Wednesday, September 18, 2024

B2c versus b2b marketing agency

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A beekeeper walks into a b2b marketing agency and orders a pint.

‘This isn’t a bar,’ says the marketer. ‘But you can have brandy.’

‘I got fired today,’ the beekeeper replies.

‘Oh,’ says the marketer. ‘What happened?’

The bartender sighs. ‘Instead of extracting the honey from the hive, I went bee to bee.’

Hah! Bee to bee. Get it? Anyway, once you’ve finished laughing hysterically, let’s look at the differences between a b2c and a b2b marketing agency. Whether you’re a job candidate seeking to enter the field or a customer looking for the right kind of agency to handle your marketing, it’s absolutely essential to know the difference.

So, let’s begin by defining what each of these terms means and why their similarities and differences matter.

What does b2b mean?

B2b stands for ‘business-to-business’, which refers to companies selling products and services to other companies instead of consumers. The scope of a b2b business’s sales cycle is often extensive, and the process typically includes significant assets and efforts, such as networking and building relationships before finalising a sale.

As a result, decision-makers in b2b companies tend to be more risk-averse. This means they’ll seek to reduce this risk by acquiring more information, verification, and guarantees before making a choice. Although certainly not the case with every sale, the cycle for b2b deals can include multiple rounds of negotiation, meetings, and evaluations and can take months – sometimes years – to close. This is why the most successful b2b players are masters of relationship building, persuasion, and providing a personalised and informed customer experience.

For context, here are a few typical b2b scenarios.

Tech:

  • Software as a Service (SaaS): a financial institution contracts with a cybersecurity firm for cloud-based threat detection and prevention.
  • Hardware & cloud integration: a manufacturing company purchases industrial robots from a vendor and a data analytics platform to optimise production processes.

Manufacturing:

  • Raw material supply: a furniture manufacturer secures a long-term contract with a timber supplier for sustainable wood sources.
  • Custom machinery design: a pharmaceutical company commissions a specialised engineering firm to build equipment for a new drug production line.

Professional Services:

  • Marketing & advertising: a travel agency hires a digital marketing agency to develop targeted online campaigns and social media strategies.
  • Legal & consulting: a startup company engages a business law firm for contract drafting, intellectual property protection, and fundraising advice.

Remember, these are just glimpses into the vast spectrum of b2b deals. From multi-million-pound contracts to collaborative partnerships, the world of business-to-business transactions is ever-evolving and driven by diverse needs and solutions.

What does b2c mean?

B2c means ‘business-to-consumer’, referring to companies that offer products and services directly to customers. Compared to b2b, b2c sales are relatively direct and straightforward. And, since the potential customer is an individual consumer, the timeline for a sale can be short and sometimes immediate.

The b2c process, therefore, doesn’t always require the same level of relationship-building and networking that b2b does, instead relying on brand awareness, advertising, social media marketing, and digital marketing to inspire immediate sales.

B2c marketing strategies trigger emotions to create urgency and excitement, leading to impulsive and immediate sales. As a result, b2c businesses prioritise creating a solid brand presence, and the most successful ones will be committing a significant part of their assets to getting eyeballs on their brand. These days, that will mean investing a lot more money than before into digital platforms such as social media and similar platforms.

Here are a few b2c scenarios:

Tech:

  • Software as a Service (SaaS): a smart consumer subscribes to a VPN service to protect their digital freedom and access their favourite sports when they travel.
  • Hardware: a suspicious consumer buys a second iPhone from the Apple Store without telling their partner.

Manufacturing:

  • Raw material: a cool consumer buys a shiny rock from a market stall, and now they have a shiny rock, which is much better than not having a shiny rock.
  • Custom material: a handy consumer buys sustainable lumber for their shed-building project because they care about the world.

Professional Services:

  • Cleaning: a busy consumer hires a cleaner to come around twice a week, probably to do some cleaning.
  • Legal and consulting: a shady consumer hires an attorney because they got mixed up in some questionable business with their twice-removed uncle.

How does a b2b marketing agency operate compared to b2c?

So, how does all this affect how an agency markets its client’s products and services? While the answer might seem like a simple matter of choosing between businesses or consumers, the marketing strategies behind each category are often quite different. Whether your company operates in a b2c or b2b environment will significantly impact how you communicate and the kind of marketing strategy you’ll go for.

Let’s break down the key differences between how a b2c and b2b marketing agency operates, exploring the unique goals, audiences, and tactics that make each tick.

Goals & focus:

  • B2b: is all about building long-term relationships, trust with other businesses, and driving sales leads. And, once they become customers, loyalty and customer advocacy. Together with the client, you focus on a mix of logic, emotion, and data, demonstrating how your client’s product or service can solve specific business problems and ultimately boost the customer’s bottom line. Think bylines, PPC, SEO, explainer videos, white papers, eBooks, press releases, social media, email marketing, case studies, industry events, and sales collateral such as data sheets.
  • B2c: while sales leads are a priority for b2c agencies, it’s more about triggering those instant gratification and emotional connections with individual consumers. Emotion and originality take centre stage, and the focus changes from eBooks to reels, memorable visuals, jingles, and creating a positive brand experience that drives immediate sales. Think viral memes, videos, influencers, celebrity endorsements, and digital and physical advertisements.

