Business-to-consumer

The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies.

Introduction to business to consumer (B2C)

Business to Consumer or B2C is a business model where businesses provide services directly to the consumer, without the interference of any intermediaries. This model is especially popular in e-commerce, and became the gateway where local businesses could thrive by putting up a storefront of their own for customers to choose and make purchases from.

Understanding Business to Consumer (B2C)

Business to Consumer business model is significantly different from Business to Business model. The volume of goods sold is lesser than B2B but it is often open to a wide audience. B2C model businesses thrive by maintaining a steady stream of sales through their trade windows. Examples of B2C include online shopping outlets, the onset of which came about during the dotcom boom in the 1990s with the internet, mall shopping and eating out at restaurants etc.
When times and the economy is tough, B2C businesses often face the brunt of it. The supply-delivery chain gets hampered due to lack of funds by the business or due to the lack of demand by the consumers. Without adequate marketing, and without a particular target market to advertise these products to, B2C may face the brunt of it, like many dotcoms in the 1990s did and weren’t able to survive the shakeout of the dotcom business.

B2C vs B2B

While B2C sells directly to the consumer, B2B is any business that caters to other businesses.

Feature	B2C	B2B
Target audience	Individual consumers	Businesses
Buying process	Shorter and more impulsive	Longer and more deliberate
Decision-making process	More emotional	More rational
Volume of transactions	Smaller	Larger
Value of transactions	Smaller	Larger
Marketing channels	More focused on online and offline advertising	More focused on business-to-business (B2B) events, trade shows, and online marketing
Sales cycle	Shorter	Longer
Customer relationship	More transactional	More long-term

Types of B2C Models

Direct Sellers

Direct sellers are the most common business-to-consumer business. These are retail stores or sites from where consumers directly make purchases. Small businesses, producers and manufacturers are examples of direct sellers who market their products directly to their consumers.

Intermediaries

Intermediaries are online platforms that connect buyers with sellers in exchange for a commission. The most important reason why consumers choose online intermediaries is because they offer low prices. Amazon, Etsy and eBay are some of the examples of online intermediaries.

Advertising-based

B2C companies like YouTube, Facebook and Reddit provide free services to attract visitors. Then, they advertise products and services from other companies to visitors to generate revenue. Traffic-driving strategies like content marketing and social media marketing are used by B2C advertising businesses.

B2C advertising-based companies earn profits by selling advertising spaces. Sellers, on the other hand, get the benefit of online visibility, generate revenue and get their leads converted.

Community-based

Community businesses choose online communities and social media platforms such as Facebook, Instagram, Twitter, LinkedIn and other online platforms to market their products directly to site users.

Fee-based

Fee-based B2C companies are usually e-commerce businesses which require users to pay a subscription fee to access their services. Examples include Netflix, Spotify, The Wall Street Journal and Hulu.

What Are the Benefits of B2C?

Larger Reach: B2C businesses can reach a global audience with the right marketing channels thanks to the huge interest and creative strategies they can employ.

Minimum Cost and Expenses: Online B2C businesses enjoy reduced overhead expenses – they don’t need to spend on rent, warehousing, inventory or electricity.
Access to Customer Data: Considering that a B2C business deals directly with customers, it has better and direct access to valuable data about customers. They can easily get insights such as customer behaviour, conversion statistics and demographic details.
Customer Personalisation: B2C businesses usually enjoy a closer relationship with their customers than B2B businesses. Think about Zomato’s marketing strategy – the casual tone and relaxed humour makes B2C businesses feel a lot more approachable.

B2C Challenges

Business-to-consumer businesses face massive competition in the market. To survive, one has to market their product and brand well.
Customer retention and satisfaction is a big challenge. Investing in innovative marketing and attracting customers is essential.

10 Best B2C Marketing Strategies

This makes it very important for B2Cs to have a robust marketing strategy in place to ensure they reach their target audience, build brand awareness, generate leads, and drive sales. Here are a few marketing strategies that the top B2Cs in India use.

Content marketing: Create and share valuable content that is relevant to your target audience. This could include blog posts, articles, infographics, e-books, or videos. For example, a clothing brand could create a blog post about how to style different types of jeans. For example, Nykaa has a YouTube channel where they post relatable, funny and promotional content for their user base.
Search engine optimisation (SEO): Optimise your website and content for search engines so that your website appears higher in search results pages. For example, any time you search for practically any product on Google, you see shopping sites like Amazon, Flipkart or IKEA right at the top.
Pay-per-click (PPC) advertising: Pay for ads to appear at the top of search results pages. This is a great way to reach a large audience quickly. For example, an electronics brand could run PPC ads for the keyword “laptops.”
Social media marketing: Use social media platforms to connect with your target audience and promote your products or services. Instagram, LinkedIn, Facebook and YouTube are powerful tools to reach your audience, and many B2C businesses have huge followings on these social media. For example, Netflix’s Instagram has 33 million followers.
Email marketing: Collect email addresses from your target audience and send them regular emails with updates about your business, new products or services, and special offers. For example, a subscription box company could send out email newsletters to its subscribers with details about the latest products in its box.
Influencer marketing: Partner with influencers who have a large following in your target audience. This could involve having them promote your products or services on their social media channels or in their blog posts. For example, a fashion brand could partner with a fashion blogger to promote its latest collection.
Affiliate marketing: Partner with other businesses to promote your products or services. This could involve paying them a commission for every sale they generate. For example, an online retailer could partner with a travel agency to promote its travel packages.
Guerrilla marketing: Use unconventional and creative marketing tactics to get attention. This could involve stunts, street performances, or handing out flyers. For example, a restaurant could create a food truck that drives around town and gives out free samples.
Public relations: Get your business mentioned in the media. This could involve issuing press releases, pitching stories to journalists, or hosting events. For example, a cosmetics brand could host a celebrity makeup tutorial to get attention from the media.
Direct marketing: Send direct mail or email to your target audience. This could include catalogs, brochures, or promotional offers. For example, a credit card company could send out direct mail to potential customers with offers for a free trial.

Highlights of Business to Consumer (B2C)

B2C businesses and B2B businesses couldn’t be more different, yet many businesses combine both the model appropriately and offer services or orders in bulk to their customers and other suppliers, respectively.
B2C business models need extensive and elaborate marketing campaigns to elicit the response in consumers, while also catering to propagating about the value of the product. By finding the right target audience, B2C businesses will be able to maintain their sales.
B2C businesses take a variety of forms in the modern era, digital and otherwise. Netflix, Hulu and other streaming services are fee-based subscription B2C models, while direct selling or via through online intermediaries are also very common.

FAQs

What is a B2C target market?

B2C target markets are groups of people who are the target consumers of a business. B2C businesses may have different target markets for different goods and services.

Why is B2C marketing important?

Marketing is essential for B2C businesses. If you have a B2C business, you’d want to reach as many potential customers as possible. This will help you establish your company’s name in the industry and get regular customers.

What is an example of B2C eCommerce?

Online streaming platforms like Netflix, ride-sharing platforms like Uber and online marketplaces like Amazon are examples of B2C businesses.

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