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In the B2C sector, companies sell their products or services to consumers. In the business-to-consumer model, the focus is on the business relationship between companies and private individuals, for example in a supermarket or when visiting a café. To round off the customer journey, communication must not be neglected.
Table of contents
What is B2C?
The abbreviation B2C stands for business-to-consumer and includes the relationship between companies and end consumers. The target group varies from sector to sector and remains predominantly anonymous, as most business takes place in the online world. The term expresses not only the commercial relationship but also the communication between both parties. It originates from the business world, with the main focus on the ecommerce sector.
The target group in the B2C sector
Depending on the industry, the target groups in the B2C sector differ from one another. But all industries have one thing in common: companies do not have as close a connection to their customers as in the B2B sector - everything happens much more anonymously here. Companies draw attention to themselves with advertising measures so that buyers jump at them. Many doors open for the potential customer: contact persons of companies have a high accessibility and all prices are always transparent.
Prospective customers have access to any number of products and are often encouraged to buy on an emotional level. Accordingly, this is more of an impulse purchase than a well-thought-out acquisition. Offers, sales or advertising measures serve as support here.
One thing is important: Entrepreneurs should not statistically commit too early and start a precise analysis, because in the B2C sector the target group is often more variable. The following questions serve to define the target group and create a buyer persona:
Who do I want to target with my products? It's best to narrow down which people a company wants to reach. Do not focus on gender, age and earnings, but primarily on preferences.
How do I reach the target group? Which platforms are potential buyers on?
What are the buying behavior and preferences of buyers or even individuals? Important: First, the collected data should be analyzed to create a well-founded buyer persona. If it is a new store, these elaborations are initially conjectures and can be backed up with real data.
Interviews with potential leads or customers are suitable for the more precise creation of buyer personas. In this way, an entrepreneur learns firsthand what the clientele wants.
Difference from B2B
While a B2C company sells to a large, broad target group, B2B companies specialize exclusively in business customers. The differences between the two areas are outlined below:
B2C | B2B | |
Target group | Private consumers | Company |
Market | Larger target groups, high competition | Rather a niche market |
Marketing measures | Loose, fun marketing | Marketing measures that emphasize problem solving as well as risk minimization. |
Destination | Identification with the brand, consumption for own consumption | Build trusting business relationships |
Distribution | Advertisements on all relevant channels | Sales representative in a company |
Address | emotional, relaxed tone | more rational, more serious |
Legal | Tighter limits (no cold calling) | Right of withdrawal not applicable, contractually regulated |
If a company is aimed more at private end consumers, the B2C approach is the focus of activity - this includes, for example, retail and the catering sector. Generally speaking, the B2C sector is a fairly large one and encompasses marketing, customer care and sales all in one. Different strategies are on the agenda here than in B2B marketing, because end customers want to be looked after differently than companies.
In the B2C market, there is a high level of customer turnover, because customers often do not remain loyal to a company for years. The situation is quite different in the B2B sector. There is a high level of price sensitivity, which strongly influences the buying behavior of prospective customers. For B2B customers, a purchase is often a major investment that needs to be well considered. However, those who order a necklace or a sweater are much more willing to make a decision because the sums involved are not large.
B2C marketing: This is what matters!
As already mentioned, the focus is on communication between companies and consumers. Since a much larger target group is addressed in the B2C area than classically in B2B marketing, individual decisions determine day-to-day business here. This increases the competitive pressure even more. The approach should be targeted on an emotional level so that potential customers feel connected to a brand.
Whether digital marketplaces like eBay and Co., your own online store or store - everything is possible. What works well and sells depends on the clientele: The approach varies depending on whether you run a gym, a nutrition app or a restaurant. The communication channels and distribution channels are also different: The proof of the pudding is in the eating. Every entrepreneur should keep an eye on the click and conversion rate. To create the best possible conditions, specialization in one area is the best choice.
Psychological factors
The psyche plays a decisive role in the B2C sector: customers rarely act rationally when making a purchase decision, but trust their gut feeling and the emotions that go with it. Emotional commercials are touching, like the story of a grandfather who exercises regularly before Christmas and then lifts his grandson for decorating the Christmas tree.
Content and search engine marketing
Search engine optimization (SEO) is an important factor in standing out from the crowd. In addition, content that is perfectly tailored to the target group is a must, because interested parties can find content on specific topics like sand by the sea on the Internet. With content that offers added value and SEO-optimized texts, companies score points in the major search engines.
Customer satisfaction
It is important to put yourself in the shoes of your target group, because their inner thought patterns can provide information about their purchasing decisions. That's why it's important for entrepreneurs to respond to customers' ratings, dissatisfaction and suggestions for improvement. In this way, they show that they are involved in solving the problem and that the customer's well-being is their top priority.
While customer loyalty is not as important as in B2B, loyal customers generate new revenue again and again. But not only existing customers, also new customers respond to advertising and lead to more sales.
Customer proximity
E-commerce companies are closest to their customers on social media. Younger target groups in particular are increasingly using social media and spend a lot of time on the platforms. Social Commerce is also an important topic here: promotions with influencers or group campaigns on Instagram and the like attract the masses. Advertising on social platforms attracts interested parties and an open ear in customer contact keeps them happy.
In many cases, consumers are not experts in the products they buy or are interested in. Accordingly, there is no need for overly detailed descriptions on the website when addressing customers.
Online Trade & Mobile First
Everything now works digitally - in B2C marketing, companies are meeting their target group less and less on site in a brick-and-mortar store, but rather digitally on their website or social media. Whether smartphone or tablet - mobile devices are also gaining in popularity and are increasingly used for shopping. Accordingly, the shopping experience should always be adapted to the mobile version, even for a own online store . [4]
Advertisements
Particularly at the beginning of the customer journey, customers do not know exactly where they will purchase a particular product. Accordingly, it helps to place paid ads on Google or social networks and thus reach the largest possible target group.
Discount promotions & offers
An important factor in marketing strategy in the B2C sector is pricing policy. Here, companies should decide between the low-price and high-price strategy: low profit margin and product quality versus higher quality demands with a higher profit margin. Here, discounts and special promotions help to attract buyers' attention.
Digitization in the B2C sector
Ecommerce has been conquering the B2C world for a few years now, bringing with it a number of changes. More and more online stores are springing up, creating a competitive spirit like never before. Social media is also gaining popularity, which means this channel should not be neglected.
While potential customers are spoilt for choice as to which product to select from the abundance of offers, companies have the problem of asserting themselves and being perceived as a reputable company. The demands for good service have also risen sharply among many target groups - companies should definitely invest here. Due to the large number of competitors, even established brands are no longer safe, as new and unconventional business models are attracting the attention of prospective customers.
The big challenge for companies: Be transparent and act and react quickly. The comparison shows that digital companies have a better connection to the customer because they adapt their products and services more specifically to the target group and thus also benefit from longer customer loyalty. The customer experience for the individual customer is getting better and better.
Potential customers can access the Internet and their own store at any time and from any location. Accordingly, opening and service times hardly have any influence on where they shop. The great opportunity in the B2C sector: better adaptation to customers and their demands can create a competitive advantage.
FAQs
What does B2C stand for?
The focus here is on the business relationship between companies and private individuals. Companies sell their products and services to end consumers with an intermediate step via retailers, who deliver or store the goods, for example.
What is the difference between B2B and B2C?
B2C companies sell their products to private customers, while B2B companies only do business with other companies (relationships between companies are the focus).
Which target group does B2C address?
The target group in the B2C sector is broad and always depends on the respective orientation of a company. However, they are always individuals who tend to make a purchase decision based on emotional affect.
