Once companies make payments to each other, the management of each transaction includes further steps that go beyond those typically found in B2C payments.
Such measures are in place to minimise potential issues resulting from a B2B payment’s size, process and contract.
Having an understanding of these fundamental principles can help you understand why certain platforms provide the functionality that they do.
Knowing the intricacies of the B2B payment process (and the approaches that can help) can contribute towards ensuring that you don’t fail to get those payments.
But with so many different B2B payment solutions, it can be hard to figure out which one is the best fit for your company. It matters how you handle the B2B payments. If you require a simple, reliable method for collecting payments for services rendered, consider taking note of a few things.
Make your payment process as simple and seamless as possible
Long and complex checkout procedures can lead to shopping cart abandonment. Offer a simple payment process in order to increase conversions. The simpler the payment process is, the higher you can expect the conversion rates to be.
Consider implementing one-click payments.
Many big brands (including industry giant Amazon) have gradually moved towards the one-click payment strategy. Essentially, customers go through the checkout and fill up payment details once so that their data is securely stored on the site. From then on, the customer can purchase items off the site via one-click payments. It can reduce hassle and boost conversions if done right.
Consider split testing your payment page
Many people use their mobiles to pay for goods and services regularly.
It can be hard understanding which touchpoint is responsible for you losing customers. As a business owner, you should identify any shortcomings your systems may have and rectify them.
One very effective way to establish this is to A/B test your site, specifically your payment page. This can help you understand which sections of the payment process are working well and which ones are stunting your sales. Present different versions of the same payment sections to customers and monitor their responses over time. This way, your split test can benefit your conversion rates in the long run.
Keep track of late payments
Cash flow should be viewed as a crucial part of your payment strategy. Businesses (especially B2Bs) often run into a common problem, the late payment. If you want to get a good handle on your finances, get your customers to pay their invoices on time. It may be easier said than done, but there are plenty of tactics to help you achieve this goal. It’ll probably take some consistency and some practice.
Remember to follow up with consistent invoice reminders. Sometimes customers just forget to fulfil their outstanding debts. Send email reminders a few days before the due date, or give them a call directly if their invoices have been outstanding for some time.
In some instances, giving your customers incentives to pay on time can help. Offer discounts to those that pay before a certain period. Customers that are looking for a good deal are probably going to pay faster.
Although debit and credit cards are still popular, there are many alternatives. Many consumers are probably quite familiar with digital wallets these days and, on the B2B front, it’s likely that many businesses use payment gateways like PayPal.
Digitising your payment process can be a daunting idea, which is why understanding how and why it works should be the first step to getting into it.
If done right, there are many benefits to be reaped. Scalable features include workflow automation. This can reduce work time and offer automatic audit trails. In the long run, this can save money and time as well as minimise human error.
Get help from a third-party payment processor
Depending on your industry, market size, growth goals, etc., you will need to engage a qualified payment processor with the required expertise according to your needs. These firms usually have dedicated teams to do split testing, observe market trends and allow you to keep track of late payments through report generation. This frees your operations up to reach out and retain customers more effectively.
Know how to choose the best payment partner for your business? Here are some essential tips.
For B2B companies, delivering value is just part of the battle. Optimising collections via fintech can make a huge difference to liquidity, reduce risk and make operations run smoother. In an era where many people are used to digital processes, the way your customers and clients interact with your business via payments can even contribute towards brand value, brand loyalty and virality. Be creative!
Want to know more about receiving and sending payments via Tranglo? Reach out to us today.