Operating a company that sells to businesses (B2B) is different than operating a company that sells to consumers (B2C). If you're just starting out as an entrepreneur, that is something you'll need to decide right away and determine what you need to do differently. In this article, we'll look at different aspects of your business and how they are impacted by the difference between B2B and B2C.
Sales: B2B sales tend to have benefits oriented to profitability or expense reduction or efficiency. B2C sales tend to have benefits oriented to saving money, saving time, enjoy more time with loved ones, and safety. Typically, unless insurance is an issue, safety is less of a buying factor for business customers. Furthermore, the return on investment (in my experience at least) tends to be a little more obvious for B2B than B2C customers. In other words, with B2C customers, you need to spell out the return on investment a little more clearly.
Operations: Running your business for one type of client means working when they do: B2B customers expect you to be open during business hours. B2C customers should be able to purchase from you when they are not working – after 4 or 5 pm.
Payment: In general (although this is not always the case), B2B customers expect to be billed for the purchase following delivery while B2C customers are often willing (and fully expect) to pay up front prior to their purchase. (A minor exception might be during hotel or rental car purchases where the bill is settled when the use of the room or the car is completed).
I did a bit of searching around to see what other people had writing on the B2B/B2C issue. Chris Brogan talked about it in one of his articles and he says there is little difference between the two except for a couple of minor points. Good reading. I think there are more differences than Brogan lets on but the one he highlights – justification of the purchase – is important. Not surprisingly, he (rightly) brings in social media as an important factor in building a relationship before, during, and after the sale.
At BNET I found an interesting article called "The 7 Laws for Buying B2B" in which they talk about things that B2B buyers shouldn't do. Don't hire a vendor because they've worked with the competition and don't hire a vendor because they've got a good brand name are the two "laws" that I see broken frequently.
Only some businesses (like Staples, for example) do well selling B2C and B2B (although Staples would probably tell you that they lean towards the B2B side of the equation). Many businesses need to choose one or the other if they want to do well. If you're running a business and are deciding which market you are going to serve, consider choosing one and later branding the same services to a different audience. For example, start by selling B2C through your business, Acme Inc., and later create "Acme Professional Inc." (or something like that) as a B2B brand.
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