Accounts Receivable Automation for B2B clients

Accounts Receivable Automation for B2B clients

Have you explored all of the levers at your disposal to build your business? While more traditional revenue sources, such as new user acquisition, have been proven to work, a company’s hidden weapon for growth may be right beneath its nose. Payment experience optimization is an important aspect of the entire customer engagement strategy. And, if done correctly, it can increase client retention and growth more efficiently than new customer acquisition. According to Hubspot, acquiring a new client is 5-25X more expensive than keeping an existing one. When you keep a customer, they’re more inclined to spend more money and buy more often. In addition, existing clients are by far the easiest to sell to. Selling to a current client is 60-70 per cent more likely than selling to a new prospect, which is 5-20 per cent. The latest hidden weapon of growth-focused executive teams with B2B business models to boost their existing client base is altering their A/R process. In both B2C and D2C organizations, a simplified, growth-optimized payment process has long been a proven customer growth driver. It’s now considered the industry standard for B2B payments.

What does AR Automation Entail?

AR Automation is a solution for your accounts receivable staff to automate repetitive and time-consuming operations. It can also assist you in increasing the likelihood of rapidly authorized invoices being paid by your clients. It helps you save time and avoid common invoice errors, which are caused by human error or a lack of understanding of the customer’s invoicing requirements. Switching to and reaping the benefits of e-invoicing provides certain automation benefits.

Why Choose Accounts Receivable Automation for B2B Clients?

  • Internal invoicing processing is more efficient.
  • DSO reduction
  • Quicker payments
  • Enhanced cash flow
  • Enhanced safety
  • Increased precision
  • Improved client service
  • Distribution expenses are lower

How is Accounts Receivable Automation being used by B2B organizations?

  • A pleasant payment experience will increase brand affinity and LTV.

The collection of a payment from a consumer is an important brand touchpoint. Consider how fast a terrible encounter might turn into an unfavourable perception of your organization. The consumer has already given you their hard-earned cash. How can you make them happy with their decision? Let your branding, voice, and tone come through in your money collection correspondence. Rather than using uniform robot language that can make your customers feel cold and underappreciated, enlist your communications staff in the endeavour to humanize your payments emails or gateway so that your brand remains consistent. A more personal connection is made with the end consumer. Customers have a good reaction to straightforward, welcoming language. Customers with high brand loyalty do not churn; instead, they buy more and suggest friends.

  • With simplified, digitized AR automation, you may be paid faster to fund additional growth efforts.

It’s a lose-lose situation when your consumers have to track down and manage paper invoices and cheques. You and your clients must devote resources to a manual, analogue procedure that is vulnerable to human mistakes. It causes inefficiencies and a negative experience for both of you. Payment becomes a simple “To Do” item rather than a lengthy job description with a smooth, digital experience. Aside from the general value of a pleasant customer experience for your customers’ Lifetime Value, payment streamlining reduces DSO by immediately speeding up the time it takes to obtain money in the bank.

  • Increase your sales by adding extra payment alternatives.

Another strategy to reduce time to reconciliation is to expand the sorts of payments received, allowing consumers to pay as they wish. This creates a competitive differentiation for your organization over competitors in terms of growth. Improve your distinction even further by providing solutions with cheaper fees than your competitors. This is accomplished by utilizing a well-established worldwide payment network arranged on your behalf.

  • Extend your international reach

Being an international business is getting easier and more difficult at the same time as the global economy gets more “borderless.” It’s easier because tech-enabled infrastructure makes it easier to reach new markets and provide new resources outside of a company’s home nation – everything from putting up new websites and acquiring new customers to obtaining goods and services – is made easier. It’s more complicated because navigating fragmented systems and rapidly changing legislation varies by location and takes time, money, and other resources. This can stifle growth and redirect resources away from revenue-generating activities. Your team may easily enter a new client market by connecting to an established global payments network.

  • Experiment with growth strategies like referrals, upselling, and faster payment choices.

Upselling, asking for a reference, or getting paid in advance for future services are all possible at payment. Invoicing communications, unlike B2C, have been largely unexplored for growth trials. Try exploring new ways to earn income throughout the payment process with your sales or growth team, and double down on tactics that work. You may watch client transactions and find potential for development and dangers of negative payer behaviour with a next-generation A/R system.

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