DISCOVER THE REAL REASONS THAT LEAD YOUR MERCHANTS TO LEAVE
Merchants go through a predictable five stages process before they decide to leave your organization. They sign up with you and they are pretty much happy until an irritant happens that causes their disaffection. The irritant could be one of dozens of things: an unexpected or undisclosed fee; disclosed and forgotten about fee; fee increase; a service issue that doesn’t go in favor of the customer; chargebacks; access to funds; issues with terminal, etc.
This irritant starts a chain of five stages that the merchant goes through and given the right frequency will result in attrition. These five actions are:
- Maintenance: the merchant maintains the status quo in the new relationship.
- Pre-contemplation: the first time the idea of switching occurs in the merchants’ mind.
- Contemplation: the merchant really thinks about switching.
- Preparation: the merchant entertains offers, does research, ask other merchants about their providers, etc.
- Action: the merchant actually signs up with another processor.
that uncovers the reason YOUR merchants left along with other relevant data.
by vertical, size of merchant, and cluster analysis to identify common threads
Strategy & Tactics
with actionable recommendations to implement immediately and stop the attrition.
- Acquirers suffer from an average attrition rate of 22%. On the high end, it can reach 36%.
- Most solutions to spot attrition are reactive: flaging merchants asking about their statements/fees or credit score alerts.
- Half of merchants that leave an institution will never call or give their acquirers the reason why they are leaving.
- Some merchants leave because they don’t know their current processor provides a certain product and they never call to ask for it.
- Acquirers use deterrents that are increasingly ineffective: multi-year contracts or fees for breaking the contracts.
- Finally, merchants leave not because merchant acquiring is a commodity, but because they are never engaged in a way that is relevant to them.
The Root Cause Analysis Provides:
- The causes that led your merchants to leave you.
- Recommendations for strategic brand or value proposition repositioning.
- Actionable tactical recommendations to retain your merchants.
Furthermore, it offers the following data & insights:
- A list of merchants that would consider returning.
- A peer and industry-wide benchmarking.
- Best practices from the acquiring industry and other industries.
- Ranking of the top five competitors that poach your portfolio.
- Verbatim from merchants for a qualitative analysis.