Just starting a business is not such a big task. However, to make it work, and not just work, but make a profit – this is already a challenge. A huge number of entrepreneurs and businessmen take knocks precisely because they conduct their business without taking into account significant differences in sales models to legal entities, and end consumers.
It is for this simple reason that most businesses go under. Each of these sales models has its characteristics. Their knowledge helps companies find an approach to each client, establish a strong relationship and receive regular profits.
Such companies differ not only in how sales occur but also in how marketing campaigns are conducted. For any company, customers are important. However, if you compare B2C and B2B marketing, you will find many differences.
If companies selling goods and services to end consumers are more interested in constantly finding new business leads, then companies selling to other companies are more interested in making each new business lead a loyal customer. To do this, companies use the services of a B2B lead generation company, as well as sales tools, along with other B2B marketing tools.
In order not to repeat the mistakes of other entrepreneurs and companies, it is necessary to understand the differences between different types of sales. We will describe in detail how each type of sales works.
The first thing we start with is business-to-business. This represents a commercial activity between 2 companies. Based on this, it becomes clear that the clients of one company are other companies interested in the goods, services, or resources they need. Most often, these are business services, as well as outsourcing services.
The biggest difference is in how the buying decision process works in such sales. Speaking of B2B, several individuals are involved in the decision-making process. These persons can be formed into the so-called decision-making center. Based on this, emotional and impulsive purchases are crossed out.
The purpose of this center is to optimize the procurement process for the company. They buy goods or services to earn even more from them.
Professionals involved in this often choose the supplier that poses the least risk. That is, in such a way that the company can get the maximum benefit. This is expressed in cost reduction, additional profit, and so on.
Roles of decision-makers
Regardless of how many people may be in this center, they all perform two different functions:
- Decision making. These are most often specialists who will directly sign contracts, invoices, etc.;
- Influence on the decision. These are specialists who will talk about all the advantages and disadvantages of cooperation. These can be commercial directors, accountants, procurement specialists, and so on.
The sales process takes much time, as it is not the same as selling a new smartphone to a customer. In this matter, it is better to use the best sales funnel templates to know about all the steps and what needs to be done.
To avoid misunderstandings, when selling goods or services to other companies, you need to put yourself in their place. In this way, you can understand what the client wants, what his motives are, and also what fears he has. Knowing this information, you can adjust sales tactics.
The whole process consists of the following steps:
- Collection of comprehensive information about the buyer;
- Search for points and channels of contact;
- Detection of barriers in communication;
- Removal of all barriers.
In this segment, the motive for buying most often becomes a necessity. That is, companies do not buy something just to satisfy their needs, but they do it to benefit from it. In this area, companies tend to get at least one lucrative contract, rather than spend their energy on the conclusion of a dozen small ones.
This segment refers to the sale of goods and services to individuals for personal consumption. Any supermarket, restaurant, e-commerce shop – all this belongs to this segment.
Compared to B2B, in this business, the sales model involves a much larger number of buyers, but less revenue per unit of goods. Customers, when making a purchase decision, do it quickly and, often, impulsively or on emotions.
To convince customers to buy goods or use the company’s services, marketers use both traditional and digital advertising, offer discounts, as well as promotions and loyalty programs.
How to sell
The primary task of companies in this segment is to increase recognition and visibility. There is a difference in whether you are developing a brand or just being a popular trademark. The difference is that as a brand, you can make more profit.
If a popular brand makes a profit by selling more units, then the brand guarantees high quality. Brands may sell fewer products, but the average check will be significantly higher.
There are 3 components of each brand:
- Resonance. In essence, this should provide answers to customer questions “Why do I need this?” and “How will this product or service help me?”. If the brand has this component, then each buyer, having read the information about the brand will clearly understand what the product or service is;
- Differentiation. This component helps companies answer the question “Why should customers buy from us?”. By working on this, companies make it clear to potential customers how they differ from competitors and what makes them unique. This is where companies showcase their unique selling proposition.
- Faith. Here, companies must give customers an answer to the question of how this product is useful for them. To do this, companies demonstrate successful use cases of products and explain what their benefits are.
If during the sale you are faced with objections that this product is not needed, then you have not created a resonance. If a client says that the price of your product is higher than that of competitors, then you have done a poor job of differentiation. If the client constantly doubts whether the product is what he needs, then you could not convince him.
To succeed in sales, depending on the business segment, you need to have a clear idea of who your customers are. You should understand what goals they pursue and what their motives are. In addition, it is equally important to work on building a brand and its recognition. This will play into the hands of both B2B and B2C companies.