Though there might be some similarities between B2B and B2C businesses, B2B and B2C marketing are two different ball games altogether. Given that the target audience is the key differentiating factor, you need to devise relevant marketing strategies for each.
In this B2B vs B2C marketing guide, we break down the key differences between both these marketing strategies.
In this post, you’ll learn how the sales processes for B2B and B2C are drastically different from each other. Understanding these differences will help you craft effective marketing strategies for each.
B2B vs B2C Marketing: Key Distinctions
Here are the top 10 key differences between B2B and B2C marketing strategies.
1. Target Audience
B2B businesses target their sales to other businesses. On the other hand, B2C businesses cast a wide net to target a larger audience, mostly individual consumers.
This means, B2B companies usually cater to a niche market. It requires them to have a better understanding of the businesses to which they wish to sell their products or services.
A B2B marketing strategist focuses all their marketing efforts toward the key decision makers of the business they are trying to sell to. They don’t have to worry about anyone else in the organization, not even the end-user.
B2C marketing teams, on the other hand, can direct their marketing campaigns to anyone who may be interested in their product.
They focus on developing brand awareness through social media and other communication channels. The underlying hope is that the repeated exposure will work in their favor in bringing more sales.
2. Decision-Making Rationale
Another key difference between B2B vs B2C marketing comes from the rationale behind purchase decisions.
B2B buyers are more sophisticated and they make rational considerations based on logic and financial incentive when it comes to purchasing a product.
For example, they will assess how a product will help drive the company’s revenue. Or, how it helps them achieve short-term and long-term business goals.
B2C buyers are emotion-driven. They often rely on their impulses to make a purchase decision. For example, they may buy a product after watching a convincing video on social media about it.
In other words, while there is little to no emotion involved in B2B marketing, B2C marketing relies heavily on it. That’s why B2B sales funnels tend to be longer and more complex than B2C ones.
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This is why B2B marketers only focus on moving their leads to the next stage of the sales funnel through informative content and incentives. Various B2B marketing tools available today make their job quite easier.
Whereas, for B2C, marketing strategists appeal to their potential customers emotionally to get them to make a purchase.
3. Decision Makers
One of the most fundamental differences between B2B vs B2C marketing is the number of different stakeholders involved.
The ready availability of resources on digital channels has made it easier for B2B buyers to gather information on their own. Often, this gives marketers a limited window to make an impact.
For a business-to-business model, a marketer has to deal with a long chain of command including various department heads, such as procurement and accounting. It means the purchasing decision is not for one person to make and there are many steps involved.
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For a business-to-consumer model, a marketer has to directly sell to individual consumers who make their own purchase decisions. So, selling to one person is quite straightforward and simple when compared to B2B marketing.
4. Return on Investment
A big difference in B2B vs B2C marketing is in the expectations of returns on investment (ROI).
B2B clients are interested in knowing their ROI right away. Before they make a purchase decision, they need to know the value being derived from it.
So, they deep-dive into your product’s background to ascertain its contribution to the company’s profitability.
On the other hand, ROI may not even feature in the primary concerns of B2C buyers. They are only interested in deals, discounts, entertainment, and other exciting parts of the purchase process.
B2B buyers typically want to know that investing in a product will help the company achieve its goals.
B2C buyers are more concerned with how they will personally benefit from purchasing the product. Their returns on investment are not necessarily measured in money, unlike B2B buyers.
5. Buying Cycle
The B2B model involves a complex and multifaceted buying cycle. As mentioned earlier, B2B transactions often involve far more decision-makers and a lot more consideration. This translates into a longer sales cycle compared to B2C business models.
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For B2C, there is typically just one buyer or end user. A B2C marketer doesn’t have to put in as much effort to get someone to complete a purchase. They don’t have to talk to any department heads, nor is there any need for consultations.
Furthermore, B2B marketing involves the crafting a multi-step marketing plan unique to each stage of the buying cycle. Depending on which stage of the funnel the prospect is in, it can contribute to a longer buying cycle due to price disagreement and other reasons.
For B2C, the buying cycles are shorter. The customers can even purchase your product directly from the first touchpoint be it your website or social media page.
As we learned earlier, the main difference in B2B vs B2C marketing is catering to two distinct audiences. This creates the need to have a different messaging style for these different audiences.
For B2B, the messaging needs to be formal, direct, and professional. It should convey how your marketing strategy is going to help the businesses. The messaging should focus on addressing their pain points and offering a solution.
Will your product solve an issue the company is currently facing? Will your product save them time and money? These are some concerns to cover in your B2B messaging techniques.
When it comes to B2C, the messaging should be relaxed, engaging, and casual. It should make the customers want to buy your product. B2C marketing messages must evoke emotions in the customers to make the products more relatable.
Pro Tip: While the use of industry jargon might be acceptable to communicate with B2B buyers, make sure you leave it out while communicating with B2C buyers.
7. Customer Lifecycle
One of the fundamental differences between B2B and B2C marketing is how long a buyer typically stays with your business and continues to pay for your offerings.
In a B2B model, businesses usually have much longer customer lifecycles as compared to B2C models. More often than not, B2B buyers do not switch brands frequently.
Moreover, B2B purchases last longer, keeping the customers involved with your product for a longer duration.
A B2B marketer is mindful of how significant the purchase decision is for a B2B buyer. That’s why they spend a lot of time and effort to make their offerings worth the price tag.
