Business-to-business (B2B) payments have historically lagged behind in terms of innovation. This is particularly evident in the technology industry, where outdated legacy processes and poor communication often lead to challenges for both buyers and vendors. However, a recent survey conducted by Gartner sheds light on the impact of these issues on technology purchases in the B2B space.
According to the survey, technology buyers frequently encounter difficulties when making purchases due to legacy buying processes. These challenges include poor communication and an overwhelming number of options, leading to a lackluster buying experience. In fact, 95% of respondents expressed a preference for a fully digitized shopping experience.
Vendors in the technology industry also face hurdles when it comes to accounts receivable (AR). Computer software companies are particularly susceptible to delays in payment from customers. This highlights the need for automation and innovation in B2B payment processes within the industry.
The “B2B and Digital Payments Tracker®” examines how legacy B2B payment processes affect the technology industry and explores how automation can benefit this sector. The study reveals that buyer’s remorse is prevalent among technology buyers, with 60% expressing regret over their purchase decisions related to “as-a-service” agreements. This figure has increased by 6% compared to last year, primarily due to cumbersome legacy purchasing processes.
Interestingly, despite economic uncertainties, companies remain committed to investing in technology and software. A report by G2 software market indicates that half of decision-makers anticipate spending more on these investments over the next two years.
While consumer payments have evolved rapidly, B2B payments have been slower to adapt. This discrepancy is especially noticeable in an industry like technology that thrives on innovation. Even major tech companies recognize the need for customer-centric strategies as they understand that neglecting this aspect puts their business at risk.
To gain insights into why B2B payments are lagging behind in the tech industry, we spoke with Matt Wegner, Vice President of Global Payments and Risk at Adobe. He emphasized the importance of updating B2B payment processes in the technology industry to enhance the Obviously customer experience.
The current state of B2B payments in the technology industry is characterized by frustrating shopping experiences, inadequate communication, and an overwhelming number of choices for buyers. This results in longer buying cycles and delays in bill payments for tech companies. However, with technology investments proving resilient to inflation this year, there is an opportunity for the industry to make significant competitive and revenue gains by investing in improving the B2B checkout and shopping experience.
When all is said and done, the lack of modern B2B payment technology is particularly evident in the technology industry. Buyers face challenges due to legacy processes, leading to buyer’s remorse and a desire for fully digitized shopping experiences. Vendors also struggle with accounts receivable, especially in computer software companies. However, despite these challenges, there is potential for growth and improvement through automation and innovation in B2B payment processes within the industry.
Sources:
– Gartner survey: https://www.pymnts.com/news/b2b-payments/2023/adobe-on-why-the-tech-industry-is-ripe-for-consumerizing-business-payments/
– G2 software market report: https://www.pymnts.com/news/b2b-payments/2023/adobe-on-why-the-tech-industry-is-ripe-for-consumerizing-business-payments/
