B2B and B2C business models target two completely different audiences. The two types of businesses also differ in their sales cycles, relationships with customers, and marketing tactics.
Learn why these differences matter and which marketing strategies work best for B2B and B2C businesses in this guide.
What Is B2B?
B2B stands for business-to-business. In this model, your customers are other businesses or companies.
Some examples of B2B business models include:
- Selling software to other businesses
- Providing marketing services
- Selling consulting services
- Manufacturing products to sell to distributors and/or retailers
- Distributing raw materials or machines to manufacturers
- B2B ecommerce sites selling to other businesses
What Is B2C?
B2C stands for business-to-consumer. With B2C, you sell your products or services to individual customers.
B2C examples include:
- Consumer packaged goods like food and beverages, cosmetics, and cleaning supplies
- Fashion/clothing brands that sell to consumers
- Non-wholesale retailers, like grocery stores
- Service businesses like plumbers and electricians
- Restaurants, hotels, and airlines
- Software or apps that target individuals
B2B vs. B2C: Core Differences
B2B and B2C businesses differ in sales cycle length, purchase decisions, customer relationships, and more.
B2B vs. B2C Sales Cycle Length
The B2B sales cycle is usually longer and more complex than B2C. This is partly because establishing trust and building rapport takes more time in B2B. As the purchase decision usually involves more stakeholders.
And businesses often have formal processes and policies they need to follow when making purchases.
According to a Databox survey, the median B2B sales cycle length is just over two months.
The B2C sales cycle tends to be much shorter and less complex, sometimes lasting only a few minutes. (Depending on the product or service involved.)
It’s often as simple as searching for a product online. Adding it to your cart. And clicking the buy button.
With B2C sales, the consumer often goes through most of the marketing funnel alone. In fact, they might not interact with a salesperson until the point of purchase. This means marketing often plays a more important role than sales in B2C.
B2B vs. B2C Decision-Making Process
In B2B, the decision-making process largely depends on rational considerations like:
- Who will be using the product/service
- What it costs
- How much the purchase is likely to impact or disrupt the organization as a whole
- The potential return on investment (ROI)
The last part is key—many B2B purchases are treated like investments. Rather than a simple purchase.
B2B marketers also typically need to convince multiple decision-makers that their offering is the best solution for that business. From legal departments to managers and even the C-suite.
With B2C, purchase decisions are often impulse-driven, based on considerations such as:
- Which option looks more appealing (e.g., packaging quality)
- Which option costs less or offers more value
- How convenient the product or service is to buy or use
- Brand familiarity
- The consumer’s emotional state or mood
There’s usually only one decision-maker (the consumer) directly involved in the purchase. Although they may seek advice from others on purchase decisions. And perhaps even make a joint purchase with someone else.
B2B vs. B2C Customer Relationships
B2B companies rely on strong personal relationships with their customers for both sales and retention. Because the sales process can be long and complex, it requires consistent contact to keep things moving forward. Often with dedicated sales teams/managers.
This relationship is often the reason business customers renew or cancel their agreements. While product/service quality is key, maintaining strong relationships is what can help build brand loyalty in B2B marketing.
B2C sales rely on building a positive relationship between the buyer and the brand or product. Rather than a salesperson or team. In fact, there often isn’t even a salesperson for the buyer to connect with at all.
B2C brands typically form relationships with customers through:
- High-quality products
- Engaging online content (like on social media)
- Working with influencers the target audience trusts
B2B vs. B2C Customer Service
B2B customers often require more specialized, in-depth support. Due to the complexity of the products or services. This means B2B customer service tends to require a higher level of expertise with the product or service. And a more personalized approach.
Customer service in B2B often involves dedicated account managers and customized support plans. The level of support available may also vary from customer to customer depending on the specifications of their contract, subscription, or service level agreement.
Oracle, a B2B cloud computing and data company, has an extensive customer support system. With its own custom portal, lessons on using Oracle software, developer communities, and direct support options.
In contrast, B2C customer service focuses on quick and efficient responses to a large number of customer inquiries. It usually involves less complex issues than B2B customer service (like returns or refunds, rather than product assistance).
Due to the emphasis on speed and convenience, many B2C brands offer self-service solutions. Think chatbots, comprehensive FAQs, and streamlined return processes.
For example, Dollar Shave Club has a live chat available during daytime hours. Outside of these hours, it becomes an FAQ. There are also options to track your package or leave a message.
B2B and B2C Similarities
While they differ in many ways, B2B and B2C business models share the same goals: making sales, satisfying customers, and building brand loyalty.
There is often overlap in other areas. And some businesses sell to both businesses and individual consumers.
Also, both B2B and B2C businesses:
- Use marketing tactics like content marketing, search engine optimization (SEO), and social media marketing to generate leads and drive sales
- Rely on brand reputation and credibility to gain their customers’ trust
- Strive to build positive relationships with their customers
- Benefit from providing satisfying customer experiences and after-sales service
B2B vs. B2C Marketing
Let’s go through some of the most popular B2B and B2C marketing tactics. Starting with B2B.
