What’s the Difference Between B2B vs. B2C Selling Strategy and Why Should You Care?
There are some big differences between B2B (business to business) selling and B2C (business to consumer) selling. It is important to understand these differences if you are considering what type of business you want to start.
There is a significantly smaller customer base to consider in B2B selling, since there are fewer businesses to sell to than individual consumers. B2B sales often have more complex transactions since the sale will more than likely be covered by a contract agreement. Another difference is that the product is being purchased to satisfy the needs of a company, rather than an individual. Typically more than one person from the company is involved in the decision making and terms of the agreement. Types of B2B customers would include manufacturing, trade (wholesale/retail), government and institutional.
A relationship based on honesty and integrity is key to B2B selling. A B2B seller should be an expert on the product he’s pitching, and the use or value of the product to fill a specific company’s need. An example would be a multi-carrier shipping system for a manufacturer. As the seller, you would need to be an expert on the capabilities of the shipping system you are selling and be able to present data and discuss options available. The buyer needs to trust you wouldn’t sell him a system not suited for his company’s needs. Not all products are so complicated, however the buyer will be more willing to buy from a seller who he trusts and has confidence in. A B2B sale could take weeks or even months.
B2C selling has a much larger customer pool, since there are more individual consumers than businesses. The process of selling to individuals is drastically different than selling to other companies. Understanding the customer’s needs, wants, problems and challenges is crucial. Marketing would be focused on packaging, product presentation and how to make the product more appealing to the consumer. Reduced prices and rebates are examples of effective selling strategies in B2C selling.