What comes to mind when we talk about business to business model (B2B)?
In simple terms, it means that for a particular business, another business is it’s customer. B2B are supportive enterprises that offer the things that other businesses need to operate, grow and profit. They could be sourcing their raw materials from another business. Usually, with the goal of manufacturing a new product out of it. They can also be offering finished parts. Even though these business can be positioned in the same market as competitors, there exists a business to business relation between them that profits them both.
B2B model includes can include the following businesses:-
- Saas (Software as a service) products
- Marketing
- Business supply
- Manufacturing
- Consultancy
- Call management services.
- Training employees.
- Translation services.
Organizations in B2B model, can either have a physical or online presence or hybrid depending on whether their core business is on products or services.
Marketing in B2B model.
When it comes to their marketing strategy, B2B marketers must build a direct marketing experience to drive organic traffic from company decision makers.
This means that they need to take time and understand another company’s business process. Work on nurturing trust between your oragnizations. With your sales team work to turn these potential customers into buyers.
B2B model relies heavily also on account management team to establish and strengthen relationships with its existing clients. If these teams are well trained, it will be possible to build an effective relationship.
An example being, Digital marketing firms selling its services of content creation. Keeping in mind that the results of this kind of work might not be visible immediately. To make a sale would require potential customer understand how your services will add value to his bottom line. That might mean training him how the benefit will come about for his business.
In B2B marketing, creating awareness of your business to clients might include various forms. Advertising in trade journals that target the specific client. Digital marketing that is targeted at your specific niche. Use of Email marketing to introduce your services to potential clients.
Once the decision makers are known, It takes awhile to convince them that their product or services will yield a high return on investment. To do this effectively:
They need to understand how what you offer will lower their costs and still maximize on their profits.
We can now turn our attention to B2B models trading in Ecommerce.
Ecommerce refers to commercial activities conducted via the internet. Many companies have been using this as a part of their digital strategy, to promote their brand awareness and sell their products. Even companies around the world that were slow to do business online got on board last year with the pandemic.
These business trade successfully in Ecommerce market place. This is an online marketing place. A 3rd party website hosts vendor pages as online storefronts and transactions are processed by the market place service provider/operator.
To complete the sale cycle, Ecommerce platform will be required. If the market place was provided by a 3rd party, this will be availed with them too. It is usually a series of software technology that are integrated into business website. It needs a search feature that let’s customers find a specific product. A cart feature that allows them to manage their order. A payment feature to finish the buying cycle.
When business’s trade with each other online, there are various scenarios that that can present itself:
- When the Ecommerce business acts as the suppplier for the other business. They tend to sell their products to other businesses using their own platform or hosted by someone else.
- When the Ecommerce business is looking to procure products and has its own marketplace. They end up inviting other businesses to put up their products and quotations on it inorder to compare and decide on the best accordingly.
- The Ecommerce business can act as the intermediary, helping connect the buyers and sellers. This is made possible by the fact that it has a platform or marketplace helping connect and facilitate the transaction between businesses.
Are there benefits to this kind of model:
1. There is a stable market. In B2B market, other businesses are your clients. It therefore gives predictable sales as its based on constant orders. They get into deals and contracts with one another that last longer with guaranteed pricing and terms.
2. Selling niche or specialized products and services means quality products and service delivery. Improved productivity and feedback can be relied on.
3. Reaching new customers by going online. By successfully using digital marketing strategies to target your niche, you can increase potential customers. The number of organizations making purchases online has increased since last year. Buying online is therefore efficient and it makes repeat purchases much easier.
4. Perform better data analysis for your organization’s performance. The organization can do an in depth Analysis of sales and gauge its effectiveness. You can also generate various types of reports to help you understand how your business is progressing.
5. Paperwork reduction as use of technology to reduce manual work and mistakes is employed. More time can now be spend to increase customer support and build loyalty.
Using technology has made doing business easier for all. Ecommerce benefits is not only limited to B2B model. A future article while explore Ecommerce benefits in details.
Digital Marketer 