A B2B, or “business-to-business” is when a company provides services or products to other businesses. A B2C, or “business-to-consumer,” is when a company sells directly to individual consumers. They’re two separate business models that serve different types of customers, one being businesses and the other direct to consumer.
That being said, B2B customers are often going to take a significantly longer time then conducting more research before purchasing. Once they see the initial benefits, they’ll click to your site to learn more and see the details, then look for third party reviews and look at other competing options. It’s their business, after all, so the stakes are high.
B2C customers, on the other hand, want to see pretty much everything they need to know as quickly as possible. How much research do you really want to have to put into a new Xbox game? They want to see reviews on the product pages and social proof on the ads. Because of the shortened research process in B2C, social proof on the ads can weigh slightly more heavily here, as it can directly impact immediate purchasing.
Key Differences Between B2B and B2C
The points given below clarifies the difference between B2B and B2C:
- B2B is a business model where business is done between companies. B2C is another business model, where a company sells goods directly to the final consumer.
- In B2B, the customer is business entities while in B2C, the customer is a consumer.
- B2B focuses on the relationship with the business entities, but B2C’s primary focus is on the product.
- In B2B, the buying and selling cycle is very lengthy as compared to B2C.
- In B2B, the business relationships last for long periods but in B2C, the relationship between buyer and seller lasts for a short duration.
- In B2B, the decision making is fully planned and logical whereas in B2C the decision making is emotional.
- The volume of merchandise sold in B2B is large. Conversely, in B2C small quantities of merchandise are sold.
- Brand value is created on the basis of trust and personal relationship of business entities. In contrast to, B2C where advertising and promotion create brand value.
In short, “B2B” stands for “business to business,” while “B2C” means “business to consumer.” All that being said, however, remember that there are a lot of similarities between B2B and B2C. You’re selling to businesses in one and in the other you’re selling to consumers. At the end of the day, of course, you’re still selling to people no matter what, so remember that it’s all about understanding your audience and what they need.