By: Brandon Spear, CEO, TreviPay
In B2B e-commerce, complexity doesn’t have to be a hurdle—it can be an opportunity. With this channel projected to surge to $3 trillion by 2027, forward-looking merchants will be set to reap substantial rewards in the form of loyal customers.
But what does it take to attract and retain a business buyer? It starts with understanding their expectations, their pain points and providing a frictionless purchasing experience.
While selling to businesses is a different ball game with its own set of challenges, it’s these very challenges that, when addressed, pave the way to lasting customer relationships. And these relationships built on trust and consistency lead to larger, repeat purchases.
To fully understand what it takes to convert a B2B buyer, let’s explore the order-to-cash (O2C) process. Internally, O2C shapes cash flow and externally, it solidifies the buyer’s journey. It’s not just about what you’re selling anymore but how smoothly you can make the process. Buyer loyalty has already started to shift from brands to experiences and staying ahead means being attuned to this shift.
Understanding B2B buying trends and preferences can provide actionable insights for sellers. Here are the top four trends influencing digital B2B payments today, and how merchants can capitalize on each. Whether it’s adapting to the digitally native ways of Millennials and Gen Z or leveraging the latest in composable technology, there are clear strategies to not just keep up, but to set the pace in B2B commerce.
Buyers are shifting from brand loyalty to experience loyalty.
Business buyers are no longer loyal to just a brand itself. Instead, they seek positive experiences at each stage of the buying process. Unfortunately, only 54% of executives recognize that focusing on the buying experience is a high priority for activating customer loyalty, leaving many buyers unsatisfied. The same survey also highlights loyalty is won in the early stages of a relationship. In fact, 25% of customers say loyalty is cemented before purchasing or trying a product when researching a product either online or in-store.
Now is the time for sellers to adapt to building the experience customers want. Business buyers return to sellers who offer an easy, intuitive purchasing experience. There are numerous ways a seller can minimize friction for business buyers and provide a seamless experience akin to consumer purchases. This may include supporting omnichannel ordering, offering flexible payment choices and accommodating custom requests, such as being invoiced in a desired format or being able pay in a preferred currency.
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There is a generational shift to younger business buyers.
As shared by Forrester, Millennials and Gen Z constitute 64% of business buyers. These digital natives are rewriting the rules of B2B engagement, meaning sellers can no longer only rely on business as usual. As younger buyer preferences and behaviors are different than previous generations, it may be time to adapt to the expectations of this generation. Remember, this cohort grew up with the internet and have different ideas for how business transactions should be fulfilled.
In my experience, these generations of buyers are active information seekers and are digitally savvy (more likely to use self-serve transaction channels and mobile ordering). And despite the expectations of automation, they also seek authentic connections and are more likely to express any dissatisfaction with vendors. This highlights the need for sellers to offer digital payment modalities and real-time support in every channel.
The catalyst for supplier change is buyer behavior.
As buyer needs and preferences evolve, so must seller solutions. Enter composable technology. Imagine building with Lego blocks: each piece serves a purpose, and you can rearrange them as needed. In a similar way, companies can adopt a modular approach. When technology stacks are flexible, businesses can swiftly adapt to buyer preferences.
A recent study conducted with Murphy Research revealed that global business buyers expect convenience at all stages of the purchase experience, beginning the moment they onboard with a supplier. O2C automation is a great example. Composable technology enables a company to integrate seamlessly with various systems, such as commerce or ERP platforms. The same research also unveiled flexibility with payment options is so important that 78% of global business buyers claim it is necessary for merchants to offer invoicing. This makes it vital for merchants to understand exactly what their business buyers require, and layer on composable elements to build a payments stack that makes sense for their organization.
Digital identity theft is prevalent and increasing.
As more businesses shift to transact online, the risk of digital identity theft – especially for B2B – looms large. JPMorgan underscores this growing problem, revealing 84% of businesses with revenues over $1 billion and with over 100 payment accounts have faced attempted or actual fraud last year. With the average annual cost of cybercrime worldwide expected to soar from $8.4 trillion in 2022 to more than $23 trillion in 2027, investing in risk services is table-stakes.
From sales reps to developers, companies must educate teams to spot signs of phishing, spoofing and social engineering. Embedded KYC and smart fraud prevention tools can also be useful to flag fraudulent patterns and block bad actors from making a large business purchase. While AI-enabled solutions may seem like the best defense option, AI tools may also be used by cybercriminals to mask an identity even further. Preventing B2B fraud requires vigilance, alongside proactive and automated solutions.
As B2B commerce continues to evolve, sellers have a golden opportunity to capitalize on emerging trends and enhance their competitive edge. By pivoting from brand to experience loyalty, adapting to the preferences of younger, digitally savvy buyers, leveraging composable technology for greater flexibility and rigorously defending against digital threats, businesses can meet the complex demands of business buyers. Embracing these strategies will not only streamline the order-to-cash process but also solidify long-term relationships and drive substantial growth in this booming market. As we look toward a future where B2B e-commerce becomes one of, if not the primary way, business is conducted, the key to success lies in being adaptive, proactive and relentlessly customer focused.
Author Bio:
Brandon Spear leads TreviPay with expertise in managing large, diverse global teams. His strength is discerning and focusing on the most important challenges facing an organization at a particular point in time and unifying all stakeholders behind accomplishing a set of specific goals. Brandon has a unique ability to connect across all levels of an organization, motivate staff with diverse skill sets, while ensuring a common alignment and results. LinkedIn
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