While the newsagency software marketplace is quite mature, we continue to attract plenty of new customers. Some of these are churning from another software package while the remainder are new locations. We are strong in attracting greenfiled location business – new newsagencies in new shopping centres.
The churn business is something we watch carefully as there is no point in churning newsagents from one system to us while we are losing people out the back door. Thankfully, our customer base is loyal and we are not seeing a significant churn away from us. To quantify that further, for every one customer we lose, we gain at least fifteen, often more.
As the newsagency IT space has matured, newsagents have developed a better understanding of the value of a strong national supplier. This is where we play in a field of our own. More than 55% of all newsagents with a computer system use Tower Systems software. This percentage is growing.
While size turns some off, most understand the value when they see the back end support, training facilities and other services we provide newsagents. The value-add is significant and another reason word of mouth is so strong around our offer.