4 July

What is the difference between B2B, B2C, and B2B2C, and how to leverage this knowledge to boost sales.

Business

min. read

Reading Time: 4 minutes
A entrepreneur waiting for a meeting with a coffe.

In business, the terms “business to business” (B2B), “business to consumer” (B2C), and “business to business to consumer” (B2B2C) are used to describe different types of transactions. As a general rule, B2B businesses sell products or services to other businesses. B2C businesses sell products or services to consumers. However, the distinctions between these terms are not always so clear-cut. In some cases, a business may sell products or services to both businesses and consumers. In other cases, a business may sell products or services to another business, which in turn sells those products or services to consumers.

What is B2B?

The term “B2B” is most commonly used to refer to transactions between businesses. In a B2B transaction, one business sells products or services to another business. The products or services sold in a B2B transaction are typically used by the buyer in order to produce other goods or services. For example, a company that manufactures cars may purchase tires from another company in a B2B transaction. The tires will be used by the car company in the production of automobiles.

What is B2C?

The term “B2C” is most commonly used to refer to transactions between businesses and consumers. In a B2C transaction, a business sells products or services to consumers. The products or services sold in a B2C transaction are typically used by the consumer for personal use. For example, a company that sells automobiles would be engaged in a B2C transaction.

What is B2B2C?

The term “B2B2C” is most commonly used to refer to transactions between businesses and consumers that involve two or more businesses. In a B2B2C transaction, a business sells products or services to another business, which in turn sells those products or services to consumers. The products or services sold in a B2B2C transaction are typically used by the consumer for personal use. For example, a company that manufactures cars may sell its cars to another company that sells cars to consumers.

Distinctions

The distinction between these three terms is important because it helps businesses understand who their target market is and what type of marketing strategy they should use. Businesses that sell products or services to other businesses (B2B) typically use a different marketing strategy than businesses that sell products or services to consumers (B2C). And businesses that sell products or services to both businesses and consumers (B2B2C) typically use a different marketing strategy than either B2B or B2C businesses.

Differences

The main difference between B2B and B2C marketing is the type of product or service being sold. B2B businesses typically sell products or services that are used by other businesses in the production of goods or services. For example, a company that manufactures tires would be considered a B2B business. The main difference between B2C and B2B marketing is the type of customer being targeted. B2C businesses typically target consumers, while B2B businesses target other businesses.

The main difference between all three types of marketing is the target market: businesses (B), consumers (C), or both (D). Each type of marketing has its own strengths and weaknesses, so it’s important for companies to carefully select the right type of marketing for their product or service.

D4C

One key difference between B2Bs and D4Cs (Business and Customers for Customers) is pricing models with D4Cs generally having higher prices than their counterparts in order to generate more revenue per customer while still providing a quality product/service. This is due to the fact that D4Cs have higher customer lifetime values and costs of acquisition which means they need to charge more upfront in order to make a profit while still providing value. However, this also makes it harder for D4Cs to scale their business since they need high prices in order for their model to work which can limit growth potential.

Another key difference is how each type of customer interacts with your product/service. D4Cs are generally more hands-off since they’re trusting you as the expert to provide them with what they need without much input on their part while still feeling like they’re getting a personalized experience tailored just for them which can result in repeat customers and referrals/word-of-mouth marketing. On the other hand, B2Bs are usually more hands-on since they want to ensure they’re getting exactly what they need from your product/service and have specific requirements that need to be met which can result in longer sales cycles but also higher close rates.

And finally, the last key difference is sales cycle duration with D4Cs generally having shorter sales cycles since they’re buying your product/service for themselves while B2Bs usually have longer sales cycles since they’re buying on behalf of their company which can impact your cash flow if you’re not prepared for it.

Summary

Knowing the key differences between these three types of customers is critical for any business because it will help you determine which type of marketing is best suited for your product/service as well as how you should price your product/service in order to generate the most revenue possible while still providing value. Additionally, it’s important to understand how each type of customer interacts with your product/service so you can adjust your sales and marketing strategy accordingly in order to close more deals and increase customer satisfaction levels.


Author

Tomasz Juszczak

CTO /

Technical Lead

Tomasz Juszczak

About prog

Founded in 2016 in Warsaw, Poland. Prographers mission is to help the world put the sofware to work in new ways, through the delivery of custom tailored 3D and web applications to match the needs of the customers.


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