Case Study: A National Electronics Distributor Boosts Sales & Customer Loyalty
Behalf delivered virtual financing solutions to a national electronics distributor that resulted in tremendous growth in total sales revenue and customer loyalty.
The national electronics distributor struggled to break through their sales plateau, and was looking to boost sales revenue by offering pay-over-time solutions to their wholesale customers.
Behalf proposed a pilot where the distributor would offer their wholesale customers the ability to sign up for net terms or financing at the point of sale, embedding Behalf on their website where customers could sign up and receive an instant pre-qualification decision — all without ever leaving the distributor’s site. Once approved, the customer could submit payment to the distributor with a few clicks.
The distributor wanted to ensure a seamless payment experience for their wholesale customers. Behalf promised to deliver:
1. A speedy sign up process
2. Real-time prequalification decisioning
3. A secure payment process
Behalf places its trust in AWS (Amazon Web Services) to securely power its proprietary underwriting algorithm to process a large number of data points and dollars in real-time. Like AWS, Behalf brings simplicity, reliability, efficiency and cost reductions to businesses that offer extended payment terms and financing in real-time.
The hypothesis: offering extended payment terms would help increase customers’ buying power, resulting in higher AOV (average order value) and more total sales revenue. We were confident that Behalf would also improve the distributor’s customer retention rates, by delivering a speedy, secure and seamless payment experience powered by Behalf and AWS.
For the pilot, the distributor first targeted top customers with invitations to sign up for Behalf’s flexible payment schedules.
The distributor had never offered terms or financing before, as reducing DSO was already a problem. Behalf eliminated this concern, paying the distributor the next business day after transaction approval.
Almost immediately after launching the pilot, shopping cart abandonment among first time buyers decreased by 26%.* Customers that switched their payment method to Behalf began demonstrating new purchase patterns, repeating 80%* more frequently than non-Behalf buyers.
AOV (average order value), one of this distributor’s key KPIs, soared among Behalf users. Customers buying with Behalf were measured to have 35%* higher AOV than those paying cash for their orders.
Due to the success of the initial pilot, Behalf was fully integrated with the distributor’s eCommerce experience and made available as a closing tool to the distributor’s sales team. 18 months after the cross-channel rollout, Behalf was measured to have increased sales by 44%.*
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* Subject to underwriting and approval criteria. Results from an analysis conducted 18 months after a Top Electronics Distributor went live with Behalf (which rolled out initially in October 2015 — was analyzed May 2017)