04 Nov Show Me the Money: How to Increase Profitability in Your Business
The number one goal of any business is to drive sales, and as a result, increase profitability. It’s not about how much you make, but how much you can keep at the end. Easier said than done, right? Everyone is looking for the slightest of advantages to gain prospects’ trust and business. According to newvoicemedia.com, “After one negative experience, fifty-one percent of customers will never do business with that company again.” We take a look at six ways to increase profitability and your bottom line.
Establish Your Position as a Trusted Advisor
Trust is the most important factor in business decisions. Merchants want to work with resellers who have their best interests in mind and have faith that their products and services will create revenue. Edelman’s 2018 Trust Barometer states “Fifty-six percent of companies that only think about themselves and their profits are bound to fail.” Work with your merchants to understand their needs and help guide them in fulfilling them.
With a growing focus on EMV and mobile transaction processing as a means of boosting payment security nationwide, the ability of a value-added reseller to highlight how they can help merchants navigate the new security atmosphere is crucial.
Provide Value-Added Services
The more services you can provide, the more valuable your business becomes. Installation and setup, as well as on-site support services, are two items that can be added. Having the capability to have 24/7 customer support is also especially helpful in the hospitality industry. Another value-added service is the ability to create HaaS and SaaS bundles.
POS resellers who don’t head into the market are doing themselves a disservice and losing market share. According to Cisco’s Global Cloud Index, “59% of all cloud workflows will be delivered by SaaS by the end of 2018.” That number is expected rise as we approach 2020. Hardware as a Service, Software as a Service, combined with your payment processing company, provide an all-encompassing product for your merchant.
In addition to Haas and SaaS bundles, value-added resellers should also add cloud-based reporting and wireless solutions to the services offered for merchants. For those hard-to-wire merchants who always take cash, wireless solutions can allow them to sell more, be EMV compliant, and prevent costly chargebacks. Cloud-based reporting gives your merchant remote access to sales reporting and price management tools.
Diversify Your Network
The old adage “don’t put all your eggs in one basket” applies to resellers too. Expanding and diversifying your portfolio can be simple and financially rewarding. Think about the customers you serve. If you are a reseller for merchants who utilize mobile solutions, then think about merchants who may have a similar need. Home-based services, delivery services, parking and valets, mobile food services, and events/festivals/flea markets, all accept payments on the go. According to Inc.com, “The top two keys to being successful in diversification are to adapt and find related products.” In this case, adapt and find related customers.
All mobile POS systems offer features such as processing, employee scheduling, sales tracking, inventory management, and vehicle management that can all be intertwined. With new merchants popping up every day, POS resellers need to constantly be on their toes, not just acquiring new business, but keeping it as well. Get out and meet people, build a reputation, and be a resource.
If you keep hearing the word “no” after your sales pitches, you aren’t going to win. Overcoming those objections and reversing those no’s into yes’s is key. In an article by WebStragies Inc., “When buyers have a few objections and you can satisfy them, your success rate is 64%.” Whether it’s a question about the price, a products features, or even the fear of change or a prior bad experience, don’t let their demeanor change your sales focus. By responding effectively, listening, asking questions, and responding and resolving the issue you can win over the merchant.
Create Customer Loyalty
Customer loyalty is defined as, “a buyer’s preference for doing business with a particular business establishment. Nothing is more valuable than a satisfied and loyal customer. In an article published by Harvard Business School, “Acquiring new customers can cost five times more than satisfying and retaining current customers.” A loyal customer’s value is irreplaceable. Create memorable experiences. Build relationships with your merchants and get to know them beyond their storefront or business.
Lastly, reward the merchants who do frequent business with you by giving them financial incentives or gift cards. By creating a referral program, you establish merchant “stickiness” and loyalty. According to the Huffington Post, “Companies see up to an 80 percent rate of closings when the sales come from a strong customer referral and makes the company money. The best form of marketing and advertising is word of mouth from your clients.
Make Marketing a Priority
The products and services you offer are the heart and soul of your business. Now it’s time to increase your brand awareness on a digital stage. In our Reseller Edge newsletter, we’ve covered content marketing, email marketing, and social media strategies over the past several months, with this edition highlighting video marketing. Why such an emphasis? Successful marketing campaigns equal time and money spent at your establishment. Establish yourselves as experts in your industry and extend that to your online reputation.
Share your personal story, product news, behind-the-scenes videos, customer reviews, and more on social media. Don’t forget to include a call to action, or CTA, that links to your website or a specific product. The best marketers are loyal customers. Keep on providing after your initial sale. Keep your merchants coming back and engaged by adding them to a text message, email, or newsletter list for updates, new product launches, special sales, or other offers.
The reselling war doesn’t have to be an uphill battle. By establishing yourself as a trusted advisor, providing value-added services, diversifying your network, overcoming objections, and creating customer loyalty and making marketing a priority, you can increase your profit margins and create a path to victory and success.