This month, we’re launching omnichannel card revenues. This data will help you find, acquire, and manage small business customers, knowing how they perform across channels.
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Previously, Enigma reported firmographics and financial data for millions of individual brick-and-mortar business locations. You could confirm the registered name, industry, and even revenue for the establishment based on its address. Here’s an example of revenue at a single business location:
However, many of our customers wanted to understand the revenue of a business across all of its locations and online channels. Here’s what revenue for the business above might look like for all locations:
In May we launched business hierarchies to give customers a comprehensive view of a small business’s financial health across multiple locations. Now, we’ve enriched that view with omnichannel revenues. This additional data ensures that you see complete revenue from card transactions across all channels.
What this means
Access to omnichannel revenues provides a more holistic understanding of business performance. While some Merchant Cash Advance (MCA) providers may give location-specific loans, most lenders need to see the financial health of the entire business. For example, if you want to know the monthly growth rate for an omnichannel business, just looking at brick-and-mortar sales provides an incomplete picture.
Omnichannel data is also crucial for understanding trends across channels. If consumer behavior changes, in-store revenues by themselves may be misleading. Adding online card revenue gives a more complete view that reveals the true growth trend.
Check out the monthly revenue of a jewelry store chain (below), comparing the sum of card transactions at all locations and with omnichannel card revenue from 2017 through 2022.
Because many purchases moved online in 2020, revenue growth at brick-and-mortar locations was substantially lower than revenue growth across all channels. If someone was using our 3 month seasonally adjusted growth rate attribute to look at Q4 2020 before, it would have shown a decline of -16%. Now we can see that in Q4 2020, across all channels the business had a seasonally adjusted growth rate of 4%.
If you were prospecting or underwriting this business in 2020, and you only reviewed the in-store revenues, you might have overlooked this jewelry store as a viable customer. But, if you were looking at total omnichannel revenues, you'd have understood that they were performing as well as before.
Omnichannel revenues consistently provide a more complete picture of financial health, as seen with the pharmacy and general store shown below. If you only looked at sales in physical stores, you might believe these businesses are stagnant or declining. Omnichannel revenue shows you that these businesses are thriving.
Brick-and-mortar revenues for the pharmacy declined 3% year-over-year in 2020. However, omnichannel revenue grew 15%. Our 12 month revenue growth attribute now reflects the accurate omnichannel growth rate.
In 2021, the general store’s brick-and-mortar revenues grew around 8% year-over-year. However, omnichannel revenue growth for the same period was 35%, more than 4x greater.
What you can do now
Omnichannel revenues provide a more complete picture of card revenues at small businesses. Here are some of the things you can do with this new data:
Omnichannel revenues ensures higher accuracy when identifying businesses that qualify for your ICP.
Capture card revenue from both online and offline sources.
View overall revenue, even if the contribution from one channel decreases.
Avoid marketing to businesses that do not fit your target requirements.
For payment platforms and POS providers:
Omnichannel revenue gives visibility into current and historical card transactions.
View financial trends starting before your tools were introduced.
See growth from channels outside of your platform.
Offer MCA products or promotional rates to qualified businesses sooner.
For credit card and line-of-credit providers:
Omnichannel revenue provides better intelligence to make underwriting decisions.
View financial trends for a business without directly accessing their accounts.
Approve larger loans for qualified applicants.
Monitor existing customers for revenue changes that could impact risk.
How do I get access?
Get in touch with us to see how you can start using omnichannel revenues now.