Person paying in cash at a cafe.
While B2B and B2C both consist of a customer ownership something from a company, there are some key differences in these two approaches. — Getty Images/RyanJLane

B2B and B2C are ii acronyms that go thrown around regularly. B2B stands for business-to-business, referring to a type of transaction that takes place between one concern and some other. B2C stands for business-to-consumer, every bit in a transaction that takes place between a business concern and an individual as the stop client.

While B2B and B2C follow substantially the same equation — a customer is buying something from a company — there are some key differences in these two approaches that are worth taking the time to sympathize.

The path to purchase

The "client journey" or "path to purchase" — e.m., the serial of decisions a company or client takes before completing a transaction — looks unlike for B2B and B2C businesses. Understanding what the client needs earlier they can buy from your make is key to planning your sales, marketing, and customer service.

[Read more: 10 Business-to-Business organization (B2B) Startup Ideas You lot Can First Today]

In the B2B market, businesses are targeting other companies. For example, Salesforce, Microsoft, and IBM sell software to other enterprises whose employees apply their tools to perform their daily work. Every purchasing decision involves multiple stakeholders: finance, accounting, procurement, and other teams are oftentimes involved.

Typically, the B2B process involves these steps, with consensus-edifice along the way:

  • Identify a trouble or need.
  • Explore unlike solutions and do market enquiry.
  • Create a listing of requirements.
  • Select a supplier (e.k., the B2B business).

In the B2C market place, the business only markets direct to the individual. This means the path to purchase tin be relatively linear: they consider a detail set of products or services, store around to evaluate their options, and make a determination.

Recently, all the same, the dynamics in B2B customer engagement take shifted to look more similar to B2C. More than 70% of B2B marketing teams are planning to invest this year in influencer marketing.

The buy determination

Companies consider different factors when making a buy determination than individual customers. They care most price, efficiency, productivity, and ROI.

For B2C customers, there's more of an opportunity to make an emotional connexion. Brands like Nike, Whole Foods, and Petco need to connect with each customer's wants, creating a story in their marketing and sales campaigns that's entertaining and educational.

"B2C customers are highly invested in their own enjoyment when buying for themselves rather than a concern they work for. Sure, everyone wants products that make their lives easier, only the average B2C audience is far more interested in fun than the boilerplate B2B audience," wrote HubSpot.

Whereas B2B marketing and sales focus primarily on building trust, authorization, and price leadership, B2C marketing is all most becoming memorable.

Customer engagement

B2B and B2C differ in how they appoint potential customers — although in contempo years, this deviation has shrunk.

B2B companies, historically, relied on traditional engagement methods: sales calls, conferences, trade shows, and networking. "If you program to sell B2B, ensure you are prepared to invest fourth dimension in cultivating a relationship with your potential buyer," wrote Forbes. "For case, you may demand to formally present your proposal or make multiple phone calls to more than one person within the company."

Recently, still, the dynamics in B2B client appointment have shifted to wait more similar to B2C. More than seventy% of B2B marketing teams are planning to invest this yr in influencer marketing. And social media is condign an increasingly constructive marketing tool for B2B companies, with 75% of B2B buyers and 84% of C-suite executives saying they use social media when making a buy.

[Read more: How to Create a Hybrid Sales Model]

Client service

Finally, B2C and B2B require different approaches to customer service.

Today's consumers appreciate an independent, self-service approach to client service. In the B2C space, individuals want to be able to quickly and efficiently resolve an issue, ask a question, or connect with a alive agent without having to get through a long telephone carte or chase through dozens of web pages. The lesser line for B2C companies: help customers help themselves.

In B2B, some self-service options are certainly appreciated. However, B2B transactions are commonly complex, expensive, and long-lasting. Equally a result, B2B businesses often demand a dedicated support squad to address issues from their clients. This arrangement helps mitigate the frustration and stress that results from multiple teams using the same business relationship. It can also promote continuity past managing all requests in one CRM dashboard, for instance. Design your customer service to be high-touch and consistent, no thing who calls for assist.

CO— aims to bring y'all inspiration from leading respected experts. Even so, before making any business decision, you should consult a professional who can advise you based on your private situation.

Follow us on Instagram for more proficient tips & business owners' stories.

To stay on peak of all the news impacting your small business, go hither for all of our latest small-scale business news and updates.

CO—is committed to helping you starting time, run and abound your small concern. Learn more about the benefits of small business organisation membership in the U.South. Bedchamber of Commerce, here.

A message from

You're invited to join a private network of CEOs.

Discover how 45,000 CEOs are growing their businesses. Connect with verified companies on a secure private network to find new clients, enhance money and find reliable solutions for whatsoever business organisation priority.

Learn More

Published April xx, 2022