A new report from Aite Group, LLC quantifies the factors that lead to merchant retention. Based on a survey of 160 US merchants conducted by Aite Group from May to August 2008, the report provides a firsthand account of what encourages merchants to remain loyal to their providers, and tests five key assumptions commonly held by ISOs and acquirers.
While ISOs and acquirers can count on about half of their merchants to remain loyal to them no matter what, there is still great potential to increase retention rates. In interviews, merchants claim to value certain key factors, such as pricing and products offered, but in examining their reaction to five assumptions commonly held by ISOs and acquirers, it is revealed that overall satisfaction plays a greater role in merchant retention.
“Retention is one of the most difficult issues that ISOs and acquirers face,” says Adil Moussa, analyst with Aite Group and author of this report. “ISOs and acquirers need to work on enhancing their image in order to increase merchants’ overall satisfaction. This image makeover should start in the customer service area.”
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