5 Strategies Every Credit Card Marketing Exec Should Implement

Constructing an effective credit card marketing strategy isnt as simple as throwing a precious metal into a cards name . Thats not to say such tactics cannot be effective, but rather that real success stems from the creation of an environment in which marketing is not a separate function, but an integrated part of all credit card operations, ranging from underwriting to product development and customer retention. In short, the best marketers engage in activities and institute polices that foster the most efficient use of marketing dollars possible. There are, of course, many ways to do this some innovative, some tried and true and a lot depends on your companys corporate philosophy, structure, financials, etc. However, there are tactics in particular that you would be remiss in not implementing immediately, if you havent already done so. 1. Focus each product on a single consumer need !y focusing each credit card offer on a distinct consumer need, you garner both the ability to present more effective value propositions to consumers and a customer base that behaves as predictably as possible, thereby making it easier to forecast card profitability as well as ad"ust marketing strategies based on early returns. This is obviously difficult to achieve if the same card is trying to address disparate needs. #or e$ample, if a card provides lucrative rewards as well as low introductory interest rates, youll wind up with some customers who spend a lot and always pay their bills in full, some who spend and only pay the minimum, and some who transfer balances with no guarantee that they will keep their cards following the e$piration of intro rates. %n the other hand, if you offered three different cards one high& interest rewards credit card, one '( credit card for new purchases, and one balance transfer credit card youd garner three highly& predictable customer groups. That, of course, would allow you to

target underwriting and marketing more effectively, better manage risk, and ultimately make more money.
2. Bring together marketing and underwriting

Too often the marketing and underwriting teams at credit card companies are disparate entities that have effectively little, if anything, to do with one another. )ou know what this leads to* +pplicants that do not fit the underwriting criteria used to develop offers and underwriting conservatism that could easily be avoided. + credit cards marketing message significantly affects the type of consumer that will apply for it. +nd if the only direction given a marketing team is that each account cannot cost the company more than ,-'', for e$ample, theyll likely meet that constraint, but in doing so may attract riskier, less profitable customers. This would, in turn, necessitate an underwriting ad"ustment to the point that each account could no longer cost more than ,.', which would push the marketing team to rely more heavily on the lowest&hanging fruit even riskier, less profitable customers than before. The only way to break this vicious cycle is to integrate those two separate teams. 3. Offer secured cards +ll credit card companies should offer secured credit cards for two very simple reasons/ -0 they provide profitable access to a significant consumer segment without adding any risk and 10 soliciting secured card customers who prove their creditworthiness will become one of your most efficient marketing channels. Its a cant&lose strategy made even more essential now that the C+23 +ct has mitigated both the profitability and popularity of unsecured credit cards for people with bad credit.

4. Appeal to former debit card users In the past, consumers have gravitated to debit cards instead of credit cards for three main reasons/ -0 a desire not to have to pay bills4 10 the urban legend that debit cards provide fraud protection superior to that available via credit cards4 and 50 the decreased risk of overspending.

However, recent overdraft and swipe fee regulations have resulted in a mini&e$odus from debit cards, driven primarily by the near&e$tinction of debit card rewards. This means a significant opportunity e$ists for credit card companies to add valuable new accounts to their rewards portfolios. The key to addressing the aforementioned consumer concerns is a combination of auto&pay plans, customi6able limits, and education about the relative merits and risks of both credit cards and debit cards. 7arketers can thereby ensure that rewards are the deciding factor in peoples minds.

5. ea!e no customer empt" handed 8hen a customer comes to a bank in search of a credit card, youre seeing the fruits of a lot of time and money spent on marketing. The most irresponsible thing you can do at this "uncture is turn the consumer down for whichever card they apply and offer no profitable, attainable alternative. +t the very least, a secured card will be fitting, and by e$hausting every opportunity to turn potential customers into customers, youll drastically increase the efficiency of marketing dollars. 9ltimately, its no secret that the credit card company making the most out of every marketing dollar spent generally wins, as that company can simply outspend the competition. Its therefore key that marketing e$ecutives think not only about their advertisements and value propositions, but also about product terms, card profitability, and customer e$perience. In short, mechanisms like those discussed in this article could significantly increase marketing budget efficiency.

How to Sell Credit Card Processing Services to Merchants

1

Begin b" creating a few reliable credit card processing lead sources. :imilar to the sales environment of any other industry, the best lead sources are not always obvious. )ou must think creatively about where to find solid !1! leads. !egin by creating a list of all the other services a new business owner needs in addition to credit card processing. Telephone and Internet service providers likely deal with new business owners before you will, so their customers would be great leads for you. ;oin your local Chamber of Commerce and attend the weekly meetings. Contact professional associations and become a <preferred provider< of credit card processing services. !usiness owners like to do business face&to&face, so getting yourself immersed in several professional networks is critical to finding the best leads.

1 #f "ou are not pro!ided with a sales pitch b" "our emplo"er$ "ou will need to design "our own. To do this, put yourself in the shoes of the merchant. +s a business owner, what would you look for in a credit card processing service* :ometimes, the best way for you to find out is to simply ask= Take the time to ask all relevant >uestions about how the merchant runs his business. 8hat is the merchant?s average monthly sales volume* 8here does he conduct his transactions, online or in person* 3oes he have any special needs* !e sure to take detailed notes on the conversation. #inally, ask the merchant if he would like you to design a custom solution "ust for his business. If the answer is yes, compare the needs of the merchant against the services you have available, and build an intelligent solution for him. 2emember, in !1! sales, each transaction is a consultative

process. )ou will do better to convey a patient and caring disposition rather than the more conventional, high pressure sales approach.

5 %itch the merchant. If you have created an intelligent credit card processing solution for one of your prospects, the ne$t step is to schedule an appointment. +sk for - &1' minutes of the merchant?s time to discuss your solution. @rior to the meeting, create various visual aids to help you position the product. )ou want to help the merchant imagine your solution as an actual part of his business, rather than a standalone service. +lso, be sure to avoid using any "argon that the merchant may not understand. It is always best to keep it simple, and never tell the merchant more than he needs to know. Instead, continually remind the merchant e$actly how your solution satisfies his conception of an ideal credit card processing service. If you do all of this correctly, the merchant should be willing to move forward with the transaction.

A &lose the account. If the merchant is impressed by your presentation, immediately provide him with a hard copy of the application and, if possible, work through it with him. This will prevent the possibility of the merchant setting aside the application and forgetting about it. Collect any other documentation you need from the merchant and provide him with a deadline by which you will have his service ready. Congratulations= )ou have closed your first credit card processing sale.

Follow up with "our client. Bow that the merchant has become your client, be sure to maintain a positive relationship with him. This will serve two purposes. @rimarily, strong client relationships help create strong client retention. :ince you likely get paid residual commission on your accounts, you won?t want to lose an account that you already worked to close, "ust because your client felt under&serviced. +dditionally, your client will be more inclined to refer his friends to you if you go above and beyond his e$pectations. !uild a reputation for e$ceptional service, and you will have merchants finding you, instead of the other way around.

C Build a 'pipeline' of prospects. In the merchant services industry, it can take up to a full month "ust to close one account. That said, most successful credit card processing salespeople will have multiple deals in the works at any given point. This is called your pipeline. 7ake sure to keep it full by continually contacting new prospects, following up on leads that have become lukewarm, and tying up the loose ends in any lingering deals. Dven if you begin closing several accounts, never let your pipeline dry up.