Targeting & messaging:

  • B2b: is reaching a smaller, more targeted audience of decision-makers within businesses. Messaging needs to be tailored to the customer’s specific business needs and pain points, highlighting the logical benefits and value proposition of your offering. Think b2b branding, brand messaging, customer profiles, and personalised outreach, all based on market research.
  • B2c: is casting a wider net to capture the attention of a larger, more diverse group of individual consumers. Messaging needs to be emotionally resonant with the customer, using storytelling, humour, and relatable content to connect with their desires and aspirations. Think social media campaigns, influencer marketing, and eye-catching visuals. Again, it’s based on market research, but the audience is often far larger.

Content & channels:

  • B2b: your content marketing strategies tend to be more in-depth and educational, using content such as bylines, articles, blog posts, eBooks, and case studies – especially during the awareness stage. All optimised for SEO, of course. Think long-form content that builds trust and establishes expertise. Think bylines, blogs, commentaries, press releases, PPC, and SEO. Channels often include industry publications, LinkedIn, and email marketing. The further down the sales journey you go, the more product-focused your content and strategy becomes. Datasheets, technical case studies, and lead-generating PPC such as Google Search ads.
  • B2c: content is typically shorter, snappier, and more entertaining, delivered in formats such as videos, infographics, and social media content. Think bite-sized pieces that grab attention and spark engagement – especially at the beginning of the buyer journey. Channels often include TikTok, Instagram, YouTube, influencers, affiliate marketing, and email marketing.

Increasingly, the channels and content used by b2b and b2c agencies overlap. For example, b2b companies are targeting younger audiences through traditional b2c channels such as TikTok, so it pays to keep an open mind.

This thing called ‘the buyer journey’

Agencies in both categories often use the term ‘buyer journey’ to inform their strategies. The buyer journey is like a roadmap outlining the steps a potential buyer usually goes through before they make a purchase.

Whether the consumer is buying something for themselves (such as a gaming laptop) or on behalf of their business (such as a work laptop), the journey is usually quite similar:

  •       Awareness stage: is when a person first realises they have a need or a problem. They might only have a vague idea or understanding of their need, but they’ll start to seek and gather information to understand their options.
  •       Consideration stage: in this stage, the person has identified their problem and is now looking at different solutions. They’ll compare different products or services, read reviews, and maybe even talk to friends or experts for advice. For a business, this might involve comparing different software providers or suppliers.
  •       Decision stage: is where the person decides which specific product or service to buy. They’ll weigh the pros and cons of each option and make their final choice. For businesses, this might mean involving several people or even entire departments, negotiating contracts, and getting quotes from different vendors.
  •       Advocacy stage: after making a purchase, some buyers become advocates for the product or service they’ve bought. They’re so happy with their choice that they want to share their positive experience with others. Needless to say, this is extremely valuable. They might do this by leaving positive reviews, recommending the product to friends and family, or sharing their experience on social media. For businesses, turning buyers into advocates can lead to invaluable word-of-mouth marketing and help attract new customers.

It’s important to remember, it’s often not a linear journey. Buyers can drift in and out of interest. But these stages are important for both b2c and b2b buyers because they help guide the purchasing process:

  •       B2b buyers: in the business world, the buyer journey is often longer and involves more decision-makers. However, understanding the stages is still essential to tailor their marketing and sales to address each stage’s specific needs and concerns. It also helps build relationships with potential clients by providing valuable information and support throughout the buying process.
  •       B2c buyers: understanding the buyer journey lets businesses tailor their marketing campaigns and sales strategies to target the right people at the right time with the right message. By knowing where customers are in their journey, businesses can provide helpful information and incentives to move them closer to making a purchase.

Whether the target customer is an individual or a business, understanding the buyer journey is key to guiding people from awareness of their needs to a point of purchase. When they decide, this is often what the process looks like:

  • B2b: purchasing decisions are typically complex and involve multiple stakeholders – decision-making unit (DMU) – carefully considering ROI and long-term value. The sales cycle can be longer and requires nurturing leads through various stages. The more expensive the product or service, the more people are likely to be involved.
  • B2c: decisions are often impulsive and driven by emotions, price, and brand perception. The sales cycle is generally shorter and focused on immediate conversion with fewer people involved.

It’s all about the fit

Understanding these fundamental differences is crucial for crafting effective marketing strategies, meaning you should think carefully about whether you need b2c or b2b marketing – or both. The same goes if you’re job-hunting. Consider your strengths or the strengths of your company, and how they best suit either or both categories.

Many agencies specialise, but some have a mix of b2c and b2b expertise. This is because a lot of companies, especially as they grow large, use a mix of vendors and direct sales (and their marketing needs change accordingly).

Remember, one is not better than the other: it’s about recognising the unique strengths and approaches that each marketing type demands.

So, the next time you’re wondering whether to go for a b2c or a b2b marketing agency, take a deep breath, assess your strengths, goals, and audience, and then choose the agency that fits the bill.

 

Need helping choosing a b2b marketing agency? Check out this guide to the top b2b marketing agencies.

 

About the author: Errol Jayawardene is digital director for PR and marketing agency, Red Lorry Yellow Lorry. He is responsible for delivering b2b digital marketing campaigns which build brand awareness, audience engagement and lead generation.

 









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