elieve it or not, several of our sources report that years after many large-scale ISOs have implemented customer relationship management (CRM) systems, they are still losing a large percentage of merchant customers annually.

No wonder legitimate debate remains about whether the truly merchant-driven organization has arrived.

Think about this: Your merchants want added value from every one of their suppliers, including you, their ISOs and merchant level salespeople (MLSs). Why? Because merchants need to believe you care about more than just selling them something.

CRM typically takes a corporate view of merchant customers, focusing on the history of a merchant and asking, who are our merchants, what do they buy from us, and what should we offer? Meanwhile, it ignores questions merchants are asking: What do we want, what did we get, and what should we have gotten?

Many ISOs that make efforts to be customer- or merchant-centric are measuring the wrong things. CRM systems, for instance, are very good at tracking merchant customer data, such as when merchants purchase items or what methods they use. However, CRM systems often fail to capture a merchant customer's experience during this time.

In addition to using CRM systems, some ISOs focus on merchant acquisition by investing in promotional campaigns (rebate programs, incentive discounts, free equipment gimmicks, loyalty programs, etc.), yet they aren't equipped with technology advanced enough to help them analyze these programs and take advantage of the opportunities they provide.

How many ISOs really understand their merchants? Do they grasp what excites, motivates and, yes, even disappoints them? Do they know who is referring them to competitors, and why?

Merchant centricity is not a measure of the number of call centers or sales agents an ISO has in the field; it is a measure of the quality of the merchant's experience with that ISO.

Assessing the merchant experience

ISOs need to know why merchants are buying from them or why merchants are choosing the competition. They also need to know what satisfies and frustrates merchants and how this is likely to affect the ISOs. In addition, ISOs need access to all of this information immediately, in real time.

The way an ISO deals with its merchants' experiences is a good predictor of its future financial performance. Because of this, ISOs should access, review and analyze merchant experience information as frequently as they do their own company financial information. This is a tall order.

Put your business on autopilot

As ISOs and MLSs trying to meet merchants' expectations, you need an information processing platform that puts your business on autopilot. That way, merchant information is at your fingertips; you will spend less time managing your processing and more time learning about your customers.

Today's ISOs need technology that offers speed and security in every transaction. For example, at Cynergy Data, our Vimas system (virtual merchant application software) regulates office management, automates accounting, tracks deployment resources and revs up customer service.

Vimas also maximizes ISO flexibility, increases productivity, connects offices to people and information, and interfaces with merchant businesses. We consider that to be real interaction with the merchant experience.

With this type of system, you can work smarter instead of harder; by knowing more about what's going on with merchant customers, you can sell more stuff and make more money.

Sharp analysis through technology

From online retailing to data warehousing to business-to-business Internet links, technology is embedded in the way business is conducted today, including the dealings of your merchants, their customers and their suppliers.

Indeed, it's now possible to manage a business; trade in the stock market; shop for anything from jewelry to automobiles to houses; and even send a letter and gift basket, ordered via e-mail - all while fly fishing on the Snake River in Idaho.

Technology has gone from being a priority in the 1990s to a prerequisite today for doing business, any business, especially retailing. Successful ISOs can process merchant transactions not only efficiently but also automatically ... in real time.

Don't be a laggard

Despite the phenomenal growth and overwhelming influence of computers, the majority of small businesses are still lagging behind in applying technology. Foot-draggers generally offer two basic excuses: They say it's too challenging (too much, too fast) and it's not really necessary for their businesses (paper and pencil work just fine).

What about you? Do you believe your customers don't care whether you service them in the most efficient and effective manner? Rationalizing that employing technology isn't worth the bother will only hurt you in the long run: The longer you delay, the harder it is to catch up. And if you still think paper and pencil rule, remember that your merchant customers, and your competitors, are not sitting on their hands.

Using new technological tools is now an imperative in our industry. ISO managers must budget time and money not only to bring their sales agents up to speed and then move ahead, but also to bring their merchant customer accounts into the technology fold. This is a critical aspect of being able to anticipate problems instead of react to them.

Building a stronger, more successful business

Not obtaining accurate information about your customers' experiences and failing to act on information in a timely manner can lead to high churn rates. Replacing an entire merchant customer base every three to five years is an expensive task for any ISO when you factor in the high costs of generating leads, landing new accounts, and other development and recruiting costs.

Bottom line: Are you interested in building a stronger, more successful business? Are you interested in merchant application tools that improve your sales productivity and financial performance? Are you looking for more than just basic end-of-month reporting? If your answer is yes to these questions, then you need to embrace technology in a way that offers you quick response and greater flexibility.

It's time to incorporate advanced technology into your CRM tools so that your field agents can use their time wisely and solve merchant issues with an eye toward generating sales leads time after time.

Founded in 1995 by Marcelo Paladini and John Martillo, Cynergy Data strives to be a new kind of acquirer with a unique mission: to constantly explore, understand and develop the products that ISOs and merchants need to be successful, and to back it up with honest, reliable and supportive service. For more information on Cynergy Data, contact Mike Grossman, Executive Vice President, Sales, mikeg@cynergydata.com or Matthew Hosey, Manager, ISO Support and Recruitment, matthewh@cynergydata.com .