Is B2B and B2C Dead?
Keith Rozelle
LinkedIn for Grown-ups | We Empower SMEs to Win. On LinkedIn | Author: How to Sell Virtually | ex-EDS, HP, BT
In the current AI-fuelled business landscape, there is one essential truth we must not forget: the way we go about selling still matters. The processes involved in selling products and services, especially more complex ones, rely heavily on what we call the "degree of consideration."
Purchasing a newspaper, for example, is a low-consideration purchase; it’s simple, quick, and doesn’t require much thought. But when it comes to bigger investments, like buying a brand-new car for £70,000 or awarding an IT outsourcing contract worth £100 million, these are what marketers call “highly considered purchases.”
Buying decisions like this require more time, more information, and deeper thinking.
Traditionally, sales have followed two fundamental approaches: Business-to-Business (B2B) and Business-to-Consumer (B2C). Both have their own set of characteristics and distinct strategies, but as the world evolves, we at Sales Marvel are asking, is it time to rethink these models? Do we still need to differentiate between them?
We believe the answer to both questions is YES.
In particular, the COVID-19 pandemic acted as a catalyst for change. It altered how businesses operate and, more significantly, how buyers think. What was once a rigid distinction between B2B and B2C sales now feels increasingly irrelevant. And with the rise of artificial intelligence (AI) reshaping nearly every industry, it's essential to reconsider whether these sales models are still fit for purpose in the modern world.
Key Differences Between B2B and B2C
Before we delve into why a rethink is needed, let's outline the traditional differences between B2B and B2C models. Understanding these distinctions gives us a solid foundation for analysing how things are changing:
1. Target Audience: B2B focuses on selling to other businesses, whereas B2C sells directly to individual consumers.
2. Relationships: B2B relationships are often long-term and built on trust, while B2C tends to involve one-off or shorter-term transactions.
3. Sales Cycle: B2B sales cycles are typically much longer, involve multiple decision-makers, while B2C cycles tend to be faster and involve fewer decision-makers.
4. Decision-Making Process: B2B decisions are usually made collectively, with input from various stakeholders. B2C decisions are most often personal and made by one individual.
5. Sales Channels: B2B relies more on direct sales, account management, and personal relationships, while B2C utilises e-commerce, retail, and mass media advertising.
6. Marketing Strategies: B2B marketing tends to be more targeted, educational, and focused on demonstrating ROI. B2C marketing, on the other hand, appeals to emotions, desires, and immediate gratification.
7. Product Complexity: B2B products tend to be more complex, requiring demonstrations, detailed specifications, and customisation. B2C products are usually simpler and more standardised.
8. Pricing Structure: B2B pricing often involves negotiation, contracts, and custom quotes. B2C pricing is typically fixed and straightforward.
9. Customer Feedback and Support: B2B requires in-depth post-sale support and ongoing relationship management, while B2C focuses on customer satisfaction through reviews and basic customer service.
10. Branding and Positioning: B2B branding is built around trust, expertise, and long-term value, while B2C branding focuses on mass appeal, brand loyalty, and emotional connection.
So, What’s Changing?
As businesses and consumers continue to adapt to the post-pandemic world, and as AI becomes more integrated into the business landscape, the boundaries between B2B and B2C are blurring. Here are some of the key changes we’re seeing:
1. People-First Approach
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In the current AI-driven world, it's critical to remember that we are selling to people, not machines. This applies whether you're selling to a business or an individual. The rise of AI may have automated many processes, but the human element in sales remains irreplaceable. Even in B2B, where traditionally we’ve focused on organisations, the decision-makers are people who have emotions, biases, and unique preferences.
More and more, we’re seeing businesses adopt a “people-first” approach, where empathy and personalisation are key. Buyers, whether B2B or B2C, expect tailored experiences that speak directly to their needs and desires. Generic sales pitches and one-size-fits-all strategies are becoming less effective.
2. The Blurring of Lines Between B2B and B2C
The traditional distinctions between B2B and B2C no longer hold the same weight. For example, in B2B, decision-makers now expect the same level of convenience, speed, and personalisation they experience in their B2C transactions. This means that B2B businesses need to adopt some of the strategies that have traditionally been used in B2C, such as user-friendly e-commerce platforms, personalised recommendations, and customer-centric marketing.
Conversely, B2C companies are beginning to take a page from the B2B playbook. They’re building stronger relationships with their customers, offering subscription services, and focusing on long-term engagement rather than just one-off transactions.
3. Sales Channels and Technology
Digitalisation has disrupted traditional sales channels. In B2B, for instance, LinkedIn has become a critical tool for connecting with prospects, nurturing leads, and closing deals. Meanwhile, AI tools are transforming the way businesses manage customer relationships, analyse data, and personalise their outreach efforts.
Similarly, in B2C, e-commerce platforms and social media are playing an even more significant role, with companies using AI to predict customer preferences and automate customer service through chatbots.
4. Shorter Sales Cycles and Smarter Buyers
Both B2B and B2C buyers now have access to a wealth of information at their fingertips. This means that buyers are more informed than ever before, and the sales process often starts long before a salesperson is involved. For B2B, this means that prospects may already have completed 70% of their decision-making process before they even speak to you.
As a result, sales cycles are becoming shorter, and salespeople need to provide real value from the very first interaction. Whether in B2B or B2C, the key is to be responsive, proactive, and provide genuine insights that help the buyer solve their problems.
Conclusion: The Future of Sales
So, is B2B and B2C dead? Perhaps not quite yet, but it’s clear that the lines are becoming increasingly blurred. The pandemic has reshaped how we think about sales, and AI is pushing us to rethink the traditional sales models. What’s crucial in today’s business landscape is not whether you’re selling to a business or a consumer, but how well you understand your ideal buyer and how you can add value at every stage of their journey.
The future of sales lies in recognising that, no matter what you're selling, it’s always about the people you're selling to.
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Well said! In today's landscape, it's crucial to build real connections. What works for us is leveraging the NES Framework to turn engagement into actionable leads—game changer! How are you evolving your outreach strategies?
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1 个月Great article thanks. Very interesting and useful information.
Logistics Assistant @ Aldi UK | Delegating Tasks, Managing Teams
1 个月Very informative and insightful article!!!?????? Thank you so much for your job!!!??????????????
Logistics Assistant @ Aldi UK | Delegating Tasks, Managing Teams
1 个月Very informative and useful article!!!?????? Thank you so much for your job!!!??????????????