B2B sales or business-to-business sales is the process in which a company sells its products or services to another company. This makes it different from B2C sales or business-to-consumers sales where a company tends to sell its products directly to the consumers. Usually, most people will be familiar with the latter term when compared to the former. Below are some of those brilliant points that make B2B sales different from that of B2C sales.
B2B Vs B2C
Even though most people will be unfamiliar with the term B2B, it holds a larger area of the market when compared to B2C. Note that according to some studies conducted in the field, the overall size of the B2B market is reported to be around $9 trillion while the size of the B2C market is just around $512 billion in 2018. Now, most people would be wondering about the factors that contribute to this difference. Some of those major elements that make B2B different from that of B2C are given below.
Larger Transaction Value
Usually, the business-to-business transactions are most likely to be smaller. For instance, a newly launched company or a small company purchase supplies from another company. However, the transaction is likely to be stretched to millions and billions of dollars in this case. When it comes to B2C sales, the scenario is totally different, especially for the sales other than the real estate, luxury goods, and automotive. In other words, the value of business-to-consumer sales tends to be lower, particularly in the fields of e-commerce and retail.
Longer Sales Cycle
The sales cycle window of business-to-business sales tends to take a higher amount of time to close when compared to business-to-consumer sales. While the strategies and tactics involved in the latter are often associated with the emotions of the consumers, the former tend to focus mostly on the pros and cons of a particular product or service. Needless to mention, the B2B field is extremely competitive and there will be many experts trying to convince a company on a particular product or service. Hence, it is necessary to concentrate on providing logical solutions to multiple issues associated with sales.
In order to make another company purchase your services or products, a B2B salesperson will have to convince a number of stakeholders, especially when it comes to bigger deals. It is to be noted that these stakeholders are likely to be from different departments and hence, their priorities tend to be different. So, you will have to be an expert in multiple areas to close a deal when it comes to B2B sales. When it comes to B2C sales, you will have to convince people who usually have similar priorities and hence, will be much easier for a salesperson to boost sales.