In the sales domain, jargons such as B2B and B2C are very commonly used. However, these are often the source of major confusion for those who are not well-acquainted with this sector.
Today, let us find out all that there is no know about B2B sales.
B2B Sales – what does it mean?
B2B sales or Business-To-Business sales is the relationship or process of sales between two businesses i.e. companies. It is directional from one business entity to another. Instead of selling to customers, these companies sell to each other. For instance, companies that provide third-party services to other organizations or those that produce and provide raw materials to manufacturing companies, etc. It essentially is the process of a smaller business selling its products to another bigger business. The customers in the form of general consumers aren’t involved here in this cycle.
What is the process of B2B?
B2B is slightly complex than B2C, as it requires a lot more formalities to be done. A few processes are similar to catering to customers. You have to generate leads, follow up on them, promote your product or service and complete the sale. The following steps describe the general process of B2B sales for any company:
- Identify target audience
The process begins with identifying the target audience. You need to know which companies need your products and are more likely to be prospective customers. A good salesperson has to know their market, their competition and also have an idea about their prospective customers. It is important to know that customers have to be people in authority who can take decisions about the sale. Assessing their requirements is also part of identifying the focus audience as it gives an insight into the need for your product or service for that specific company.
- Initial outreach program
Once you have identified your audience and competition as well, it is time to present your offers. You can use social media platforms for this purpose. This technique is also known as outbound marketing. For instance, preparing a brochure or cold-calling prospects can be done to take the initial step forward in seeing which of your audience would be interested in your offer. For this purpose, you could also use an email marketing software.
- Pitch to leads
The next step is to make a good sales pitch with the help of the sales or marketing team and present it to the lead. Sales pitch needs to be compelling, and well-designed to attract potential customers. You need to tell them why their company needs your product, how you can serve them better and what benefits you can offer them. This also allows you to understand your leads and their preferences better.
- Follow up on leads
After discussing the pitch, you need to follow up with the client. This would involve sending a detailed email of the procedure and to mention everything in writing so the client gets clarity about the offer. Checking up on your leads to ensure they have decided to work with you is as important as making the pitch. It shows that you are interested in the deal and would like to take it forward. It creates a good impression on the client.
- Close the deal
Finally, if all goes well, the next step will be your easiest one. Now you know that your client wants to buy your product, you just have to prepare the agreement and get it across to the client for signatures and approval.
How is B2B different from B2C sales?
B2C is Business-To-Customers which involves companies selling their products to individual customers. B2B is slightly more complex as it involves impressing decision-makers from a panel. There are more decision-makers involved here which might make the process longer than B2C. Secondly, the transactions involved in B2B are larger in size as they provide in bulk to larger companies. It is on a larger scale. There are many processes in the sales cycle which makes it longer than usual. The payment process is complex as well involving several costs to the company.
B2B might be complex but once you get to know the basics, it is easy to maneuver. We hope this post has helped give you an overall idea of how things work. So if you are a business owner, you will know how to handle businesses with other companies and make maximum profit.