I’ll scratch your back if you scratch mine. That’s kind of how B2B sales works. B2B sales are expected to reach $1.8 trillion by 2023, a whopping three times as much as the $600 billion that B2C sales are expected to hit by 2024. Carefully grasping the dynamics of the B2B sales process and executing sales strategies is necessary when operating this ever-evolving business model.
What Is B2B Sales?
B2B is a business model in which businesses sell to other businesses. Through their products and services, B2B companies hope to serve their client companies by boosting their internal efforts and creating more predictable revenue streams.
B2B vs. B2C Sales: What’s the Difference?
If this doesn’t make sense yet, let’s compare the sales process of B2B vs. B2C. Customers of B2C companies are the people who directly purchase a product or service. For example, people who go out to eat at restaurants or hire someone to renovate their home. Some cases are not B2B vs. B2C exclusive. Companies can have a mix of both models and offer their products and services directly to customers as well as client-companies, who then offer the products or services directly to customers.
What Can the B2B Model Do for You?
The B2B business model presents distinct advantages, undergoing constant evolution with advancements in technology. Let’s discuss the four main benefits a B2B business model brings.
Bigger sales: Sometimes, business buyers require products made specifically for their businesses. This product specificity will almost guarantee purchases if executed right. Due to this, B2B sales tend to be larger and longer-lasting than a standard retail order, which ultimately means higher and more predictable revenue.
Long-lasting relationships: B2B buyers and sellers may buy from each other, establishing long-lasting relationships and cost-saving opportunities. Additionally, you can create partnerships with retailers that result in regular orders. B2B companies will often hold a relationship with a buyer for years, while a B2C business will only have a sporadic relationship with a buyer.
Data-driven effectiveness: Through B2B sales exists a data centric process that drives effective management for client-companies. With sales prospecting tools and analytical insights, B2B companies can target a large market of companies across industries. At the same time, they have the flexibility of specializing in an area like technology to become a leader in the field.
Lower operational costs: The B2B business model incurs lower costs of operation due to its ability to operate in bulk. The ease of advertising to other businesses through B2B websites can also help cut marketing costs and boost conversion rates.
What Can You Do for the B2B Model?
The right understanding and execution of specific ingredients can make your B2B business model a success. There are four main things that thriving B2B companies should have.
Defined audience: Since it’s inefficient to market to everyone at once, you should have a strong sense of your target audience. These client-companies would optimally have the highest probability of purchasing what you offer. This will help you narrow your focus to a specific market during the lead generation and sales prospecting process.
Persuading context: Create content that resonates with your targeted audience. What does this group of people care about? What do they respond to? How do they buy? B2B companies answer these questions by researching the motivations, pain points, and buying behaviors of other businesses.
Content optimization: Market your product or service in a way that allows your target audience to learn and work smarter. Create awareness of the benefits of the product or service, and how it will ultimately make their life easier. Beyond that, what makes your approach unique from others? As clientele are ever-evolving, we must tweak and adapt our B2B business model as needed. Utilizing content marketing is a powerful way to make your brand more credible.
Social media accounts: Having a social media presence allows you to generate more leads and get to know your existing customers better. When interviewing marketers, 57% have generated leads from LinkedIn, 52% from Facebook and 44% from Twitter. By sharing your views and answering questions, you can showcase your expertise and build trust with your customer base.
B2B Success Stories
If you find yourself still wondering “What is B2B Sales?”, you can also understand the model through examples of success. Companies like Phalanx and Feathr have done an excellent job facilitating their B2B sales processes. Both businesses claimed success by collaborating with their outsourced sales team and taking a hands-on approach to lead generation and sales prospecting. Through rigorous research and outreach, B2B companies can truly understand their client needs and create more predictable revenue streams, ultimately leading to business growth.