9 B2B vs B2C Differences Nobody Explained You [2022]

 4 Jan, 2022

Introduction

66% of B2B & B2C businesses never see daylight. Shocking as it may be but it's the truth.

In this internet era, businesses need to sell to both consumers and businesses in order to grow sales and increase their market share. Even companies are splitting up their sites for B2B and B2C channels to simplify operations because of the fact how the two markets are so different. In the debate of B2B vs B2C. Both B2B and B2C are capable of providing your business with a large volume of sales and push products, all you need is the right approach!

Marketing is a set of activities that are involved in selling a product in B2B vs B2C. However, the whole set of activities majorly depends on the target audience and their preferences. The same product can carry different meanings for individuals and businesses. In B2B vs B2C marketing practices are completely different as the target customers in both types are different. Understanding the differences between B2B and B2C Marketing helps you craft the right B2C vs B2B marketing strategies, you can set a B2B vs B2C marketing funnel with the right approach.

In this B2B vs B2C marketing guide, we'll walk you through the B2B vs B2C marketing definition, then will focus on differences between b2b and b2c marketing, how they help you reach your target audience, and which one is better for your business.

3 Intelligent Tips to Rule B2C & B2B Market in 2022

1. Use -Ve & +Ve Feedback To Your Advantage

As many as 72% of B2B shoppers believe that negative comments provide depth and insight into a product. Feedbacks are really important to understand and refine a product and so use feedback to your advantage to stay ahead. 

Well, in B2C, feedback plays an important role. Around 95% of customers read online reviews before making a buy. So, even if there is negative feedback, they can be provided with replacement offers and incentives to make a better image. Thus, concluding in this context of B2B vs B2C.

2. Understand the Market Demographics

B2B caters to a niche market. So the target marketing is crucial. Finding out the essential businesses and people. Building relationships is important.

B2C addresses a wide range of customers so target marketing for different products needs to be pinpointed to drive action. Thus, concluding in this context of B2B vs B2C.

3. Win Big on Return of Investment 

B2B is driven by financial incentives and logic. So, here the emphasis will be on the efficiency of the product or service to other businesses. Because why will they invest in your product if they can't make a profit out of it? Right! 

While in B2C the key is to understand the trend and solve the problem immediately with the help of products. Thus, concluding in this context of B2B vs B2C.

Okay! What now? We have loaded you with the secret tips from the debate of B2B vs B2C. So, if you are still looking for something that can empower your digital experiences, we at JanBask Digital Design are here for you.

What Is B2B and B2C?

In the debate of B2B vs B2C. A B2B, or "business-to-business" marketing model company sells their services or products directly to other businesses, or more specifically, they sell to the decision-makers in other organizations.

whereas in the B2C, or "business-to-consumer" model, companies sell products and services directly to customers for personal use. They’re two separate business models that serve different types of customers, one being businesses and the other direct to consumers.

B2B vs B2C Examples

In the Context of B2B vs B2C. Here we have some examples of B2B marketing:

  • Medtech is a healthcare solution provider that sells software for operating medical devices is a great example of B2B.
  • JanBask Digital Design is a digital agency that provides business solutions and produces SEO, CMS or email marketing tools for marketers.

In the debate of B2B vs B2C. Here we have some great examples of B2C marketing:

  • McDonald’s is an American fast-food chain serving fast-food to consumers and individuals and can be identified as one of the biggest and renowned B2C companies in the world.
  • Amazon is the biggest eCommerce site in the world and is also considered as one of the four biggest B2C business models in the world.

Quick Case Study: B2B vs B2C Marketing

Let’s try to understand the difference between B2B vs B2C marketing using this case study:

If the buyer intends to buy an outfit for personal use or if ordering for a stock of uniform for their organization's staff.

The former case is a B2C Scenario, where buyers will tend to have a lot of emotions attached with your purchase and will take care of every possible detail from the quality point of view in terms of the best fabric and up-to-date in terms of the latest trends. 

But, at the same time when a buyer is ordering uniforms for their staff, this is a B2B scenario. Where buyers will not bother about the fabric to that length or the latest fashion but will look for options that are cost-effective, lasting fabric and smart. Here, here lies the root of all the differences between b2b vs b2c marketing.

