Financial Institutions
Article
How to Attract and Keep Merchant Customers
When merchant customers walk through your door are you prepared to address all their needs, or will you watch them head to the nearest competitor? Today’s merchants come in all shapes and sizes, from traditional brick and mortar retail outfits to online business-to-business start-ups. But what they all want is personalized financial services, preferably in one convenient location.
While business loans and accounts are standard fare at most banks, many institutions are not as well equipped to handle the additional needs of their merchant customers. But some creative financial institutions are pursuing partnerships with outside companies to provide broader, better service.
For example, many new businesses do not meet the criteria large banks set for accepting credit cards, which can put the front line banker in a difficult situation. As one Midwest banker attests, “One of our best customers was declined. I was stressed just thinking about how to tell him.”
Smaller banks often do not offer merchant credit card services at all, but by turning to outside sources, both large and small financial institutions can shore up their business services, generate more business accounts and increase customer satisfaction.
The key is partnering with sources that provide prompt, personalized service and operate as a smooth extension of your institution, and the timing has never been better. In today’s challenging economy, a trend toward entrepreneurship is emerging. Entrepreneur.com reports:
Dislocated Workers a Source of New Businesses: A new study finds that almost 30 percent of laid-off workers started or were starting a business instead of looking for employment.
Spurred by layoffs, many enterprising individuals are striking out on their own. Your financial institution can be poised to attract these individuals and gain their business by providing them with a full range of services, from business checking accounts to small business loans to personalized credit card processing services.
Even if your institution provides merchant credit card services, you don’t have to lose “high-risk” customers to the bank down the street. Likewise, small institutions can retain and acquire merchant customers by partnering with companies that allow them to offer a suite of business services.