RETENTION STATEGIES THAT IMPACT YOUR BOTTOM LINE POSITIVELY
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
overall retention strategy to implement immediately and stop the attrition