B2B vs B2C: Difference Between B2B and B2C Marketing

The main difference in B2B vs B2C marketing is their intended customers. B2B cells to businesses that resell the products while B2C sells directly to the end consumer.

Here we have 9 Key Differences in the context of B2B vs B2C Marketing

1. Decision-Makers

In this debate of B2B vs B2C. Both B2B and B2C marketing have to be highly directed at the needs of your end customer and the factors which they will take into account to make the purchase decision.

In B2C marketing, your marketing strategy and messaging will revolve around the end-users of the product who are and can be interested in buying it. E.g. if a woman comes across a beautiful dress, she may not be interested to buy it at that time but can tell someone else about the same who can ultimately end up buying the same. Thus, these campaigns have to reach each and every household. These customers base their decision on both and need and emotion. The big-budget items like cars, houses, etc. have to suit the pocket and also appeal to the whole group in some way or the other.

In the case of B2B marketing, you have to remember that the decision-making authority usually rests with a few individuals who need to be convinced about the use of the product. They will not weigh the product emotionally but will see the actual advantage of the same to the business and based on its utility, durability, and cost-effectiveness. E.g. it will not matter how many employees need to get their computers replaced in the business but the ultimate decision to buy a new one will rest with the purchase manager or the upper brass of the business. So, as a marketer, you will have to direct your advertisements or other marketing channels in a way that the message is able to reach the right people. Thus commencing one of the aspects of B2B vs B2C.

As efficient marketers, you should know what the basic motivation for your customer is and at what stage of a product cycle they are on.

2. The Process of Decision-Making

However, In this engaging context of B2B vs B2C, the product has to be appealing to the customers in both cases and should be able to meet all their expectations. But the decision-making process has entirely different connotations when you are doing it for a personal purpose and for your business.

B2B customers follow the logical decision-making processes. They usually take time to make a decision and explore more options before they actually decide to buy. Even when they are convinced about the preliminary benefits they will still search for more details, product reviews, and even check out options by other firms offering the same. They will take the final call only after they are convinced of all aspects.

B2C customers, on the contrary, follow an emotional decision-making approach and do not take that long to make the decision as in B2B. They usually browse through the information, check for the features, the latest add-ons, reviews, etc. Adding social proof to your advertisements usually has a lot of benefits and has a direct impact on the purchase decision. Thus, commencing this engaging context of B2B vs B2C.

3. Conversion Time

Conversion time is the time taken by customers to make the actual purchase.

B2C customers usually take a shorter time to make a purchase as compared to B2B customers. It is dependent on the amount of research undertaken by both and the extent of detail both sides visit before taking a final call.

Read it: How to Optimize Conversion Rate – It Benefits Your Online Business

In this context of B2B vs B2C. It is generally seen that people end up making more impulsive decisions in the case of buying personal things than when they have to make purchases for their businesses where they have definite budgets and also are under pressure to get the best product at the best price. This is also because it may be highly complicated to change your business purchase decision as the products are bought in bulk and the entire mode of work cannot be changed or put on hold to compensate for one mistake.

4. Pricing

In this engaging context of B2B vs B2C. B2B marketing generally involves bulk supply and prices tend to be higher than B2C. B2B buyers follow a logical approach and tend to need to be well informed before making a purchasing decision. B2B Marketing usually involves multiple levels of discounted schemes and prices based on the quantities and frequency of orders.

Whereas B2C prices tend to usually be lower compared to B2B prices as they buy for personal use. In case prices rise, B2C buyers also need to be well informed in order to make a purchasing decision. B2C businesses generally offer a single tier of pricing for all customers that are only affected by sales or discounts offers. Thus, commencing differences in this context of B2B vs B2C

5. Branding

Value, Trust, Strategy, Design, Logo, Advertising, Identity! Yes, this constitutes the very essence of Brand. While we continue our debate on B2B vs B2C. The message of a Brand remains the most important thing that attracts an audience. 

So, in B2B the brand essence comes through relationship building, so the focus on relationship building with the end-user is more important here in comparison to B2C. In B2B vs B2C, Being able to represent where you are positioned on the market and have your personality can contribute to powerful brand recognition and better lead generation.

It's extremely important to have a keen vision for strong personalities that adhere to your principles of marketing. This leads to greater trust and helps drive Brand Recognition. Especially in this B2B vs B2C context.

