Indigo PaymentsBusiness Case

Executive Summary Indigo Payments was founded in 2007 by two

executives by RBS Worldpay one of the largest credit card providers in the world at that time. Indigo is an Iso of Wells Fargo and provides credit card services for small to medium size businesses. The main processor in which Indigo process thru is First Data which is headquartered in Atlanta, Georgia. Indigo’s primary business function is to sale merchant credit card services, provide excellent customer service and to ensure that sales orders are processed through to completion.

Executive Summary Indigo offers a guarantee to never raise

their client’s rates. They require no start-up fees. They also will not charge an etf (early termination fee) if their clients decide to leave. In a very mature industry this is one of the greatest selling points and driving factors for the business. Provide a true and honest business in an industry known to over charge and take advantage of its clients. Indigo is different in almost every facet in regards to treating merchants fairly and cost conscious.

Mission Statement Modern technology coupled with old-

fashioned values. A place where relationships are sacred and business barriers are removed. Where each transaction is a handshake and every solution delivers real results. From terminals to mobile devices and robust POS systems, Indigo simplifies payments, automates your operation and transforms your bottom line.

Target Market SBS (Small Business Segment) Merchants

that process > 1,000,000 in credit cards annually.

Medium size merchants that process < 1,000,000 > 10,000,000 in credit card sales annually.

Retail, Restaurant, Moto(Mail, Order, Telephone Order), Lodging and E-commerce Merchants.

Referral Partnerships and Account Managers

Market Analysis

Indigo’s Transaction Volume

2009

2010

2011

2012

2013

2014

10,178,000

12,212,000

14,215,000

16,247,000

17,289,000

21,372,000

Transactions

Transactions

Transaction Breakout

Competitors

Competitors ISO’s (Independent Sales Office) are direct

competitors. MSP’s (Merchant Service Providers) direct

competitors that offer more service to their merchants.

Payment Gateways are indirect competitors who generally can offer better rates if you go with one of their partners or registered resellers.

Acquirers and Processors direct competitors in that they can provide their own merchant services at reduced rates as they are the processor.

Software providers are indirect as they generally sign up with specific processors for their software to work. If you can not process thru that processor you can not sign the merchant.

Indigo’s Approach Indigo’s approach to grow the business has

been driven by providing cheap pricing based on cost plus interchange and not handcuffing clients with high early terminal fees. Indigo has continued to grow their merchant solutions portfolio thru referral partnerships and thru account managers who serve as first line customer service representatives for the merchant base. Indigo wants to expand their presence within the referral sales space.

Indigo’s Challenge Indigo’s close ratio over the past 5 years

is 21%. Management wants t0 average a 33% close ratio and to grow the referral business by 30% year over year.

Currently the systems in place do not allow for efficient referral tracking or recording of referrals.

Indigo lacks the programmers needed to create and manage a complete in house solution at this time.

Referrals

2010 2011 2012 2013 20140

50

100

150

200

250

300

350

400

ReferallsWon Lost

Referral Process Today

Referral comes in via email

Referral is keyed into

access prospect

log

If statement analysis is requested

it is analyzed

The analysis is

sent to Account manager

when complete

d

The statement analysis/referral is place on

excel spreadshe

et

The account manager can either

sale or move on from deal

If deal is closed

you have to check

access for new deal

Mark excel

spreadsheet that deal is closed won

Referral Process Upgrade Two Options are available to refine the

process and pay immediate dividends Netsuite CRM tool Salesforce.com CRM tool

Netsuite Netsuite offers a low end solution for hosting

a cloud based CRM tool for reporting and referral management. Netsuite will charge $22.00 per month per internal user license. There is also an annual hosting fee of $7500.00 for the current volume that is expected to be using the system. For complete customization there is an additional $2500. fee attached to the costs. The external user licenses are all inclusive at the current rates for referral partners.

SalesForce.com Salesforce.com offers a robust cloud based

system that will allow for multiple phases of the sales force to be setup within the system. There standard costs is $25.00 per user license internal and external users included. There hosting fee is $12,000.00 a year which includes all customizations and portals. There are several classes/courses available throughout the year for training and programming solutions.

Referral System Costs

Referral Estimates For 2014 we will take the 33% expected close

ratio which is 121 accounts and subtract 88 which leaves 33 additional accounts. We take the assumed average number of transactions based upon the total number of merchants (4,000) and divide them into 21,372,000 which leaves 5343. Multiplying the 33 accounts by 5343 you get 176,319 transactions. We will use $100.00 as the average ticket so that we can take the $0.35 cent as our expected income.

The expected income generated off the 33 additional accounts would be $61711.65.

Referral Estimates

Total Referrals Closed at 21% Closed at 33%0

100

200

300

400

500

600

700

800

900

201520162017

*Based on 30% growth year over year.

Referral Estimated Income

Additional Costs At this time Indigo does not employ a full time

computer programmer or application support technologist. To assist in this project we would need to add an technologist as a temp or outsource the project to an IT group that specializes in designing and implementing the new CRM tool. In utilizing a consultant firm to assist in implementation the time period that has been slated has been quoted at 6 weeks at $18,000.00. In utilizing a temp hire at the price of $72.00 per billing hour to agency over 6 weeks would be $17,280.00. As we do not know unknown variables and if a single one person entity can handle the project over a 6 week time period the estimated cost has been spread over 3 months/12 weeks. The estimated costs would be $35,000.00

Costs against Expected Income

Where Do we want to go? As Indigo continues to spread it’s wing and

grow it is important that the systems and tools are in place for the present and for the future. As Salesforce.com is an optimal system as it stands it will allow for better referral tracking and entering of leads. It will allow for ample reporting and for expansion of additional items. Currently the systems in place require multiple manual processes utilized the Microsoft product suite. While Microsoft access is a great tool to have and use it does not provide the solutions and automation that will allow for the continued growth that Salesforce.com will allow.

Conclusion Whether now or later Indigo will need to

invest in upgrading it’s systems so that it can continue to manage their merchant portfolio regardless if they want to fully implement a referral tracking system. The tracking system is a major point of selling as it allows for a robust selling pipeline something that currently does not exist. To allow for a quicker growth I believe that it is imperative that Indigo looks into upgrading their systems immediately.