From the January/February 2010 issue of ISO&Agent.
In January, David Mangum, executive vice president and chief financial officer at Global Payments Inc., cited ISOs as "ruthlessly efficient sales engines," referring to their ability to sell payment-processing services to merchants.
Being able to sell to merchants is predicated on finding them and getting them to listen to a sales pitch.
Over the past few years, as the number of merchants accepting credit and debit cards has increased, ISOs and acquirers have had to come up with new ways to secure merchants and to keep the ones they are serving. In this first issue of ISO&Agent magazine for 2010, we examine these methods and the strategies behind them.
In our cover article this issue, Meghan Boyer, associate editor, unravels the art of marketing to merchants. Not all marketing tactics are effective, she finds. With so many variables, including the type of communication, the message, the target audience and the timing, an ISO or acquirer marketing plan is a subjective effort, not easily transferable among industry players.
Referral marketing-when a merchant, bank or association refers a merchant to an ISO-has become a vital element of many ISO and acquirer marketing plans. Merchants typically see referrals as more credible than a direct solicitation.
Of course, a marketing plan requires knowing which merchants are open to signing up for new service accounts. On page six, we delve into where ISOs and acquirers find new merchants.
One place to look may be among merchants selling need-based products, such as food or home-repair supplies, as consumers are more likely to spend their money with them than on luxury goods in today's economic climate.
Once an ISO or acquirer finds a prospective merchant, the sales pitch and its structure gain in importance.
In an article on page 16, ISO&Agent finds that the traditional sales formula of selling based on price is outdated, and sales agents instead should pitch products and services that meet the merchant's needs.
"Do more listening than talking, and the sale will be yours," says Linda Rossetti, president of Bluestone Payments, a Peachtree City, Ga.-based ISO.
Rounding out this issue, ISO&Agent also examines what ISOs and acquirers are doing to stem merchant attrition. With no industry average for how many merchants typically leave a portfolio, ISOs and acquirers are formulating their own plans to contend with lost accounts.
And the overriding theme of this issue: Communicating with merchants and monitoring their transactions can help identify potential losses or avert them.
No doubt merchant behavior has changed over the past year. Information in this issue of ISO&Agent should help ISOs and acquirers understand some of the potential successful strategies for working with merchants in 2010.
