What is B2B
If you are wondering what B2B is in simple terms, we will explain right away that it is a business model when one organization sells its products to other companies. Sales in this case are complex, and the deals are long-term. They often last for months and are accompanied by lengthy discussions.
Businesses of the B2B (business-to-business) model include:
suppliers of resources from which cotton, ore or gas are produced;
suppliers of component goods, such as flour or screws;
suppliers of finished products and services, including fabrics, factory machines;
companies providing outsourcing and consulting services;
companies that create websites, antiviruses and other programs for legal entities.
What is B2B, B2C, B2G in sales - image 1
Development of a program for other legal entities
In all these cases, the products and services of companies are used lithuania cell phone number list by other organizations. For example, Intel supplies Apple with components for the production of smartphones, and then the finished products go to the consumer. The B2B model is used in the automotive industry. Parts are manufactured by different companies, and car manufacturers buy them to assemble vehicles. B2B also works in the real estate market. Companies that manage real estate or provide cleaning services for industrial buildings work for the benefit of other organizations, not the end consumer.
Characteristics of the B2B model
Long sales cycle
Based onCSO Insights report, 74.6% of B2B sales take at least 4 months, and in 46.4% of cases it takes about 7 months to bring a customer to a purchase. For example, a company needs to automate marketing. The marketing director discusses this with the marketing department specialists to find suitable options. After choosing an automation system, you need to get approval from the finance director. In addition, you may need to consult with the IT director to make sure the purchased program is compatible with the existing ones. Only after all these steps will it be possible to conclude a deal.