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Education

Signing isn't the be all, end all In some cases, it may take up to a
year, especially if there is a bonus

By Jeff Fortney involved. Many bonus programs have
claw-back rights for up to 12 months.
Payments Professional The start of retention efforts
n a recent conversation with a sales agent I was asked, "How much value This is why retention has become
do you put on a merchant signing?" I replied, "Very little." That surprised a hot topic in the payments world.
him. He asked why I felt that way. His position was that the signing was Retention has always had value,
I a successful sale, and there should be some value to that. The rationale but in an unsettled marketplace
for my simple response was that signing a merchant is just a step in the sale. and with the pervasive insistence
There is no value until the merchant begins processing and continues to pro- caused by only selling cost savings,
cess for a period of time. its importance has magnified. If the
attrition rates stay at their current
As the conversation ended, I considered the topic and his confusion. I realized pace, I have no doubt many payment
there is a concerning misconception regarding what constitutes a successful companies and ISOs will fail.
sale in the payments industry. The dictionary definition of a sale is "the
exchange of a commodity for money." Simply put, the signing of a merchant is Retention efforts, at a corporate
just a step toward a successful sale. level, are beneficial, but they don't
address confusion or the root cause
Until you actually make money there is no success. Consider that the sales of attrition at the initial sales process.
process comes with a cost either directly or indirectly. A monetary gain is only At the absolute beginning, you must
seen after those costs are offset. And that monetary gain may take months to intentionally address the potential
see, as the revenue earned may take time to reach a gain over costs. of attrition and plant the seeds of
retention.
It begins by making internal changes
first, that is, ones pertaining to your
mindset and preparation. These steps
aren't new, but unless addressed,
it will be impossible to address the
external steps.
• Have a plan before you begin
the sales effort. Every oppor-
tunity is different. Before even
speaking to a merchant, you
must have a plan based on what
you know of the opportunity.
This plan must be reasonably
detailed in that you understand
what direction you want to go
with the conversation. And it
must begin with the prospect
doing most of the talking, not
you talking to them.
• Never lead with cost savings.
This does not mean that a sav-
ings component can't be a part
of your presentation. It just has
to be a secondary benefit. Find
the prospect's pain, and address
that pain – whether it be a need
for a better POS system, a sim-
plified process, or even a pro-
vider that won't raise rates every
six months. If it saves money,
too, that is just gravy.

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