B2B and B2C
What is B2B?
B2B (business-to-business) is a business model in which one company sells a product or service to another company. The sales funnel is longer, as the purchasing process takes longer. The company offering the product or service acts as the supplier to the other company. In B2B, there are commercial participants on both sides, and the purchasing decision is based on a well-thought-out need and has a long-term impact on the company.
What is B2C?
In contrast, B2C (business-to-consumer) is a business model in which products are sold directly to the end consumer. B2C can include retail businesses such as digital platforms and physical stores, large supermarket chains, online entertainment platforms, etc. One characteristic of B2C is that it must attract many customers to achieve good sales results. In B2C, it’s based more on expectations than needs.
The differences between B2C and B2B:
Volume: The quantity of products purchased is usually much higher in B2B.
Vocabulary: B2B uses technical terms, while B2C uses familiar language.
Customer: B2B deals with one or more decision-makers; in contrast, in B2C, the relationship is individual.
Sales time: In B2B, face-to-face and online meetings are held to negotiate and present various solutions, while in B2C, the sale is usually immediate.
Pricing: B2B has a high level of negotiation, as the solution and the profits it will generate are valued (a margin is set, depending on the customer or the size of the order). However, in B2C, prices are usually set equally for all customers.
Activitiesà In B2B, presentations are prepared where the needs of the potential client are investigated, demonstrations of how the product or service works can be made, whereas in B2C, efforts are usually reduced for the client and the offer is presented directly.