B2B companies are coming to the same realization B2C ones had long ago - the customer payment experience matters.
That surfaced in our latest B2B payments research: ERP systems and Cross-Border B2B Payments: Expectation vs. Reality. For the report, we surveyed 250+ financial professionals about how effectively their ERP systems supported payment processes, with a focus on international customers. When it comes to B2B payments, the customer payment experience can depend a lot on how well the ERP system supports the payment process.
And that research revealed a lot about how (and why) cross-border payment experiences are on the minds of B2B companies. Here are three findings from that survey worth considering.
1. Your peers think there’s value to be had in improving international payments.
- Recession concerns. 88% said with the possibility of a recession, they need to improve their ability to get paid by their international customers. The average DSO for international receivables is 97 days, according to our survey.
- They’d get paid faster. 87% would like to offer additional payment methods in an effort to decrease DSO. Greater transparency to FX rates and transaction fees helps assure more accurate receivables and less time spent running down short payments.
- It would save them money. 89% think they could save more money if their cross-border receivables process was more tightly integrated with their ERP system.
2. You may not be aligned with customer payment preferences.
Our survey showed there is a gap in how international customers want to pay vs. how businesses prefer to get paid.
How business want to get paid by international customers (order of preference)
How international customers prefer to pay (order of preference)
3. Your customers want localized support.
Our survey found more than half of global companies reporting that different parts of the global payment process were a problem for them, including:
- Invoicing in customers’ local language and currency.
- Providing customers ways to pay the invoices in their local currency (and via their preferred method)
- Ensuring transparent FX costs
- Providing local language support when they have payment questions
- Managing refunds and chargebacks
The big takeaway here is that the more convenient you make the payment experience for your international customers, the easier and more efficient you make it for yourself, your finance team and your business.
Check out our full research report: ERP systems and cross-border B2B payments: Expectation vs. reality for more details and actionable advice.