“You can have the world’s sturdiest Tupperware with just three easy payments of $19.99!”
As outdated as that sounds, the idea behind it is having a resurgence. B2B customers want flexible payment options, just like B2C has been doing for years.
Ingram Micro’s Sr. Manager of Financial Channel Solutions
, Melanie DelValle
, joins Keri to discuss the future of finances, as well as…
"Technology's not an asset that most companies purchase because it's going to appreciate. They purchase that technology for what it's going to do in their business." — Melanie DelValle
- The benefits of a recurring revenue model
- How to sell a full service vs. á la carte technology products
- How Ingram Micro Financial Solutions help partners implement a recurring revenue model
Recurring revenue is a win-win
We all want to start 2021 off on the right foot, especially after the disaster that is 2020. One thing that partners can count on in the coming year: Installed payments will continue to gain traction in B2B.
Recurring revenue models have dominated the B2C space, and now business leaders want the same flexibility in the B2B world. But it’s not just a win for customers. It’s a win for providers as well.
Recurring revenue benefits for the provider:
- It’s in the name: You could be bringing in recurring revenue every single month.
- It’s easier to sell a full-service package as opposed to á la carte technology.
- The value of your business increases.
- Again, predictable revenue. What could beat that?
- You offer the customer more flexibility, increasing your chances of selling to them.
- Ingram Micro Financial Solutions make it super easy to shift to a recurring revenue model.
Plus, you’ll be more immune to—let’s say—a worldwide pandemic if you’re offering more flexibility in payment options.
"Customers who leveraged our channel financing programs were able to grow their business by 11% Q2 over Q2 2019 while overall revenue declined for many customers in that same period." — Melanie DelValle
Full service vs. á la carte
Business leaders are less concerned with having the latest brand name products than they were a decade ago. Now, it’s about the value the product and your services bring to their business.
But, when you ask for full payment upfront for your products and services, you’re going to make very few sales.
Instead, implement a recurring revenue model that allows your customers to pay you on a monthly or annual basis. It’s more likely that they’ll sign the agreement if they can pay as they go.
What if a customer insists on purchasing products á la carte?
Your initial conversation with a customer should reveal their true intent. Uncover their business objectives and concerns by asking the right questions, including…
- Did you know we offer a full-service package for that?
- Would you agree to our services if the pricing were more flexible?
- Is your budget preventing you from going with our full-service package?
- Do you not require all the services included in the package?
By asking the right questions, you can more quickly qualify or disqualify a potential customer. Perhaps if they don’t require your full-service package, they just aren’t a good fit.
The future of finances
To help you move forward with a recurring revenue model, Ingram Micro Financial Solutions
- Evaluate your current prices and offerings
- Help you find adequate margins
- Review and offer advice on your expenses
- Bring in expert credit consultants
- Do pretty much anything that will help you successfully transition to a recurring revenue model
In the coming year, Melanie sees pay-as-you-go models only increasing in popularity within the B2B space. In order to grow your business in 2021 and recover from this year, it will take switching to a recurring revenue model.
Check out the Ingram Micro Financial Solutions flipbook
and How Flexible Payments Rule the World (video)
Related episodes: #39
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