“We don’t think about standard solutions because for us there are no standard customers.”
Joachim Ludwig, Managing Director Trotec GmbH
average basket size
BNPL volume vs expectations
Trotec: A leading company with individual solutions
Trotec is an internationally operating company with headquarters in Heinsberg, North Rhine-Westphalia, which specializes in the development of customized air conditioning solutions. Since its foundation in 1994, Trotec has developed into one of the leading suppliers in the industry and currently employs around 350 people in 10 countries. In 2021 Trotec made a turnover of 170 million euros, 40 percent of which it generated via its webshop.
Trotec follows a philosophy of continuous improvement and innovation. Because at Trotec it is not only about selling the highest quality products but also about offering a tailor-made solution for the individual requirements of each customer, This clear orientation has enabled Trotec to establish itself as a reliable partner in both the B2C and the B2B market.
Declining B2B purchases and increasing payment demands
Nevertheless, Trotec has noticed a decline of 20% in purchases from the B2B sector. This is primarily due to the introduction of 3D-Secure procedures and further 2-factor authentication methods, which have made the payment process more complex for companies.
Another reason for the decline in purchases is the general change in payment preferences in B2B, as Trotec points out: “Especially with our public clients, who have to do without personalised payment methods such as credit cards due to their compliance requirements, the demand for flexible payment solutions has increased.”
Trotec’s Challenges with Buy Now, Pay Later (BNPL)
Today’s online business customers are more demanding than ever. A survey found that for 85% of B2B buyers, the buying experience is just as important as the product itself. For over 90% of respondents, a positive buying experience is closely linked to flexible payment terms.
In order to increase the level of its B2B purchases again, Trotec had to meet the wishes of its business customers for BNPL payment methods like those in B2C. In B2B, however, this is associated with some challenges that Trotec wasn’t able to solve on its own:
- Integration: The payment solution must be integrated as seamlessly as possible into the checkout in order to guarantee the buyer a quick completion of the purchase.
- Risk: The invoice purchase options must be offered to as many B2B buyers as possible without this representing a financial risk for the company.
- Effort: The operational effort for the employees must be as low as possible.
A strong solution for easy implementation
To meet the challenges of integrating a flexible payment solution in the B2B sector, Trotec looked for an experienced payment service provider. They chose Mondu, which convinced them with its focus on the B2B sector: “Mondu stood out in the selection process due to the simple user interface and UX offered to the customer”, says Trotec.
With Mondu, Trotec has found a payment service provider that meets the requirements of both the company and its B2B customers. The Trotec team praised Mondu’s integration as “the easiest payment provider integration [they’ve] ever had”. This is due to the well-documented API and motivated staff. With Mondu, Trotec can hand over the risk of non-payment, while Mondu takes care of everything around payment collection and dunning. This allows Trotec’s employees to fully concentrate on their core business.
Trotec’s customers also benefit from flexible payment methods such as invoice payment and SEPA direct debit. The seamless integration into the checkout process and the real-time credit check ensure that the purchase process can be completed quickly and smoothly. This contributes significantly to a positive buying experience and thus to high customer satisfaction.
The result: Increasing B2B sales and higher order values
The results of the cooperation between Trotec and Mondu have exceeded all expectations. Within a very short period of time, it became clear that Trotec’s B2B customers use Mondu’s payment solutions 200% more than originally expected.
Since the introduction of Mondu’s payment solution, Trotec’s average order values have increased. The use of invoice payment significantly increases the purchasing power of the customers: B2B customers who use a BNPL option from Mondu order on average 39% higher values of goods than customers who choose other payment methods.
The decision to rely on Mondu as a payment service provider has thus proven to be an absolute win and contributes significantly to the success of Trotec’s B2B online business.
“We hope to expand our B2B ecommerce sales throughout the whole group (Trotec/Dantherm) in the future with Mondu as an excellent partner.” – Joachim Ludwig, Managing Director Trotec GmbH