B2B Marketing Tactics
B2B buyer decisions are influenced by the needs and preferences of the team or organization as a whole.
There’s more at stake, so they need to be sure the solution they choose will deliver a positive ROI. As a result, they’re typically harder to convince. Which means credibility is key in B2B marketing.
Account-Based Marketing
Relationships play a vital role in B2B sales. Account-based marketing (ABM) helps lay the groundwork for these relationships. This involves targeting specific high-value accounts with highly personalized campaigns to convince them to become a customer.
Here’s an example of ABM in action:
Engagio (acquired in 2020 by Demandbase) created bobblehead replicas of decision-makers at key companies they were targeting for their business.
The team then sent an email inviting each decision maker to an event where they could pick up their free custom bobblehead. Securing a meeting rate of 31%.
Image Source: Business 2 Community
Events and Networking
Industry events like tradeshows and conferences are great B2B marketing opportunities. These events allow you to showcase your products and meet prospective customers. Helping you build your network and credibility within your industry.
For example, the National Restaurant Association holds a tradeshow in Chicago once a year. Restaurant owners and managers can meet vendors and sample an assortment of products. From food to industrial dishwashers.
B2B brands can also host and attend events like workshops, seminars, and webinars. This lets you build relationships with prospects and demonstrate your product and expertise.
Content Marketing
Content marketing involves using content to promote your business. It’s an excellent way to build brand awareness. And establish yourself as a thought leader in your industry.
Plus, it creates opportunities to educate prospective customers about your product. And how it can help them.
Popular types of content marketing include:
- Blogs and articles
- Videos, podcasts, and webinars
- Email marketing and newsletters
- Case studies and testimonials
- Ebooks, white papers, and reports
- Social media posts
Effective content marketing provides value by helping your target audience solve their problems or achieve their goals. In B2B content marketing, that means the problems and goals of the business, not the individual.
For example, an accounting software provider like Xero might publish how-to guides for new entrepreneurs and small business owners. Helping prospective customers solve their problems.
This helps Xero showcase its expertise in the industry. While also promoting its tools as a way of solving relevant problems. Helping the brand capture leads and potentially generate sales.
Content marketing is also a relatively low-cost tactic and can generate returns long after your initial investment in content creation.
But how do you know what content to create?
Start by finding keywords to target with Semrush’s Keyword Magic Tool.
Open the tool and type in a seed keyword (a broad keyword related to your product or service). Next, select your target audience’s location, and click “Search.”
(You can get personalized results by entering your domain, too.)
The tool will return lots of related keyword ideas. But you want to filter these to find ones you can create relevant content for. Content that has the potential to rank in search results and drive customers to your website.
Start by filtering by keyword difficulty, using the “KD %” filter (or the “Personal KD %” filter if you entered your domain). Choose a difficulty level, or enter a custom range of 0-49 to show keywords that are “possible” or easier to rank for.
Then click “Apply.”
Filter the list even further to find questions from potential customers. Questions you can answer with high-quality content that includes a call to action (CTA) for your product or service as a way of solving their problem.
Do this by clicking the “Questions” filter at the top.
Then, create content that answers these questions.
For example, if you sell email marketing software to other business owners, you could target keywords like:
- How much does email marketing cost?
- When is the best time to send a marketing email?
- What is a good click rate for email marketing?
In the content, you could then tell your potential customers why your product provides great value. And how it can help users understand when to send their emails and how many clicks they’re getting using the built-in analytics.
Repeat this process for other relevant seed keywords. And create helpful content that solves potential customer problems and helps establish your brand as an authority.
B2C Marketing Tactics
B2C marketing targets individual consumers. And generally aims to appeal to their emotions.
Trust and credibility are still important. But B2C marketing tactics often focus more on direct benefits to the individual. Such as product quality, convenience, and value for money.
B2C brands often face more competition than B2B businesses. And because it’s typically harder to form personal relationships with their customers, they need to find other ways to catch—and keep—consumers’ attention.
Emotional Engagement
In B2C marketing, the focus is on creating an emotional connection between the consumer and the product or brand.
One way to do this is to appeal to your target customer’s desire to belong to a particular group or community.
Allbirds is an example of a B2C brand that does just that. They sell footwear with a focus on sustainability and using natural materials. Appealing to consumers that share the same values.
To engage your customers emotionally, get to know them through:
- Customer research: Seek to understand your customers’ behaviors, preferences, and purchase decisions
- Buyer personas: Define your target customers (and the problems your product solves for them)
- Brand strategy: Establish your brand identity and story, brand values, and key selling points
Then, use the resulting insights to appeal to your customers’ emotions through:
- Core messaging: What do you offer and to whom? What sets you apart?
- Visual identity: Use visual elements like your logo, packaging design, and marketing materials to appeal to your target customers’ personas
- Customer experience: Ensure consumers’ experiences of your brand keep them coming back (through solid customer service, easy return policies, etc.)
