"Loyalty must encompass more than a streamlined billing experience. It should focus on aiding enterprise clients in managing their businesses more effectively."
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GLOShawn Cunningham, the Managing Vice President and leader of Capital One’s trade credit operations, recently discussed the need for a fresh perspective on B2B loyalty in an interview with PYMNTS.
While loyalty programs often bring to mind consumer incentives like points or cash-back discounts, Cunningham highlighted the necessity for a different approach to cultivating B2B loyalty. He emphasized that establishing customer loyalty in the B2B realm is more intricate due to the complexities inherent in running a business and the everyday challenges faced by business owners. As the shift toward eCommerce in commercial transactions continues to grow, seamless accounts receivable (AR) processes are crucial to offering a frictionless experience for business clients across various sales and service channels.
Cunningham stressed that in today’s highly competitive landscape, just a click can lead buyers to alternative options. Therefore, loyalty must encompass more than a streamlined billing experience. It should focus on aiding enterprise clients in managing their businesses more effectively. Offering easy access to invoice and payment information as needed and removing obstacles from interactions between enterprises can help build trusted relationships.
He underlined that if suppliers don’t make it convenient for B2B customers to engage, they risk harming relationships. To foster loyalty, customized AR programs might involve extending terms when necessary, such as 60- or 90-day terms, coupled with larger credit lines. This encourages increased purchases and assists customers in managing their own credit lines.
Cunningham emphasized that this shift requires a change in mindset and a leap into technology that enables real-time credit line applications and approvals. Once approved, customers should be able to commence purchasing immediately through various channels, be it brick-and-mortar stores, sales representatives, or online marketplaces. These channels should feed into a consistent purchasing and accounts receivable experience to create a seamless journey.
By offering end-to-end AR solutions, entities like Capital One Trade Credit can provide integrated digital AR solutions that cover all steps of the order-to-payment cycle, complemented by back-office support resources. This approach allows suppliers to focus on their core business and ultimately fosters loyalty among customers.
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Source: PYMNTS
