Leverage your business from B2B to B2B2C

As the world evolves rapidly online, the distinction between B2B (business to business creating strong business relationships) and B2C (business to consumer focusing on creating the brand) is becoming increasingly blurred. I've seen in many sectors like automotive, FMCG, Publishing, ... that consumers today have greater visibility and a closer link with companies higher up in the value chain.

The pandemic has accelerated the pace of adoption of many of the changes that the industry has been discussing for years now. Years were spent talking to the world's largest retailers who have huge traditional platforms with complex structures or inefficient e-commerce and customer experience (bad UX, no social campaigns, poor delivery and customer service). It’s time to move up in the value chain and synergize the effort in B2B2C. Furthermore, prepare your company for a faster recovery than you imagine.

How to transform from a strictly B2B to both B2B and B2C?

I've been asked to coach many SME companies to leverage new growth drivers, and I've been in the heart of the transformation of big companies. I've run multiple Business Model Canvas screening pains and gains for a new growth value proposition that leverage B2B to B2B2C. I share with you some of my learning to go further in your journey.

From an internal business perspective, we know you had to make some changes to meet the different needs for effective management of B2B and B2C functions. First, you have to undertake an in-depth review of your day-to-day operations. Based on this diagnosis, you have to implement an entirely new organizational structure and work method. Instead of traditional departments, you can build up several small agile dream teams that operate independently with their own budgets, investment cycles and products. This makes it even more focused, flexible, innovative and able to solve problems for consumers and retailers while ensuring that you continue to grow without losing speed.

From the outside perspective, you have to include B2B partners in this B2B2C journey to co-create a quality purchasing service and a solid consumer network, to attract new audiences and retain existing customers. 

For your consumers, you have to focus on innovation to provide them with more inspiration, convenience and value, as well as an engaging shopping experience. And create a strong brand, fueling demand from consumers and retailers.

What will you consider when moving from B2B to B2B2C?

The advantage of B2B companies is the experience and the necessary resources already acquired to gain a foothold and develop their activity in the consumer market. But you can't just place something on top of your existing B2B business. You almost have to start from scratch and commit to a new B2C corporate mentality. You need to create new strategies that leverage dedicated resources, build separate teams, hire new talent with new capabilities, and discover new ways of doing business.

I warn you that when switching to B2C, you should expect an initial rollback from B2B customers. If there is not much friction and the change seems relatively harmonious, then you probably are not challenging enough your business model, to ensure your long-term success.

You also need to decide what you want to be your driving priority, B2B or B2C orders. It depends but in general, consumer preferences are now the driving force behind every business decision - and generally good B2C decisions also benefit to your B2B partners in the end. After all, by offering a smoother and richer experience, you will find that you can make it as a service and a real relationship based on trust.

To move your ideas to action to results. Take advantage of new consumer behaviour during the coronavirus crisis, but also beyond, you have to reinvest in digital marketing campaigns, developing your mobile apps and your programs on social media as well as creating partnerships with O2O platforms (offline to online). you have to deliver on the three things consumers value the most: speed, transparency, and expertise. Live chat, for example, is an option that delivers speed, transparency, and expertise — things that customers value the most.

B2B2C companies need, at a minimum, to address customers' most pressing pain points and frustrations: the length of the ordering process, the difficulty of finding products, a lack of information on delivery and technical support, and difficulty setting up payments. and you have to know that Buyers no longer are willing to accept less from their professional experience as B2B purchasers than they are accustomed to getting from their personal experience as consumers.