Understanding the Total Merchant Environment: Conversation Starters that Open Doors and Close Deals By Michelle Graff
f you've been reading The Green Sheet diligently, you've been introduced to a variety of initiatives that are driving changes in the payment business. You've read about technology changes, such as IP communications, 3DES security and multi-application architecture; revenue-generating solutions, such as gift cards, prepaid cards and age verification; and emerging market opportunities, such as those in the quick service restaurant space.
And you've read about the new generation of sexy terminals designed to help you win a merchant's business and upgrade the point-of-sale.
This month, let's put this all into a context that can be used to open a dialogue with your merchants and close deals that pay long-term dividends in both customer loyalty and your paycheck.
Start with a conversation about the merchant's business. Too often in our business, it's easy to walk into a merchant location, assess the terms of the current processing contract, offer a better deal and win or lose the business - all in a matter of minutes.
And, just think, while you're talking transaction pricing with one prospective merchant, another ISO is trying to steal one of your customers without your knowledge. Win one. Lose one. Tie game.
If you take the time to ask the right questions, you have an opportunity to not only win the processing deal but also to sell new equipment, sell a variety of residual-producing applications and, ultimately, improve merchant retention. Let's take a look at conversation starters:
Clutter: A Look at the POS Area
Does the merchant have an older-generation payment device connected to an impact printer, and maybe even an external PIN pad? If so, the counter or bar is cluttered, multiple cables and connectors are exposed, and a lot of noise is generated when a receipt is printed.
Show the merchant how you can free up precious counter space and reduce the number of cables and connectors to one power cord by installing an all-in-one terminal. Patrons will appreciate the quiet issuance of receipts as they dine or shop.
Usability: Ease of Use is Important
What do the employee turnover statistics look like? Clerk turnover in retail shops and restaurants can be quite high; as a result, a lot of time is spent training new employees. Does the merchant's current terminal support an offline demo/training mode? Is the terminal's interface intuitive, or does it instead have a small cryptic display or a bunch of confusing buttons on it?
It has been proven that a large ATM-style display that clearly prompts a user through a transaction is the easiest to use. A terminal featuring an integrated thermal "clam-shell" printer facilitates drop-in loading and virtually eliminates paper jams. Remember, ease of use for merchants translates into fewer support calls to the help desk.
Software Features: Improving Operations
Are there any special features not supported by the merchant's current solution that can help reduce costs or improve operations? Does the current solution support an auto-settle function that forces terminals to close and settle the batch within 24 hours, ensuring that merchants qualify for the best discount rates? Is the merchant in a state that has mandated account truncation on receipts?
Does the merchant take phone or mail order transactions, and, if so, does its solution support address verification and other security features for card-not-present transactions? Is there a need to support tips in a non-restaurant environment, such as a salon or spa? And, finally, is it a multi-merchant environment that can benefit from the ability to separate transactions and reports by merchant ID?
If you understand the software features that address all of these functions and issues, you can educate the merchant and deliver a new solution that better fits the merchant's needs.
Reporting: The Right Information for the Job
Does the merchant spend a lot of wasted time on manual paperwork? Talk about reporting needs. Chances are, the proprietor is living with a terminal that simply reports batch-settlement figures. Solutions today go much further with features such as transaction detail reports, clerk reports, shift reports and even IRS tip reports. Advanced reporting functions allow managers to spend more time on the shop floor or in the kitchen, ensuring that their customers come first - not paperwork.
Communications: Fast Connections and Reduced Phone Line Charges
Is the current terminal connected to a separate phone line? Dedicated business phone lines cost upward of $30 per month. Does the merchant have DSL or cable connectivity delivering high-speed Internet access for other solutions in the business? You have an opportunity to not only upgrade the merchant to a terminal that eliminates the phone line and related line charges but also to install a solution that delivers transactions in less than four seconds using IP communications over the existing DSL, cable or Ethernet line.
Value-Added Applications: The New Profit Calculator
Chances are good that the merchant's current terminal simply processes credit card transactions. Here's where you really have an opportunity to win the business and begin a relationship that continues to deliver value - and new revenue streams.
Take some time to understand the customer experience at the merchant's location. Does the merchant take a lot of checks, and, if so, could check authorization or conversion programs reduce check losses? Could the merchant improve customer service by supporting electronic gift and loyalty programs?
Is it an environment conducive to selling prepaid phone card services? Does the restaurant or shop sell liquor or tobacco products and, therefore, would it benefit from age-verification services?
Talk to the merchant about the new generation of terminals that support payments but also have value-added applications that improve customer service. If you can do this, you're on your way to establishing a relationship with the merchant that protects you against merchant attrition based solely on the price of credit card processing.
Once you have established a relationship with the merchant, you have an ongoing opportunity to "upsell" more services in the future. The more services you offer, the better your retention rates and the better your residuals.
Game over, you win.
Michelle Graff is Director of Global Marketing for VeriFone.
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