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Education

Of course, some businesses that experience a robbery
or natural disaster will never bounce back, but most
will very quickly. The main takeaway is that small
businesses are surprisingly resistant and resilient to
physical threats.

The growing challenge of online threats
In the past few years, digital threats to small businesses
have proliferated. And, the importance of having
a digital presence – even for a physical business –
continues to grow. In short, merchants can't afford to
ignore online threats anymore.

For example, when someone posts a negative review
about a merchant's business on Yelp or Google, it
causes serious reputational harm. That's the costliest
category of business damage, according to data from
The Hartford, at $50,000 per incident. Reputational
harm is six times more damaging than a burglary,
three times more damaging than water damage, and
twice as damaging as wind or hail.

Let's put that in the context of sales revenue. Studies
show that a single negative review can cost a business
up to 30 customers. On average, Womply's small
business customers collect about $90 per customer
transaction. So, a single bad review could mean the
merchant loses $2,700.

Furthermore, some studies suggest a one-star rating
change can affect business revenue by 39 percent. If
a merchant does $5,000 in sales each month, a bump
from three to four stars could mean making $7,000 if
the rating goes up by one star or $3,000 if it goes down.
That's a big swing, especially because business revenue
and personal income are one and the same for small
business owners.
What can MLSs do?

Most small business owners are too busy running their
companies to recognize and adapt to these subtle but
significant shifts. They look to the few advisers they
have to help them navigate changing times. That's a big
opportunity for MLSs.
Every small business owner deserves to know that
cyber breaches, negative online reviews and an
outdated online business presence are the biggest
threats to small businesses in today's environment.
Educate your clients and build a solution set into your
standard consultation. If you do, you'll make more
money through value-added services, reduce attrition
in your portfolio and, most importantly, protect your
merchants' businesses.
Barry Davis is vice president of business development at Womply, the
top software partner to the payments industry and the top provider
of front-office software to small businesses. For more tips or resourc-
es, reach out to the Womply team at partnerships@womply.com.
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