B2B comes from English ‘business-to-business’. These are sales in which customers are legal entities, and suppliers or contractors are other legal entities. The difference between the alternative form of interaction – B2C – lies in the fact that in it, sales and offer of services occur in the direction from business to retail consumer.
B2B sales features
The B2B phenomenon can be considered from another point of view, paying attention to the probable difference in the goals of buying from a business and a consumer.
In B2B, everything happens differently. Business is interested in making a profit. It doesn’t matter how – direct or indirect, but the purchase of your product should help. There are a number of business needs, based on which it acquires certain services and goods.
The product is bought for resale with a mark-up. They bought a TV set in Japan at a wholesale price of $1,000 apiece, brought it, designed it, and sold it in another country for $2,500. The product is involved in the production chain—a 3D printer for the manufacture of metal parts. The service improves business processes. Consultation with a lawyer allows you to resolve contentious issues or draw up the necessary documents.
By the way, an ordinary person may need a piece of legal advice. But the business will most likely be interested in more specific issues, schemes, and the services themselves will be provided in a different order.
In general, it should be said that nowadays, the vast majority of tech companies are B2B. It is particularly visible in the gambling industry, and the B2B casino sector continues to expand across the world. It may seem strange but casino companies use outsourcing for marketing than in-house and a representative of Playmo once mentioned that giving away Playamo casino no deposit bonus was one of the parts of the marketing. In general Australian casinos are becoming more inclined towards adopting B2B services.
B2B is a partnership rather than a sale in the traditional sense. It is characterized not so much by mass as the emphasis is on long-term cooperation. There are different tasks for B2B and B2C. In the case of a business partnership, the ‘sell and forget’ approach is unacceptable. Therefore, contact is required to be more confidential. As a rule, on each side, cooperation is supervised by a separate manager or team, working together on all issues. Often, thorough negotiations are held for several months before the first transaction occurs.
The sale, in this case, is based on pragmatism: logic, numbers and the development of a mutually beneficial position. A deal in the B2B segment is less a result of chance and almost eliminates impulsive decisions.
Meanwhile, there are some areas in which B2B2 and B2C approaches intersect — for example, premium banking or insurance services. The company provides the client with a personal manager with whom he step by step formulates a teamwork strategy. They decide which products will be included in the service package, set interest rates, commissions, and fees. For business, some clients with private services bring revenues comparable to those from wholesale deliveries of many enterprises.
The B2B sales system is an opportunity to increase company sales by automating the work of managers and using their resources to increase B2B sales. It frees staff from mechanical work, speeds up customer service, reduces errors by eliminating the human factor, and is able to analyze sales and direct maximum effort into effective marketing.