Merchant account providers aim to grow their customer portfolios, revenues, and profits, but in the payments space, that’s easier said than done. Merchants aren’t likely to get through a week without being courted by one of your competitors, as thousands of independent sales organizations (ISOs), resellers, and ISVs are competing for business.
While winning new business is great, it likely is not the easiest path to growth. Acquiring new customers takes time and money, which can stand in the way of reaching your sales goals. Cross-selling and upselling, on the other hand, allow you to expand the accounts you already have, giving you a high-value option for growing your business.
Why Focus on Selling Value-Added Services to Current Accounts?
Data from marketing firm Wiser Notify supports a growth strategy focused on selling value-added services:
- Merchant service providers are 60 percent to 70 percent more likely to make a sale to an existing customer than when selling to a new prospect.
- Total revenues for companies that sell deeper into existing accounts increase by up to 42 percent.
- Every customer you upsell becomes more valuable, with their CLTV growing by 20-40 percent.
- Brands that cross-sell and upsell typically see a 20% increase in profits.
A few important principles drive those statistics. One is that “owning the whole account” by providing every solution a merchant needs will create a stickier, long-lasting solution with them. It not only means more revenue and less churn for your business. It also means fewer opportunities for a competitor to get a foot in the door. Additionally, you can increase customer satisfaction by providing all the tech tools and payment solutions merchants need, from loyalty, gift cards, and text-to-pay to customer relationship management and customer surveys.
Tips on How to Cross-Sell and Upsell Value-Added Services
Although upselling and cross-selling can fuel growth, success with selling value-added services doesn’t just happen. You may have a sales rep with a talent for it, but it takes a solid strategy to elevate your whole sales team’s performance. These tips can help improve your KPIs:
Plan
Use data and your industry expertise to understand the solutions and services that will benefit segments of your merchant list. Develop personalized offers that target each customer’s specific needs. For example, specialty retailers could benefit from a customer engagement solution that allows them to target marketing to customers based on past purchases, or service providers may want a text-to-pay solution that allows them to eliminate invoicing and improve their cash flow.
Prioritize Selling Value-Adds
Evaluate how you incentivize your sales team and make sure you aren’t prioritizing new business over value-added sales. Make it attractive enough for them to spend time promoting these solutions to their customers. Also, make sure sales reps are educated on value-added services options so they’re confident to spot accounts that can benefit from them and make offers that convert.
Focus on Timing and Consistency
Help sales reps determine when to make offers, for example, when new consumer behaviors pick up momentum or when new technologies come to market. Also, communicate to your team that consistency is key, making offers to all merchants who can benefit from a value-added service rather than a hit-and-miss approach.
Cover All the Bases
Remember that cross-selling and upselling accounts on value-added services doesn’t mean your sales team can’t also chase new business. Make sure you build a strategy that covers both, allocating resources to get the best outcomes.
The best way to expand your offerings is to work with a payments partner that has built relationships with value-added service providers. You have the confidence that those solutions will work seamlessly with the payments solution you provide – without your team establishing partnerships and maintaining integrations. Contact us to learn how partnering with Datacap can help you grow your business.
