Merchant lifetime value drives Independent Sales Organizations (ISOs) profitability, yet many still treat churn as a cost of doing business, largely because it’s predictable, rarely visible on a P&L, and easier to ignore than acquisition metrics.

At Klosebuy, we recognized this as a critical industry problem that demanded a solution. It’s a preventable $200,000 drain on every 1,000-merchant portfolio annually.

A Klosebuy study with payment industry professionals modelled the math:

• 10% annual attrition = 100 lost merchants
• 100 × $800 CAC = $80,000 in replacement cost
• 100 × $1,200 revenue loss = $120,000

 Total annual impact: $200,000

Just imagine if your churn is higher than 10%. That’s not just lost revenue, it’s margin, market share, and valuation slipping away.

While industry Customer Acquisition Cost (CAC) averages range from $650–$900, most ISOs continue spending heavily to replace lost merchants with no net portfolio growth. High attrition quietly erodes portfolio value and creates hidden operational burdens as sales teams work harder just to maintain existing revenue levels.

The Solution That Works

Klosebuy offers ISOs an immediate, low-lift path to profit. With no POS integration and 10-minute onboarding, it gives merchants enterprise-grade loyalty tools, digital advertisements localized offers, and real-time engagement data helping them grow smartly and helping ISOs retain keep them.

The platform addresses churn’s root cause: stagnant business growth. When merchants see results from customer retention tools, they view their ISO as a strategic partner, not just a vendor. 

Financial Impact

Reducing churn by just 30% unlocks:

• $15,000 in acquisition cost savings (30 retained × $500 CAC)
• $159,000 in preserved revenue over four years
• $174,000 in total value per 1,000 merchants

As one ISO advisor put it: “You’re not judged by how many merchants you sign, you’re judged by how long they stay.”

Your Market Advantage

ISOs implementing retention strategies today will dominate tomorrow. While competitors chase new logos, retention-focused ISOs build stronger portfolios, enjoy predictable cash flows, and command premium valuations.

Organizations with 500 to 1,000 merchants in any given market are ideally positioned to realize quick impact, but any ISO ready to reduce churn and grow smarter is encouraged to connect us. 

Contact us immediately sales@klosebuy.com to secure the Klosebuy advantage; before your competitor does.

The figures and outcomes presented are based on modeled scenarios using industry averages and internal data. Actual results may vary depending on portfolio size, merchant engagement, market conditions, and other operational factors.