B2B Vs. B2C – How Do They Differ?

In the clip from the movie Kal Ho Na Ho we saw Shah Rukh Khan sell Saif Ali Khan to Preity Zinta. That’s B2C selling.

Disclaimer: Curated Content!

Remember how Ranbir sells to companies in the movie Rocket Singh - Salesman of The Year? That's B2B selling.

The most important process in selling is to understand whom you’re selling to. That’s because your sales strategy needs to align with the person who makes the buying decision.

Are you selling to the consumer or to people in large organisations? 

Selling to both these groups requires different skills, tools and processes. Let’s understand what they are.

Table 1

1. Emotional Pitch Vs. Factual Pitch

The first difference is that retail sales require an emotional approach, and must tap on the consumer insight. The purchase by this segment of consumer is often irrational, hence, as a salesman you need to get the customer to fall in love with the product. You can use clever marketing techniques such as slogans and mascots to present the product in an attractive way, thereby targeting the emotions of the consumer.

Corporate sales are well thought through and planned, and need to demonstrate a strong benefit to the company. 

2. Lower priced products vs. Higher priced products

Unless you’re selling a big-ticket item like a house or a luxury car, it is generally true that B2C prices are less than B2B ones. When 2 large B2B companies strike a deal, it usually involves massive transactions. Due to the big monies involved, payments in B2B might be an ongoing thing. This is similar to consumers paying EMI for their purchases, spread over a period of time. 

3. Wider, replaceable audience vs. Smaller, indispensable audience

There is a huge numerical difference between B2B and B2C consumers. B2C consumers are larger in number as compared to B2B. In our country, the B2C market can readily reach into the millions that include a broad range of people from different backgrounds. On the other hand a B2B client list might struggle to reach the hundreds. 

With the B2C industry full of potential and customers, you can relax a bit when it comes to convincing everyone for a sale. However, every B2B client is important because the overall universe is smaller. 

Therefore, building trust and maintaining relationship in the B2B scenario takes longer. On the other hand, purchases made in the B2C setup maybe one off and often conducted without any prior contact. 

As a B2B salesman it is critical that you build a strong relationship between the two businesses to ensure continued support and work.

4. Faster sales process vs. Slower sales process

While B2C sales are focused on immediate sale, B2B process may take up to several months and involve employees from both companies. 

However, with the new-age consumer spending a lot of time doing research online, B2C sales is also becoming a longer process. 

5. Easy decision makers vs. Tougher decision makers

It doesn’t matter whether you’re a B2C or B2B salesman. You need to be thorough with the product you’re selling, even though sometimes the consumer might not be so discerning in the B2C target segment. 

Additionally, as a B2B salesman you need to have a deeper understanding of the product, along with technical knowledge and how the product will benefit the company. 

6. Fewer people in the buying process vs. Lot of regulations and people involved in the buying process

The B2C buying process is simple – 

Richa Sharma is a marketing executive. She lives in Bombay with her son. Every morning she wakes up, packs food in simple plastic tiffin for her son and herself, drops him to school and heads to office. 

Problem/ Need recognition: One day, when she’s heating her food in the microwave she realizes that her son doesn’t have access to a microwave. So is he eating cold food every day?

Information search: She goes online and looks up information for tiffins that keep food warm for long hours. She reads multiple reviews and customer feedback. 

Evaluation of alternatives: She asks her colleagues in office, her mom and other friends. 

Purchase decision: Based on popular choice, she buys the product online. 

Post-purchase behavior: She asks her son if his food is still hot when he eats it. She talks about the wonderful product with other moms in school. Her son shows off his new tiffin in class. His classmates talk to their mom about the tiffin. 

In B2B selling, the process must conform to business management guidelines, which include product logistics, payment timetables, order authorisation, support and reporting. 

The main difference between the two is the number of decision makers that need to agree in order for the transaction to proceed. While in B2C it’s the involvement of maximum 2-3 people, B2B selling is a longer process, simply because there are many people involved in this process.

In the chapter "The Kinds of People You’ll Meet in your B2B sales trip" you'll learn about the different kinds of people you'll meet during your B2B sales trips and how each one can help you.

Key Takeaways

• B2C sales relies on emotional approach, B2B sales is more practical and tactful.
• B2C sales don’t need a long-term relationship building, B2B benefit from creating a long-lasting relationship between the two companies.
• The B2C process is short, involving 2-3 decision makers. B2B sales take longer as it requires permission from several key members throughout the business.
• The B2C market is full of consumers, while the B2B markets have fewer companies you can sell to. 
• The decision makers in B2C selling often make irrational purchases, whereas the B2B segment consumers are more discerning and seek tangible value for the organization.

Up Next

In the next module we'll learn how to thoroughly understand the client and the product step by step, so that you're well prepared for the big sales pitch.