In today’s era, people are getting more inclined towards doing their own business. They want to be their own boss, and in this situation, resources like the internet help them a lot to develop or start their entrepreneurship journey as a founder. Now one thing that comes to their mind while starting a new business is what will be their target audience or business model, whether it’s b2b or b2c. The selection of audience completely depends on the service or product that a newly established start-up is going to offer them. If you do research on some of the unicorn businesses like Microsoft (which basically deals in computer software), then you will find that they are selling their products directly to consumers and also to other businesses. The main point of attraction in their business model is that they generate revenue from both market segments. In comparison to B2C (Business-to-Consumer) market, they generate way much higher revenues by selling their services directly to the other business, which is known as B2B (Business-to-business) model.
According to Grand View Research, worldwide B2B e-commerce is expected to reach $20.9 trillion by 2027, indicating a CAGR (compound annual growth rate) of 17.5% for the projection period (2020–2027).
Now we will dive into the topic and get some more insights into the b2b business model.
What is B2B (Business-to-business)?
A B2B model is not more than just a strategic plan or a way to do and grow a business in which a business provides or delivers services to another business. The B2b model develops a mutual relationship between two businesses to grow together. In the b2b model, a business helps other businesses by purchasing services like b2b marketing, b2b branding, advertising b2b, and many more from them. On the other hand, the buyer also gets benefits because the service that they purchased adds growth value to their business.
Now if someone asks you that “What do you understand by the b2b business model?”. Also, You heard it from so many people who are doing b2b business by providing services like lead generation and handling sales but have you ever even asked them, “what is b2b?”. Today you got some ideas from the above discussion and got some information related to the b2b business model and its working. From here, we will move this discussion forward to know “how it will help you to grow your business” before initiating the discussion on the b2b (Business-to-business) model. Let’s just briefly go through the basic definition of b2b, which is when an enterprise deals and trades its goods and services to other enterprises and shares the benefits. This model works on two main pillars, the first one is marketing, and the second is sales.
In what ways do marketing and sales support businesses in the b2b model?
As we already know, marketing and sales are the two main supporting pillars of b2b business. When a newly become founder thinks about growing or doing a successful business and wants to make an impact on the targeted market, then they look for a services provider who will advertise and promote their goods and services for them. B2b marketing includes some of the key things to promote a business and make them visibly impactful to the market and targeted customers.
6 Key elements of the successful b2b marketing
- Goal: A business must have a clear goal that needs to be planned accordingly in milestones so that it can be achieved in the coming days.
- Website: Your business should have a visually aesthetic and appealing website that will make customer engagement constant. It should function smoothly and be responsive to all platforms. But in case if it is not able to engage your targeted customer, then customers will not think twice. They will find another website that is more captivating in comparison to your site.
- Content: Having a solid content strategy is crucial for inbound marketers. Customers can be attracted by regularly producing and distributing content through blogs, webinars, white papers, videos, downloads, etc. You ought to comprehend what drives your customers. Then, you just give the populace what they desire!
- Social: Some B2B companies benefit greatly from using Facebook, Instagram, and Pinterest. Your industry will choose the best social media channel for your company. You may get engagement from these platforms and can draw them to your website and eventually convert them into customers by staying abreast of industry trends.
- SEO: The goal of search engine optimization is to draw your target clients. You may significantly raise your rating by grasping the audience through the use of long-tail keywords and linking. The better your ranking, the more probable it is that people will find you and visit your page.
- Analytics: gathered the information in the form of data and analyzed it to get business insights, then made necessary changes accordingly. Investigate previously collected campaigns to answer some questions like business trends and average buying cycles.
After impactful marketing, “b2b sales” comes into the picture and plays a very major role when a sales representative follows leads and generates leads through the various platforms.
B2b sales are basically defined as “when a business sale its goods to other businesses directly”. For example, an organization that works as a marketplace to list out the goods for their clients who is a manufacturer or a trader of that particular product.
In b2b sales, the potential customer gives a purchasing order to a sales representative of the company. If they have any doubts related to service, then the sales executive signs them up for a trial period just to clear their questions and then covert the sales.
While building a successful business, two things need to remember, and you can’t forget them. The first is to be consistent with the business plan and the second one never forgets the business plan. It is to achieve the business goal and make it successful, and it will happen by combined efforts of marketing and sales departments that will take time, but the business goal will achieve sooner or later.