In this article we will cover some basics on the key differences in SaaS B2B and B2C business models. These differences will largely affect the service delivery and how a company should approach its marketing.
As you already know, B2B sells to other companies, and B2C sells to individual consumers. Some examples of SaaS B2B products are: CRM tools, analytics software, and customer support platforms. SaaS B2C products can be things such as: word processing software, photo and video editing software, and social media sites. These days many SaaS B2C products can also be used on larger scale for B2B purposes.
Although sometimes the line gets blurred for SaaS B2B and B2C, there are still some key differences to look out for.
For instance, there are differences in customer budgets, sales cycles, and use of scale.
Targeting:
When it comes to targeting, B2B companies often have an advantage over B2C. It’s typically easier for B2B companies to identify and narrow down their target audience. B2C companies typically look to get a larger user base and thus have a broader audience that becomes harder to define.
Customer Budgets:
It’s no secret that companies will have budgets set aside for tools and software that will improve their business. Consumers the other hand may not have a lot of money set aside to purchase software or cloud computing services. For SaaS B2C, the popular approach to getting more customers is by using the freemium model. That means they will offer free versions of their products and then convert consumers down the line to upgraded versions for a monthly fee. Some SaaS B2C companies will focus more on getting a large user base and generate revenue through displaying ads to their users.
Marketing Automation:
As you can see, although brand building is important for both B2B and B2C, the main focus on B2B will be on generating leads and customer engagement.
Key Takeaways:
- SaaS B2B customers need a more professional approach but they are also easier to target.
- SaaS B2B clients may need more nurturing and relationship building.
- B2C customers use a more emotional buying process whereas B2B customers use a more logical buying process.
- SaaS B2B sales process is usually longer and more complicated than the B2C sales process.
- B2B model is more complicated and costly, but has more revenue returns per customer account.
What’s Next For B2B Companies
Zentrex Media provides a highly focused system for generating warm leads. We specialize in helping tech companies locate and engage with their ideal clients.
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