What is BtoB commerce and how does it differ from BtoC?

In 2019, the BtoB commerce market in France already represented over 100 billion euros in sales (according to Fevad figures). Today, it's more competitive than ever, and companies are increasingly turning to it.

But what exactly is BtoB commerce? How does it differ from BtoC commerce? Definitions, examples and a comparison table are provided in this article to give you a clearer picture.

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What is BtoB commerce?

Definition

BtoB commerce refers to all the commercial activities and relationships of a company aimed at business customers. It comes from the English term " Business to business", which refers to trade between two companies. As such, BtoB covers all the tools used to bring these organizations together and facilitate their commercial exchanges and means of communication.

It can be referred to in several ways:

• b2b commerce
• Professional market
• Inter-company trade
• Industrial marketing

👉 Example: a company buying IT products from another company, or a company using the cleaning services of a cleaning company.

BtoB commerce can be applied in :

• Physical commerce
• E-commerce, also known as "BtoB E-commerce".
• Cross-channel commerce, using all types of sales channels.

The specifics of BtoB commerce

BtoB commerce, because of its professional clientele, targets a more limited customer base than that of the general public, prompting companies to propose more personalized offers. This can take the form of :

• Setting up partnerships,
• Establishing certain privileges according to the "size" of the corporate customer ,
• privileged communication: each customer is followed up by a dedicated account manager, for example.

BtoB commerce has other specific features, such as :

• The end-user of the product or service is generally not the final decision-maker. Validation by his or her line manager is generally required.
• Decisions are more complex, involving several players.
• Decision-making is more considered.
• Customers are fewer and more demanding.

💡 BtoB sales therefore target a corporate clientele, which forces the players to be more rigorous in their work, since these same customers, do without salespeople since they integrate into their purchasing process all the commercial stages that precede the final decision.

What are the main differences between BtoB and BtoC sales?

BtoC commerce comes from the English term "Business to consumer", which refers to all commercial relations between a company and the general public.

👉 A comparative table awaits you at the end of the article!

So, beyond the target and the professional clientele, BtoB and BtoC commerce present considerable differences:

A longer sales cycle for BtoB

• The BtoB sales cycle is generally longer, especially if your company deals with large accounts. The prospect who starts the buying process is not usually the final decision-maker. The product/service must therefore be approved by several stakeholders, which considerably lengthens the sales cycle.

• The BtoC sales cycle is shorter, known as "one shot", since only one person is involved in the purchasing decision. The cycle is more direct and rapid.

Different buying and decision-making processes

B2B purchasing process

In BtoB, buyers don't buy with their own money, but with their company's funds. This is why any purchase must be validated by one or more players, which lengthens the purchasing process and therefore delays the final decision.

👉 For example, the BtoB purchasing process could be as follows:

1. The emergence of the need: the customer becomes aware of his need, which may concern the purchase of a good or a service.
2. Drawing up a specification: The specification will serve as a guide, incorporating all the relevant information the customer has found in order to choose the best offer.
3. Sourcing : Sourcing is generally done online, using comparative blogs and quotations.
4. Negotiation: This stage enables both companies to set a price, and prepare for the final act of purchase.
5. Purchase decision: This is the final stage in the buying process, when the customer signs and finally concludes the purchase of the product and/or service.

The B2C buying process

In BtoC, on the other hand, impulse purchases are more frequent. Consumers don't need validation, and the buying process is fairly quick and traditional. Seeing a product they like in-store can be enough to trigger a purchase... and marketing has understood this!

Different communication channels

BtoB communication channels

In BtoB, your customer is a professional and is made up of several entities. So you need to maintain constant, personalized communication. Your professional target may also be led to..:

• Call on experts
• Calculate ROI
• Set up a balance sheet forecast
• Make profitability forecasts

So it's vital that your offer and your communication about it are perfectly mastered and thought through. The most effective BtoB communication channels are :

• Blogs
• Social networks
• Emailing

💡 Worth knowing (source: Comexplorer):

• 80% of corporate decision-makers look for information about a company to fuel their thinking.
• 94% of them say they trust the content published by a company.

💡 Tip: When communicating, emphasize the quantifiable side, i.e. figures, statistics, infographics... This adds expertise to your content and thus lends credibility to your company... which reassures your customers .

BtoC communication channels

In BtoC, communication and promotional channels are more numerous. Retailers have access to several relevant tools:

• Television or radio communication,
• Poster advertising,
• All types of social networks,
• Emailing,
• SMS marketing, etc.

This gives them the opportunity to reach a much larger number of people, but with less interesting targeting.

More detailed content for BtoB

What type of content is best for a BtoB or BtoC target audience?

BtoB and BtoC comparison chart

To summarize, here are the main differences between B2B and B2C in a condensed format:

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What is B to B to C?

But there is also BtoBtoC commerce. This abbreviation for " Business to business to consumer", refers to the activity of companies that market goods or services to third-party companies, who in turn resell them to the general public.

👉 Let's take an example: a wholesaler selling its products to a clothing store, which in turn resells these products to end consumers.

The BtoBtoC business has the same characteristics as the BtoB business, with its initial contact with a professional clientele. The difference between the two is that the company must adapt its products to the end consumer, rather than to the company purchasing them.

The BtoB business, on the other hand, must focus solely on the expectations of its main target, i.e. companies.