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For decades, marketers have relied on the four elements (price, product, promotion, and location) as critical elements of strategic planning. In 1960, E. Jerome McCarthy made four points in his " Substantial Marketing: management approach " in the book, and they are still relevant today. But the cultural landscape has undergone major changes since the 1960s, culminating in the digital boom during the pandemic. That's why fifth of payment (P) has proven to be an important part of the marketing mix in 2022. Customer journey optimization now extends to the entire checkout journey as shoppers want seamless transactions on your terms, your choice. method of payment.
Today, there are more ways to interact with brands, especially online, and because of their experience with B2C businesses, B2B buyers have raised their purchase expectations. In fact, 51% of business buyers are attracted to B2B sites that have a great user experience like B2C. That's why it's time for B2B companies to modernize their payments. After all, B2B buyers are traditional consumers at heart and have higher expectations when dealing with brands they love and trust. The risk of overlooking the fifth P as a key part of the B2B customer journey is huge.
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What B2C payments can teach B2B businesses
B2C businesses have invested heavily in identifying buyer preferences, and the answer is simple. a quick and affordable way to pay for an all-inclusive experience. Consequently, B2C marketers already have a fifth P-based customer journey.
Starbucks is a famous example. they offer multiple B2C payment methods including cash, Apple Pay, credit cards, debit cards, Google Pay, Samsung Pay, PayPal, Starbucks cards, in addition to their popular app. In fact, Starbucks' “mobile payment app, launched in 2009, was synchronized with its customers' payments. This app has the largest number of mobile payment users in the United States. Today, Starbucks boasts 31.2 million loyal app customers who love multi-channel payment methods, second only to Apple, which has 43.9 million mobile payment users.
Starbucks created payments to increase customer loyalty and effectively influence marketing results without changing the product, price, location or promotional mix. Now consider the fact that commercial buyers are also coffee consumers. It's easy to see how they've influenced Starbucks and other B2C innovators to bring this expectation of seamless payments into the business world.
Related topics: How FinTech and Payments Innovation Will Disrupt Global E-Commerce
Using credit cards in B2B is not recommended
Credit cards are the typical standard payment method for B2B digital transactions, thanks to the many merchant services available. But credit cards are often not the best payment method for business-to-business purchases. While more than half of B2B buyers use credit cards to make online purchases, data from the Why More Payment Options Mean More Purchases report shows they don't want to. 50% actually prefer to pay with a method other than a credit card. Given the choice. . That's why merchants who only accept credit card purchases may lose out to competitors who offer more desirable payment alternatives.
Today, 90% of B2B buyers look for payment options before buying from a new seller. They are smarter about how they expect to be paid because of their consumer experience. Now is the time for B2B companies to upgrade their payment options and bypass credit cards. Developing a payment strategy for the complexities of B2B purchases can require significant investment. This requires a lean and advanced commercial credit offering as well as net billing across all channels. However, the investment can pay off, as 15% of B2B buyers spend more when offered corporate loans, as found in the same TreviPay study. More importantly, 82% would choose one supplier over another if that supplier offered 30, 60 or 90 days of invoicing at checkout.
Related: Will 2022 be the end of traditional credit card payments?
B2B payments require more than just a payment method like B2C
The behind-the-scenes pipeline is complex for B2B payments, with billing options, payment terms, and all the data required for payments procurement and ERP platforms to easily process invoices. This complexity is compounded by urgency. today's B2B buyers want terms of their choice and want to be offered immediately.
According to Forrester Tech Tide 2022 , the emergence of B2B payments is critical to a company's ability to acquire, serve and retain corporate customers. Offering trade credit and clean payments, automated settlement, instant decision making and A/R digitization are necessary to make the B2B experience as simple for B2B buyers as B2C e-commerce transactions. Quick decision-making qualifies and secures more buyers with fair payment terms and business credit lines, ultimately developing a network of loyal buyers.
B2B organizations considering the fifth P strategy should consider: A way to receive B2C-like payments. digital and mobile shopping options; Payments, bills and accounts in a central location; invoice, account reconciliation and late payment reminders; advanced risk management and fraud detection; More working capital for buyers; and integration with various technology providers.
The fifth P offers customer-centric benefits that the entire organization should strive for
New payment solutions affect almost every department in one way or another. If the focus is solely on the merits of the finance team, progress can slow down as dependencies spread across multiple business units. Instead, management should focus on customer-centric benefits that everyone can appreciate. These benefits include consistent, high-quality service and support for buyers throughout the customer journey, creating a good repeat purchase cycle.
Many businesses spend a lot of time and energy optimizing their purchase journey, but get stuck at checkout. The truly customer-centric journey continues into phase five, and previously siled teams must work together to drive digital payments and billing transformations or risk losing out to the competition.
