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Business

What is B2C?

Business-to-Consumer

Last updated: January 15, 2025

On this page

TL;DRExampleExplanationWhy It MattersRelated Terms

TL;DR

B2C (Business-to-Consumer) means selling products or services directly to individual people for personal use.

Example

B2C companies:

  • Netflix sells streaming subscriptions to individuals
  • Nike sells shoes to consumers
  • Spotify sells music subscriptions to listeners
  • Your local grocery store sells food to families

B2C transaction characteristics:

AspectTypical B2C
Deal size50 - 5,000 kr
Sales cycleMinutes to days
Decision makers1-2 people
RelationshipOften transactional
Buying motivePersonal benefit, emotion, convenience

B2C purchase journey: See ad → Visit website → Read reviews → Add to cart → Buy Total time: Could be 10 minutes.

Explanation

B2C Marketing

B2C marketing is about reach and emotion:

  • Social media advertising (Instagram, TikTok, Facebook)
  • Influencer partnerships
  • Brand building and storytelling
  • Discounts and promotions
  • Email marketing for repeat purchases
  • Reviews and social proof

The goal is to be seen by as many potential customers as possible and make the purchase easy.

B2C Business Models

E-commerce: Sell products online (clothing, electronics) Subscription: Monthly recurring (streaming, boxes) Marketplace: Connect buyers and sellers (Finn, Tise) Freemium: Free basic, paid premium (Spotify, Dropbox) Advertising: Free product, sell ads (Facebook, Google)

Why It Matters

For Business Owners

B2C means volume. You need many customers because each one pays relatively little. Marketing reach and conversion optimization matter enormously.

B2C decisions are faster but less sticky. Customers can buy quickly, but they can also leave quickly. Churn is typically higher than B2B.

B2C is more emotional. Branding, design, and user experience matter more. People buy based on feelings as much as logic.

B2C scales differently. You can reach millions through digital ads, but you also compete with everyone for attention.

B2B vs B2C: The Tradeoffs

FactorB2BB2C
Revenue per customerHigherLower
Number of customers neededFewerMany more
Sales complexityHigherLower
Marketing approachTargetedBroad
Customer relationshipsDeepOften shallow

Related Terms

UX

UX (User Experience) is how a person feels when using a product, website, or app. Good UX means the experience is easy, intuitive, and enjoyable.

Churn

Churn rate is the percentage of customers who stop using your product or cancel their subscription over a given period.

CAC

CAC (Customer Acquisition Cost) is how much money you spend, on average, to get one new customer.

B2B

B2B (Business-to-Business) means selling products or services to other companies rather than to individual consumers.

Conversion

A conversion is when a visitor takes a desired action: buying a product, signing up for a newsletter, filling out a contact form, or any other goal you define.

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