There’s no doubt about it, attrition costs and it’s certainly not an easy pill to swallow. In the U.S. acquirers suffer on average attrition rates of 22% and at the high end it can even reach 36%.
The cost of attrition to the industry is substantial, in fact some reports have stated that on a global level the annual revenue lost combined with the cost of recruiting new business customers to replace those lost adds up to $2.3 billion annually.
Some solutions that acquirers use to spot attrition are in fact reactive – monitoring sudden changes in processing volumes or queries regarding terms, conditions or pricing often indicate that a business is already considering, or is in the process of moving to another provider. In fact half of customers that exit from their acquirer will not communicate a reason as to why they are leaving.
Adding to this problem, non-traditional competitors are increasingly slicing up the payments acceptance space into specialised service areas, offering customers niche services and products that speak directly to their needs.
Strategically reducing that attrition
So what’s the best approach for acquirers to help stem the flow? Successful FinTech companies are disrupting the market by offering innovative and customer centric products and services. Incumbent acquirers need to step up to the plate and offer experiences that are clear and consistent and in line with the needs and requirements of the customer. It’s not enough to offer a one fits all approach.
Understanding customer behaviour and preferences is the first step to increasing loyalty and retention, using excellent online and human support combined with tailored educational materials and value-added offers that are targeted at businesses as they traverse the customer journey ensures that they are engaged at each step.
Shifting the strategic focus to a personalised, customer centric one is the key to ensuring that you retain your customers in an ever changing market place. Profiling and gathering information about individual businesses, creates a bigger picture of their requirements and needs, enabling you to provide customised assistance, services and educational material that speaks directly to your customers.
Ongoing communication plays an important role in developing positive customer relationships and those interactions do not always need to be technical or financial in nature. Providing customers with tailored and relevant product and other information that helps them to improve their business processes is a great way to maintain contact and build strong relationships.
Businesses often ‘price-hop’ when they view the service as a commodity. Improving customer satisfaction through the provision of value added services that meet the particular needs of businesses is a good way to improve customer loyalty and prevent price-hopping.
Provide ongoing support
Providing hands on guidance and assistance for issues such as PCI and cyber security can have a positive effect on customer satisfaction. Take the pain out of such requirements and make it as easy as possible for your customers to secure their business and comply with standards.
Supporting your customer via their preferred channel of communication, be it online, over the phone or inline is crucial to ensuring a high quality customer experience.
Standout among competitors – promote your unique attributes and opportunities to businesses to instil confidence that they have made the right decision in choosing your services.
Holding on to profitable customers is far less expensive than finding new ones. Retention strategies provide the foundation for building long-lasting business relationships. However, with limited resources most acquirers only concentrate on their top businesses. Sysnet offer a range of solutions that ensure businesses of all size and type are fully engaged and feel valued.
For more on how to reduce your attrition and increase your retention rates, talk to us today.
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