Many times, when we read or hear certain business terminology, at first it is difficult for us to understand the concepts, no matter how easy they may be. In this post, we are going to explain what B2B or “business to business” is.
B2B, whose translation is “business with business”, is used as a terminology to talk about the transmission of information between manufacturers and distributors of a product, and has become very popular in the field of telematic commerce.
This implies that the action is focused on the supplier of goods and services, and not on the final customer.
What is B2B and how is it different from B2C?
Therefore, B2B consists of the services that one company performs for another, designed to increase sales of goods or services.
B2C, for its part, also seeks to increase sales of the company’s good or service, but marketing actions are carried out directly towards the end customer.
The differences between B2B and B2C are that, in the first case, since the client is a company, the question will focus on the objective characteristics of the product on the market and its functionality, while in the second, since the client is the final consumer, the benefits of the product will be emphasized, since they will tend to have a more emotional behavior in the purchase.
Definition of B2B or “Business to Business” business model
A B2B business model can be, for example, that of those companies that provide web content to others, either through blog posts, tweets, web positioning work or social networks, promotional Internet portals…
What is B2C then?
B2C, whose translation is “from business to consumer”, consists, for example, in an action to promote a good or service by the marketing company to the end customer, such as direct advertising, loyalty programs, promotional blogs, Internet portals designed for the client, social networks…
Effective tools for B2B businesses
To improve your B2B sales, you must help yourself with effective and productive tools that you have at your fingertips:
In the case of Wrike , it is a platform that facilitates the collaboration, planning and visibility of campaigns. Ideal for automating administrative processes and for organizing work in folders and tasks; as well as manage files in real time.
A very powerful tool that integrates everything in one to position a brand in the market is the SEO Toolkit .
The seo kit includes everything from a backlink audit, a deeper and more technical one on web positioning, to ideas to get more traffic organically.
3. Lead Bridge
This is the perfect tool for advertising on Facebook. Its strong point is that you can capture your customers’ data without leaving the social network. Which means an increase in sales and will also make your life easier.
In addition, Leads Bridge allows you to create automated audiences, based on tags or a specific remarketing campaign.
B2B benefits for companies
There are several advantages of B2B for companies, although it is important to point out that B2B and B2C actions can be carried out by the same company (both in parallel and sequentially in time), each constituting a phase of the process sale of the good or service.
Here we are going to list some:
B2B marketing has the function of creating a brand image and promoting personal contacts. Although it implies a consolidation process, if it works, it is easier to have a presence in the market than limiting yourself to B2C actions focused on the end customer.
In other words, being prestigious or considered a specialist in a subject makes it easier to sell without so much need to disperse efforts.
Related to saving time, if the B2B work has been carried out correctly, the positive brand image that is created will serve to avoid having to spend more resources than strictly necessary on B2C marketing actions.
As the goods and services offered are increasingly similar, and there is greater competition, offering something different becomes a market necessity.
The B2B marketing service serves to position a company in the sector with its own identity, while the B2C works on emotional elements of a more primary type, which are those that operate in the final consumer and are common.
Higher billing per customer
Although it is true that making a customer in B2B is more complicated than in B2C, both due to the potential market and the complexity of the demand (which means that a purchase can take months), it is also true that the billing volume is older and tend to be more focused.
Examples of companies that do B2B
B2B services are relatively recent in business culture. However, we can already find several firms that have used this methodology to gain clients or consolidate the ones they already had.
- American Express : At one point, this company launched a platform focused on advising SMEs and an internal network for users with small businesses to advise each other. The increase in visits has helped him to consolidate his business in this market niche.
- Volvo : The Swedish automotive giant carried out a promotional campaign for its range of trucks aimed at companies and freelancers. They launched a series of audiovisual content with the image of Jean-Claude Van Damme and achieved an impact of more than 100 million views of future purchase intention, from almost 50% of truck drivers.
- Pablo’s Wineries and Vineyards : You don’t have to be a big company to take advantage of B2B services. This Aragonese winery from the DO Cariñena, managed to enter the North American markets thanks to the use of Internet platforms such as Global Wine Spirits.
In the B2B business model, the efforts that must be invested to be able to close new projects are much greater, since the market share is considerably lower than that existing in B2C, where sales are directed to the final customer.
The creation of web service portals for companies, for example, has become a necessity to expand the business areas and to be able to strengthen B2B commercial relationships.
On the other hand, the complementarity between B2B and B2C suggests that both parts of the business are allies of each other. In other words, the same company or business can carry out actions of both types, in parallel or sequentially.