If you don’t already know, B2B is an acronym for business to business. It’s a business model that many companies choose to replicate, due to its multitude of benefits, and essentially means that they primarily sell products to other businesses. Similarly, many businesses choose to partner with these companies and benefit from the services they offer. The main motivation behind following a B2B model is that you’re supporting other businesses instead of outsider customers, which is a simpler and easier challenge to overcome. When it comes to B2B, sales is not about selling anymore, it’s about building trust and educating.This, in turn, also makes for more reliable client relationships compares to selling to the general public. 

Some companies who follow the B2B model have a mix of business and non-business clients, for example, Skype who offer both business and personal accounts. While other companies are purely B2B, such as Xero who specialise in accounting software which they sell to other businesses. There are so many companies out there with such a large range of difference requirements, that it’s possible to build a successful B2B business to meet the specific demands of almost any product specialisation. 

Here at Cymphony, we work on a B2B basis, and offer the kinds of services every business needs. We supply expert, experienced call handlers as part of our telephone answering service, we supply virtual personal assistants for all of your administrative needs, and we offer live chat agents to help you incorporate this extremely convenient and efficient communication function into your business. We want to help you realise the potential of joining hands with other businesses, as we do, and 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 you.

 

Ease of Communication

Usually, the main form of communication that a business invests their time into is with its customers. For non B2B businesses whose customers are the general public, this conversation is multifaceted in its challenges, for example, you need to overcome the language barrier that exists as a result of their lack of insider 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 take a more honest approach, where you would usually need to be tactful, for example, you can discuss the kinds of problems that a typical customer would pose and how your product could help with these scenarios.

 

Customer Longevity and Reliability

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 for, 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.

 

B2B Payback

Hopefully, once you have established a working relationship with another business, you will also be able to benefit from the products they offer in return. For example, a wholesaler that supplies a coffee shop with the products they need, could then hire that coffee shop to cater their corporate events.This kind of relationship inevitably results in considerable savings for both parties, as well as the benefits of the more streamlined operations that come with B2B relationships.

 

Easier Sales Negotiations 

Another example of how B2B communication can be more straight forward, 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, in turn,  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. 

 

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 when you invest in software that can keep a count. Furthermore, you can see how successful your marketing campaigns have been in creating sales when you can compare the figures from before and after it went live. 

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 and sell it to the next customer. For example, here at Cymphony we provide analytics with our flexible live chat facility, so you know the impact it is having.

 

Efficiency

Working together with another business ensures smooth operational abilities. 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 having to provide installation instructions and guidance yourself.

 

Affordability

Another advantage of a B2B business model is the reduced cost. 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 individual cusotmers, so they can spend more over a shorter period of time. This revenue can then be invested into your company. According to 60% of organisations, external parties influenced 35% of their annual revenue. This is in the context of B2B relationships and an important fact to bear in mind when considering the financial implications. 

 

Wider Audience Accessibility

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. Twin this with the considerable number of networking events that take place between B2B investors and you can soon see how beneficial operating purely within the business world can be, in terms of having an endless stream of customers who are easily accessible. 

So, have we enticed you into considering B2B as a potential business model for your company? As you can see, there are many benefits, from ease of communication, customer accessibility and reliability, to smooth negotiations and operations, and affordability. You can even build a B2B customer base alongside your existing one, to add another lucrative string to your bow and make the most of the opportunity to build your name in the business world. Give Cymphony a call today to see how a working relationship with us could benefit you, and kick start your B2B journey.

Contact Cymphony for help with your business

Enquiry Type