Running a business-to-business operation is naturally different than selling directly to consumers. Many of the lessons learned in the consumer market simply don’t apply, but entrepreneurs may not know exactly how to tailor their sales approach to a business customer.
Sales nurturing is a crucial part of the sales representatives’ responsibilities. While the buying process for companies and consumers shares some similarities, they truly require a different approach on the part of a sales force. If you want to ramp up your operations, it’s important to consider your buyers and how they make a buying decision. Only by tailoring your sales pitch to their buying process can you find success. Here are some tips to help your company thrive, including some common mistakes to avoid.
What is B2B?
A B2B company is simply a business that provides needed goods or services to other companies. These include digital marketing companies, an e-commerce platform, co-working spaces and team communication platforms. Basically, any business that caters to other businesses is a B2B company.
In some cases, a business might have both B2B and business-to-consumer (B2C) operations. It is not uncommon, especially for larger companies, to maintain multiple types of businesses under one brand. For example, it offers cloud-based document storage to both individuals and businesses. Just because a company has B2B offerings does not mean it is exclusively B2B.
One of the clearest examples of a B2B market is automobile manufacturing. While most people are familiar with leading vehicle brands as consumers, most manufacturers also supply businesses. A prime example is the evolution, which was initially made for the U.S. military but ultimately became a popular make of vehicle in the consumer market. There are also automobiles made exclusively for commercial use, such as Mack trucks.
What are B2B customers?
Who are the customers of a B2B company? Simply put, they are other businesses that need the support a B2B company offers, whether in the form of products or services. Take, for example, the co-working space WeWork. WeWork’s spaces house a range of businesses small and large. In this case, the businesses renting space in a WeWork office building are the B2B company’s customers.
The interesting part of B2B companies is that a business can at once be customer and partner. In the example of WeWork, an office furniture company might rent a co-working space. However, WeWork might also purchase furniture from that company to furnish its space both B2B companies are buying from and selling to one another.
The buyer’s journey for a business is often much different than that of a consumer. A B2B sales strategy should be adapted accordingly to suit the potential customer’s decision-making process. Both marketing and sales to another business are often different, requiring a different approach to the sales pipeline and creativity from B2B company marketing teams.
How are B2B sales different from B2C sales?
The sales process for a B2B company’s products and services can be vastly different from marketing to individual consumers. Generally, a B2B sales deals with a higher-level individual within a company, someone who has influence or decision-making power over the purchasing decision. These decision-makers are generally well versed and eager to make deals, looking to secure the best price for their company. They are trained on how to research markets and find the best product or service as well as secure the best price.
Typically, B2B sales require an additional level of professionalism when compared with the consumer market. In some cases, a B2B sales might be required to deliver a presentation to another company’s executives. It’s important that a B2B sales person does their homework and has all the answers before the first meeting. After all, time is money, and it could be impossible to secure a second call or meeting opportunity.
In B2B sales, recurring business opportunities are the Holy Grail. While in the B2C market (depending on your business) recurring sales are nice, they are the lifeblood of any B2B operation. If you can secure several large accounts that repeatedly come back to your B2B company for goods and services, your revenue stream will often be stable. Your B2B sales force should be focused on cultivating relationships that will be long standing and mutually beneficial.
However, unlike the B2C market, B2B sales tend to be more narrowly focused on a specific industry or type of business. That means sales can become even more competitive than when marketing to individuals. Still, landing a B2B sale can be far more lucrative than landing a single B2C sale.