B2B sales, standing for business-to-business sales, are sales from businesses. It differs from B2C sales, business-to-customer sales, in which consumers are your target audience. Business buyers are more aware of marketing and sales tactics used on them than consumers are.
It is sometimes difficult to convert a business lead, but B2B sales pay off well. Your company can receive larger payments and higher commissions for salespeople in B2B sales. Continue reading for an explanation of what business-to-business sales are and how to use them.
What Are B2B Sales?
B2B sales are sales that a company generates from other businesses. They differ from B2C sales, which are sales that a company closes from consumers. The approach you must take to close a sale with a business owner is different from the marketing tactics that work on consumers. For one, business buyers are more knowledgeable about the product or service they’re buying. They have the business acumen that helps them determine whether or not they’re getting a good value. In some instances, you’ll have to convince a team of decision makers from the company that your product is best for their needs before landing the sale.
How to Obtain B2B Sales?
To obtain B2B sales, you should take a consultative approach instead of the traditional sales pitch. Research each lead that comes in to learn about their needs. Check out their company website to see what their mission is and how large the business is. Ask the lead questions for more information. During discussions, educate the prospective buyer in your niche when you can while avoiding talking about your product or service. In order to effectively qualify in B2B sales, use the GPCT (goals, plans, challenges, and timing) and BANT (budget, authority, need, and timeline) methods.
Why Are B2B Sales of Use?
B2B sales are useful for companies that can find a business target audience for their product or service. As long as you can find a target market that’s profitable, then getting into business-to-business sales is a good idea for your business.
B2B salespeople and B2B entrepreneurs make use of B2B sales. Other business owners and entrepreneurs sometimes choose to pursue business-to-business sales to increase revenue as well. Salespeople usually choose either B2B or B2C sales to specialize in, but a few take on both types. B2B salespeople prefer the more professional approach and higher commissions of B2B sales.
Ways in Which B2B Sales Can Help Your Business
- According to Forrester, the B2B market is $1 trillion. There is a lot of potential in B2B sales when it’s done right. Your business can earn more money from B2B sales because businesses usually place larger orders than consumers. Practical Ecommerce pointed out in 2015 that B2B e-commerce generates more revenue than B2C e-commerce, although B2C e-commerce receives the most media attention. Frost & Sullivan, a research provider, predicts that the B2B e-commerce market will reach $6.7 trillion by 2020. You’ll want to develop a B2B plan before competition increases.
- You don’t have to focus on emotion when marketing and selling to business buyers. They take a more logical and rational stance when it comes to business purchases. Moreover, they are often aware of marketing and sales techniques, unlike the average consumer. Business buyers are more interested in the features of the product or service, whereas consumers care about the benefits. They are usually making the purchase for a large group of people, allowing them to step back from emotion and look at the features. Business buyers must justify the sale to others at their organization to ensure them that it’s not a waste of money. This makes price and value more important in B2B sales.
- Some business clients are looking for a company that can make products specifically for their company. This is a great opportunity to build a long-term relationship with a B2B client that will regularly buy from you. If you are willing to deliver on their custom request and handle the B2B sales process well, you can easily close the sale.
- You have the chance to save money when you get into B2B sales. If you need to purchase goods or services from another business, then you could possibly buy from each other at a lower cost and build a long-term relationship.
- When selling to businesses, you must know in specific dollar amounts how much each benefit is worth. The process of calculating the monetary value of each benefit gives you a deeper understanding of your product or service. As stated above, business buyers need to justify the purchase to others at their organization, such as the financial team and senior management. This makes assigning dollar amounts to every feature crucial.
Even when it comes to time-saving benefits, convert it into a dollar amount. For example, if your product saves an hour of time for administrators at each station over the course of a year, then look into the stats of an average call center. Inform the business client how much money the average call center would save each year with your product or service.
B2B sales shouldn’t be overlooked. Offering your product or service to business owners can boost revenues and lead to long-term relationships. If you plan on selling to other businesses, then make sure you understand how B2B sales work and which approaches work best. Although businesses are still customers, you should place more emphasis on the features of your product or service and calculate benefits in terms of dollar amounts.
Remember business purchases aren’t emotional decisions like consumer purchases are. The decision to finalize the sale with your company doesn’t rest solely on one person. Multiple people from the organization must agree before they will buy. Therefore, you’re not persuading just one or two people but many, including those you haven’t met. It can make B2B sales more challenging, but B2B sales are very rewarding once you get the hang of them.
Does your company already offer B2B sales or are you considering getting into B2B sales? If you have experience in this area, please share any B2B insights in the comments below.
Images taken from depositphotos.com.