When you’re beginning a business, you may have several thoughts about how you should approach the whole ordeal. One of the most important aspects that you need to think about is the business model that you’re going for: are you a B2B or a B2C company? Who do you cater to?
There are several significant differences between the two business models, and it’s important to scrutinize how you’re going to position your company. Keep reading to see the points where you can compare and contrast both B2B and B2C.
B2B stands for business-to-business companies, while B2C stands for business-to-consumer. Essentially, both businesses will be offering different products or services that will be able to generate revenue for the company.
However, B2B companies will be offering their goods to fellow entities and establishments that are of the same caliber as them. Their objective is in contrast to B2C companies such as retail or e-commerce, which directly target individual customers.
B2B and B2C can offer the same products and services while appealing to different target audiences. For example, if you’ve concluded to have a cleaning service, you need to choose whether you’re catering to residential or commercial properties.
Another instance would be running a farm, where you can choose whether you’re selling to a grocer or a direct consumer. B2B isn’t better than B2C or vice versa, as they have their own pros and cons. It’s just important to assess what works for you.
As mentioned above, B2B and B2C cater to two different clients. This means that maintaining relationships with your clientele is a little different as well; B2B would need account management, while B2C needs customer service more.
Do keep in mind that B2B companies will face a client base that’s more knowledgeable about how business works as they run their own ventures as well, but you’re more aware of their niche. That’s the parallel opposite with regular consumers, though.
Marketing is considerably different for businesses that are trying to sell their products to other companies when compared to those advertising to consumers. B2B marketing is typically more informational since their buying patterns are a little slower.
Meanwhile, B2C marketing’s buying patterns are a little quicker, focusing more on what can grab their attention and emotionally capture them. If you need help with figuring out which marketing strategies work for your business model, seek out a professional that can help.
In conjunction with marketing, your brand image and website will be a little different depending on whether you end up with B2B or B2C. B2B companies are often more professional in their layout, while B2C companies can vary immensely depending on what the business desires.
The impression your business gives isn’t just in the appearance but also in the overall structure of the website itself. For example, the checkout processes are a little different between B2B and B2C, where B2C transactions are easier to complete while B2B requires more of a walkthrough.
There are many points of difference between B2B and B2C, but it’s necessary to decide which one you’re settling with for your business. Having a better understanding of what your company will be like makes it easier to market and manage in the long run.
In need of B2B or B2C digital marketing in Greenwood, IN? Magnitude Marketing is a full-service digital marketing agency that creates custom strategies for each clients’ needs and goals. Contact us today!