As the industry evolves and changes so does the role of a merchant-focused sales person. The days of solely offering merchant services are over; sales consultants now need to be abreast of current security standards, legislative mandates and new value-added offerings that may improve their clients’ bottom line.
What I want to discuss in this article is how new products or services can help create new revenue opportunities for your organization. As I interact with ISOs and agents daily I’m seeing more and more of them embracing new products or services to help them reduce attrition, open new markets, increase their bottom line or give them a competitive edge.
Traditional product lines such as bankcard, debit, check and gift card processing are the mainstays for most agent offices. If you’re stuck in a one-size-fits-all product offering, the industry is going to leave you in the dust. As the business continues to evolve, a wealth of new product options will come to market.
Here are just a few examples that I’m seeing out in the marketplace:
 Mobile Phone/iPad Applications
Fund Raising/Tithing Solutions
Wireless Vending Solutions
Remote Hosted POS Systems & Software
Time & Attendance
SMS Mobile Marketing
SEO Solutions
Social Media Products
Collections Products
Digital Signage
eCommerce Fraud Tools
Medical Benefits Verification
Payroll Processing
PCI Compliance
Video Surveillance
With all these options it can get confusing but, rest assured, merchants are looking for value-added solutions from trusted suppliers that can help them improve their businesses. If you are not providing the solutions they need and want, guess what? Someone else will.
I’m certainly not advocating adding several new products at once but this may be a good time to investigate what’s out there and determine if there are any synergistic fits with your existing business model.
Done correctly, adding a hit new product can make a major impact to your bottom line and reinvigorate your sales staff. Done incorrectly; a failed new product launch can be a disaster to profit margins, reputation and staff motivation.
Before adding a new product line there are several factors that should be considered:
Profit Potential
One of the most important components of any new product launch is the potential to impact bottom line revenue. A product that opens new doors and creates significant ongoing revenue is a winner every time. So ask some common sense questions, what is the potential revenue this new product will create?
Is it a one-time commission or residualbased or both? Will it create new opportunities to sell additional products and services? Will this product help retain existing customers? Will this product help recruit agents?
Is There a Market?
You can have the best product in the world but if the potential market size is lacking, sales targets will not be met. Ask yourself the basics:
Who - will buy or needs this product?
Where - can I locate this type of customer?
What - is the market potential and size?
What - does my prospect want from this product? What will it solve?
Why - should they buy from me?
How - do I penetrate this market?
When - do I begin launching this product?
It’s key to think through the whole process in order to make sure all the bases are covered, there has got to be a market and a real need for any successful product offering. The best products are those that have a legislative mandate attached to them.
Competitive Environment
It is always important to know what the competitive climate is around any new business opportunity. At this time I personally can’t see any new product being as competitive as the market we are in right now. Do your homework and know who the major competitors are. What are their pricing strategies?
How much of the market do they have in your area? What is unique about their offering? Why do you think you can beat them?
Ongoing Service Commitment
Ongoing service is always a consideration for any size company. Ideal products should require little or no ongoing service by the sales office or staff. If you’re adding a new product that requires heavy service make sure the upfront and ongoing revenue streams justify the additional service work.
Product Implementation
Another key factor is implementation. How difficult is this product to install, setup or activate? Will it require additional in-house staff to support the implementation? Many products such as gift cards require artwork, customer approval, printing, delivery and installation. Are the benefits of selling this product worth the implementation work required?
Now is the perfect time to take a look at new and exciting products that can provide a clear competitive edge in your market area. Be committed to being a solution provider and to adding value to your clients and you can’t help but have a fabulous year. Good Luck.!  |
