Over the last year or so, I have been talking about a major shift in sales from simple transactional sales to more complex solution sales. This is...
Prediction: Statement Analysis will Not Exist in 5 Years
[powerpress] My training / content creation has been non-existent for a few months, so I figured I should do a post to ensure everyone that I am still alive! As many of you know, I have been working around the clock on our latest technology solution. Even though we rolled it out last week, I […]
My training / content creation has been non-existent for a few months, so I figured I should do a post to ensure everyone that I am still alive! As many of you know, I have been working around the clock on our latest technology solution. Even though we rolled it out last week, I am still working hard with my team to add some key features.
Today I want to take a moment to share 5 reasons I believe statement analysis and all that goes into that process will not exist in five years. These five reasons are why my team and I are staying up all hours to finalize the features of our technology solution: to allow statement analysis to die over the next five years.
Here is why Statement Analysis Will Die Over the Next Five Years:
#5 – Because computers can do it better. Since analyzing a statement is a process involving hundreds of variables, and since a human doesn’t have access to the right data or the ability to process the data quickly, the odds are the human’s results will not be as accurate. Statement Analysis departments are made up of smart, well-meaning people who are making assumptions. They get a tier priced statement and make assumptions about what the interchange costs really are and which interchange costs fall into which tier. When they see a statement on Interchange Plus pricing, rather than analyzing it against similar business types to find downgrades and other issues with the interchange table, they assume that interchange will stay the same. Now if the statement analysis department could spend eight hours – or even three hours – on each statement and really dig into a database of similar merchants, an amazing proposal could be created. But they don’t have that kind of time. Our new IQ tool can do all of that calculation and logic in about three seconds with an algorithm.
#4 – Because Sales Reps Use Multiple Processors. Suppose the processor’s analysis / proposal was accurate and easy to read (which it certainly is not), the sales reps would still have a huge problem on their hands. This problem is the result of a simple reality which no one in our industry wants to accept. Sales reps and sales offices sell for anywhere from two to five processing companies. Getting an analysis from each company is a waste of time and resources for everyone. This process also dramatically increases the complexity of choosing the right program for the merchant. Our IQ tool allows you to compare multiple programs from multiple processors instantly, and I believe this will be the new standard.
#3 – Because Sales Professionals are Impatient. Our IQ Tool can complete an accurate quote without ever asking for specific fees or data from the statement, and the entire process takes about one minute to complete. CLICK HERE to watch the demo video. Why on earth would sales reps risk the sale by asking for a statement and then further risk the sale by telling the prospect they will come back in three to four business days if they don’t have to? Every sales rep out there wants to push the sales process as far as possible on the spot. I believe as more tools like our IQ tool come out, sales professionals in the merchant services industry will demand immediate results. We are all impatient when it comes to making commission.
#2 – Processors / ISO’s Want to Save Money. Let’s face it, there are much more profitable uses of time for an employee of a processing company than sitting in a dark room somewhere creating incomprehensible spreadsheets. Once our full feature set is available in late August, processors will start to transition their full time “statement analysis” staff to more profitable tasks such as teaching the sales people how interchange actually works. These smart and talented people should be working to improve solutions like ours by recommending and adding new features and functionality, as well as helping the processor identify opportunities to reduce interchange costs across the board for all merchants. The bottom line is that we have automated the entire statement analysis process. It happens in real time, standing in front of a merchant. Why would processing companies continue to offer statement analysis via spreadsheets and emails?
#1 – Our team is going to kill it. The number one reason that statement analysis as you know it today will not exist in five years is that my team and I will devote every moment to killing it. I am going to leverage every connection I have in this industry and work with every processor I can to eliminate the statement analysis department and replace it with something that works better for the sales partner! There will be those who doubt this idea initially. You may not see a big change over the next six months as everyone watches. However, when processors realize we have fundamentally changed the sales process for their support team and reps in the field, the transition to statement analysis automation is going to end up as an avalanche. Anyone who doesn’t jump on board is going to get left behind and; I plan to make sure everyone jumps on board.
Would you like to glimpse the future of merchant services? Go to http://www.instantquotetool.com and click “GET STARTED” to try our tool absolutely free for ten days.
Coming Soon: I have received a lot of feedback already. I want to clarify what our solution does today and what it will do on August 27th when we release the next round of updates.
#1 – Currently we provide an instant quote but not an instant proposal. The difference is simple. Right now we very quickly create a quote you can show merchants on your phone or tablet. The quote will peak their interest and help you choose the right processor / program for the merchant based on bonus, residual, and savings. However, on August 27th, we are rolling out a PDF proposal generation tool which is going to blow you away! There will be custom content for each processor, terminal, POS System, program and even for each user (head shot, bio and contact info). This content will be incorporated into a multi-page PDF proposal that can be downloaded, printed, or emailed to your prospect.
#2 – Currently, the pricing and terminal types are all included in the “Program.” On August 27th, this will all be replaced by a much more robust and user friendly system. In order to get our algorithm in the hands of users quickly and simply, we kept all the pricing and hardware information inside the “Program” (which you can think of as the Schedule A) – Minimum Pricing Guidelines and Terminal Programs all rolled into one. However, the more robust and user friendly system revealed on August 27th will allow you to add processors, programs, terminal options, pricing structures, and much more while keeping the process streamlined for simplicity. This new functionality will also allow you to dynamically change pricing by using a simple up and down arrow on the savings. This one click will change the comparisons on all the programs you have saved to your profile instantly and allow you to truly compare apples to apples across various processors and programs.
The best part about this is that we are already reaching out to processors in order to pre-load all their program information into our system so that you will not have to enter one thing! You just select the processors for whom you currently sell, add their programs to your profile, and you are ready to compare processors and programs in real time standing in front of a merchant.
If you believe that statement analysis is going the way of the dinosaur, jump in right now with a 10 day free trial and give me your feedback as we develop the next batch of features!
Now I am going to crawl back in my development cave so we can finish making the tool you all wish you had in the field! I will be promoting our next live event soon. Mark your calendars for Friday August 26th to see a demo of the features listed above. By the way, when I come out of my “cave” on August 27th, watch out! I will be on the war path, posting content every day. The odds are that I will be talking to you about trying our new technology solution!
Make it a great day!
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