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Education

Help merchants crucial – without the software to organize and interpret it,
the answers to all of these crucial business questions are
derive more value shots in the dark. Some processors include basic business
analytics tools with their platforms, and these can be
useful. Many business owners elect to buy dedicated
from transaction data software that permits broader-view benchmarking against
their local competitors, historical data and more. Business
intelligence software built for small businesses can be a
big help.
Better relationship building

CRM and marketing software powered by transaction data
can help merchants build better customer relationships.
Smart merchants understand the value of repeat customers
‒ who, research shows, spend 67 percent more than other
customers. And it costs five times more to acquire a new
customer than to keep a current one. To earn more repeat
By Peter Shenk visits, merchants must create better customer relationships;
Womply this starts with merchants learning everything they
can about their customers. Transaction data can power
oday, outside of the rare, holdout "cash only" small business CRM software, which can help merchants
dog groomer or roadside taco stand, every suc- build and manage their customer list and facilitate email
cessful local business accepts credit and debit marketing to improve customer relationships, build
T cards. Researchers concluded long ago that the loyalty and increase revenue.
majority of small businesses see a significant boost in rev-
enue when they start accepting these payments. While this In combination with the latest software, credit card
continues to be true, industry observers have now deter- transaction data gives merchants the most accurate view
mined that the data associated with those transactions of their customer interactions. Are their customers mostly
also adds great value if you help merchants exploit it. regulars who spend relatively little per transaction?
Do they come in once a year but spend hundreds or
For example, transaction data can power customer thousands? Which customers should they target with
relationship management (CRM) and marketing software, loyalty marketing efforts? The only way to get these
so busy merchants can create better customer relationships, profitable insights is through software that can gather and
attract more new customers and increase loyalty with their interpret their transaction data.
current customers ‒ all without spending time they don't
have. And transaction data can enable real-time business Going beyond useless small business software
analytics to help merchants make smarter business
decisions more quickly. Lest you think leading your merchant pitch with small
business software solutions is too unorthodox to be
effective, consider that since 2011, software use by small
In today's digital age, data is the new gold standard. Small, businesses has grown from 27 percent to 94 percent. Thus,
local businesses that accept cards can benefit significantly
from putting transaction data to use, but most don't ‒ almost all merchants are open to using software to improve
their businesses. However, small business software will be
because they are unaware of what's possible and don't
know how to get started. As ISOs and merchant level quickly abandoned if it is a hastily developed afterthought
that integrates poorly, doesn't deliver on promised value,
salespeople (MLSs), you are ideally positioned to change
that. and/or requires more work and time from the merchant.
No more shots in the dark Smarter MLSs are transitioning away from pitching low
processing rates and moving into a consultative role.
Merchants can and should use business intelligence You're on the front lines of the battle for local customers'
software to move beyond gut instinct and make smarter dollars. And if you offer processing, it's a natural fit for you
decisions, faster. Transaction data has the potential to to advise merchants about the exciting software available
provide merchants with vital information that goes far to turn raw transaction data into vital, time-saving and
beyond a simple processing statement. revenue-generating answers to your merchants' most
pressing business needs.
You might ask merchants if they actually know how they
compare against their competitors; what their revenue Peter Shenk is vice president of partnerships at Womply, a leading soft-
trends look like on a yearly, monthly, weekly and daily ware partner to the payments industry and the top provider of front-office
basis; when their best sales periods are, and which need software to small businesses. Contact him at pshenk@womply.com.
more support. Without transaction data and – this is
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