Business-to-consumer (B2C) sales are often the first foray into selling for many professionals. While it is typically less complex than business-to-business (B2B) sales, there are still several key differences to keep in mind when approaching a B2C sale.
Sales is a very important aspect of every business. Whether you are a startup or an established company, without sales you can't achieve your goals and objectives no matter how good your products or services are. The field of sales has been changing over time to cater to the changing demands of a more informed customer base.
When it comes to differentiating between B2B and B2C sales, the difference is mainly in terms of transactions. This would help us know what is b2c sales too. While either can be used all year round, each works better during certain times of the year than others so knowing when they work best is crucial for marketing success.
These differences also affect things like content creation and distribution strategies.
B2B stands for business to business and refers to the sale of goods or services between two companies. The seller is typically a company that needs to sell its products/services so as to generate revenues and grow profits. The buyer on the other hand maybe a reseller looking for a supplier, a purchaser in a distribution channel, a service provider in need of equipment, etc.
Supply Sales: When you sell supplies or consumables in bulk to another company that uses them in an end product or provides them directly to customers. A good example would be ink cartridges sold by printer manufacturers such as Lexmark and HP to distributors like Ingram Micro who then resell them with printers from Dell, Xerox, etc.
Supply sales are also known as resale or resell because distributors take ownership of the supplies after it is sold by the manufacturer. The distributor then turns around and sells the supplies to another company that needs them in its production process.
Distribution Sales: The distribution channel for goods includes wholesalers, manufacturers’ direct sales, warehouse clubs, cash-and-carry warehouses, department stores, online retailers, catalog companies, and VARs (value-added resellers).
Manufacturers typically establish their own channels or sell through agents or brokers who have already been established with a larger customer base. To be successful in this type of sales environment means having a very strong marketing campaign to reach potential customers quickly and get their attention.
Service Sales: A service business sells a service to another company for a fee. The buyer typically does not have ownership of the product, but it is being paid to improve upon or manage a process that the customer uses in his/her operations.
A good example would be an IT services firm charged by a client with managing all computer assets and related IT needs including hardware, software, data storage, and other maintenance issues.
B2C stands for business to consumer, referring to companies that sell directly to individual consumers rather than businesses. The main difference between B2C vs B2B sales lies in where each type of party engages in the transaction (inside the company's building or outside).
B2C sales are also referred to as consumer sales because the buying decisions are often made by individual consumers who might not have any purchasing power within their company. This leads to shorter sales cycles because there is only one decision-maker involved in the process.
B2C companies choose which customers they want to sell to based on identifying target markets that may consist of certain customers with specific demographics, psychographics, geographic locations, and other market research data. Marketers use this information to determine how best to reach prospective customers through various channels so as to influence buying decisions.
B2C companies conduct market research using surveys or focus groups where consumers are asked about what they like or dislike about a product/service, how it could be improved upon, etc. Personal selling (which involves salespeople making cold calls or pitching directly to customers) is another form of market research conducted by B2C companies.
By now you should have a better understanding of what each term means and why there are some similarities between B2C and B2B sales.
However, if you still think they're one and the same or don't see much of a difference between them then let me explain further. One main distinction to note is that with B2B sales there are multiple decision-makers who need to approve a purchase together.
This means that when you're selling to businesses, the sales cycle tends to be longer because each decision-maker has their own idea of what constitutes value and how much they're willing to spend for it. Companies in the B2B sector, therefore, use different types of sales approaches depending on whether or not there is one primary buyer or multiple buyers involved in the process.
Although there are three main categories that separate them, B2C and B2B sales share some similarities that I want to point out before wrapping up this post. These similarities all revolve around consumer engagement which helps build brand loyalty among customers that decide to purchase your products/services.
For example, since B2C and B2B both rely on direct customer contact (whether online or offline) to acquire new business the way they communicate with their customers is similar in many respects.
Both use customer service as a means of engaging prospects at different stages in the buying process and nurturing relationships which eventually leads to increased brand loyalty and successful business outcomes.
Both utilize email marketing campaigns and social media advertising to reach target audiences by showing them how their problems can be solved through your product/service offering.
