The world of sales can be broadly separated into two distinct segments — B2B (business-to-business) sales and B2C (business-to-consumer) sales.
While these two realms share the same common goal — to drive revenue — they differ significantly in focus and approach.
This means the strategies, processes, and tools required to be successful in B2B sales differ from those required to be successful in B2C sales, and in many cases, they are non-transferable.
For sales professionals, understanding these differences is essential for developing the skills required to thrive.
In this article, we will explore the differences between B2B and B2C sales, outline the strategies and tools required to be successful in each realm, and offer tips and advice that can give sales teams an edge when selling to these different customer segments.
What is B2B sales?
The B2B sales model is defined by the selling of products and services from one company or organization to another.
- The customer- In B2B sales, the customer is a business entity. The business may be represented by a single individual or many, but it is the needs of the business that must be met.
- Products and services- B2B products and services need to be specialized and customizable in order to cater to the specific needs of individual businesses.
Some examples of B2B product and service categories include:
- Industrial machinery
- Specialized software
- Professional services
- Raw materials (often sold in bulk)
- The sales process- B2B sales processes involve several deal stages and require lengthy negotiation periods with multiple stakeholders within an organization.
Some examples of these decision-makers include:
- Purchasing managers
- Department heads
- Administrators
- Executives
What is B2C sales?
The B2C sales model is defined by the selling of products and services directly to consumers.
- The customer- In B2C sales, the customer is the consumer. The focus is on meeting the needs and preferences of the end-user.
- Products and services- B2C products and services are generally mass-produced and designed to meet the needs of as broad a group as possible.
Some examples of B2C product and service categories include:
- Food
- Electronics
- Household items
- Clothing and apparel
- Travel and hospitality
- The sales process- B2C sales processes are typically small in scope and use standardized pricing that offers little room for negotiation. Even in cases where prices aren’t fixed (car sales, property sales), customized solutions are limited.
B2C sales cycles are usually short and consumer-driven, with many businesses relying almost as much on marketing to sell a product as on the skill of their sales professionals.
B2B vs. B2C sales- 5 key differences
Understanding the differences between B2B vs. B2C sales can help you create strategies and approaches that will lead to greater sales success.
The following are the five key differences you need to consider.
- The customer relationship
- In B2B sales, relationships are built over time, often with the intention of creating long-lasting partnerships that benefit both parties.
A sales professional may spend months or even years talking with the same people, giving them plenty of opportunities to build rapport and develop genuine and lasting connections.
- In B2C sales, relationships are often transactional. This can make it challenging for a salesperson to make a lasting impression and build trust.
Adding to that challenge is the fact that each interaction a customer has may be with a different sales rep.
To help overcome these challenges, sales professionals need to focus on delivering consistent experiences again and again.
- Purchase volume
- B2B product sales usually involve bulk purchase volumes and/or recurring purchases. B2B service sales often take the form of long-term contracts.
This makes every deal in B2B sales significant, as a single sale can generate revenue over and over again.
- B2C product sales are generally small in volume, with consumers buying products to meet an immediate need or for personal use.
B2C service sales are often one-time purchases, but even when B2C services involve long-term contracts, they tend to be much smaller in scale than B2B contracts.
Overall, an individual sale is not as important in the B2C realm as it is in B2B. It is consistency that matters most.
- Sales complexity
- The B2B sales cycle is typically long and complicated, with a potential customer passing through several stages on their way to a purchase.
Negotiations often involve multiple stakeholders and the needs of each must be addressed in order to close a deal.
This means a B2B sales professional is required to be an expert in their own products and services and knowledgeable about the prospect’s business as well.
Our article, How To Create A High-Impact Sales Playbook: A Guide For Sales Team Leaders, is an excellent resource that can help you simplify the complex world of B2B sales.
- The B2C sales cycle is typically short and simple, if not outright transactional.
Most sales involve individual consumers (often the end-user) and negotiation is all but non-existent.
Buyer considerations
- B2B buyers are primarily focused on meeting the needs of their business or organization.
Common considerations for the decision-makers include:
- Alignment with business objectives
- Seeing a return on investment (ROI)
- Improving operational efficiency
- Overcoming specific challenges
In B2B sales, it is often necessary to satisfactorily address all of a business’s considerations and objections in order to close a deal.
- In B2C sales, buyers typically focus on their own personal needs and preferences.
Common considerations for B2C customers include:
- Price/value
- Convenience
- Peer influence
- Brand reputation
- Quality/reliability
In B2C sales, it is often enough to address only a few of these considerations to make a sale.
For example, if something is cheap and convenient, it will often sell regardless of quality.
- Marketing
- B2B marketing campaigns tend to be focused and specialized, targeting specific industries based on an ideal customer profile (ICP), with tailored messaging that features the terminology and jargon commonly used by the professionals working in those industries.
The goal of these marketing efforts is to establish trust and credibility while demonstrating expertise.
B2B marketing often uses content-driven strategies centered on problem-solving and thought leadership. Examples of B2B marketing content include:
- Educational resources (webinars, guides, reports)
- White papers
- Case studies
- Infographics
- Blogs
- B2C marketing campaigns favor broad appeal, with the goal of reaching as wide a range of consumers as possible.
B2C marketing efforts use emotion-driven appeals that are intended to build camaraderie and brand affinity.
