November 2000   

With that kind of revenue being dangled like a golden carrot, many e-merchants are considering developing a B2B strategy. You may be one of them. But before jumping in too quickly, take the time to learn the differences between the B2B and the B2C (business-to-consumer) marketplace. They have nearly identical names, but very different approaches.

B2B and B2C: What's Similar, What's Not

The foundation of either B2B or B2C is in that first letter of the acronym: B. It stands for businesses that are selling products and services to a targeted group, either other businesses or directly to consumers. Sales strategies and customer service play an integral role in both types of B2's. Successful branding of a product or service, along with a strong delivery capability, is critical to increasing revenue.

The bottom line in either case is sales. In B2B, the sales are going to other businesses that wish to purchase products or services that will help them with their own business. B2C is selling to individuals, families, or any kind of group that is not a business itself. Both types of ventures have the common goals of developing and increasing sales.

But the customer being targeted by B2C is a different animal than the one sought by B2B. "[For B2B,] the business is often selling a much higher ticket item than B2C, which might be selling widgets at $10 each," says Philippa Gamse, e-strategy consultant and president of CyberSpeaker. "The first goal of the B2B salesperson is to get interest, not necessarily a sale."

Steve Jacober, president of the School, Home and Office Products Association (SHOPA), agrees. "B2B has different expectations to B2C," he says. "Consumers place different emphases on different parts of the value equation. The emphasis is first on price, second on quality, then maybe customer service."

Because the business customer is buying higher priced items that are generally not for personal use, Jacober says price, while a valid concern, is not necessarily the top priority. "The business user may place higher emphasis on customer service. That buyer may be more technologically adept, much more knowledgeable about what's available in the marketplace, what it should be capable of doing. It really raises the bar on knowledge and service."

B2B Marketing Approaches

The demand for knowledgeable customer service may be important to both B2C and B2B, but it's the latter that may really put it to the test. Whereas a consumer may drop into a store or log on to a Web site and make an impulse purchase, that's rarely the scenario for the B2B customer. Business customers are likely to be highly motivated buyers -- after all, their company has probably sent them forth with the order to purchase the needed goods -- but they're also more likely to have done their homework. Selling to them can potentially involve many visits and intensive negotiations. The trick with B2B customers is not to get them interested in buying, but to get them interested in buying from you.

Both Gamse and Jacober say the B2B sales process requires highly disciplined target marketing. "People who are enjoying success in the B2B marketplace have a highly targeted market focus," says Jacober. "It's all about knowing who to reach and what to market to them. You have to know whom you want to sell to and why you want to sell to them. If your marketing approach is too broad, it becomes diluted."

Gamse agrees. "You really have to think about your markets," she says. "You have to know them. You have to understand who's coming to your door, why they're coming, what they want, where they want to be. Then you have to prove your credibility to gain their interest."

It's important to remember that B2B buyers are looking not just for products and services, but for the solutions those products and services can deliver. Simply listing specific features without explaining the benefits of those features will not provide the information necessary for the customer to become interested.

But while promoting the benefits of your products and services, be sure to include the overall value provided by your company. Keeping your name in front of the customer, both in terms of marketing and in terms of the quality you provide, is the best way to sustain the sales process. And that advice goes for the quality of your marketing efforts as well. B2B buyers are, if anything, more aware of the costs of marketing than consumers, but a poor quality ad campaign may give the image of a company that can't afford any better -- and a company that may not be able to deliver the goods in the end.

That doesn't mean putting all your resources into the advertising, because the best ad campaign in the world won't help you if you can't make good on your promises. "Fulfillment is key to marketing," says Jacober. "Find a way to fulfill expectations, not just to meet them, but to exceed them. It's not enough just to give the customer what they think they want -- give them that, and more."

Online vs. Offline

Keeping the B2B customer's needs as the highest priority at every level of the sales process is a requirement whether the B2B strategy is offline, online, or both, say Jacober and Gamse. "Success in the brick environment does not guarantee success in the click environment," cautions Jacober. "Online and offline require different skills, different techniques."

But that doesn't mean they need to be handled separately, says Gamse. "[Online and offline marketing] feed each other. They have to hang together. Ultimately, both reflect your core business."

The biggest mistake Gamse sees B2B players make is assuming that throwing together a quick Web site is enough to serve their customer's needs. "Business owners shouldn't plan on being an overnight success," she says. "The traditional things that grow a business -- track record, repeat business, referrals, reliability -- all play into an online venture as well. The same rules of thumb still apply."

Jacober points out that the same levels of careful planning that go into setting up a new brick-and-mortar location or planning a catalog layout should also be used when planning a Web site. "Ease of use is absolutely crucial," he says. "The sites that are easy to navigate and purchase from are more successful." To that end, he recommends investing in technology. "Get the best technology you can, and keep upgrading," he says. "Like traditional selling, you have to merchandise, even if it's with links rather than aisles. If the information is easily accessible and well organized, the customer will be much happier."

Gamse recommends using technology to personalize the shopping experience, in order to draw repeat business. "People focus so much on how much money they want to make on their site, how they can get a new customer. But it costs much, much more to bring in a new customer than to retain an existing one -- five times as much. They overlook the ongoing support of those existing customers and the savings that can represent."

In other words, the bottom line to success, whether B2B or B2C, online or offline, is simple: know your customers and what they want, then find a way to deliver.