Modernizing the order-to-cash cycle

Editor's note: This article originally appeared on Payments Dive

The past several years have seen transformative changes in payment trends. Consumer payments have shifted heavily toward flexible digital options — and, for Millennials and Gen Z, access to eCommerce and streamlined digital payment has been the norm for most of their adult lives. 

As these generations make up an increasing amount of the workforce and take responsibility for business purchasing decisions, the expectations for a convenient, consumer-like experience have trickled over to B2B. 

“The rise in eCommerce, along with the accelerated digital transformation that occurred during the pandemic, has really raised the stakes for B2B,” says Kelley Marko, Vice President of Marketing at Capital One Trade Credit. “Put simply, the old order-to-cash experience, which was conducted primarily offline and relied on manual processes, can’t keep pace with customer expectations anymore.”

Against this backdrop, mastering customer experience (CX) has become essential to retain a competitive advantage, and organizations must find ways to provide a seamless, “always-on” digital order-to-cash experience to avoid shedding customers.

Although today’s B2B customers may demand a consumer-like experience, meeting those expectations is still easier said than done. 

The lengthy, complex, and sometimes disjointed customer journeys common in B2B don’t naturally lend themselves to a seamless order-to-cash experience. Delivering an end-to-end experience requires compiling multiple processes — credit decisioning, payments and customer support — into a single digital ecosystem.

Of all the stages in the order-to-cash journey, manual credit decisioning has remained notoriously slow. Manually requesting, reviewing and verifying clients’ credit information to make a decision takes hours, at a minimum — and often means customers wait for days to access credit in order to make a purchase. 

That lag time isn’t just disruptive for customers; it also means lost business.

“Every minute a prospect has to wait to be approved for credit is a minute of purchasing time you’ve lost,” says Mona Kishore, Head of B2B Payment Partnerships at Capital One Trade Credit. “Once a client drops off, it’s exceedingly difficult to get them back — if you can get them back at all.”

During this critical time in the purchasing journey, tightening the process to minimize drop-off is essential. And shifting to an automated credit decisioning process can help. 

The right digital tool can streamline credit decisioning by allowing customers to apply for credit easily online and leverage technology to verify customers’ identity and assess their creditworthiness. It allows businesses to offer their customers flexible credit terms and access to credit in minutes — not days. 

Automated credit decisioning can also help deepen relationships with your best customers. “When customers are loyal to a particular supplier, they want to see that loyalty rewarded with better credit terms, but a lot of organizations are not solving for that pain point today,” Kishore explains. 

An automated solution allows organizations to set up flexible credit programs to gain a competitive edge for new customers and ensure their most loyal customers can access the best credit terms possible.

Just as today’s B2B customers expect near-instant access to credit, they’re also looking for flexible payment options that can be accessed instantly, anytime and from anywhere. To succeed today, organizations need to think outside traditional channels — like checks and credit cards — and allow customers to pay via e-commerce and mobile payments as well. 

Offering a range of digital payment options satisfies customers’ need to pay easily and provides customers with a greater sense of control. 

“Relying solely on legacy payment solutions, like checks and credit cards, makes it more difficult for customers to manage their purchases,” explains Marko. “If they send in a check, it can take time to apply or could be applied to the wrong PO. And if they need to pay with a card, they may opt to use personal credit. If they can pay electronically, they can make a payment as a business entity and apply it to the appropriate PO.”

An updated AR solution lets customers keep their accounts current, easily check outstanding balances and monitor ongoing disputes. Customers can more easily manage the complex purchases standard in B2B, while merchants have more opportunities to get paid on time.

The expectation for a seamless order-to-cash experience extends across multiple departments — and customer service is a crucial part of the equation. Today’s B2B customers expect instant access to the support they need, whether looking to resolve simple queries through self-service or elevate their concerns to live support. 

As a baseline, organizations must allow customers to manage their account details online. After customers receive their digital bill, they want to go in and see how it matches up with their delivery, Marko explains, and they need to be able to make full or partial payments, as well as open disputes for inaccurate deliveries.

Crucially, they don’t want to have to pick up the phone to address every concern — or worse, bounce between agents to find the expertise they need. Organizations need to integrate flexible self-service options into the back end of their payment portal so customers can access the support they need at a glance. 

“Having that flexibility to move between fully automated self-service and into that live channel environment is a really important part of the back end of the order-to-cash experience,” says Marko. “By doing this well, you’re able to improve your CX and service customers holistically.”

The B2B seller landscape has been rapidly changing over the past few years and shifting to a more consumer-like model. However, delivering on this experience requires finding ways to manage the complexity of B2B purchases and leveraging automation to create a streamlined experience. 

Those who do this well stand to reap the rewards: A satisfied, loyal customer base that can fuel sustainable growth. 

“The levers for fostering customer loyalty have changed, and winners and losers are decided based on their ability to adapt,” says Marko. “Organizations that can master the order-to-cash CX will have an opportunity to grow their business and differentiate themselves through loyalty as the market continues to evolve.”

In a recent survey of 450 finance executives commissioned by Capital One, researchers found that enterprises prioritize CX when considering using a third-party AR solution provider.

Why? Because manual B2B accounts receivable processes don’t only hinder efficiency—they could cost firms business. But that’s not the only reason CFOs are embracing a new way of managing AR. Discover the top 10 reasons and how a full-service AR solution like Capital One Trade Credit can help. Get the survey results.