Whereas in B2C marketing, it is essential to prioritize your message. Here to retain the customer. A sense of loyalty to confirm the customer's credibility needs to be created. Establishing an emotional connection with the customer and motivating the buyer to purchase is key to bringing more customers. 

To answer your why? The reason is that the relationship between the customer and company is minimal. So a quality experience with an everlasting memory of good serviceability ensures that the customer returns gleefully. 

So, to do that one needs to emphasize building good motivational copies & delivering to-the-point messages especially in this B2B vs B2C context. Thus, commencing differences in this context of B2B vs B2C.

If you’re looking for a reliable solution, we at JanBask Digital Design have a range of services to help you.

6. Ad Copy

While the Debate on B2B vs B2C has many differences. Here's one interesting point very few people give importance to but it has an everlasting impact. It's proven that Online ads can increase brand awareness by a whopping 80%. Let’s see how It's used by B2C & B2B companies.

In B2B, people are more likely to visit and take your services or products. If they find that you understand the terminology, processes, have a sound knowledge of the buying process & simplify it. Especially in this B2B vs B2C context.

For eg: A business might need a particular software. So the copywriting language should be such that it tells them about their advantage and not on emotions. 

In short, if you want them to buy your product or services. Talk in the language they understand!

In the case of B2C, the focus is on writing emotional ads. The voice that prompts the customer to click on an advertisement. By using more user-friendly language instead of using jargon & others one can try to speak a simple straightforward language that understands their pain points.

For eg: if someone is interested in buying a bike, they are looking to enjoy the purchase. So the copywriting should focus on the joy and pleasure of the customer. 

Thus, commencing differences in this context of B2B vs B2C.

7. Purchase Size

B2b VS B2C

Well, in this context of B2B vs B2C. Here’s a fact for you to brainstorm! The average order value (AOV) for a B2B enterprise is more than seven times higher than for a B2C enterprise.

But, here's the catch! In B2B, it involves a longer chain of command to deal with. As the profit margin also depends upon the bulk quantity of the product ordered and the services provided. There are various department heads involved as well as the contract period with the end-user is longer. This involves after-sales services, seminars, webinars etc. so the longer the association the better the profit and purchase size.

Whereas in B2C, the buying decision lasts with the customer. So, there may be many consumers who may order a single product or service and, and many who might also look to order in bulk. 

The thing to consider here is with B2B service providers there is a long list of engagement one needs to keep on doing to achieve high-end results. Meanwhile, the processes involved in B2C are less complex. Thus, commencing differences in this context of B2B vs B2C.

8. Customer Lifecycle

“Reach, Act, Convert, Engage” is the proven formula of success in the busy marketplace. In this debate of B2B vs B2C. There are many similarities in the differences too. The customer lifecycle is one among them. 

You need to raise awareness of your products, build interest in the solution, encourage the customer to make a purchase, & refine the process, thus leading to higher customer retention especially in this context of B2B vs B2C. Nasdaq states that, by 2040, 95% of all purchases are estimated to be made through B2C & B2B.

The area of difference here, in B2B vs B2C, is the Average Order Value. Considering B2B has more AOV they are likely to invest more into direct sales and customer support than B2C. In B2B, there is a high chance of business with even a few customer retention. 

In B2C the chances of customer retention are comparatively lower, but having said that there are chances that the product attracts more customers leading to higher profits in less time. Thus, commencing differences in this context of B2B vs B2C.

9. Website & Checkout Structure

It only takes 7 seconds to decide. Whether a person wants to go through the rest of the website after a click or not. An exciting structure plays an extremely important role in the retention & conversion of a service or product especially in the context of B2B vs B2C. 

In this interesting B2B vs B2C debate. The B2C marketplace is an extremely competitive place. So, the B2C websites must have attractive landing pages designed to attract and convert customers.

To do that they can do three things:

  • Good financial investment and dedicated employees to keep the site up-to-date.
  • A good online marketplace to avoid unnecessary ecommerce costs.
  • A simple, attractive & customer friendly dashboard to readily access the products they wish to buy or access account information.

In B2B, there is no line sheet, but the checkout process is extremely streamlined to provide a hassle-free transaction of goods or services. Whereas in B2B, the checkout often has additional steps that include human interaction options, automatically reorder points etc. Thus, commencing differences in this context of B2B vs B2C.

