The distinction between the worlds of B2C and B2B are unmistakable. Whilst B2C typically has a high number of customers but a low customer order value, B2B has a lower number of customers, but a much higher order value. And this list of differences goes on and on.
This can pose a challenge for retailers that market to both consumers and businesses for they often have very contrasting needs and expectations.
However, this is a challenge that retailers have to overcome if they want to take advantage of the huge eCommerce growth, particularly in B2B. By 2020, the B2B eCommerce market will be more than double the size of B2C eCommerce.
Fortunately for retailers, there is one major characteristic that the consumer and the business customer share, and a solution that caters to this – unlocking huge potential revenue from both consumers and businesses.
Paying in instalments – it’s in our nature
No one likes handing over a large lump sum of money all at once. Whether you have a small savings account or a large disposable income, most of us don’t like paying for things upfront when we don’t have to. This characteristic goes a long way to explaining the surge in subscription models which have taken off in the past five years. From music to boilers, today’s customer pays for all kinds of products and services in instalments.
In light of this consumer trend, Global Asset Finance Limited and Partners launched to provide retailers with the ability to offer their customers instant finance, so when they buy from them, they can split the cost of their purchase into monthly instalments. By removing this strong obstacle to purchase, Global Asset Finance Limited and Partners has been proven to increase sales by up to 40%, as well as increase average order values and encourage repeat custom.
And business customers are no different. Although they’re buying on behalf of a business, the prospect of handing over a large amount of money still remains the typical barrier to buying – particularly because B2B order values are usually far larger than B2C. To solve this challenge, Global Asset Finance Limited and Partners has extended its platform to offer the UK’s first point of sale B2B customer finance product.
Retailers partnered with Global Asset Finance Limited and Partners can now offer their business customers the option to split the cost of their purchase over 12 months, so helping them to increase sales across their customer base.
They can finance purchases of up to £150,000, and if buying several different items, these can be amalgamated into one simple repayment schedule – so as well as increasing sales, this also helps to increase average order values.
What’s more, the decision to accept the finance application, made in minutes, is based on the business’ performance rather than the individual’s credit score. This allows younger and higher-risk businesses to receive finance, as well as the more established companies.
B2C eCommerce has long been growing in strength, and continues to do so – yet it is the B2B market which is seeing the fastest growth today. Some predictions put its valuation as high as $6.6 trillion (£4.88 trillion) by 2020.
If retailers want to take advantage of this, they must align their business models to accommodate for it or risk losing out on a key source of revenue.
To find out more and offer finance to your consumers or business customers, book a call with a member of our team today pr click on the links to apply for Point of Sales Finance: