What is the difference between B2B Sales and B2C Sales?
Is selling to a business really that different to selling to a consumer? Some things are common across all types of selling – but there are also some differences. So what are the key differences and why does it matter?
B2B Sales are Bigger
If you are selling to businesses, most likely what you are selling has a higher dollar value than something you can buy in a retail store. This is of course not universally true, but it is for the most part.
At Authentic Selling, when we are talking about B2B sales we are talking about a product value that might start at a few thousand dollars and may go up to hundreds of thousands, or even over the million-dollar mark.
People will think more about spending $10,000 than $100 – that is just common sense. And they will spend more time and energy thinking about spending $100,000 than spending $10,000.
This means we do need to adjust our approach a little, to take this into account.
More Complex Product or Solution
Products sold to businesses are often more complex. They may form part of a larger project, or have a technical aspect to them.
This can be true in technical arenas like software, or in almost any industry. The fit-out for 35 retail stores is likely to be more complex than fitting out one bedroom in someone’s home. Rolling out software to 1000 employees across a business and training them to use it, is a different thing to one person buying some software and installing it on their own computer.
Longer Sales Cycles
In part due to the size of the sales and the complexity of solutions, sales cycles tend to be longer with B2B sales. When an individual is buying something, they may walk into a store, see something they like, and buy it right away.
When a business is buying a product worth $5,000 or $50,000, they are likely to want to spend more time on the decision. Sales cycles for business solutions tend to get larger depending on the dollar value of what you are selling – as a general rule. Sales cycles may vary from a few weeks to a few months
Multiple People Involved
It is highly likely that there will be multiple people involved in making the decision to buy something in a business. The key person you need to identify is the financial decision maker – that is the person that holds the budget for what you are selling.
There are likely, however, to be several other people involved. There may be someone who is responsible for confirming the health and safety requirements are met. There may be someone who is responsible for implementing the solution. Part of your role as a B2B salesperson is to identify all of these people and bring them on the journey with you to a successful outcome.
Internal Processes
Businesses differ from individuals. One of the main ways they differ is that they are made up of large numbers of people – you are not just selling to one person. The larger the number of people that work there, the more likely it is that they will have their own internal processes that you will have to negotiate.
This can include a procurement team, whose responsibility it is to get the best deals they can from suppliers. It may include a legal team, who are responsible for reviewing contracts with all suppliers. It might be health and safety processes. You are likely to need to understand their budget processes and cycles.
This can seem overwhelming when you first start out, as every business you sell into will be slightly different. There are simple things you can learn that will help you to navigate your way through.
If selling to businesses is new to you, all of this can feel a bit impenetrable. The good news is – lots of people have come before you. There are simple processes and skills you can learn so that you can navigate your way through any business sale. The first step is understanding the differences – the next is to learn the skills.
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