As a payment processing business, you’re monitoring any number of operational happenings on the daily. This includes everything from the appointments set and deals closed across your sales team, to the streamlined onboarding and timeliness of responses from customer support.
These are necessary aspects for keeping your business alive and well in the short term. But what about when you start to think long term?
Planning and strategizing around future growth requires a detailed level of insights for the here and now. But it also should project what could be — specifically as it relates to budgets and profitability.
If you don’t currently have a strong hold on your business’ finances or feel that efforts have been spread too vastly across multiple tools, it’s time to focus in. Let’s take a deeper look at how IRIS CRM can help you in better understanding growth and the potential for residual income.
What is Residual Income?
Residual income refers to the income you continue to reel in once the work is done. For example, once you onboard a new payment processor and set them up for success, you’ll continue to receive monthly residuals for use of your services.
Although merchants are sure to come and go, this residual income is something you can more readily rely on month-to-month, as opposed to potential new business. For the sake of anticipating how costs will be covered and profitability, calculating and reviewing residual income on the regular is very important.
How Can IRIS CRM Help You in Calculating Your Residual Income?
If you’re already looking to use IRIS CRM for the sake of managing sales operations or call centers, it’s also a fantastic tool in calculating residual income. The residual-specific module makes building reports a breeze.
The dashboard will provide you with a detailed overview of income from a portfolio level. Here’s where you can gauge profitability in terms of monthly volume growth, monthly revenue growth, monthly basis points (BPS), YTD, and lifetime.
Additionally, you can start to dig in at a merchant level. Click on any payment processor boarded into the dashboard and you’ll be provided with metrics around YTD profit and lifetime profit, as well as be able to view the last 12 months at a glance.
Building your knowledge base with data around both specific accounts and your portfolio as a whole enables you to not only build a business, but to do so strategically. For example, if you continue to work with a payment processor that doesn’t pay on time but has a high profitability value, maybe they’re worth the extra correspondence. You can begin to make decisions based on dollars and cents, as opposed to simply gut feelings.
You can also set goals for sales and leadership teams that are more strategic and attainable. Every quarter, it’ll be easy to then take those goals and compare them to residual income and profitability reports for adjusting as needed.
Ready to put data to work for your business? Schedule a demo with the team at IRIS CRM for a tour of everything our platform has to offer.