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Sales Glossary

The sales industry is always changing and evolving. Keeping on top of those changes can be tough. The Vidyard Sales Glossary is your ultimate guide to important sales terms, definitions, concepts, slang, insider business jargon and more to keep you up to date with the latest in sales industry lingo.

What is B2C?

B2C is an acronym for “business to consumer.” It’s used to describe companies that sell their products directly to individuals instead of to other businesses. B2C sales are what most people are familiar with because everyone interacts with them. Think of online stores: you, as an individual, are the “consumer” in these B2C sale transactions.

B2C vs. B2B

In sales, the terms B2C and B2B (business to business) are used a lot. They’re both sales models, but are very different. While B2C focuses specifically on selling to individual consumers, B2B refers to businesses who sell their products to other businesses.

B2B companies may also have smaller, or tiered versions of their products they can use for B2C sales, but B2C companies are more focused and sell only to their direct consumers.

However, B2C companies typically purchase products from B2B companies to help improve their business model, increase revenue they’re able to generate, and boost overall customer satisfaction.

Key Distinctions of B2C Sales

When comparing B2C and B2B sales models, there are many differences. B2C companies have the following distinctions, which set them apart:

  • Low cost per customer purchase. Each purchase made by a customer will be small. Customers typically only purchase one item at a time, so the amount of revenue generated per sale is small. B2C companies rely on multiple customers making small purchases (which inevitably add up to large amounts of total revenue), whereas B2B companies often see less sales generating larger amounts of revenue.
  • Emphasis on marketing. B2C companies rely on marketing to attract customers. It’s important for people to recognize their brand and product. Resources often go into social media marketing and placing high-value, strategic online ads to drive customers to their website to make purchases.
  • Tap into customer’s emotions. Depending on the product being sold, many B2C companies will utilize storytelling techniques in their marketing materials to invoke an emotional response in their customers to influence purchases. If someone feels a personal connection with a brand or product, they’re more likely to purchase it.
  • Uses discounts to influence purchases. B2C companies will often offer discounts to influence purchases. Since the purchase amount is small, a 10% discount, for example, can easily be accounted for. Offering discounts is a great way to incite customers while still hitting revenue goals.
  • Shorter sales cycle. Unlike B2B sales, B2C sales have a shorter cycle because there’s less people involved. Since the company is selling directly to the consumer there are no lengthy meetings, negotiations, or multiple stakeholders to meet with. A sale can happen in under a minute.

B2C Sales Tips

If you’re looking to boost B2C sales, follow these tips:

  • Know your ideal market. It’s important for B2C companies to know exactly who they’re selling to. Figure out your ideal customer profile and target them, specifically, to boost sales. There’s no point marketing to audiences who aren’t interested in what you’re offering.
  • Tap into influencer marketing. This is especially important to pair with social media marketing. Sending products to influencers to review and showcase to their followers will help you tap into new markets, and you’ll get video content and product reviews out of it to utilize in the future as well.
  • Offer discounts as incentives. If a customer buys something, send them a coupon for a discount on their next purchase. This will encourage additional sales and help with customer retention.
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