Business-to-business (B2B) and business-to-consumer (B2C) both have a lot of things in common. However, they require different engagement approaches when it comes to marketing efforts and approaches. Each has a key focus on specific audiences which differ vastly in their purchasing habit.
Before we dive into that, however, let’s understand what B2B and B2C are first.
B2B. Simply put B2B is a form of transaction between a company to another, rather than an individual customer. It usually involves an exchange of products, services, and information. B2C relies on sharing information and building trust to sell products or service to a more logical budget-focused demographic.
B2C. On the other hand, B2C is a commercial transaction between a business and an individual consumer. It usually involves the selling of products and services, and relies quite heavily on emotions and impulse, to convince the consumer to purchase.
B2B and B2C Marketing
In marketing, identifying whether your brand is a B2B or B2C is crucial since this will help you come up with an effective strategy that could influence the purchase decision of your target market.
Most of the time, in B2B marketing, purchase decisions are more focused on the logic of the product or services and their features because they are usually driven by need or budget.
While in B2C marketing, purchases are typically based on emotions. In some cases, customers even buy on impulse just because the message of the brand that they’re looking at resonated with them.
B2B sales tend to take longer as compared to B2C sales since it requires a lot more work including building a relationship with the other business so they can start trusting your brand. In addition, because there are more decision-makers in an enterprise, the sales process, sometimes, requires a series of approval.
With B2C, there’s almost always just one person to deal with. And the sales strategy usually just focuses on how to convince a consumer that he/she needs your product/services.
The value of a B2B business generally relies on personal relationships, and the reason is simple. Because personal relationships develop trust. Once you have gained the trust of your B2B customer, it’s easier for you to convince them in making you a regular supplier.
Remember, B2B buyers, are long-term buyers. Businesses repeat purchase things like office supplies, machines, etc. Therefore, if you want to win as a B2B business, you should be focused on building brand loyalty.
The B2C market has a different approach, however.
Today, for a brand to leave a mark on most individual consumers, there’s a need to be creative and tell a story. This is because, as already mentioned, B2C marketing is emotion-driven.
Customers tend to be loyal to brands that they think could get them and understand their pain points.
Regardless of what you are selling and how big or small your business is, it is essential to understand how B2B and B2C marketing work as this could help you tailor-fit your strategies for your target consumers.