B2B stands for business to business. It's a business model that many companies favour, and essentially means that they primarily sell products to other businesses.

The main motivation behind following a B2B model is that you're supporting other businesses. When it comes to B2B, sales is not about selling anymore, it's about building trust and educating.

This, in turn, makes for easier and more reliable client relationships than selling to the general public.

Some companies that follow the B2B model have a mix of business and non-business clients, for example, Skype offers both business and personal accounts. While other companies are purely B2B, such as Xero who specialise in accounting software. 

There are so many businesses out there with such a large range of requirements, that it's possible to build a B2B business from almost any product specialisation. 

Here at Cymphony we offer the kinds of services that every business needs; call handling, virtual personal assistants and live chat. We want to help you realise the potential of joining hands with other businesses, as we do. 

Even if you've never considered or even heard of B2B trading before, it's well worth reading through what we believe are the main benefits. You never know, it might open your eyes to a new world of lucrative opportunities for your business.

The Benefits of B2B Trading

Transparent Communication with Other B2B Companies

When most businesses speak to customers, there is a communication barrier to get around. For example, you need to explain your products in-depth, as a typical customer would have little inside knowledge. 

However, when your customers are other businesses, you speak the same language when it comes to what you're selling.

For example, they will already understand how accountancy software would benefit their business. So, all you need to explain is what differentiates your product from others on the market.

You can also be honest where you might usually not be able to. For example, you can discuss the kinds of problems that a typical customer would pose and how your product could help a business with them.

Reliable B2B Customer Base

When your customer base is dependent on the general public, it can be inconsistent. You're dealing with large numbers of individuals who all have varying motives and changing circumstances.

When your customers are other businesses, it's more predictable. 

Businesses forecast their actions in advance and can be transparent with you about them. This includes how long they're planning to use your products, and what could potentially interrupt your business relationship.

They can agree to use your products for a greater length of time, thanks to the insight their analytics gives them. This gives you stability and allows you to plan ahead.

Businesses also understand the importance of a reliable contract, and will, therefore,  do their best to provide this for you.

Two Way B2B Relationships

Hopefully, once you have established a working relationship, you will also be able to benefit from the products they offer. For example, a wholesaler that supplies a coffee shop might hire that coffee shop to cater their corporate events.

This could involve considerable savings and more streamlined operations.

Improved Sales Engagement 

Another example of how B2B communication can be more straightforward, is in sales negotiations. 

When you pitch to a typical client, half the struggle is inciting their interest and keeping their attention.

When you're pitching to a seasoned professional, this comes as a given. This allows you to focus on your key points and often results in better conversion rates. 

Statistics show that 70% of buyers fully define their needs on their own before engaging with a sales representative, and 44% identify specific solutions before reaching out to a seller.

Business-minded people know what they're looking for and are better able to recognise the benefits of what you're offering.

Benefit from Analytics

These days, most businesses are making the most of analytics. Analytics, in laymen terms, are statistics that can be produced when you digitise your business.

For example, you can easily find out how many calls your business has received, on average, each day of the month. Or you can see how successful your marketing campaigns have been in creating sales. 

When you use a B2B business model, you can benefit from your customer's analytics as well as your own. For example, they can share statistics based on how their business has benefited from your product.

This, in turn, gives you valuable information that will help you improve your product. For example, here at Cymphony provide analytics with our flexible live chat facility, so you know the impact it is having.

Efficiency 

Working together with another business ensures smooth operations. They know what to expect and what can realistically be delivered, and have the facilities to incorporate new products easily.

For example, they already have efficient communication channels and fully-trained staff, which makes life a lot easier for you.

In contrast, you often have to provide these things alongside your product for non-business customers. One example is providing a live chat service to a company that already has a tech team to install it, rather than you providing instruction.

Lower Costs

Another advantage of a B2B business model is lower costs. If you establish a joint agreement with another business where you're both benefitting from the products of the other you can also agree on lower prices.

If you offer them reduced prices, they can afford to do the same for you. 

Furthermore, businesses have a better ability to absorb expenditure than individuals. So, they can spend more over a shorter period of time. This revenue can then be invested in your company. 

According to 60% of organisations, external parties influenced 35% of their annual revenue. 

Access to a Wider Audience

Finally, thanks to the huge amount of networking that takes place between businesses, you always have access to a wide audience to sell to.

Having the common interest of building a business, helps you to connect to a huge number of potential customers.

So, have we enticed you into considering B2B as a potential business model for your company? As you can see, there are many benefits, and you can build a B2B customer base alongside your existing one. 

Give Cymphony a call today to see how a working relationship with us could benefit you. We specialise in live chat, telephone answering, and virtual personal assistant services that every business could benefit from.

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