As far as B2C buyers are concerned, they may not be your customers for a long time and may even be one-time buyers. If a B2C buyer does not like your product, they can simply switch to another brand.
In other words, B2B marketing focuses on lead generation and uses longer nurture sequences. B2C marketing aims to extend customer lifecycles by providing great after-sale service and delivering exceptional customer experiences.
8. Customer Relationships
The nature of B2B businesses is such that building long-lasting relationships becomes crucial. This is another key difference in B2B vs B2C marketing.
By sharing information about ethics and business practices with its buyers, a B2B company can establish itself as the right partner to do business with.
This is why a B2B marketer spends a lot of time serving relevant thought leadership content to deepen the customer’s knowledge of their product.
A B2C marketer follows a different approach. They want to spend little time bringing a customer to their website and selling a product. Because let’s face it. B2C buyers may not be investing in your company as much as you invest in them.
Building relationships with customers in a B2C model may come much later after the product has been purchased. This is the retention element, asking customers about their experience with the product and if there’s anything that can be done better.
9. Marketing Costs
While B2B marketing is targeted at larger corporations with more expansive budgets, B2C marketing focuses on individual customers with smaller budgets.
Needless to say, the marketing costs also mirror this huge gap between the budgets of B2B buyers and B2C buyers. As you can probably guess, how you market a $20,000 item will be drastically different from how you market a $100 product.
Also, it is worth mentioning that since B2B products come with a heavy price tag, they require highly targeted marketing to generate profit. Thus, the campaigns don’t shy away from spending a large sum as the stakes are equally high.
Whereas, for B2C buyers, the quantity of the audience matters more than the quality. With a lower price point, a B2C business requires more purchases to reach its revenue goals. This means more frequent advertising campaigns with smaller budgets.
10. Content Strategies
B2B marketers have to cater to multiple decision-makers in the buying cycle at different stages of the funnel. This requires creating content that can gain trust at each stage.
B2B content strategists typically use case studies, ebooks, whitepapers, 3D models, and more. The aim is to improve brand identification and establish the B2B company as an authority.
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It doesn’t stop there. B2B marketers also have to host webinars, workshops, or events to introduce new features in the products and showcase their business’ expertise.
B2C customers like to interact on social media and view entertaining content that’s relatable. They enjoy staying up to date with the latest trends and knowing how the brands they support are doing.
Social validation, immediate benefits, discounts, and exciting deals are some of the instant results that B2C buyers expect. So, B2B marketing is attention-grabbing, catchy, and to the point.
Video marketing with an informal tone has a better chance of winning over new customers for a B2C business. Infographics, short articles, and virtual events also go a long way.
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Q1. What is the difference between B2C and B2B marketing?
A. B2B marketing is a process where one business sells products or services to another business and business professionals are the key purchase decision makers.
On the other hand, B2C marketing techniques are focused on selling products or services directly to consumers, who are typically individuals.
Q2. What is B2B and B2C with examples?
A. A web communication tool such as Slack is a great example of a B2B product. The software company sells its product to other businesses to improve team communications within the company.
As far as B2C business is concerned, an excellent example is a customer buying an iPhone from Apple’s website after checking the product information online. Companies like Netflix selling online content to viewers for a paid subscription are also B2C.
Q3. How do you market to B2B or B2C?
A. A key difference between B2B vs B2C marketing lies in the way each communicates with its target audience.
B2B marketing puts emphasis on creating long-lasting relationships with other businesses. It aims to give a good return on investment for a business customer.
B2C marketing focuses on creating engaging content to grab the attention of its target audience in a short span of time. The aim here is to focus on offering quick solutions to attract a potential customer.
Q4. What is more effective: B2B vs B2C?
A. The answer to this depends entirely on what products or services you’re offering. If your product or service caters to the needs of a business, then you’ll need to use the B2B model.
If you produce consumer products that you intend to sell to individual buyers, then B2C is the right choice.
Q5. Is Amazon B2B or B2C or both?
A. Amazon is both a B2B and a B2C business. It sells products directly to consumers through its e-commerce platform (B2C). It also sells its Amazon Web Services and other such products to businesses (B2B).
Q6. Are there any similarities between B2B and B2C business models?
A. Yes, there are a lot of similarities between B2B and B2C business models.
They both focus on addressing the customer’s pain points by offering solutions. Both categories share a common goal of converting prospects into customers.
In both, you need an enhanced customer experience for building relationships. Lastly, both groups require a defined strategy to measure performance and maximize revenues.
Q7. Which is harder – B2B or B2C?
A. Compared to B2C businesses, B2B businesses are harder to run and grow as they have more complex selling processes.
The B2B buyer is more sophisticated and the stakes are much higher. And, depending on the business, it may also involve long periods of prototyping and product testing.
B2B marketing and B2C marketing are two very different concepts. Each requires a different approach, but with the right knowledge, you can succeed in whichever model you choose.
B2B marketing can be slightly more complicated compared to B2C marketing. But with the right B2B marketing tools, you can efficiently achieve all your business goals.
B2C marketing, although simpler when compared to B2B marketing, requires a clear direction as well. The strategy here should be to focus on creating relatable content to get more prospects to buy your products.
No matter what business you’re involved in, by following a customer-first marketing approach, you can bring more revenue to your organization. Good luck!