Business-to-Customer (B2C)

What is Business-to-Customer (B2C)?

Business-to-Customer or B2C, often contrasted with B2B,  is a sales model in which a business sells its products or services directly to the end-users( also known as customer/consumers) instead of to another business or organization. For instance, a clothing retail store that sells clothing to customers who walk in from off-street or online is a B2C.

Where did B2C come from?

B2C is a key standard category of modern sales models. The possibility of B2C was first used by Michael Aldrich in 1979 when TV was the main marketing channel for targeting customers. Back then B2C was mainly focused on shopping centers, eating out at restaurants, pay-per-view films, and infomercials. But things changed with the rise of the internet and Digital Marketing.

Customer Relationships Are Crucial for B2C

Any business that depends on B2C deals should keep up excellent relations with their customers to guarantee that they return. 

In contrast to business-to-business (B2B), in which marketing efforts are usually used to exhibit the worth of a product or service, enterprises that depend on B2C focus on building a strong relationship with customers whose purchasing decisions are often not as well informed and maybe more influenced by factors such as brand recognition and customer service.

Types of B2C

That aside, there can be many different types of B2C. In broad terms, B2C models fall into these five categories: 

  • direct sellers,
  • online intermediaries,
  • advertising based B2C,
  • community-driven B2C, 
  • and fee-based B2C.

You’re most likely to see the direct seller model in the market, whereby goods are purchased directly from online retailers. 

On the other hand, something like an online intermediary model would include companies like Expedia, connecting buyers and sellers.

And finally, an example of a fee-based model would be services such as Netflix, which charges a subscription fee to stream movies and other video content.

Understanding types of B2C can help you understand this business model better. But now, let’s move on to how a B2C business model can benefit your enterprise.

Benefits of B2C 

Business-to-consumer connections are the norm for most businesses. However, what people don’t realize is that a middle channel often ends up coming in between, which disrupts that direct relationship.

So, you must understand that to maintain such a connection, you have to connect to clients directly and invest time and energy into doing so. If you can do this successfully, many avenues will open to you.

1. Unlimited MarketSpace

Yes, a B2C model means that you can essentially target any area, gender, age, or type of people you want. It’s all up to you. By enabling the customers to browse and shop at their convenience, you make it easy for new customers to enter.

2. Removal of Third Parties

Through B2C, you can ensure no third parties are involved with your sales or marketing process. Direct reach to consumers gives you the liberty to directly sell and position your products or services in whichever way you want.

3. Customers Appreciate It

And finally, your customers prefer a direct relationship with you! So, why not give them what they want? Giving customers direct access to you will help them feel more connected to your brand, enabling them to ask questions and increasing sales opportunities. 

Key Takeaway

Overall, a business-to-customer or B2C business model is an excellent idea if your business is simple and you want direct contact with your customers. 

Having the ability to influence your customer base directly can do wonders for your sales, engagements, and customer satisfaction, allowing you to receive constant feedback, sell your products and services efficiently, and avoid any extra costs that may come with using intermediary business to sell to customers for you.