TEAMSNAP CASE STUDY
TeamSnap achieves 100% revenue growth YOY with WePay
Payments revenue expected to exceed subscription revenue
Product
Clear
Results
TeamSnap grew its payment offering by 185% in 2017 and in 2018 it is forecasting to grow the payments business by 300%.
Industry
Team management
Executive Summary
TeamSnap takes the hassle out of organizing sports with nearly 20 million administrators, coaches, players, and parents relying on their top-rated apps to manage everything for the season. TeamSnap customers were finding payments too difficult or were concerned about the need to set up new external accounts to make a payment and continued to simply use offline payments. TeamSnap switched to a fully integrated payments solution with WePay. By March of 2018, 81% of customers were putting payments through WePay and only 8.5% were still transacting offline. Customers enthusiastically adopted the integrated payments solution, helping TeamSnap achieve 100% revenue growth in payments in one year.
"We believe that payments has the greatest growth potential and will become our primary revenue channel over subscriptions."
Greg Ludke, General Manager, TeamSnap
The Challenge
One of the areas that TeamSnap was looking into adding for its customers was payments and transactions. Most sports organizations collect membership or participation fees from players, as well as fees for uniforms, equipment, facility time and so on.
Tons of money movement happens in these organizations. The organizers, the parents, the players, and the coaches are all trying to manage financial transactions in both directions. TeamSnap started out using a variety of payment vendors to help facilitate a handful of financial transactions.
While this solved the issue of allowing teams to transact money, many of them were finding this too difficult or were concerned about the need to set up new external accounts to make a payment and continued to use offline payments. In addition, TeamSnap realized it was missing out on an opportunity to add additional value for its customers and a new revenue stream.
The Solution
When TeamSnap started out with payments it was using a variety of online payment vendors and seeing issues with customers having to go to a third-party engine for payments. The company also didn’t like seeing its customers leave the platform to transact payments. As a result, TeamSnap began exploring integrated payments to make the experience better for its users and for TeamSnap itself.
Another reason TeamSnap wanted to find a partner like WePay was for security and fraud prevention, building confidence with customers that their money was safe. WePay’s compliance help and fraud guarantees establishes trust. Now, with the addition of the backing of the JP Morgan Chase brand, TeamSnap feels confident and has no concerns about safety. TeamSnap had been looking for a way to do a better job solving payment issues for its customers and at the same time create a new revenue stream. Customers began seeing more of their members move transactions online and away from cumbersome cash and check payments. Customers also appreciated seeing a payment solution that stayed in one place and integrated with their TeamSnap account and brand they were used to and liked using.
"Not only are we fulfilling a need of our customers, we also are sitting on a business opportunity,and there's nothing better than being able to grow the business while meeting customer need. We made a fundamental shift two years ago to pull these payment capabilities out of our subscription product and start monetizing it differently."
Greg Ludke, General Manager, TeamSnap
The Results
TeamSnap rolled out a test of its integrated payments solution in Spring 2016. In June 2016, when it began to switch over completely it still had 71% of its customers using other payment methods with 16% on the integrated payment solution from WePay. By March of 2018, 81% of customers were putting payments through WePay and only 8.5% were still transacting offline. Customers enthusiastically adopted the integrated payments solution.
TeamSnap grew its payment offering by 185% in 2017 and in 2018 it is forecasting to grow the payments business by 300%.