R2Z SETTING BENCHMARKS FOR MERCHANT PERFORMANCE
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| Initial Data Exploration and Analysis | Deeper Data Exploration and Analysis | Limitations | Implications |
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Using the hybrid approach, we were able to identify star and laggard merchants in all bins. Instead of a general solution, our sponsor should set individual benchmarks for each merchant. For instance, for laggard merchants, they should aim to achieve the predicted number of approved transactions based on their volume of transactions, as shown in their respective line of best-fit graphs. Our sponsor can also recommend to these merchants a cut-off transaction monetary value that will lead to higher approved-to-rejected transaction ratio, as identified in decision tree analysis. For star merchants, our sponsor should invest more resources to retain them and focus on acquiring similar merchants in the future.
