What is B2B?
Business-to-Business
TL;DR
B2B (Business-to-Business) means selling products or services to other companies rather than to individual consumers.
Example
B2B companies:
- Slack sells to businesses for team communication
- Salesforce sells CRM software to sales teams
- A marketing agency sells services to companies
- An office supply company sells to corporations
B2B transaction characteristics:
| Aspect | Typical B2B |
|---|---|
| Deal size | 10,000 - 1,000,000+ kr |
| Sales cycle | 1-12 months |
| Decision makers | 3-10 people |
| Relationship | Long-term, often with contracts |
| Buying motive | Business value, ROI, efficiency |
B2B vs B2C purchase: A company buying 500 licenses of Microsoft 365 (B2B) vs. you buying one license for home use (B2C).
Explanation
B2B Sales Process
B2B sales typically involve:
- Lead generation: Finding potential customers
- Qualification: Are they a good fit? Do they have budget?
- Discovery: Understanding their specific needs
- Demo/Proposal: Showing how you solve their problem
- Negotiation: Terms, pricing, contracts
- Closing: Final agreement and signing
- Onboarding: Getting them up and running
This can take weeks or months, unlike B2C where purchase can be instant.
B2B Marketing
Different from B2C:
- Content marketing (whitepapers, case studies)
- LinkedIn over Instagram
- Trade shows and conferences
- Account-based marketing (targeting specific companies)
- Focus on ROI and business value, not emotions
Why It Matters
For Business Owners
B2B means bigger deals but longer sales. A single B2B customer might pay what 100 B2C customers pay, but it takes more effort to close them.
B2B requires different skills. You need salespeople, account managers, and customer success teams. The relationship matters as much as the product.
B2B has higher switching costs. Once a company adopts your product, they're unlikely to switch easily. This makes retention easier but acquisition harder.
B2B is more predictable. Contracts provide revenue visibility. You can forecast months ahead.
Choosing B2B vs B2C
Ask yourself:
- Do businesses have the problem I'm solving?
- Can I reach business decision-makers?
- Am I comfortable with longer sales cycles?
- Can I provide the support businesses expect?
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