You have dreams of increasing your recurring revenue, but you can’t find time to investigate new products and services. I’m going to give you a shortcut to recurring revenue riches with a pair of quick-read bulleted lists that will jumpstart your progress.
Are you offering these six products/services on a recurring revenue basis?
- Data analytics: Provide your merchants with statistics about their competition and enable them to receive alerts about their social media mentions.
- Gift/loyalty: A rewards program will help your merchants increase traffic, awareness, and consumer loyalty.
- Online ordering: What used to be a “nice-to-have” feature for merchants is becoming a “must-have” as consumers use their phones to make more purchases.
- Managed services: Charge a monthly fee to monitor each merchant’s network. Keep them secure while also avoiding downtime.
- Wi-Fi: Enhance the customer experience by ensuring your merchants have reliable and secure Wi-Fi.
- Payment processing: A full-service payments provider (as opposed to a bare-bones one) will reduce your overhead so you can pursue more recurring revenue initiatives.
If you’re not embracing all six of these products and services, you’re missing out on opportunities to increase your recurring revenue and make your relationship with your merchants stickier. You can’t be a trusted advisor if you offer only reactive service. Guide your merchants into new technologies that will increase their sales and lift their bottom line.
Because I engage with leading POS resellers and ISVs every week, I’ve learned some key principles and tactics related to recurring revenue:
- If you aren’t offering all six of the products/services listed above, pick one or two to investigate and then test them with clients with whom you have a strong relationship. Implement the new offering, scale it (market to all your merchants), and then investigate one or two more products/services to add to your linecard.
- Offer a 90-day trial period for new services to current customers. Prove to them that it works and they tend to buy-in.
- The break/fix business model was a sprint: sell as much hardware, software, and peripherals as you could in the initial sale. The recurring revenue business model is a marathon: how much technology and services can you sell to the customer in the long run?
- White-label products whenever possible so if you switch vendors you can make a change that is less disruptive to the client.
- Aim for monthly recurring revenue to exceed monthly expenses. Additional project work that month will fall to the bottom line.
As I said at the outset of this piece, this is a 400-word shortcut to start you down the path to recurring revenue riches. For more information on this important topic, watch my hour-long webinar on recurring revenue or read my nearly 40-item list of recurring revenue products and services for POS solution providers.
Jim Roddy is a Reseller & ISV Business Advisor for Vantiv’s PaymentsEdge Advisory Services. He has been active in the POS channel since 1998, including 11 years as the President of Business Solutions Magazine, six years as a Retail Solutions Providers Association (RSPA) board member, and one term as RSPA Chairman of the Board. Jim is regularly requested to speak at industry conferences and he is author of the book Hire Like You Just Beat Cancer.