In the business-to-consumer sector, selling to consumers is more important than selling to other businesses. Some of the most well-known B2C companies that work online are Amazon and Zappos, both e-commerce sites.
In the business-to-business market, businesses try to sell to other businesses. Products will be used by the business itself or sold to the end customer. Most people have heard of B2B ecommerce platforms like Alibaba, which are online marketplaces for businesses to do business with each other.
There isn’t always a clear line see the top seafood restaurants in San Fransisco between different industries. Most web stores selling to businesses would sell to consumers if asked. Some companies use business-to-consumer (B2C) suppliers to get things to sell or use internally. Here, therefore, is a look at the ways in which they diverge.
Customer value and purchase risk
Pricing for business-to-consumer (B2C) is often cheaper than for business-to-business (B2B). This is because many B2C products are bought on a whim and can be bought quickly without the help of a salesperson.
Since B2B products are usually expensive, building strong relationships that build trust is important. Business-to-business clients often think about things like lifetime value and return on investment when deciding how much risk to take (ROI).
Even though B2C buyers care about reviews, they often make snap decisions, especially when buying online. Before being added to a database of potential customers, a b2b vs b2c ecommerce customer may have to go through a lot of marketing. Before they started working with B2C sales, social media, affiliates, or commercials may have affected their decision.
In business-to-business deals, the buying process is more complicated. A sales cycle may include meals, presentations, product demonstrations, and other events. Business-to-consumer and business-to-business transactions may both need a follow-up after the sale. With the rise of SaaS, e-commerce, and subscriptions, a sales flywheel model might be the most effective way to do business of any kind.
When making a B2C transaction, customers are often in a hurry to find a solution to an urgent problem. So, many B2C purchases are made on the spot or based on strong emotions. Business-to-consumer (B2C) salespeople often have to fight against word-of-mouth, habits, wants, and advertising when trying to get people to switch brands.
When a business does a business-to-business transaction, the company is taking on more risk. They could get in the way of important corporate operations. When trying to persuade more than one group, strong facts are the best way to do it. When making big, long-term purchases, such as for school or weddings, B2C clients may act more like B2B customers.
The vast majority of business-to-business buyers use corporate funds to buy things. This suggests that the people who will use the product are not making the decisions, but rather a committee. So, a B2B salesperson trying to sell a single product may need various methods. Individuals who buy directly from companies do so for their own needs. This means that sales strategies will be changed to meet each customer’s specific needs at the moment of purchase.
Number of sales leads per salesperson
Business-to-consumer sales may have millions of customers. There is a lot of traffic on the internet and many leads, but not all of these leads are for ideal clients. Finding the right leads is a crucial part of a B2C salesperson’s job, so they need to be able to manage their time well. If you spend more time on leads that won’t help you make a sale, you’ll have less time to work on leads that will help you make a sale.
Since there are fewer business-to-business leads, salespeople usually spend more time with each one. This is great because it shows that they have zeroed in on the best areas for making sales. But this is a problem because it makes it easier for competitors to steal leads and clients over the long sales cycle.
Influence of Discounts
Before making a purchase, most B2B clients must go through an approval process and stick to a purchasing budget. As a result, the project may take longer, but there may be less need for price cuts.
B2C customers, on the other hand, are more likely to worry about price drops since they are spending their own money. This is especially true in the hotel and tourism industries, where discounts are popular.
Cost of Customer Acquisition (CAC)
A big chunk of how expensive it is for B2C to get new customers is due to marketing. However, the CAC may be higher for B2C transactions in tourism and academia. However, it is common for business-to-business sales to have a higher acquisition cost due to the high price point and a small number of qualified leads. Read this article to learn more about the differences between business-to-business marketing and business-to-consumer marketing.
Selling to customers is often easier than selling to other firms. B2B salespeople often talk with subject matter experts when selling high-value, high-complexity products and services.
Even though it may take time to learn the ins and outs of business-to-consumer (B2C) sales, the risks associated with B2C transactions are often smaller. As a result, fewer highly experienced salespeople will be needed. This article will teach you everything you need to know to be successful in B2B sales.