How Your Bank Can Benefit from Using Twitter

While Jack Dorsey and the whole Twitter team continue to celebrate their successful 5th anniversary, I would like to take a minute or two to contribute a few ways that Twitter will help you stay in touch with your customers and current financial services industry and payments industry news.

Before you dismiss Twitter and cross it off as just another social media fad, you’ll agree with me that the following statistics are impressive:

• 3 years, 2 months and 1 day: This is the time it took from the first Tweet to the billionth Tweet.
• 1 week: This is the current amount of time it takes users to add another billion Tweets.
• 460,000: The average number of new accounts opened per day in February 2011.

I’ll admit I was once a person who thought of Twitter as primarily a way to share thoughts on a new restaurant, interesting articles you came across, or to comment on your favorite sports team’s game. However, now Twitter is about more than just entertainment. When properly leveraged, it can be a very useful business tool for quickly sharing information, gathering information about your competitors and building relationships with current customers, as well as potential new ones.

If you are a new Twitter user, you may not be sure where or how to get started. One way to get started with Twitter is to use it as a tool to stay current on payments industry news. Below I have listed a handful of informative publications and organizations I follow that use Twitter to assist in promoting their latest news and analysis:

• Clearent - @GoClearent
• American Banker – @AmerBanker
• Bank Technology News – @BankTechNews
• Independent Community Bankers Association – @icbanews
• ABA Banking Journal – @ABABankingJourn
• Electronic Transactions Association (ETA) – @ElecTranAssoc
• NetBanker – @netbanker
• BAI – @BAI_Info

You should also follow your payment processing company and other service providers (if they are on Twitter). Login to Twitter and start a search for them by name or by their official Twitter handle (starts with @) then click the “Follow” button. Next, visit your Twitter home page where you’ll see the most recent stream of tweets from the companies and people you follow. Then when you come across an interesting headline, simply click on the link to read the full article.

Twitter also easily provides access to the latest payments industry news when you’re on the move with their mobile apps for iPhone, Android, BlackBerry and Windows 7 phones. That way you can quickly check Tweets when you have a few seconds and keep up with the latest news and more.

Are you still skeptical about Twitter? I suggest taking 15-30 minutes to give it a try. I’m sure you’ll be surprised at what you find.

Find a niche as a merchant services provider

If your approach is still broad when it comes to finding new merchants, you may find that you are losing business to competitors who have tactically focused on a particular niche in the industry. It’s my recommendation that you reevaluate your strategy and brainstorm ways to differentiate your service from your competitors.

I spoke to many ISOs in early March 2011 at the Southeast Acquirers' Association (SEAA) 2011 Annual Conference in Weston, FL. I was enamored by the fact that a large percentage of the ISOs in attendance no longer thought of themselves as a general merchant services provider. They have moved their focus to a niche segment of the market and offer a unique and more tailored solution to successfully target specific merchants.

So what is a niche exactly? Well, Merriam-Webster defines a niche as “a place, employment, status, or activity for which a person or thing is best fitted” as well as “a specialized market.” I like to consider it as focusing on something you do very well – better than your competition – instead of trying to provide everything for everyone.

If you are wondering what some example niches for an ISO might be, let me start with a few examples that were brought to my attention at the SEAA 2011 Annual Conference. One gentleman is in the process of starting a new ISO focused on point-of-sale solutions. He is planning to help merchants find the right software/hardware to meet their needs, and the merchant account is what comes along with it. Another ISO had the idea to create a loyalty program to use as a lead for new merchant acquisition and to help with customer retention. A third ISO focuses on businesses that create POS and other related software used by merchants to help integrate his merchant services into their software.

While each approach is different, they all have something in common: they make sure to focus on a niche rather than a shotgun approach in addressing the merchant services market. Given the highly competitive nature of our business, their approach makes sense.

• How will you find your own niche as a merchant services provider? Here are additional examples to consider:
• Specific merchants (e.g., medical offices, contractors, auto dealers, e-commerce)
• Products (e.g., gift cards, mobile payment devices, plug-in for QuickBooks)
• Geographic (e.g., new communities, small towns with less competition)
• Cultural (e.g., Spanish-speaking merchants, your local ethnic hotspots like a “China town”)

To help identify your niche try asking yourself the following questions:

• Which merchants are providing the most referrals?
• What am I receiving the most compliments on?
• What do I feel is my strength?
• Which merchants and products excite me the most?

Really take some time to think of potential niches that fit you well. Chances are you will find it will make you more efficient in finding leads, closing them, and retaining your merchants. If you like the content of this post, please be sure to visit and subscribe to our payment processing blog for ISOs.