People Innovation Excellence

Differences Between Business-to-Business (B2B) and Business-to Consumer (B2C)

B2C and B2B are two forms of commercial transactions. B2C, which stands for business-to-consumer, is a process for selling products directly to consumers. B2B, which stands for business-to-business, is a process for selling products or services to other businesses. The easiest way to explain this is that a business-to-business transaction often takes more consideration and more people tend to be involved, requiring more decision makers.

B2B is shorthand for business to business. The products and services of the business are marketed to other businesses. The best place to start is with your customers – B2B buyers who have long-term relationships with your company. B2B transactions normally require a more complex business system. The system must be capable of accepting orders in different formats such as email, documents or electronic orders. It must integrate order capture with your other administrative systems such as invoicing, customer records and accounting. At a more advanced level, you can offer groups of products customized to different customers.

The final customer is the consumer with a B2C business. Consumers buy your products or services for personal use. The B2C sales cycle is shorter. The consumer is encouraged to buy the product immediately. Purchases are made on an emotional basis as well as on the basis of price and product. With consumers, your message must be simple, easy to understand. You will also tend to find that consumers have a much shorter purchasing process than businesses. They can purchase within a few minutes to within a few days. Your most effective marketing strategies will focus on the results and the benefits that your product or service will bring to them. Below is a table to explain more about B2B and B2C:

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