In this article, let’s explore what are B2B sales, and how they can help you earn more money
B2B sales, or business-to-business sales, refer to the process of selling products, services, or solutions to other businesses or organizations, rather than individual consumers.
There are advantages as well as challenges you will face when dealing with business organizations are different compared to B2C sales
B2B sales are not limited to big businesses, even small businesses, freelancers, agents, etc. should cater to B2B clients to grow their income and business
Objectives of B2B Sales
The core objectives of B2B sales are:
- Generating higher revenue as the transaction value in B2B sales higher compared to B2C
- Market expansion by entering a new market or industry to sell your existing product or services
- Acquiring new customers and gaining expertise in a particular niche or industry
- Building relationships to boost re-purchases and renewals to bring added stability to your business i.e. regular cash flow
- Increasing brand recognition and brand value by serving big businesses, helps in creating a good reputation in the market
What Can You Sell in B2B Sales?
You can sell a wide range of products, services, and solutions to business organizations as follows:
- Raw materials, industrial goods, components, spare parts, consumables, etc.
- Machinery and manufacturing equipment
- Software solutions
- Professional services (consulting, legal, accounting, Taxation, etc.)
- Marketing and advertising services (both traditional and digital channels)
- Logistics and supply chain management
- Financial services and products
- Healthcare and pharmaceutical products
- Stationary and office consumables or services like housekeeping
The above list is only a few examples, you can innovate and sell as many products or services as you want
Target Organizations for B2B Sales
As the name suggests in B2B you will be targeting businesses both big and small depending on your solutions
Here are a few organizations you can offer your products to:
- Manufacturing and industrial units
- Retailers and Wholesale distributors
- Service providers (e.g., healthcare, finance, hospitality)
- Government agencies
- Educational institutions
- Non-profit organizations
- Small and medium enterprises (SMEs)
- Large corporations and multinational conglomerates
To be successful in selling to businesses, you have to understand their unique needs, pain points, and decision-making processes and adjust your sales approach accordingly
Difference between B2B and B2C sales
1. Purpose of Use
In B2C sales, the products or services sold get used for the personal or household use of the individual purchasing it, ie. the end user
However, in B2B sales, the products or services provided are used for business operations, production, and administration by the client
So B2B sales require a deeper understanding of the client’s industry, operations, and business requirements to provide a tailored solution
2. Stakeholders
In B2C you are often pitching to a single person or a family to sell your product/service, whereas in B2B you will be dealing with multiple stakeholders such as
- Gate Keepers such as receptionists, personal assistant
- Multiple Head of Departments and their teams such as finance, legal and compliance, IT, etc.
- Multiple CXO-level executives
Each one has their roles and responsibilities when it comes to making the final purchase decision
3. Decision-Making Process
Since B2C involves one stakeholder in most cases, the decision-making process is easy
You can use emotional appeal to close the sale, there is even a chance of impulse buying when dealing with individual customer
In B2B there are multiple stakeholders, so you require approval from all the stakeholders before going ahead with the purchase decision
You have to address the concerns of each stakeholder and satisfy them that your product and service can perform as per their needs
4. Sales Cycle
The sales cycle is short in B2C sales since you are interacting, pitching, presenting, and following up with a single stakeholder
Whereas B2b requires a higher level of scrutiny and multiple touchpoints before making any decisions
the extended cycle often includes –
- Initial research and needs assessment
- Multiple presentations and demonstrations
- Rigorous evaluation and vetting processes
- Contract negotiations and legal reviews
This can make the sales process extend to weeks, even months, and sometimes even years depending on the complexity and transaction value
5. Transaction Value
The transaction value of B2B sales is a lot higher when compared to the average B2C sales transaction, ranging from thousands to millions of dollars
There can be many reasons for the higher transaction value, such as:
- Bulk purchase
- The complexity of the product/service required
- Tailormade solution or customization
- Value added services
- Regulatory and compliance requirements
Higher transaction value always results in higher profits/commissions
Strategies to maximize your B2B sales conversion
1. Identify and Understand your Target Market
you have to conduct thorough research to identify the market and customers you want to target
understand their pain points so that you can identify and develop products or services which solve your customer’s problems
2. Customize your Approach
Every customer you interact with will have their own needs and requirements
You have to customize your sales approach as well as your products and services to match the needs and preferences of your customer
3. Build Strong Long-term Relationship
Engagement with multiple stakeholders and generating a long-term relationship can help you increase the chances of re-purchase, renewing, and getting referrals within the industry
4. Offer Value-addition
Value addition to your client’s business can differentiate you from your competitors
You have to help your clients achieve their goals, so going above and beyond just selling your product and service, providing insights that will help them, even giving them referrals for their business, etc
5. Provide Exceptional Customer Service
Another point of differentiation is providing exceptional customer service throughout the sales process and in your after-sales service
You have to be responsive, reliable, and proactive in addressing your client’s inquiries, concerns, and feedback
87% of business buyers say that an immediate response when seeking support influences their loyalty : Source
6. Upsell and Cross-sell
You have to identify upselling opportunities practively to increase the perceived value of your solutions
Cross-selling complementary products can help deepen relationships and be excellent at generating additional revenue
Related Articles:
Pingback: Mastering Cold Calling - 9 Proven Strategies On How to Cold Call - markmotiv