The present economic environment is leading organizations around the world to make stark realizations about their current business processes. Of particular concern, business leaders are learning how unsustainable traditional payment methods like checks and lockboxes can be, and they are looking for new ways to enhance or replace their existing systems to bring continuity to their business. Enter digital payments.
Why Digital Payments Now?
Several macro-economic trends indicate that organizations now, more than ever, should be utilizing electronic payments. The following are three primary trends we’ve seen which signal it’s time for organizations to adopt a digital payments solution:
- Changing Customer Expectations
Customer expectations are ever-changing and organizations that don’t keep up are at risk. Customer self-serve, online shopping, mobile banking, and on-demand services have led consumers to expect instant gratification for their behavior. Those expectations as consumers have translated over to our lives at work and are having real effects on relationships with suppliers and business partners. The move towards an online, self-service environment indicates that organizations should explore such solutions for their business processes.
- Changes in the Workforce
Millennials are now the largest generational cohort employed in the workforce. Their experiences and how they operate in the workplace matter. Process heavy roles are no longer desirable and attracting and retaining top talent will be near impossible for organizations that don’t change. Effectively catering to the needs of millennials is important to driving future success for businesses. Considering this, steering your processes away from being manual and paper-based to a more automated and digital environment is a no brainer!
- Remote Work and the “New Normal”
If you’re still unsure about digital payments, consider that the present environment we find ourselves in makes a traditional payment collections process (sending and receiving checks) a safety risk. With companies having implemented ‘Work from Home’ measures that will be in place for the foreseeable future, transitioning to a payment process that keeps your company agile has never been as important as it is right now.
Risks of Not Offering Digital Payments
Choosing not to offer digital payments to your customers presents two main risks that can impact the success and longevity of your business.
- Customer Power and Loss of Revenue
Customers have tremendous substitute and negotiating power. We’ve all bought something from Amazon because it was the most convenient option, knowing we could have gotten it cheaper elsewhere. If your business processes make it difficult for your customers to do business with you, they will take their business to someone who can offer a more convenient experience, ultimately affecting your stream of revenue.
- Operational Challenges
Forgoing a digital payments process leaves your business and your suppliers dealing with the added effort that comes with a manual payments experience. A cumbersome, manual payments process requires many steps and human effort to deliver a quality customer experience, every time. Not to mention, with the paper and labor resources required, it can be costly to your business. In a price sensitive market where margins are tight and you’re trying to grow and scale your business, manual processes of any kind are simply not sustainable. Compounded together, this introduces lags to your processes and slows down the speed at which you get paid, eventually driving up DSO, reducing working capital, and limiting the agility of your operation.
As John Shamanis, CFO of Carrier Enterprise put it, “If we’re not simplifying our transactions — and the transaction experience for our customers — then we’re failing.” By enabling your customers to pay you the way they want to, you are improving the experience you deliver to them while saving your team time and money. It really is a no brainer!
If you’d like to learn more about how your business can improve its payments experience, please contact us directly and we’ll be happy to answer any questions you have.
For helpful resources on working from home in the age of COVID-19, check out our new Resources page!