As we know, there are usually two kinds of business enterprises in our market, B2B, i.e., Business to Business and B2C, which is Business to Consumer. However, another business model also exists, which is B2B2C (Business to Business to Consumer.) But what is this B2B2C exactly?
A B2B2C firm is the one that sells the product or service to other businesses, which can be called as customers. But remember, these customers are not the final users of the product and services. They sell ahead the bought commodity to pass it to the final user, also known as “consumer.” This chain of exchange of goods and services is known as B2B2C.
Let us understand the better meaning of this terminology with some examples of B2B2C companies.
Let us take an example of the food and beverage industry and the consumer goods industry to have a clear insight. Food and beverage companies are one prime example of the B2B2C type of marketing. When a consumer buys a sandwich, the soft drink is provided as an add-on or at a discounted price (in the form of an offer.) At that time of purchase, the consumer has a choice of which soft drink to buy from the fountain. More importantly, their soft drink choice depends on the restaurant’s specific options as they are providing beverages of selective vendors. To make sure those beverages are offered up and purchased consistently, the soft-drink providers have to consistently and smartly promote both businesses as well as consumers.
Another B2B2C model of marketing example to take into consideration is of consumer goods. Let us take the case of a detergent powder manufacturing company. Consumers who purchase a specific brand of detergent mostly buy from the same store or supermarket for years. So, how do competitor brands of the industry ensure their products are also getting sold? Firstly, other detergent brands must persuade their final consumers on the benefits of their product. Secondly, they must also convince other businesses, such as supermarkets, stand-alone stores, etc. to provide them with premium shelf space to showcase their product: this way, the chain of business for B2B2C model continues.
What is the Major Difference between B2C and B2B2C?
The significant difference between B2C and B2B2C marketing is that in B2C, the enterprise sells directly to the final consumer, and there is no role of the customer in this process. However, in the case of B2B2C, the customer holds a significant role. The customer holds a stand in the purchase decision of the final consumer. In the B2B2C market mode, the delivery channel is different from the decision channel of marketing.
What is the Difference between B2B and B2B2C?
In B2B marketing, a company directly sells the product or service to another company that is usually the final consumer. For example, the consumer may buy CRM software for their company rather than reselling it to the other individual consumer.
In a B2B2C marketing model, other businesses may be purchasing the product or service, building upon it, and recommending it to a different final consumer. This recommendation mode becomes a critical assessment aspect for the original seller to assess the impact of marketing efforts adopted by them while selling to the business “customer” and the “consumer.”
What are the Benefits of B2B2C Mode of Marketing?
- B2B2C allows manufacturers to sell to individual consumers through business customers directly.
- B2B2C helps decrease the costs involved in supply chain management, which allows brands to lower prices, thus benefitting all three entities.
- By marketing directly to consumers, businesses achieve more authority over how they want to promote their company to get the target engaged.
The time to switch from B2B to B2B2C type marketing for several brands is right here. The most useful way to do it is by harnessing the power of digital marketing and e-commerce.
What are the Ways to Build a Robust B2B2C Marketing Strategy?
For final consumers, the ability to communicate with brands rather than resellers is a more natural and effective marketing strategy. For instance, as we know, Apple sells its products through authorized multi-brand resellers, consumers purchase these products because Apple talks to them directly through various modes. They have created a niche brand value that relates to the end consumer and not a reseller. And it is done to the extent that no multi-brand electronics store wants to miss out on displaying Apple products on their shelves.
Let us look at the few beneficial ways that can help you build a robust B2B2C marketing strategy.
Catering to All Kinds of Audience
For B2B2C enterprise, one size fits all approach will not work. These companies sell the product or service to other businesses that are different from end consumers. B2B2C enterprises should organize services in a way that enables them to cater to each part of their business’s distinct needs.
It can be done by splitting the team to gain expertise on the different “customer” as well as “consumer” personas. For example, a company has to market to both merchants and end consumers. Their relationship with each party has to be differently tailored. Therefore, dedicated teams catering to merchants and consumers are required separately to elevate their overall interaction experience. Technically, the consumers and merchants are all customers to the company, and addressing this spectrum of personas will provide all customers with a cohesive customer experience.
Assign Employees Based on Greatest Needs
Not all business fields demand equal investments at the same point in time. Often B2B2C enterprises may begin by building out their business side first to create organic growth. By making a compelling product or service, they do so. However, once the business or vendor side is ready and working with gaining traction, B2B2C companies’ priorities eventually shift to building a connection with the final consumer.
Both the vendor side and the consumer side are vital for your business’s success. Although this does not imply that a company must allocate an equal amount of staff and resources to both, contemplate the major team where the need for employees is more significant.
Address Final User Directly or Indirectly
After smart staffing, identify the significant space for paying direct or indirect attention to the problems constraining your growth. For example, if your “consumer” demands are not increasing as steadily as you expected, address the “consumers” directly by introducing unique strategies for acquisition and retention. At the same time, you can also indirectly increase demand by improving supplier quality.
Adopt Data Metrics for Alterations
Adopt the use of data to create a correct balance. The benefits of data powered metrics are far-reaching on providing companies with accurate feedback. Like, Metrics that answer questions such as “are “customers” and “consumers” achieving their desired results can prove to be useful for your business. Use the results from these data metrics to decide which professionals’ space is equipped to build better marketing strategies.
Provide Consistent Customer Experience
In times of digital marketing, B2B2C companies must focus on supplying their target market with exceptional and consistent customer experience. By customer experience, it means both to their “consumers” and business “customers.” Adopt multiple digital channels like social media, websites, online broadcast channels, e-retail portals to give your end-users a personalized message and experience to increase engagement.
Any business should have a well-designed structure for salesforce performing robust account management for other companies that act as middlemen to your end consumers. You must also dedicate resources for branding and marketing your product or service to keep your final consumer engaged. If you get your end-users love your business offerings, they will automatically enhance your B2B sales. With these comprehensive steps at hand, you can easily pave your way to successful B2B2C marketing campaigns