B2B Payments and Two-Sided Network Analytics for Private Equity
Retention, value and pricing power on both sides of the network
Payments and two-sided networks attract private equity for their recurring revenue and operating leverage. We measure the economics behind that revenue on each side of the network.
We have done this work for a leading health care payments processor, where our work on the drivers of subscriber attrition, and the changes management made from it, brought churn down and grew recurring revenue significantly.
The questions a sponsor asks
Retention on each side of the network, the cost to acquire each customer, and where there is room on price.
Who is actually leaving, and why?
Quiet drift on either side of the network, seen before it shows up in volume.
Churn and Retention →What is each side of the network worth?
Lifetime value against acquisition cost, segment by segment.
Where is the pricing power?
Which segments will bear a move on take rate and fees, and which will walk.
Pricing and Margin →Where does growth come from next?
Where the network is under-penetrated, and what it would take to win there.
See both sides of your network clearly
Most of this can be built from data the business already has.