What are B2B and B2C? The difference between B2C and B2B models

It can be seen that B2B and B2C are the two most commonly used business models nowadays. However, many people still have difficulty distinguishing these two business models. Therefore, in the following article, Viindoo will help readers better understand B2C and B2B as well as the differences between these two models.

What are the B2B and B2C model?

B2B is a business model between businesses, as they can be suppliers and retailers, manufacturers and suppliers, etc. Meanwhile, B2C is a business model that takes place directly between businesses and customers without going through intermediaries (agents, retailers, etc.).

B2B Business Model

B2B Business Model

The B2C business model has become more explosive since the late 90s, with the dotcom revolution (online business on websites). Accordingly, most commercial transactions between businesses and individual customers will take place on the Internet platform. This model can be applied in organizations or any businesses that want to sell their products or services to consumers via Internet social networks to serve personal necessities.

Internet-based B2C business model

Internet-based B2C business model 

Managers should compare the differences between B2C and B2B to choose the most suitable model for their business. Currently, the B2C model is being applied by more businesses in terms of owning transaction methods on e-commerce platforms. The application of this model will help businesses create momentum and develop e-commerce to improve their competitive advantages.

>>>> See More: What is B2B? Business model Business to business

Difference between B2C and B2B

The biggest difference between B2B and B2C is the audience. Specifically, with B2C, consumers can buy products directly from the manufacturing company without going through an intermediary, thereby reducing the amount of money they have to spend on each product.

 The following table compares the differences between B2B and B2C:

Comparison Criteria
 B2B
B2C
Target Customer Companies Consumers and companies, business​
Negotiation and transaction
Negotiation prices, delivery methods, product and service features
Excluding all factors similar to B2B
Marketing Deployment Targeting
Businesses Targeting
Individual customers
Business Process
Relationship Lead
- Maximized relationship value
- Small target market 
- Long, multi-step buying cycle
- Brand recognition with a personal relationship
- Activities that build awareness and engagement understanding
- Economical buying decisions

Products lead
- Maximized transaction value
- Large target market 
- Step-by-step, no-holds-barred buying process
- Brand awareness through repetition as well as images
- Merchandising and targeting buying activities
- Purchasing decisions based on customers desires, price or circumstances


Target Audience

The target audience of the B2B business model is businesses. Meanwhile, in B2C type, the C here is Consumer, including individuals and businesses also (those that buy product for their consumption, not for re-selling).

Internet-based B2C business model

Internet-based B2C business model 

Negotiation and transaction process

The negotiation process for B2B businesses includes many factors related to price negotiation, technical characteristics of the product or service, delivery and specification. For the process of negotiating with consumers in the B2C model will not necessarily have the same elements as B2B. 
The negotiation and transaction process of the B2C model makes it easy for retailers to put their products and services on websites for the purpose of opening an online supermarket. Because of those reasons, e-commerce applications for B2C businesses are growing day by day. 

Integration

In the B2B business model, businesses must ensure that the system must communicate with each other without human intervention. Therefore, their system needs to be integrated with the partner's system. In contrast, the B2C business model does not need to do so. 

Marketing implementation

Business to business (B2B) and marketing to consumers (B2C) have different. Whether people are marketing to multiple businesses or to consumers, it's all about marketing to people in the end.

The process of developing marketing differs between B2B and B2C

The process of developing marketing differs between B2B and B2C 

However, the B2B business model relies on efforts to build relationships, using a consumer-focused strategy. Even in some cases, businesses have lost their customers because of not developing a reasonable strategy.

Sale process

The sales process based on the B2C business model includes elements such as 

  • Product lead
  • Maximized transaction value
  • Large target market
  • Step-by-step, non-prolonged buying process 
  • Brand identity through repetition and image
  • Selling activities
  • Purchase decisions are based on desire, price, or circumstances

B2B sales process will include the following elements:

  • Relationship lead
  • Maximized Relationship Value 
  • Small target market
  • Extended, multi-step buying process
  • Brand awareness through personal relationships
  • Activities that build on awareness and knowledge
  • Purchase decisions based on economic value

Viindoo CRM - Solution for an effective business model

Viindoo CRM is software that provides a comprehensive customer care and management solution. This software is capable of managing all customer information from contact, transaction history, and consumer characteristics to reports. Based on these data, businesses will build a business model suitable for the target group of customers. 

In addition, CRM software is also capable of supporting businesses in management as well as customer care. Therefore, customers will appreciate the professionalism of the business, thereby helping to boost revenue.

Viindoo's customer care management software Viindoo

Viindoo's customer care management software Viindoo 

In addition to the above special features, Viindoo CRM software also possesses many advantages such as:

  • Comprehensive management of sales cycles 
  • Support scientific customer data management
  • Support building a customer care plan effectively 
  • Real-time multi-dimensional analysis and reporting system 
  • Fully integrated with sales management applications, email marketing, invoice management in Viindoo

Ready to experience the excellence?

Viindoo CRM - Close more deals in less time, visualize your pipeline stages, automate email responses, and have a full visibility and control of your schedule. 


TRY NOW - It's free!    or  Contact us

Contact information:

  • Head office: 6th Floor, Taiyo Building, No. 97 Bach Dang, Ha Ly Ward, Hong Bang District, Hai Phong, Vietnam 
  • Email: email viindoo
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  • Website: https://viindoo.com/

Above are the comparisons of the difference between B2B and B2C in an overview best. Hopefully, the article has helped readers choose the right business model for their business. If readers are looking for a solution to manage their business activities more effectively, do not hesitate to contact Viindoo via 02257309838 for expert advice.

>>>> See More: 

What are B2B and B2C? The difference between B2C and B2B models
Viindoo Technology Joint Stock Company, Trần Thị Lâm Anh December 9, 2022

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