The Value of Value-Added Solutions
The phrase value-added means so many things in different industries. In our line of work, value-added, refers to complementary solutions that can be offered by organizations to help create additional revenue generation opportunities.
For example, we work with most of the top merchant acquirers in the payments industry. The primary service merchant acquirers provide is payment processing for businesses looking to accept credit cards as a form of payment. Most of the leading acquirers have tens or hundreds of thousands of merchants in their portfolios. We partner with these organizations to develop software solutions that complement payment processing. These solutions include point of sale software, digital marketing solutions, loyalty applications, revenue analytics, etc.
So, let’s look into some of the main benefits organizations like merchant acquirers get from offering value-added resellers.
- Revenue Drivers. Value-added services typically aren’t free. But more importantly, they are typically rolled-out to existing customers in bulk via opt-in and opt-out programs. These launches can create large amounts of revenue for our partners. Secondly, new clients may choose your business because of the extra value these solutions create.
- Portfolio Retention. We can’t harp on this enough. Portfolio retention is one of the top two issues impacting merchant acquires these days. The premise is simple – it becomes more difficult for a merchant to leave your portfolio if they need to give up all of the additional value-added services you are providing them.
- Customer Engagement. Many value-added solutions provide merchant acquirers with more opportunities to engage and interact with their portfolios, which is a good thing.
- Product Differentiation. Sometimes, just offering one core service like payment processing isn’t enough. Having the right mix of complementary products can be the difference between signing a new client or losing them to a competitor.
- Helping Merchants. Helping customers succeed is usually at the top of most companies’ charters. Being able to provide businesses with digital marketing tools, advanced sales reports or integrated back office applications can help them engage with their customers, save time and drive sales.
Interested in learning more about our value-added solutions, leave us a comment.