It’s no secret that B2B and B2C are vastly different and companies will need to cater their marketing efforts to different audiences. What exactly are the key differences between B2B and B2C and how do these differences impact companies’ lead generation strategies?
Let’s start with the basics: what does B2B and B2C stand for? B2B stands for business-to-business and describes transactions where the customers are other businesses and making purchase decisions on behalf of the company. B2C stands for business-to-consumer and describes transactions where customers are individual consumers.
As these transactions have different aims and focuses in terms of selling their product or service, their lead generation tactics and their sales process will be different as well. What are these key differences and how will it change the way these companies approach lead generation?
B2B looks at selling to businesses for work-related activities. Clients looking to buy these work-related products are services are making decisions on the behalf of their company and are likely looking for expertise and efficiency. The B2B sales process is largely driven by logic, financial incentive, and business profit. As a result, marketing efforts will need to be more informational and profit-focused, to appeal to customers’ business-oriented goals.
B2C consumers, meanwhile, often make purchase decisions to satisfy their individual needs and wants. With such a large range of different brands and options for a single product, these purchases may be more driven by emotions or by brand loyalty.
For B2B businesses, their target audience tends to be more narrow and specific as they work in a niche market. It’s important for B2B businesses to understand their target audience’s demographics in order to market to them and attract them. Once these businesses find their niche, the next step is to find leads that are the right quality and will transform into customers.
With B2C, the market is larger and the target audience is also bigger and more spread out. As B2C purchases are more emotionally driven, B2C businesses can focus on casting a wide net to capture as many interested customers as possible, rather than stressing over quality.
Lastly, looking at customer engagement and lead generation, B2B companies have usually relied on traditional client engagement methods, such as sales calls, trade shows, and networking. Networking and maintaining a good professional relationship are key for B2B businesses, as the client-business relationship is often a long one.
With B2C, they rely on large-scale advertising and, with the digital age, social media marketing to reach out to as many people in their target audience as possible.
However, as of late, B2B companies are taking a page out of B2C’s book and looking into using social media for lead generation. Since B2B businesses are looking to reach out to other businesses, LinkedIn is the top social media platform for B2B businesses to leverage on professional connections and generate leads.
Whether your business is in the B2B or B2C market, the key to success to converting leads is knowing your audience and approaching them in the right way on the right platform.
If you’re looking to grow your business with quality leads on LinkedIn, reach out to us to discuss your current lead generation and LinkedIn strategies.