They also create content such as blog posts or videos which help establish thought leadership within their industry while providing value to prospective customers who might not yet be ready to buy anything but still want access to your content.
So, does it matter whether you're marketing to businesses or consumers? Not really if you know how to adapt your approach based on who you're talking to (which is what I explained in this post).
The key takeaway here is that regardless of who you want to reach with your marketing message, understanding the differences between B2C and B2B sales will help give you a better idea about how to build relationships with them.
The short answer is no because the differences are still there. However, if you look closely enough you can see that these two terms are being used interchangeably for some specific industries.
For example, many e-commerce sites now refer to their sole focus on selling directly to consumers as B2C even though they technically don't meet the requirements of this term set by McKinsey & Company.
At the same time companies like Amazon have started offering B2B services which means they've monetized their technology platform so other businesses can use it to sell online without having to create one from scratch.
This goes against everything I wrote at the beginning but nevertheless shows that sometimes categories are blurred out of necessity whether it's by consumer behavior trends or changes in technology.
B2B sales, longer sales cycles involve multiple decision-makers: As the table above illustrates, B2B sales often involve multiple decision-makers. That's why it's important to know how to adapt your approach in order to efficiently address each one of them at various stages in the buying process.
For example, if you want to market a product or service directly to consumers (B2C) you need strategies for identifying prospects through social media and search engine optimization (SEO). You then have strategies for converting new visitors into leads with lead nurturing emails that are sent out automatically on a regular basis.
You then have strategies for converting prospects into customers by showing them valuable content about your company/product/service while also acknowledging their individual constraints on price and value.
Now let's say you were trying to market a B2B product or service to companies. You'd need strategies for identifying prospects with search engine optimization (SEO) and social media advertising. Then you'd have nurturing strategies where you show them valuable content such as whitepapers about how your solution can help solve their problems.
You also provide resources like ebooks and videos on your company's thought leadership within the industry. This is done so they will eventually buy from you because of brand loyalty and trust instead of going with any old competitor who might not be able to offer the same caliber of services/products that you do.
B2C marketing, brand matters as a driving factor for purchases: Another important difference between B2C B2B sales has to do with brand loyalty. Many people are heavily influenced by brands when making purchases because they want the reassurance that what they're buying is of good quality.
Early on with B2B sales you're most likely going to be talking about features and benefits but as your number of customers grows, you're going to want to talk with them about how using your company's solutions will benefit their bottom line. This means focusing on ROI (Return On Investment) and helping them achieve this through technology.
At the same time with B2C sales, you need a strong brand name before anything else can even happen after initial purchase consideration. You'll also need a solid understanding of market trends and buyer personas (which we'll cover in detail in the next section).
B2C professionals focus on customer acquisition by using online platforms to market their products/services. They work with marketing teams to implement strategies, and they help businesses automate everyday tasks for maximum productivity.
They focus on customer acquisition through the use of email, phone, and social media like LinkedIn, Facebook, Pinterest & Twitter (to name a few). They also work with marketing teams implementing strategies that utilize messaging that helps businesses grow revenue and gain more customers.
They focus on creating an experience for their customers that creates a lasting impression. This involves strategizing everything from the first time they hear about your company to the last time they purchase something before deciding whether or not to make another purchase in the future.
B2B sales professionals focus on capturing leads that they nurture over a period of time through the various stages of the buying cycle. This involves identifying prospects with SEO and social media advertising, then showing them valuable content such as whitepapers about how their solution can help solve their problems.
They also provide resources like ebooks and videos on company thought-leadership within their industry so that ultimately it will be brand loyalty and trust that convinces customers to buy from them instead of going with any old competitor who might not have the same caliber of services/products for sale or up-sells/cross-sells.
The distinction between B2B and B2C is that B2B sales professionals focus on business-to-business opportunities, meaning they work with businesses to help them grow revenue.
Meanwhile, B2C professionals focus on consumer-to-consumer or customer acquisition opportunities which means they work with consumers to help them find valuable products/services for their everyday lives.
If you're wondering about which type of sales role best suits your personality, it's helpful to think about whether or not you crave face-to-face interactions (B2C) or if you prefer working behind the scenes (B2B). The former takes more social skills while the latter requires strong management & organizational skills.
