensive product marketing strategy. They had to look for ways to tap these potential users to commence sales. An in-depth analysis was required in order to arrive at solutions to reach the target audience and get valuable conversions. They launched mini sites and deployed landing pages in 16 different languages. These mini- sites contained information about the service and platform and how it could be used by them to make cross country payments across the globe. This was necessary to get the attention of the potential customers by using their native language. But for this approach, Payoneer would not have been able to reach out to customers who do not use English as their medium of communication. They also launched campaigns with Search and GDN. They took the help of Edge BI, a software which is used to optimize and scale marketing campaigns and reduce CPA. It is a tool which can be integrated with the CRM sales data and can be used to make informed decisions quickly. It can be used to reduce the CPA, scale up the marketing campaigns, review the performance of the marketing campaigns, etc.
Results Achieved By Payoneer
A positive ROI was achieved in less than 1 year. The language barrier and expansion challenge was overcome successfully. They passed the challenge with flying colours. This was possible due to the tight analysis conducted with the help of Edge BI tool. The number of users increased from zero to few thousands and continued growing further with 1000s of active users every month. The customers were satisfied with the service information and performance of the platform. Payoneer’s client acquisition saw a phenomenal growth of 4751%. They also saw a continued growth in their business volumes. They were also able to reduce churn and were able to retain their existing customers from quitting.
In this case study, it can be observed that there are various ways in which one grow one’s business. In order to arrive at solutions to expand one’s business, it is important to conduct in-depth analysis of the complete available data and take informed decisions. To expand ones business in different countries, support of local languages, goes a long way in acquiring potential customers. Support of local language also helps in building awareness of a new service. The quality of content used to bring about this awareness should be good and informative. It is also important to note that once the campaign has been set and the landing pages have been created in various languages, it is vital to keep the data updated basis the information collected. One can use various software tools like Edge BI to help process the incoming data. With the help of such measures, one can achieve one’s business objectives successfully.
Image Credit: Money2020