You may think that business-to-business (B2B) and business-to-consumer (B2C) sales are similar to one another, however, there are key differences in some of their characteristics. As a result of this, the way sales teams strategize is different depending on the type of business. Differences in the length of negotiation time, the way the customers think and more, all play a part in the strategic differences between both sales teams. In this article, we will go through the key differences between B2B and B2C sales, and how it affects the sales teams.
Firstly, before looking at the key differences in the way the two sales funnels function, it is important we can differentiate what makes these types of businesses different.
As a result of this, both types of sales present different characteristics and challenges for a sales representative to overcome.
B2C sales have a number of characteristics that make them easily distinguishable from B2B sales. These are:
Mostly low-value deals – Other than some exceptions, like an expensive watch, most B2C sales are low in value. These products are usually low-priced products that consumers will buy as a one-time purchase.
Usually only one stakeholder – In B2C sales, usually the person whom you are selling your product or service is the only stakeholder involved. This individual will be the only person you make a transaction with and will be the consumer of the product or service.
Purchaser will be swayed by emotion – Due to B2C sales being mostly lower priced sales, a lot of these sales are made on impulse by the consumer. This means that in the decision-making process the customer will go through will be swayed by their emotions.
Short sales cycle – A lot of B2C sales can be completed with a short sales cycle due to the nature of the purchases being low-value and swayed by emotion. Most B2C sales can be made by one interaction with the consumer.
Due to these characteristics of B2C sales, a sales team will have a different approach when interacting with customers to complete sales. This approach should focus more on the number of customers they are able to sell to, trying to increase their online presence and build loyalty from their customers to continue to succeed in their market.
A lot of the B2B sales characteristics are the opposite of B2C sales. These characteristics are:
High-value deals – Selling to another business will mean the deal will be high in value. This is because what you are selling will be something that will be beneficial to the customer to help their problem and performance inside their business.
Usually multiple stakeholders – When selling to a business, there are usually multiple stakeholders that are involved in the decision-making process. Inflexion Point shares that research found there was an average of 6.8 stakeholders in each B2B sale, and the number is rising.
Purchasers will be swayed by facts – The stakeholders in a B2B sale will think very logically and not be swayed by emotion. This means a sales team’s approach in a B2B sale should be to always show the value the product will bring to the customer’s problem, helping them see the logical reasons they should invest in your product or service.
A long sales cycle – Due to the high value of B2B sales and the logical negotiations that take place, the overall sales cycle is much more complex and longer in length than B2C sales. Step Change shares that for smaller B2B deals, the average sales cycle may take around three months, while the larger B2B deals can take between 6 to 9 months to complete.
Due to these characteristics, sales representatives in the B2B market will have a different strategy from B2C sales teams. This strategy should be more focused on building trust and showing the value of the service you will offer your customer, and how it will solve their problem. Only high-quality leads should be a priority, as well as building long-term relationships to establish repeat purchases and renewals is a goal for sales representatives.
Regardless of whether you are in B2B sales or B2C sales, there are certain things your sales team must do in order to perform at the highest level possible. This section will go through the different tactics you should consider to ensure your sales department increases the number of sales made.
For a sales team to work to their highest ability, they must be on the same page as their marketing team. This is because the marketing team can help sales representatives better understand their customers, as well as bring in high-quality leads for the sales team. Without this cohesion, lower-quality leads will be generated, and the sales team will be able to offer a service that is as personalised. This will lead to fewer sales being made.
The more you know about your customer prior to contacting them, the better. This is so your sales team will be able to provide a more personalized service to the customer. This is important in both B2B and B2C sales as building long-lasting relationships with customers with trust will help win more deals. In B2B sales this is particularly important, as knowing the client’s background and the problem will help you appeal to their logical side more when trying to complete a sale. Popular research channels businesses use to find out more about their customers are:
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Whether you are a B2B or B2C business, sales automation CRM software will completely streamline your sales process and help your business reach a new level of efficiency. These benefits include:
Respond to your leads faster – You will be able to automatically assign leads to team members, meaning you will be able to respond to your leads faster, helping you win more deals.
Keep your customers organised – Manage your customers and organise them in a way that suits your business. CRM software like TEB will allow you to organise leads in terms of their priority with custom filters and funnels.
Streamlined pipeline management – Have your sales teams manage your pipelines in a streamlined way with higher data visibility, allowing them to be more efficient with the decisions they make.
Reduced human error – CRM software will reduce the human error that may occur due to the software assisting with tasks and the organisation of clients. This will help every sales team perform at a higher level with less risk of spending any unnecessary resources.
TEB is a sales automation CRM software that is capable of completely streamlining your sales process and driving your sales. The way that TEB will give your business these benefits is with its stand-out features such as:
To find out more about how TEB can transform your sales team, click the link to schedule a demo with us.
