When most of us hear “sales,” we tend to imagine an individual buyer in a store. Well, it turns out that the majority of sales don’t come from customers but other businesses.
By 2023, B2B sales are expected to generate nearly three times as much revenue as B2C sales.
Therefore, a company should look to the future and understand what B2B selling is, the best B2B strategies, and how the B2B selling process and cycle differ from B2C selling.
What are B2B sales?
B2B sales are also known as “business to business” sales. These sales include transactions in which a company sells products or services to another company rather than directly to a customer (B2C or business-to-consumer sales.) Also called inside sales.
B2C sales aim at convincing a single customer to buy, while B2B sales aim at convincing an entire team or senior management. Dealing with multiple decision makers can make the B2B sales process longer and more nuanced than your average B2C sale.
Types of B2B sales:
B2B sales happen in three ways and between four main types of buyers:
manufacturers,
resellers,
governments,
institutions.
Here's a look at his B2B sales of three types between these parties.
1. B2B Supply Sale:
B2B supply sales occur between the purchasing company and the supplier. Suppliers sell resources that support their purchasing business. These resources range from office supplies to specialized equipment. Most sales happen in bulk at discounts to buyers, and many companies maintain stable suppliers with regular replenishment. distribution sales.
2. B2B Distribution sales:
Distribution sales (also known as wholesale sales) work the same as delivery sales. But rather than the exchange of goods, distribution deals in retail products. These products include everything from bulk goods to pharmaceuticals to clothing.
3. B2B services or software:
Selling a service or software (also called SaaS selling) works much like consignment, except it involves selling a service (or software that provides a service) rather than a product.
Benefits of B2B Sales:
There are many reasons why B2B sales are beneficial for your business.
1. B2B sales tend to be more profitable.
B2B purchase tends to be more complicated than just buying a product.
Companies do business with other businesses, so they need a B2B sales process.
They need to know their target market, buyer demographics, and how they want to sell.
2. Build lasting relationships with customers.
When you buy someone's product or service, you are often not building a long-term relationship with that person.
We buy something for a short period and then switch to another product or service. With B2B selling, you are much more likely to build long-term relationships with your customers. This is because companies typically do business with other companies, so they need to build trust and credibility beforehand.
3. It can bring more value to the table than C2C sales.
When we buy a product or a service, we don't think about what that product or service offers compared to what we get from our own. B2B selling should offer more than just a product or service.
You also need to think about things like warranties and support you can offer your customers. This will make them feel like they are getting more out of the transaction and increase their loyalty to you as a seller.
B2B Sales Process to improve your sales by 10x
A B2B sales process may require additional steps depending on the business and the type of distribution, but generally, the B2B sales process includes five steps.
1. Increase traffic
Bring potential customers in front of your website, store, and products. For many companies, this is the hardest step and one of the biggest hurdles for the marketing department. It is important not to over complicate this step or push it too far on the customer. You don't need to buy anything. Just be intrigued.
2. Visitor Conversion
Turn interested visitors into contacts, and use the KISS principle, "Keep It Simple Stupid." Get prospects on your mailing list and start a conversation.
3. Stay in touch
Now is the time to know your outlook. Research is vital at this step. Ask the following questions:
a. What are their needs?
b. What are you looking for?
c. What benefits does a partnership with your company bring to both parties?
4. Create opportunities
Once you've determined which potential buyers are your best targets, escalate to your lead sales team for a full product call. Make sure you're only targeting contacts who are likely to buy. The first three steps should lead to success in this phase.
5. Complete the sale
Get on the paperwork, complete the transaction, and try again. Engage part of your team with your customers. Even after the exchange of money is over, the training does not stop. Companies known for strong customer relationships go further in future sales.