By Gavin Cicchinelli, BlueSnap
Despite advances in digital payment technologies, many B2B organizations still maintain outdated, old-fashioned payment and accounts receivable processes. Within these companies, invoices are typically sent to customers via regular mail. Payments are received by paper check. Account payment activity and reconciliation are managed using Excel spreadsheets and other slow and error prone manual tools.
B2B enterprises that continue to operate this way in today’s digital economy risk alienating customers, negatively impacting cash flow, and sabotaging the potential for business growth.
Today’s B2B buyers expect the same speed, convenience, and frictionless execution in their professional transactions that they encounter as consumers. B2B enterprises can meet these expectations by offering options to pay by credit card, ACH, digital wallets, or via popular payment apps. By making it as easy as possible to pay an invoice, these companies can strengthen customer relationships and earn repeat business.
But they need to have the right platforms and technology to do it right.
For B2B businesses that have been hesitant to adopt digital payments, these are the four reasons why there has never been a better time to modernize and upgrade the payments function:
Driving Better Business Results via Automation
Digital payment platforms enable B2B companies of all sizes to automate payment processes, reduce DSO (days sales outstanding), and improve business planning and overall performance. By automating invoicing, billing, and accounts receivable reconciliation, collections are accelerated, resulting in stronger organizational cash flow. Business leaders can then forecast more accurately, invest in growth, and allocate less time towards administrative tasks. Automation also helps create a better customer experience, putting more self-service opportunities in the customers’ hands – 67% of companies that have automated AR processes have seen increased customer satisfaction.
Elevating Customer Experiences
In addition to streamlining internal functions, digital payment capabilities can significantly elevate the customer experience, enhance customer communication, and deepen loyalty. Research reveals that 86% of B2B buyers are willing to pay more for better experiences, and that includes payments. When the only payment options include writing out and mailing a check, involving a human service representative, or having to frequently input bank or card details into a first-generation online interface, frustrated customers are likely to delay payment or opt to give their business to a competitor offering a seamless and more enjoyable payment experience.
Boosting Revenue Growth
More than just a transaction mechanism, digital payments can serve as a strategic growth lever, unlocking opportunities to generate new revenue streams. The insights embedded within payment data can surface valuable intelligence related to customer buying behavior and preferences. B2B enterprises can leverage these insights to embed new product recommendations into the payment experience. Merchants can offer promotions and incentives and deliver right-time offers to customers, effectively transforming the payment function into an additional sales channel.
Reversing Perceptions, Minimizing Disruptions
The perception that digitizing payments is difficult to execute is no longer the reality. Modern and advanced payment platforms, with a wide range of capabilities and features that can be activated as needed, have never been more available and easily accessible, even for companies in legacy industries. Today, a B2B enterprise of any size can launch and deploy a digital payments strategy within weeks instead of months. Payments can be integrated directly within popular B2B software solutions and with CRM and other internal business intelligence platforms. With global orchestration, these same companies can also begin accepting payments just about anywhere in the world without lengthy and costly integrations or business interruptions.
The case for digitizing payments has never been stronger. Analyst firm IDC found that companies that modernize the payments experience double-digit increases in sales productivity and efficiency and see a nearly 400% return on investment over three years. Those still unconvinced can take an incremental path before fully committing to digital payment adoption. No matter the approach, there’s never been a better time for B2B companies to embrace digital payments and deliver the experiences their customers will increasingly expect.
Gavin Cicchinelli is President of BlueSnap, a payments technology company and division of PayRoc, a leading payments platform and merchant acquirer.