Mass marketing channels are the preferred avenues for B2C marketing campaigns. Such channels include:
- Television, movies, and streaming (commercials, product placement)
- Print ads (billboards, newspapers)
- Social media
- Radio
B2B vs. B2C sales- Sales strategies
The techniques and skills used to sell in B2B are very different from those used to sell in B2C.
By understanding the core strategies that work best for each segment, sales professionals can ensure they are using the right approach.
- B2B sales strategies are centered around relationship building and expertise.
Sales professionals need to invest time in understanding the businesses, industries, and companies they sell to.
They need to be able to demonstrate that understanding in their messaging, pitch meetings, demos, and other sales activities.
- Account-based selling- With this sales strategy, a B2B company identifies high-potential accounts and then creates a tailored approach that speaks to the unique and specific needs of that account.
Account-based selling requires deep knowledge of the targeted account, including its challenges, goals, stakeholders, and key decision-makers.
Targeted accounts can be new prospects or existing customers with a high potential for growth and expansion.
Our Key Account Management Playbook can help you create an effective and repeatable account-based selling process.
- Consultative selling- With this strategy, B2B businesses position themselves as experts and advisors who understand the obstacles and pain points that a prospective business faces and offer solutions to overcome them.
Consultative selling requires a breadth of industry-specific knowledge, including:
- Industry market trends and dynamics
- Legal and compliance requirements
- Common practices and processes
- Common tools and technology
- Industry-specific terminology
- Value-based selling- This sales strategy emphasizes the ROI that a prospective business can expect if they purchase your product or service.
Value-based selling requires an in-depth understanding of the financial considerations of the businesses and industries you are targeting, including:
- Revenue generation
- Growth potential
- Operating costs
- Profit-margins
- B2C sales strategies are centered around emotional appeals that connect with an individual customer on a personal level.
These strategies are generally marketing based, with sales professionals getting involved only to help drive the sale over the finish line.
That said, sales reps still need to be able to identify a customer’s desires and then demonstrate how the product or service they are selling will help the customer realize those desires.
- Personalized recommendations- With this strategy, B2C businesses look at the purchase history and demographical information (age, gender, occupation, geographical location) of potential customers and use this data to make targeted pitches through their various marketing channels.
- Upselling/cross-selling- This sales strategy is aimed at increasing a customer’s average purchase value by encouraging additional purchases that complement the primary purchase or by suggesting an upgrade to the original purchase.
- Personalized recommendations- With this strategy, B2C businesses look at the purchase history and demographical information (age, gender, occupation, geographical location) of potential customers and use this data to make targeted pitches through their various marketing channels.
This strategy requires sales professionals to understand all the offerings they have available so that they can present them in a natural and timely manner.
- Influencer-based selling- In recent years, influencer-based selling has moved to the forefront of B2C sales.
With this strategy, companies find a popular personality that aligns with the values of their brand and creates partnerships with that influencer in hopes of leveraging their reach.
B2B vs. B2C sales- Tools of the trade
In sales, the right tools can make all the difference. So what tools can help give you a competitive advantage?
Let’s take a look at the most essential tools for success in B2B and B2C sales.
- B2B sales tools help B2B businesses improve sales efficiency, track sales performance, and automate data capture, lead nurturing, and outreach.
- Email marketing automation software- Sales teams in B2B often use email marketing automation tools like Mailchimp, ActiveCampaign, or SendGrid.
These platforms can help you align your sales messaging and optimize your communication cadences through personalized email templates and automated email follow-ups.
They also track the success of your email campaigns, allowing you to improve your delivery rates, open-rates, and clickthroughs based on real-time data and analytics.
For help finding an email automation platform that is right for you, check out our comparison articles:
- Sales analytics and reporting tools- Sales leaders use analytics and reporting tools to evaluate performance, track success toward quotas, and use data-driven insights to inform procedural improvements.
These tools can also be used to gamify results and foster a sense of friendly competition between sales professionals.
- CRM platforms (customer relationship management)- The number one tool for sales professionals in the B2B space is CRM.
These powerful software toolsets are the centralized hub through which all your sales activities pass through.
A CRM can help you:
What’s more, a CRM platform comes fully equipped with all the sales analytics and reporting tools you need.
You can even manage your email marketing automation tools within your CRM, creating a truly seamless sales experience for your customers and your team.
- B2C sales tools help eliminate the barriers to purchase and make the buying experience faster and simpler.
- E-commerce platforms- Online sales platforms can help you manage your e-commerce transactions, maintain your product catalog, and create a better shopping experience for your customers.
- Mobile payment solutions- These mobile software tools provide fast, secure, and convenient payment options for customers using smart, app-enabled devices.
- E-commerce platforms- Online sales platforms can help you manage your e-commerce transactions, maintain your product catalog, and create a better shopping experience for your customers.
FreeAgent CRM can help you improve and refine all your B2B sales processes
FreeAgent CRM is designed for today’s world of work and our robust toolset is ideally suited to supporting the varied work processes of modern businesses. FreeAgent is:
- Easy to use: FreeAgent works like you expect modern apps to work, providing a user experience that feels fresh and familiar. Teams love working in FreeAgent, leading to high adoption and greater ROI.
- User-configurable: FreeAgent can be configured by you to work the way you do. This means you don’t need outside support to add a form field, adjust a CRM automated workflow, or try out a new process.
- Customizable: With FreeAgent, apps, forms, and configurations are all completely customizable, allowing you to capture and connect your data in any way you like.
To see FreeAgent in action, get a demo, and discover for yourself how FreeAgent can help you have workdays full of impact.