Everything You Need To Know About The B2B To B2C Transformation
/This article is based on the statistic that 80% of B2B buyers now expect, almost demand, a B2C-like experience. It's interesting, considering the global industry worth of the B2B market was $14.9 trillion - five times larger than the B2C market. Why would an industry that's so much bigger than the B2C one want to be more like it? Well, statistically, businesses selling to businesses handle more substantial transactions, so the size of the market doesn't necessarily mean success.
In fact, across the B2B industry, companies have rarely achieved above a 50% customer satisfaction rating. Putting it simply, B2C shoppers are far happier with their experience. Below, we'll look at what more is behind the B2C-experience shift and how brands can achieve it.
Personalization Is Key
Number one on the list is personalization - and the B2C industry has this perfected. Consumers are guided through each step of their journey with personalized experiences. Take online shopping for clothes, for example. Many sites now show shoppers personalized clothing suggestions based on items they've already clicked on - maximizing the chance of further spending by connecting the dots between relevant products. Within B2B, half of the respondents to a survey found that personalizing the shopping experience resulted in higher conversion rates.
What the B2C industry also does well is personalization after the sale. Loyalty programs, for example, dominate the B2C industry, with over 90% of brands offering a variation of an incentive program. A loyalty program for B2B customers might work better because reward programs will be tailored towards the company rather than just the buyer - helping build brand awareness and loyalty across an entire organization.
That loyalty can lead to referrals, and according to HubSpot, 81% of buyers will listen to the advice of a friend or colleague. As they say, it's not what you know; it's who you know.
eCommerce Is The New Field Sales
Well, technically speaking, it isn't. The B2B industry, however, is experiencing a huge shift from traditional field sales towards eCommerce and other virtual channels. eCommerce also includes mobile commerce and social commerce, two rising stars in the industry that are helping buyers complete their buying cycle with ease. One study even found that nine out of ten buyers think online content has a major effect on purchasing decisions.
To achieve this, a sophisticated eCommerce website that appeals to 70-80% of buyers who prefer digital or remote interactions would be helpful. Incorporating social commerce could yield excellent results considering 84% of C-level and VP-level buyers use social media to influence their final decision.
Will B2B Start Selling To B2C?
Another interesting concept that's emerging is B2B brands selling to the B2C market. We wouldn't call this a transformation but rather a merger with the B2C market that'll transform B2B sales. An example of this being possible is clothes. Wholesalers of clothes typically sell to businesses or individuals starting a business. Through services like Amazon, however, B2B brands could sell items to B2C customers and create a cross-over between the two industries.
To be precise, 54% of manufacturers are now saying they want to sell to consumers as well as buyers. Thanks to sophisticated eCommerce platforms, the idea is viable. The only issue is the B2B model is tailored totally for the buying cycle. B2B brands would have to adapt to the needs and expectations of consumers - like providing a one-stop-shop eCommerce website.
The B2B to B2C transformation is happening, but not in the sense brands are trying to convert to the B2C industry. Instead, B2B companies are attempting to replicate the B2C sales experience to create a more seamless buying cycle. For years, the B2B buying cycle has challenged both sales teams and buyers but that could change with the implementation of B2C-style sales techniques.