Differences Between B2B Sales and B2C Sales
B2C sales involve direct transactions between a business or salesperson and individual consumers. In contrast to B2B sales, they are typically smaller in scale and rely solely on the consumer's decision-making process.
Examples of common B2C sales include:
Sales representatives at car dealerships.
Online eCommerce stores selling clothing.
Supermarkets offering various consumer goods.
According to Forrester's 2018 report, the total size of the US B2B e-commerce sales market was valued at $9 trillion, while US B2C e-commerce sales reached $601.75 billion in 2019.
So, what accounts for the significant differences between B2B and B2C sales?
Higher Average Transaction Value: While B2B sales can involve small orders like office supplies for SMBs, they often extend to substantial amounts, reaching millions of dollars and involving complex supply chains. This is not typically the case for B2C sales, except in specific industries like real estate, automotive, and luxury goods.
Longer Sales Cycles: B2C consumers make purchasing decisions based on emotions and immediate needs, such as buying a phone case, charger, or laptop. Conversely, B2B buyers seek a tangible return on investment, a measurable advantage, or a logical solution to a critical problem. B2B sales often require navigating a longer sales cycle and gaining approval from multiple decision-makers. CRM software is commonly used in the B2B industry to manage the sales funnel effectively.
Multiple Stakeholders: In B2B sales, each decision made directly impacts a business's bottom line, and purchase decisions often involve multiple levels of approval. Successful B2B sales require obtaining a unanimous "yes" from all decision-makers involved. The higher the deal's value, the greater the number of approvals needed.
Educated Buyers: B2B buyers are highly selective and conduct thorough research. They not only carefully choose which businesses to engage with but also develop their own criteria for making purchases, often without relying heavily on salespeople. Consequently, content, such as case studies, has become a crucial element in the B2B sales process.
By understanding these key distinctions, businesses can tailor their sales strategies accordingly to effectively engage their target audience, address their unique needs, and navigate the complexities of B2B sales.
