6 Major Differences in B2C vs. B2B Sales Strategies
Any person who has worked in the digital company is aware of the difference between B2B and B2C business structure, but many of them might not be familiar with the sales strategy followed by these business models. There is a stark difference between the sales strategies as both B2B and B2C organizations are driven by various factors such as customer’s interests, goals, pricing, among others.
Sales representatives in these organizations follow a different pattern in interpreting the needs and connecting with their potential customer. B2B customers are considered to be high-end and professional ones, so they need a more organized sales approach as compared to B2C, whereas B2C customers are easier to approach than the B2B ones. Although there might not be all differences, some similarity such as sharing a specific sales cycle for attaining the business objectives of their organization is the binding point for the two business models.
If you are interested to know which sales strategies work for these business types and what are the 6 major differences then, find it here:
1. Product Knowledge
It’s a misconception if anybody thinks that a sales representative does not require complete product knowledge.
Your sales team need to have as much product knowledge as you!!!!
This can help in making a successful interaction with the potential customer. The major difference between the B2B and B2C sales strategies here is the depth of knowledge required in the sales process of these business types. B2C sales team need to know the ingredients or composition of a product as well as the price of the product to convey it to their potential customer. When you compare the same to a B2B sales team, they need to know the detailed specifications of a product and how it aligns with the business and technical process of the organization. This know-how is a must as B2B buyers might ask in-depth questions related to the product before purchasing it.
2. Decision-making Process
The decision-making process varies to a great extent in both the business types. In B2C, the customer takes a decision immediately, or within days, weeks as compared to B2B, where it might take months for a customer to come up with the final decision.
There is a famous quote by one of the top CEOs of a social media marketing agency:
“In B2B, people don’t buy for pleasure. They buy to alleviate pain. Alleviating pain brings them pleasure”- Tamara McLeary, CEO, Thulium.co
So, as we understand, a B2B customer takes a longer time to make a decision; the wooing period by the sales representative is also longer. The customer in a B2B organization has to consider many factors before making the final decision; sometimes, it involves many hierarchical level decisions, where there are several decision-makers to whom the sales representative has to convince.
It needs to be acknowledged that a B2B buying process is complex, so is the selling process. The sales strategy has to be effectuated for meeting the rational needs of these customers.
3. Response by the Customer
Emotions drive majority of the B2C customers, while purchasing a product, they are hugely dependent on their gut. As they are accountable for their actions and do not need to answer other people if the purchased product or service does not give expected results, they take impulsive actions. This is why a B2C sales strategy focusses on pushing the products to the consumers and driving sales within a short period.
On the other hand, B2B customer thinks in terms of business impact. The decisions are made after considering the statistics, facts, return on investment, the long-term impact on an organization, etc. The B2B sales strategy in this scenario has to revolve around nurturing the relationship with their potential customer. Regular interaction and providing potential customers with the required information can help in future conversion.
4. Lead Pool
The lead pool greatly varies in both the business types. It has been seen that in the case of B2C, there will be a high number of leads as the organization wants to reach out to a broader audience within a short time. A sales representative has to follow an active and push-around strategy to reach out to as many as customers possible.
In the case of B2B, the leads number drastically shrinks as the focus is on the quality leads.
Most of the B2B sellers work to earn respect and trust of their buyers so that in the later stage, these premium customers would be motivated to buy the product. A standardized approach does not work for all the B2B organizations; different companies work on varied methods to make the customer trust their business. So, a B2B sales representative also has to approach their customer differently, as per their designation in the organization.
5. Interaction with the Customer
In B2C sales strategy, the sales representative need to use a relatable voice that allures the customer further motivating him to click on the advertisement. A straightforward language sans industry jargon is the perfect approach to connect with them. The tone has to be always an informal one.
As most of the customers are from the high-end organizations, B2B sales representative need to provide detailed knowledge about their product or service to their customer. One has to first gain their trust, and build a business relationship. A B2B business relationship is an investment for both the buyer and seller.
6. Price Differences between B2B and B2C
Pricing for a B2C product is less as compared to the B2B product. As B2C product caters to an individual while B2B products cater to large organizations, which many times involve purchase in bulk number, the sales strategy need to be molded as per the business model.
Discussion with a B2C customer has to revolve around the instant gratification which he will receive after the product purchase. You have to skip this strategy while handling a B2B customer, as most of them will never purchase on a whim. They will ask the logical questions before purchasing the product due to the involvement of huge investment.
Despite the huge difference between the sales strategies of B2B and B2C, there is one similarity which overlaps. They have the same goal to reach their business target, increase revenue, and deliver excellent business results. In the coming years, the sales strategies for both the business structure also has to be developed to cater to customers of varied industries.