The 14 key differentiators between B2B and B2C
1. Size of the market:
The size of the market is clearly a differentiator as in B2C the number of potential customers is ranging from hundred thousands to millions, whereas in B2B a company can survive on just a few customers to a few hundred customers.
2. Dollar value:
In B2C the dollar value of the customer is in most cases significantly lower than in B2B.
3. Sales process:
B2B has a complex sales process supported by several employees, whereas in B2C the salesman can be replaced by an online ordering system.
4. Cost of sales:
In B2B the cost of a sale is much higher than in B2C.
5. Sale value:
The value of a sale in B2B is much higher than in B2C
6. Churn:
In B2C the churn is high compared to the relatively low number of customers that change supplier in B2B.
7. Repeat and standing orders:
In B2C nearly every sale includes a decision.
In B2B repeat and standing orders are common but the first purchase order can take ages.
8. Decision makers:
In B2C the decision maker is in most cases limited to one person – exceptionally 2 or 3 members of a family get involved, whereas in B2B you will hardly find a sole decision maker.
9. Statistic approaches:
Thanks to the large numbers in B2C generic patterns or trends can be defined using statistical approaches. In B2B the customers are numbered and no statistics can be applied.
10. Data quality:
In B2C most people don’t change their status often (married or divorced) or locations (house).
In B2B people do change job (rather often) as they get promoted or change company.
Thus the information from business cards or data bases can become obsolete quickly.
11. Lead generation:
Lead generation and nurturing is typically for B2B, whereas in B2C marketing campaigns are for direct sale.
12. Contracts:
In B2C people just buy and hardly negotiate.
In B2B nearly every sale requires signing of a contract or at least a purchase order after a long pricing negotiation.
13. Social media marketing:
Social media marketing is probably feasible for most B2C products and services as the number of people is high and many can feel engaged.
In B2B social media marketing is likely to be no effective at all.
14. Website
In both market the website plays an important role. Still the approach will be different.
In B2C techniques for presenting relevant content on the website will be used for instant influence and buying stimulus, whereas in B2B it is important to identify the visitor by company and to have lead intelligence systems in place to send relevant personalized content by email for nurturing.
Both B2C and B2B markets require different approaches for marketing and sales: other tools and methods. Letting sales methods and marketing systems cross over from B2C to B2B or vice-versa is likely not to be successful.
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