There are three basic types of business models that are in place today: the B2B business model, the B2C business model, or some fusion of the two together. B2C stands for “business to consumer” and is the most common type of business that is seen today. The business promotes what it sells or provides to consumers so that they’ll make a purchase. That purchase generates revenues and once expenses are taken out, creates profits.
Having a B2C business today can be extremely challenging. Here are the lessons to learn from this particular business model so that everyone can experience more overall success.
1. The Products or Services Must Be Attractive.
The B2C business model is capitalism at its finest. Consumers get to pick and choose which items they want from the businesses that they want. This means a business must make their products or services attractive to their targeted consumer demographics. What creates attraction? The amount of value that a product has.
There are a number of ways to provide value. Goods might solve problems for consumers. Services might be needed to repair something that is frequently used in a home. When the value of a product is better than any other similar item, then it will have the best chance of providing a B2C business with success.
2. There Must Be A Relationship.
It isn’t just the value of the product that will be considered when consumers are shopping. The value of the brand that represents the goods or services will also be considered. This means relationships must become a higher priority for those in the B2C business model. Relationships are the easiest and fastest way to establish more value with a targeted consumer demographic because it communicates a caring, authentic message.
That doesn’t mean a relationship is 100% necessary. New products are purchased from new businesses all the time. To keep customers, however, at some point a relationship at some level must happen.
3. It’s All About the Expertise.
When all things are even for the consumer, including the quality of a relationship [or lack of one], then the fallback evaluation will be the niche expertise of the brand. A B2C business model practitioner must be able to support the value they are promising consumers with real facts that support the claims. These facts must be verifiable in some way.
It could be through video evaluations or reviews. It could be through links to science journals or research studies. It even happens through frequent blogging. The choice is up to each business. Without some level of proven expertise, however, the odds will be stacked against the business.
4. Consistent Engagement is Necessary.
What forms the backbone of a relationship? How can experience begin to be proven? Through B2C engagement. Businesses must be willing and able to connect with their consumers on a regular basis. That’s why so many businesses today are turning toward social networks like Facebook and Twitter. Engagement can happen instantly with these online platforms and that helps to satisfy the instant gratification requirements that many people have today.
5. There Must be Product Consistency.
Once the value of a product has been established and the consumer has been engaged, the B2C business model stresses product consistency. This means two different consumers should receive the same level of performance when they engage with the item. If services are rendered to mow a lawn and one consumer gets their whole lawn mowed, but the other gets only 50% of their lawn mowed, then one consumer isn’t going to be very happy with their results.
To achieve product consistency, testing must happen. Each business needs to know what to expect from their goods or services. Without this knowledge, surprises happen and that often means consumers will head toward the competition.
6. Innovation Must be a Priority.
Some B2C products haven’t changed in generations. You can still purchase a bag of jelly beans with traditional flavors, right? Yet that doesn’t stop innovation from occurring. There are numerous flavors of jelly beans that can be bought today if they are desired. There are gourmet brands that offer one-of-a-kind of flavors and experiences. Each brand innovates in their own way.
If you have success with a traditional product, then be innovative in how you produce those items. If sales are stale, the B2C business model dictates innovation through creativity. Don’t every settle for something being “good enough.” Every day, look for a way to improve at least once process an this will bring about success.
The B2C business model offers many valuable lessons. Follow these 6 key points and any B2C focus has a good chance of finding success.