B2B sales look a lot like B2C sales these days. For retailers that typically focus on consumers, it is likely your company already has business buyers spending with you but you may not know who they are...yet.
It is common to find B2B buyers using a corporate card at primarily consumer-focused retailers. However, the number of B2B buyers may come as a surprise – as it is sizeable. Fortunately for retailers, these card-using customers can be identified by utilizing the credit card networks to run a report on the BINs used for corporate accounts. That snapshot is invaluable and will uncover potential B2B opportunities in a B2C world.
B2B buyers are buying everything from snacks and office supplies to furniture and computers from B2C retailers. Now is the time to seize the opportunity to grow sales with this customer segment.
Offer Choice to Drive Loyalty
Providing business buyers with an omnichannel experience combined with frictionless transactions provides an opportunity to create a lasting loyalty that leads to repeat purchases and increased average order value (AOV). Being able to offer trade credit to business buyers creates a more profitable and long-lasting relationship. Business buyers expect sellers to provide net terms, automated invoicing, discounted pricing, and purchase controls. Nine out of ten corporate purchases research payment options before buying from a new vendor and, when given the choice, they prefer to pay with methods other than credit cards.1
Offering net terms is attractive to large enterprise buyers who often make sizeable and frequent purchases. Businesses that buy on net terms purchase 230% the line items in an order and 120% more often than buyers purchasing with a credit card.1
If B2C retailers cannot support the processes and payment methods B2B buyers prefer, they run the risk of losing the opportunity to serve this lucrative audience. Sellers that only accept credit cards may lose a significant share of wallets to competitors that offer more favorable payment terms. In fact, 82 percent of business buyers would choose a vendor that offers net terms, ranging from 30 to 90 days, at checkout. 1
Key Indicators it is Time to Place a Focus on B2B
Aside from researching corporate card BINs, retailers can often identify other activity that points to underlying opportunities in the B2B space by paying close attention to the activity at the retail store level and monitoring what is being discussed. For example:
- Frustration bubbling up from the sales floor or customer service reps.
- Queries coming from cashiers who get asked if net terms are available.
- Workarounds created at the store level to serve B2B customers.
Making a Business Case for Investment in B2B
Implementing a payments strategy around your B2B buyers will help enhance efficiency, reduce costs, and expand recurring opportunities. It uncovers ways to optimize trade and loyalty, leading to quicker conversions, repeat sales, and a higher AOV. Here are the top three considerations to use as you build your business case for investment in B2B:
- An exclusive payment method and invoicing terms within the network enables retailers to build a more profitable and loyal network of B2B buyers.
- Connecting retailers and corporate buyers in networks where trade is empowered drastically reduces the costs of doing business.
- Meeting invoicing requirements, offering net terms, and implementing agreed-upon spending controls means trade flows freely without costly manual workarounds in both accounts payable and accounts receivable departments.
Capitalize on Today’s Largest Retail Opportunity: B2B
Adding a dedicated B2B payments solution is about connecting valuable B2B buyers to your brand. It can grow purchasing power, reduce friction, and lower the cost of doing business. All sorts of new business potential may be hiding in plain sight right in your checkout when you begin to target the B2B segment.
1 B2B Buyers Report: Why More Payment Options Mean More Purchases, https://www.trevipay.com/resource-center/reports-whitepapers/b2b-buyers-want-net30-terms-at-online-checkout/
Check Out Our MAG Webinar
MAG merchant members and sponsors can view our exclusive webinar: “Expand Your Market by Finding and Growing New Business Buyers.” This webinar covers how you can determine the total value of existing B2B spend, how to provide choice and convenience to attract business buyers and build loyalty, and ways to overcome challenges from buyer procurement departments.