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What are the differences between B2B and B2C business systems?

by Francine Berano
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DIFFERENCES BETWEEN B2B AND B2C

B2B and B2C are two different business models with several similarities and differences, but both of them have the same goal, which is a sale.

First of all, let’s clarify their meaning and then go through their differences. B2B indicates “business to business,” and it sells its products to other businesses. B2C indicates “business to customer,” and it sells products directly to consumers.

B2B orders have some features typically in common such as:

  • Fewer customers
  • Larger orders
  • Higher value orders
  • Longer decision time
  • Longer relationships
  • Longer transaction time

On the other hand, B2C customers typically have:

  • More customers
  • Smaller orders
  • Lowers value orders
  • Shorter decision times
  • Shorter relationship
  • Shorter transaction time

Here are some general differences between B2B and B2C in a glance:

Differences between B2B and B2C

Beside many differences, B2B and B2C business systems are similar in some ways such as building trust to people. They also do their best to provide excellent customer service, and they value the customer relationship, and their main goal is a sail.

Way of selling

B2C platforms are different, and they can be online or offline, somewhere which is crowded. Online includes websites, social media, etc. and offline includes supermarkets, TV advertisements, shopping mall, etc.

But big companies don’t appear in these places, and definitely they don’t choose their products there. So where would they find the products?

Businesses participate in trade fairs, investment conferences, special online B2B platforms, and then several people such as manager, accountant, consultant, etc. decide whether to buy a product or not.

Sale process

It is clear that B2C doesn’t have a procedure, and it would start and finish fast.

But in B2B, you need to have a contract, and the payment process may take longer.

B2B buying process:

B2B buying process

B2C buying process:

B2C buying process

Decision-making process

B2C is totally a personal decision, and it doesn’t take long to make up your mind about buying a product. You may just be interested in the salesperson’s behavior and decide to buy, so emotional communication plays an important role in the purchasing process. Also in B2C, costumers decide to purchase themselves or sometimes it might happen that they consult with their family and friends, but it won’t be more complicated than that.

In B2C marketing, a group of people decides whether to buy a product or not, and no emotional communication or an individual decision can work. Also, businesses need more time to make a decision, and it requires group approval, so it may take a long time to hear from them. Moreover, they would ask for a discount.

Sales Speed

Obviously B2C transactions are faster than B2B because it is direct to customers while B2B transactions may take months and companies may receive their products in different ways such as shipping, air freight, sea freight, etc.

Client Relationships

Generally, the B2C market is larger than B2B. For being successful in B2B, businesses should develop good relationships with different companies for having long-term contracts and growing relationships.

Prices of Products

B2C products have lowered prices, and all consumers pay the same price, while B2B products might be 2 or 3 times more than B2C products and the payment is based on the agreement, and their contract and the price may differ based on several factors such as the future cooperation and the past buying history.

Emotions and logics

In B2C, the emotion causes the purchase, and most of the time, there is no logic during the purchase, and customers look for the benefits that you recommend them. They decide fast, and it could take a few minutes or at most a few days.

While in B2B, companies make conscious decisions that are based on logic rather than emotions. It means that they make a purchase based on their company’s needs, and not their own desire and personal emotions.

Emotion and logic in B2B and B2C business

Length of the Business Relationship

Usually, B2C business relationships are considered as a short time business relationship, and it depends on the customer’s loyalty. For example, a mom who buys milk for her child may decide to buy another brand after a month, or she may choose juice over milk.

It seems that B2B business relationships last longer, and they need a long time to make their final decision in buying a product or service. Also, they hardly change their decision, and they keep using a product.

Conclusion

B2B and B2C are two different systems, and both need different strategies.

Knowing all we mentioned above, you might have come up with the result that B2B sales are more complicated than B2C sales. Also, you should know that each of them needs specific strategies to be successful.

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WHAT ARE THE DIFFERENCES BETWEEN B2B AND B2C BUSINESS SYSTEMS?
WHAT ARE THE DIFFERENCES BETWEEN B2B AND B2C BUSINESS SYSTEMS?
B2B and B2C are two different business models with several similarities and differences, but both of them have the same goal, which is a sale.
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