Targeting Optimal Merchant Partnerships

Requirements Clarification & Assessment

1. Objective Understanding:

   • Primary Objective: Identify 1,000 small businesses from a list of 100,000 for potential partnerships.
   • Secondary Objective: Maximize revenue through increased transactions and user base expansion.

2. Business Goals Clarification:

   • Are we targeting a specific industry (e.g., restaurants, retail)?
   • Is the focus on increasing the number of consumers or maximizing revenue per transaction?

3. Revenue Model Insight:

   • Understand how the credit card company generates revenue: primarily through merchant commissions.
   • Determine the importance of Average Order Value (AOV) and transaction volume.

4. Merchant Characteristics:

   • Identify the characteristics of merchants that align with our goals: high customer footfall, high AOV, minimal existing partnerships with competitors.

5. Historical Data Utilization:

   • Analyze past successful partnership campaigns to identify patterns and characteristics of high-performing merchants.
   • Consider the response rate and lifetime value of previous merchants.

6. Constraints & Resources:

   • Limited outreach resources allow engagement with only 1,000 merchants.
   • Evaluate the cost of partnership and technology deployment for each merchant.