If you’re looking for a quick, powerful, & lasting design experience. We at JanBask Digital Design have a range of services to help you.

How To Reach Target Audience: B2B vs B2C

How To Reach Target Audience: B2B vs B2C

1. Buyer Personas

In this context of B2B vs B2C. The B2B marketing, personas hold great significance as there are many people who actually matter in a business when the final decision is made e.g. the CFO, the head of the department for which the purchase is taking place, the quality analysts who should be satisfied with the product type and quality and ultimately the employees who will be working on the product at the end. Thus, your marketing strategy should be able to address the concerns of each one of these and be wrapped in a package that the business decision-maker will be able to weigh the concerns of all and end up making an educated decision for the business.

Even in the case of B2C, personas usually have an impact on the final purchase decision especially in the case of big-ticket items. Thus, increasing efficiency in this context of B2B vs B2C.

2. Preferred Channels

Marketing channels are very important and can vary significantly in the case of B2B vs B2C.

B2C customers or household buyers are usually found anywhere and can be reached via multiple channels. As a marketer, you can pick traditional marketing channels or can shift to social media, or even conduct live events.

Even B2B customers are found everywhere but they can’t be reached in the same manner and expect hard selling from buyers. Marketing channels for B2B sales involve direct calls or visits by your representatives to show and explain your product, formal business proposals or quotes, trade shows, etc. Social media channels can also be used but they must be wrapped in informal language and quotes. Thus, benefiting in this context of B2B vs B2C.

3. Language For Messaging

In this segment of the B2B vs B2C debate. The message you want to give to your potential buyers will directly be based on the language they usually use. This applies to both the cases i.e. B2B and B2C marketing.

It is always a good idea to convince your customer in their vernacular language whether it is another business or a person, as it adds a personal touch to your campaign and product. 

But while communicating with a B2B client, you may be sometimes pushed to use heavy language loaded with jargon and other business terminology but ultimately the deal will break if you are not able to convey your message in the right manner. Thus, what is to be said and how it is to be said both make a lot of difference in marketing. One piece of wrong communication can break apart the whole marketing plan and even the product. Thus, benefiting in this context of B2B vs B2C.

Difference Between B2B vs B2C Marketing Funnel

Difference Between B2B vs B2C Marketing Funnel

As you can see in the above image, both b2b and b2c sales funnels begin with awareness and interest but vary lower down the funnel.

B2B companies sell their product and services to other businesses or target a group rather than an individual consumer. Typically, have more people involved in purchasing decisions, which leads to a longer sales cycle and more stages in the sales funnel.

However, a B2C sales funnel still starts in the same stage as B2Bs. B2C generally targets the individual consumer and sells products and services for personal use, and generally doesn't require a salesperson to finalize a transaction, which in turn streamlines the sales funnel, slightly. Thus, improvising in this context of B2B vs B2C.

B2B vs B2C: Which Is Better For Your Business?

B2B and B2C marketing models have their own pros and cons. The Marketing model that best fits your business is determined by your goals, infrastructure, level of scale, and industry.

For example, if you are planning to run a business on a large scale,  that makes products en masse, then B2B may be the right choice for you. And if you are planning to start a business at a small level, or sell items with a limited shelf-life, the B2C marketing model might be the right choice for you. Thus, benefiting in this context of B2B vs B2C.

The Closure: B2B vs B2C Marketing

Thus, the basic difference between B2B vs B2C context lies in the fact that who is the buyer and who is going to make the final purchase decision. The only thing common is the fact that it is ultimately people at the other end, and you have to convince the human mind that your product offering provides the ultimate answer to their needs when compared to all other options in the market. 

To be a successful business marketer, you should look beyond B2B vs B2C labels. B2B buyers aren’t robots that only operate by numbers, they are also human beings. 

Remember, both B2B And B2C are capable of providing a business with a large volume of sales and generating revenue, all you need is the right approach! Thus, concluding in this context of B2B vs B2C.

Well! Well! Well!! Not satisfied yet. Think we missed out on Something in this epic B2B vs B2C debate. Let us know in the comments and if you are looking to take your B2B or B2C business to the next level our professional team of JanBask Digital Design is here for you.

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