Recently Mark Passifione, vice president of partner sales at Clearent, participated in the Southeast Acquirers Association’s Virtual Sessions. With most in-person events either being cancelled or delayed for 2020, the digital forum provided a way for ISOs and agents to connect and learn, even in the face of COVID-19.
During his session titled How ISOs Can Ensure Success in 2020 & Beyond, Mark spoke about the intersection of software and payments and how it has created unique opportunities and challenges for ISVs, ISOs and agents. There is a rush to capture more and more revenue from the payments value chain, but this shift has left many ISOs wondering where they fit in, how they should adapt and what they need to do to build a forward-thinking strategy.
This is especially important as we witness the growth of subscription business models. Did you know that by 2023 experts at Gartner research predict that 75% of businesses selling direct to consumers will offer subscription services? Undoubtedly, the world is shifting from “buy me” to “subscribe to me.”
This trend has created a profitable niche for ISOs and agents who partner with ISVs to become their trusted advisor and partner for all things payments. Here are five tips to help you get started.
Tip #1: Put on your blinders.
In many situations, blinders can be detrimental because they often prevent you from seeing the big picture. However, if you’re looking to capture revenue from integrated payments, blinders are a must.
With so many players in the payments ecosystem and constantly changing technology, it’s easy to get distracted. ISOs and agents should put on their blinders so they don’t lose focus on their target customers. The fastest growth can come from focusing on small- and mid-sized businesses, PAYFACs and vertical-specific software providers as target go-to-market partners. Be sure to leverage your existing network and choose a vertical where you have expertise.
Tip #2: Apply your payments knowledge.
By embedding payments into their software, ISVs can create a new revenue stream, provide a seamless customer experience and reduce churn. However, without an in-house payments expert, software vendors may experience gaps in crucial areas that can hamper their growth.
ISOs and agents have something that most ISVs don’t: an in-depth knowledge of payments. The key is to take that knowledge and wisdom and apply it to a new opportunity – integrated payments. By leveraging that knowledge, they can solve the things SaaS providers deal with every day by serving as a payments consultant and providing integrated support.
Tip #3: Follow a solution-based sales approach.
Start by identifying your customers’ pain points. This will help you truly understand their needs and ask the right questions, rather than focusing on your product and its features. A key part of this is active listening. Instead of anxiously awaiting a pause so you can jump in and say your point, take the time to really listen. Repeat back what you are hearing to make sure you are on the same page. This helps create rapport and shows your prospect that you understand their challenges. Show how you can make the payments piece less complicated while making their customers’ lives easier.
Tip #4: Speak the ISV’s language.
Since most software companies run off subscriptions, keeping customers is just as important as acquiring new ones. That’s why ISVs focus so heavily on metrics such as Monthly Recurring Revenue (MRR), Churn, Churn Rate and Customer Acquisition Costs (CAC). Show them you understand their business by speaking their language. Focus on growing revenue, increasing retention and lowering customer acquisition costs.
Tip #5: Have a repeatable plan with financial rewards for your partner.
Show your partner how you can help them capture revenue from each customer segment based on a realistic payment adoption rate. This will show you which segments are most likely to convert and will generate the most revenue. Finally, make sure that your process is scalable and repeatable so it has the greatest reward for you and your partner.
Want to learn more about growing your business by leveraging integrated payments? Contact us and a member of our team will be happy to tell you more and set you up for future success.