By Brandon Banks
Many software companies struggle and fail to recognize the complexity of integrating and selling payment processing services, resulting in wasted money and time, poor conversion rates, and low profitability in payments revenue. They get discouraged and begin to question if it’s all even worth the time and resources expended.
The missing piece that’s often overlooked is the go-to-market strategy. It’s essential for revenue leaders to think strategically and work closely with their payment processing and technology partner to develop — with payment expertise — detailed marketing and sales strategies that are built to drive maximum conversion, profitability, and asset value of the customer portfolio.
The Importance of a Go-To-Market Strategy
A go-to-market strategy is a crucial element of any business plan. It is a well-designed and executed plan that outlines how a company will introduce and sell its products or services to the market. It encompasses all aspects of a product launch, including product development, marketing, sales, customer support, etc.
For software companies integrating payment processing services, a well thought out go-to-market strategy is essential. It helps to identify the target audience, assess competition, determine pricing strategies, and establish a unique value proposition. Without a sound strategy, it’s easy to miss opportunities, waste resources, and fail to drive meaningful adoption and revenue.
Working Closely with Payment Processing Partners
To develop a successful go-to-market strategy for positioning and selling payment processing services, software companies must work closely with their payment processing partners. Payment processors have a deep understanding of the payment industry and can provide valuable insights into the market landscape, customer behavior, and emerging trends and new technologies. They can also help software companies develop effective pricing strategies and provide guidance on the most suitable sales and marketing tactics for different markets and customer profiles.
Moreover, payment processing partners can collaborate with software companies on co-marketing initiatives to promote payment services to customers. This can include joint webinars, white papers, case studies, email campaigns, events, promotions, and other marketing collateral designed to showcase the benefits of integrated payment services and highlight the software company’s value proposition.
Maximizing Conversion and Profitability
A well-executed go-to-market strategy and close collaboration with payment processing partners can lead to maximum conversion and profitability. By targeting the right audience, communicating the value proposition effectively, and providing seamless, rapid, and frictionless payment experiences, software companies can increase customer acquisition, LTV or lifetime value of their customers, reduce churn, all leading to sustained growth and profitability.
Furthermore, through detailed monitoring and analysis of customer behavior, software companies can identify areas for improvement and optimize and refine their go-to-market strategy continually. This iterative process can lead to incremental improvements in conversion rates, customer satisfaction, and profitability over time.
Final Thoughts
A well-designed go-to-market strategy and close collaboration with payment processing partners are essential for a software company’s ability to maximize the enterprise value of an integrated payments strategy. By understanding the market landscape, identifying the target audience, building a compelling sales story, and embracing payment expertise, software companies can maximize conversion rates and profitability. With the right strategy, software companies can gain a competitive advantage and drive long-term growth and success from embedded payments.