Study: Womply Saves Partners $2.5 Million Annually on Average Through Improved Merchant Retention (Business Wire)
Research reinforces the value of integrated software solutions as an antidote to the payment processing industry’s $3 billion attrition problem.
SAN FRANCISCO – March 27, 2018 – Womply, the leader in front office software for small- and medium-sized businesses (SMBs), today announced the results of a study revealing that the company saves top partners an average of $2.5 million annually—with some seeing savings of more than $6 million—through improved merchant retention and proactive churn prediction.
Womply’s Retention Impact Study analyzed the passive retention lift that Womply partners benefit from due to increased loyalty among merchants using Womply’s software vs. control groups not using it. On average, partnering with Womply results in annual savings of $1.1 million from reduced merchant attrition for partners, with some seeing savings over $3 million.
In addition, the study revealed that Womply’s proactive churn prediction and intervention system, Retention Intelligence, saved partners an average of $1.4 million, with highs between $2-3 million. Retention Intelligence proactively identifies at-risk merchants, classifying them by risk level, and enabling the processor to intervene to retain the at-risk merchant.
In total, partnering with Womply results in $2.5 million in average annual savings for partners and exceeded $6 million in some cases. The study builds on Womply’s Long Term Impact Study on Merchant Attrition, which found that Womply reduces merchant attrition in partner portfolios by an average of 17%.
“Attrition is the single biggest threat to the credit card processing industry, eroding prices and gutting margins to the tune of billions annually, and it’s only getting worse,” says Womply President Cory Capoccia. “The industry has traditionally responded to churn with price wars, which is a race to the bottom. Reducing attrition is the most effective way for the industry to reverse the commoditization it’s experiencing every day.”
Merchant churn carries a $2 billion price tag in lost revenue for the credit card processing and merchant acquiring industries. By some estimates, an average of 21 percent of merchants—and sometimes as high as 35 percent—are likely to leave their current processing provider. Most of that attrition is voluntary and, therefore, preventable.
The industry consensus is it takes three new customers to make up for each merchant that leaves the portfolio, contributing to the industry spending $1 billion annually in merchant acquisition costs. All told, that’s $3 billion every year in direct and indirect costs.
By adding Womply to their product offering, partners address major needs not covered by payment processing. Womply recently surveyed more than 2,600 merchants nationwide and found that their top worries revolve around attracting customers, increasing revenue, and saving time.
Womply addresses each of these issues by putting the merchants’ transaction data to work for them automatically, powering a software system that enables small businesses to attract more customers through online reputation management, build loyalty through automatic customer engagement, and easily monitor the health of their business anytime, anywhere.
“Merchants are far less likely to leave their current processor if their biggest needs are being met, even if someone else comes knocking with marginally better rates,” Capoccia says. “At Womply, we’re proud to help payment processors modernize their offerings so they can build more valuable merchant relationships and retain more revenue.”
To learn more, contact Womply’s partnerships team at email@example.com.
Womply is a software-as-a-service (SaaS) provider to small businesses and one of the fastest growing software companies in America. Our mission is to help small businesses thrive in a digital world. Every day we serve more than 100,000 small businesses across 400+ business verticals, in every corner of America. To learn more, visit http://www.womply.com or email firstname.lastname@example.org.
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