Bottlenecks To Promote Merchant Acquiring Business and Strategies To Overcome It

BOTTLENECKS TO PROMOTE MERCHANT ACQUIRING BUSINESS AND STRATEGIES TO OVERCOME IT STATE BANK OF INDIA
Project Guides 1. Industry- Mr. Sanjay Upadhyay 2. Academic- Mrs. Charu Bisaria
By: Priya Jaiswal MBA-IB 2012-14
1 Amity Business School, Amity University, Lucknow Campus
Objectives
To make the comparative study of different bank's
Point of Sale (POS) machine.

To find out the drawbacks of SBI POS machine
that creating problems in its promotion.

To find out the reasons why SBI POS machine is
not as successful as others in the market.

To make the useful strategies to promote SBI
POS machine on the basis of market research.

Research Methodology
Sample Size: 100 merchants in 5 locations of
Lucknow
Research Design: Descriptive Research Design Sampling Technique: Simple Random Sampling
Technique
Data Collection: Primary data collected through
Questionnaire.
Data Interpretation: Pie diagrams, Bar graphs, Line
graph using MS Excel software

Findings
As per my survey, SBI comes at 3rd position with 12%
market share in the surveyed area and its major competitors are AXIS bank (32%) and HDFC bank (29%) in POS market. sales services, lower rates , existing current account holder in the same bank, company tie-up and first approach respectively. POS users chose AXIS bank because of its quick after sales services. lower rates whereas only 15% users chose AXIS bank POS machine.
Key factors for choosing best service provider are After
Only 8% users chose SBI bank POS machine whereas 53%
50% users chose SBI bank POS machine because of its
Amity Business School, Amity University, Lucknow Campus
44% users chose HDFC bank POS machine because they
already have current account in this bank whereas only 17% users chose SBI bank POS machine because of this factor.
45% users chose HDFC bank POS machine because they are
tied-up with this bank whereas no user is tied-up with SBI bank for its POS machine as per my survey.
57% users chose HDFC bank POS machine because this bank
has approached them earlier than any other bank whereas SBI bank has late entry in POS market.
Only 67% users of SBI bank are satisfied with its services
whereas 85% users of other banks are satisfied with their services.
Only 33% of the consumers prefer plastic cards for the payment
of goods and services at merchants establishment.
Limitations
The area constraint was a limiting factor. Sample size of 100 may not represent the true picture
of the entire city.

Some merchants were not co-operative. Some merchants were not able to give the detailed
information due to time constraint.

Results may be skewed because equated
representation of all the POS machine users was not possible.

Conclusions
Merchants consider After sales service as the most
important factor while choosing for the service provider of POS machine.
SBI has no company tie-ups so far and this is the
reason for losing a big market share. Although SBI has tied up with the corporates where SBI head office is located.
SBI bank is providing lower rates but merchants are ready
to pay higher rates for better and quick after sales services.
Merchants are not interested to opt for SBI POS machine
as they do not get proper response from SBI staff.

Most of the people have pre-conceived notion that
because SBI is a public sector bank thats why it has lengthy ,time taking procedures and huge paper work.
SBI staff do no approach merchants on their own
whereas other banks like AXIS or HDFC staff come to their shop and provide detailed information about their POS machine.
Most of the merchants who are using SBI POS machine
are dissatisfied because SBI staff never visit their shop for feedback.
Recommendations
MARKETING CHANNEL- Direct Marketing need to be
adopted for the promotion of SBI POS machine as 16 merchants were convinced to switch for SBI POS machine by me during my survey. company for POS machine and if it is not possible then atleast convince them to tie-up for current account.
COMPANY TIE-UP SCHEME- SBI should try to tie- up with
LOWER RATES BACKED BY AFTER SALES SERVICES-
Lower rates need to be supported by good after sales services then it will be more effective for promoting SBI POS machine. to implement a very structured CRM in case they want to increase their market share in POS machine.
CUSTOMER RELATIONSHIP MANAGEMENT SBI need
IMPROVE AFTER SALES SERVICES - SBI should
improve its after sales services in order to retain the existing SBI POS users. Bank need to pay more attention on the following points1. On time delivery of Paper rolls 2. Resolve server problem 3. Resolve merchants grievances on time 4. Quick call response 5. Visit merchants shop for their feedback.
MONTHLY VISIT TO THE SHOP- I would like to
suggest SBI bank to make it compulsory for their staff to visit the merchants establishment and take monthly feedback of SBI POS machine.
THANK YOU
11

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BOTTLENECKS TO PROMOTE MERCHANT ACQUIRING BUSINESS AND STRATEGIES TO OVERCOME IT STATE BANK OF INDIA

Point of Sale (POS) machine.

that creating problems in its promotion.

not as successful as others in the market.

POS machine on the basis of market research.

graph using MS Excel software

Key factors for choosing best service provider are After

Only 8% users chose SBI bank POS machine whereas 53%

50% users chose SBI bank POS machine because of its

Amity Business School, Amity University, Lucknow Campus

44% users chose HDFC bank POS machine because they

of goods and services at merchants establishment.

Amity Business School, Amity University, Lucknow Campus

of the entire city.

information due to time constraint.

representation of all the POS machine users was not possible.

as they do not get proper response from SBI staff.

Most of the people have pre-conceived notion that

COMPANY TIE-UP SCHEME- SBI should try to tie- up with

LOWER RATES BACKED BY AFTER SALES SERVICES-

CUSTOMER RELATIONSHIP MANAGEMENT SBI need

Amity Business School, Amity University, Lucknow Campus

IMPROVE AFTER SALES SERVICES - SBI should

Amity Business School, Amity University, Lucknow Campus

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