Put this way, it might seem like this difference is rather subtle. Based on our experience of more than 20 years helping companies transform their sales processes, this aspect is fundamental to success in a B2B business relationship. Those who do not understand this will probably reap more failures than successes because, when a product or service is sold to an organization, the general manager or the team responsible for that purchase is risking their professional prestige. , sometimes the success or failure of a project and, not so infrequently, even their professional future.
That said, this difference, which may be minimal, becomes the basis on which to build any type of commercial process in B2B marketing and sales . It is not easy to get the organization to fully orient itself towards this model, because we are not talking about good Sales Reps, or Sales Leaders who pull the cart to achieve the objectives according to what their quota indicates..., we are talking about getting the organization to transform its culture and become oriented towards B2B sales. . Everything must revolve around this culture, the people, customer orientation, the will to solve the needs of the organization, the value of people, the commitment and trust that is generated and, not, as many directors aspire to, to change only the sales director or the sales team.
Starting from what a B2B marketing and sales process is, we vp safety email lists will now go into the details of the main differences that exist between these two business models. Beyond the type of target audience and the product or service marketed, there should be a greater consensus in the business community on the type of organization, structure and operation of these processes. With many similarities between them and with critical differences that we must consider.
B2C vs. B2B
1.- From enjoying what is acquired (B2C) to a solution that solves a need (B2B).
In a Business to Consumer model, a product or service is marketed with the aim of the customer enjoying the purchased good or consuming the service. The proposal is based on use, immediacy or consumption. On the contrary, in a Business to Business model, the commercial relationship established is focused on a solution, that is, on solving a need.
2.- Recipient of the acquisition.
In B2C, the recipient is usually an individual, a small group of individuals, or a family unit. The recipient is private and narrow in scope. In B2B, the recipient of the product or service is a business organization, which can range from an individual entrepreneur or self-employed person to an organization with thousands of employees. In this way, the recipient is professional and broad in scope.
3.- Intervention in the purchasing decision.
The person involved in a B2C purchasing decision is usually the recipient of the purchase, an individual, a small group of individuals or a family unit. In the case of B2B, the purchasing decision is made by a group of people who are responsible for the decision, sometimes jointly, or by a purchasing committee under previously defined parameters.
On average, a group of 6 to 10 people can intervene, influence or condition a B2B purchase decision, while it is rare for more than 2 or 3 people to participate in a B2C purchase decision.
4.- Effect of the recommendation and the NPS.
Differences are observed in relation to the recommendation processes in B2C and B2C purchasing decisions. While individual, one-to-one recommendations in the B2C area are binding for certain services (for example, in leisure or catering), they are not so binding for other decisions with a more vital connection (the purchase of a vehicle or a home).
In the case of B2B, depending on who the recommendation comes from and the hierarchical level of the recipient of that recommendation, a good B2B NPS can be crucial for an unknown supplier to become part of the next purchasing decisions of that company.
5.- Purpose of consumption and use.
In the case of B2C, the consumption of the product or service is generally of a personal nature and, in many cases, it tends to coincide with those individuals who have actively participated in the purchasing process. On the other hand, in B2B, the consumption of that product or service has an almost exclusively professional purpose and, in many cases, the buyer is not the recipient of the use of the service (Purchasing Committees buy for other recipients within the organization). Sometimes, as occurs with health insurance or other social benefits that organizations contract for their employees, in a B2B purchase, the recipient is an individual who will privately enjoy that service.
6.- Purchase decision process.
Generally, from the moment the future consumer/client begins to carry out a proactive search related to their purchasing process, decision times tend to be shorter (much shorter in the vast majority of cases) in B2C when compared to B2B. If we take as a reference the B2B Marketing and Sales Report carried out by Sum | The Sales Intelligence Company , we are talking about an average duration of 6.2 months in a B2B purchasing process.
7.- Power in the commercial relationship.
In B2C, although the ultimate decision-maker is the buyer, the forces that determine the commercial relationship are not balanced: there is usually no conversation with the aim of adapting the product or service, there is usually no negotiation aimed at achieving a better final agreement, and this relationship is even more impersonal. In certain purchasing processes that require a decision-making process with much greater maturity - such as the purchase of a vehicle or a property - this balance of forces is somewhat balanced.
However, in B2B, the commercial relationship is usually more personal, although it is usually maintained from the professional relationship. It is true that increasingly, as a consequence of technological evolution, many of the relationships and interactions occur in what has been called the dark funnel , where this personal-professional relationship is not always built in the early stages.
8.- Risk inherent to the transaction.
In B2C, the risk associated with the transaction and the actual acquisition of the good or service is usually irrelevant in most cases. Consumer protection laws have reacted consistently in recent years and even legislation goes in this direction, specifically with regard to the protection of personal data. The consequence of a failure in the purchasing process is dissatisfaction with the product or service or with incidents related to poor performance (for this there is mandatory warranty protection, extended warranty insurance, return or cancellation policies for the service and legislation that requires compensation in the event of negligence in the provision of the service).
However, the risk associated with a B2B transaction is much more significant. The professional prestige of the actors involved is at stake and multiple business decisions and consequences may be linked to a particular B2B purchasing process. Therefore, here, neither the protection nor the indemnity clauses that are linked in the contracts are usually sufficient to compensate when the service or product does not meet expectations or even, in other cases, is not even used.
9.- Economic relationship.
In the case of B2C, any type of economic relationship linked to the acquisition process and the transaction itself is usually rigid, limited and the room for manoeuvre is rather limited. Prices, discounts, payment methods, promotions, etc., are always determined by the seller's decision. In the case of B2B acquisition models, the economic relationship is usually much more dynamic. The negotiation margins, scope, conditions, modularity of the product or service, payment methods, acquisition stages and commercial linkage are more open and both the buyer and the seller have power and a certain control over the process.
10.- Default situations.
In B2C relationships, the impact of non-payment is usually controlled, efforts are made to minimise its impact and protection systems are established to anticipate and prevent cases of non-payment. In the vast majority of cases, the impact leads to the cancellation of the service. On the contrary, in B2B, the risk of non-payment in certain services and commercial relationships - especially in the early stages of knowing the client or supplier - is critical. The impact of non-payment must be protected, the risk of insolvency of that client must be anticipated and, in certain circumstances, it can be decisive in the smooth running of the future commercial relationship.