Content Marketing
Like B2B marketing, content marketing is another great B2C strategy. Covering formats like blog posts, videos, and social media content.
Content marketing and SEO play an important role in driving organic (unpaid) website traffic. Especially for B2C ecommerce businesses.
As with B2B, effective B2C content marketing provides valuable information and solutions that address consumers’ needs and questions.
For example, sports brand Wilson ranks for the search term “how to choose a tennis racket.” The post details how to choose a tennis racket based on factors like skill level and swing style. And it includes links to Wilson’s own tennis products.
Like B2B content marketing, find B2C content ideas by starting with keyword research. Again, use the Keyword Magic Tool to find lots of keyword ideas.
And create content that solves readers’ problems. Turning them into customers.
Social Media Marketing
B2C brands use social media marketing tactics to promote brand awareness and drive sales. Social media offers businesses a way to interact with their customers directly—and build relationships with them.
B2C social media marketing tactics include:
- Influencer marketing: Partner with influencers who promote your products to their audience or followers
- Engagement campaigns: Drive engagement through competitions, hashtags, polls, and user-generated content
- Social media ads: Run paid ads on social media platforms such as Instagram, TikTok, Facebook, and X (formerly Twitter) to target specific user demographics
Like this ad for Six Flags on Instagram:
Use Semrush’s One2Target to find out which social media channels to target with your marketing efforts.
To start, enter the domain of one or more of your competitors. (Their target audience is likely similar to yours.) Then click “Analyze.”
You’ll land on the “Demographics” tab, which tells you some basic information about your target audience. But we want to go to the “Behavior” tab.
The “Social Media” widget shows you which platforms your target audience visits most.
Use this information to help you prioritize channels in your marketing strategy. Whether that be to find out which channels you should create organic content for. Or which platforms might yield the highest ROI from paid ads.
Mass Media Marketing
Mass media marketing aims to reach as many potential customers as possible. Maximizing exposure and brand recognition among the general public.
Mass media advertising channels include:
- Television
- Radio
- Print media (e.g., newspapers and magazines)
- Billboards
Image Source: Lamar
These channels are an effective way to publicize promotions such as discounts and special offers. But they are often expensive, and typically don’t have high conversion rates (as they don’t target a narrow audience).
This makes these tactics more suitable for large B2C brands with big marketing budgets. And for those with a focus on building brand awareness.
B2B vs. B2C Ecommerce
The main differences between B2B ecommerce and B2C ecommerce are the target audience, transaction complexity, and buying process.
Let’s take a closer look at some of the differences in more detail:
B2B Ecommerce
B2B ecommerce involves transactions between businesses. These transactions are typically characterized by larger order volumes, longer sales cycles, and greater degrees of customization.
The purchasing process is also more complex and personalized. Often including negotiations, custom pricing, and contracts.
Grainger is an industrial supply company. It provides maintenance and cleaning products, along with lab equipment. The brand’s primary target customers are other businesses.
Grainger’s product pages are typically highly detailed. With a focus on showcasing specifications rather than trying to appeal to the emotions of the buyer (like a B2C brand might do).
To support B2B’s more complex transactions and sales processes, B2B ecommerce websites also tend to be more complex than B2C ecommerce platforms.
They typically need to support capabilities like bulk ordering, product configuration, and custom or dynamic pricing.
B2B ecommerce websites may also need to be able to integrate with other business systems. Such as procurement solutions, customer relationship management (CRM) software, and enterprise resource planning (ERP) tools.
Many businesses turn to dedicated B2B ecommerce marketing platforms instead of traditional website builders. To handle these more complex needs.
For example, imagine a manufacturing company sourcing raw materials from a supplier through an ecommerce platform. The buyer logs into the platform, navigates to the supplier’s catalog, and selects specific quantities of materials needed for production.
The transaction might involve:
- Negotiating bulk pricing based on contract terms
- Ensuring compliance with regulatory requirements
- Coordinating delivery logistics to meet production schedules
- Payment terms being extended
- Integrating invoicing with the buyer’s ERP system
B2C Ecommerce
In contrast, B2C ecommerce transactions involve direct sales of products or services to individual consumers. They’re characterized by smaller order sizes, shorter sales cycles, and a focus on convenience and user experience.
To make it as easy as possible for consumers to choose your brand over the countless others on the market.
For example, consider a consumer browsing an online clothing retailer’s website. They select a few items, add them to their cart, and proceed to checkout.
The checkout process is streamlined with various payment options (credit card, PayPal, etc.) and shipping choices (standard, expedited). After completing the purchase, the consumer receives confirmation emails and delivery tracking information.
The entire B2C ecommerce experience is designed to be as frictionless and convenient as possible.
Elevate Your B2B or B2C Marketing Strategy
Whether your business is B2B or B2C, you can take your marketing to the next level with the right set of tools.
Semrush offers more than 55 digital marketing tools to help you understand your audience, plan and execute successful campaigns, and outsmart your competition.
Try Semrush for free today and unlock your business’s full potential.
