All You Need to Know Regarding B2C Operating Model

With advancements in technology, B2C transactions have evolved. In the past, people would go to physical stores to buy products and services. However, in the late 1990s, things changed.

With the advent of e-commerce, companies saw a spike in their revenue. Amazon, for instance, saw its revenue jump from $15.7 million in 1996 to $610 million in 1998. But while companies benefited from this, many noticed this sudden growth led to significant challenges for the traditional system. So, what is the B2C Model, and why should it be used? Keep reading this article to learn everything about the B2C process.

Understanding the B2C Operating Model

The Business to Customer Model is a business transaction where the company directly sells its products or services to its end users. You can see B2C sales in daily transactions, like when you go out to grab a meal or buy new clothes.

For a B2C model to work out well, companies must maintain a good relationship with their customers. Doing so will help the companies keep their customers happy and understand what they want. Then this information can be used to strategize ways to motivate them to purchase.

Types of B2C models

There are various types of operating models for B2C. No matter which one you have, Growth Jockey can assist you with growing your business and generating better leads. A few common ones are used. Some of them are:

Direct sellers

Direct sellers are the retail stores from which customers can purchase directly. Manufacturers, producers, and small businesses are direct sellers that market and sell products and services directly to customers, eliminating the need for a middleman.

For example, when a customer wants to purchase clothes from a specific store, they can go to the manufacturer's website, look at the product information and order it.

Online intermediaries

Online intermediaries help connect buyers and sellers without owning the products or services. Most of the time, they set up a platform that helps connect buyers and independent sellers. Once the sale is made, they earn money by charging the vendors a small percentage of each sale.

Some examples of online intermediaries in India are Myntra, Amazon, Flipkart, and Femica.

Advertising based

Advertising-based companies use popular platforms for advertising their products and services, which helps them get a significant reach as they know the traffic-driving strategies like content marketing. Businesses can ensure their ads reach suitable targets and make them aware of what they sell.

Advertising companies earn profits by selling advertising space, and sellers get revenue by getting leads converted. YouTube and Reddit are popular websites that sellers use to advertise their products and services. 50% of online marketers use content marketing to generate leads.

Community-based

Community-based B2C is very similar to advertising-based businesses. These use online communities that are centred around specific interests and information. It includes geographic location or demographic data that connects website-goers with targeted advertisements.

An example would be a computer programmer getting targeted by ads for computer hardware and software products. And this is done on social media websites like Facebook or Instagram.

Fee-based

All e-commerce businesses need a paid subscription to provide unrestricted access to their content. Just like in Netflix and Disney Hotstar, where you need to pay to view their content. Some sites may provide certain content for free. However, it is usually only for a limited audience.

Out of these, the best operating Model for B2C depends on the kind of business you have.

Key Features of the B2C Model

In a B2C business model, you sell your products directly to the customer. B2C is the most common business model for small businesses and startups. Some of the features are:

• Personalization

Consumer websites are created to give the customer a fantastic experience. They offer a wide range of exciting features that personalize their experience. This lets customers see real-time product recommendations, bestselling products, and their buying history.

• Buying and browsing

Customers today look for various things when buying a product. They want an effortless buying procedure. So, they look at the site to check if it has a variety of product options, how-to videos, instant support from chatbots, and the ability to get the product directly from its manufacturer.

• Social and Mobile

Mobile phones enable customers to check their order status, place an order on the apps and make payments through online payment gateways. This facility gives them the freedom and flexibility to make payments from anywhere they are.

• Account Management and Analytics

Customers can access their past orders, which makes it easier to re-purchase something they liked. They can even look at other buyer information. On the other hand, seller analytics provide them with key insights about customer behaviour and help companies understand when and why customers leave their sites.

What does the B2C process look like?

In a B2C business model, the process is relatively simple. Unlike the B2B model, where businesses take very long to make decisions and allocate budgets, in the B2C Model, customers can buy quickly. The customer decision process goes from interest to purchase in a couple of minutes.

For this reason, the marketing strategy has to be excellent and focus solely on understanding consumer behaviour. You have to focus on social media marketing as the target market generally spends most of its free time there.

GrowthJockey helps to ensure you go about this process the right way. In 2021, 27% of B2C content marketers noticed their budget increased when they used the B2C Model. This makes it increasingly essential for a business to make use of it.

The benefits of using this business model, especially for e-commerce, are:

• Vast and varied market

The B2C market is large and gives customers the advantage of targeting a significant number of customers. Even small businesses can sell to customers on the other side of the globe. It helps a business to proliferate and increase profits.

• Lesser costs

When a company uses a website to sell, it reduces operating costs. This is because it requires fewer physical resources and staff. Also, there are no additional costs linked to infrastructure, electricity and staffing.

• Direct communication

Companies that use the B2C business model can communicate with their consumers directly and in a personalized manner. They usually send emails, SMS and push notifications. The business will have a team that analyses which performs best, and they will switch to only using that.

Are there any challenges of the B2C Model?

While the B2C Model has a lot of benefits, there are also some challenges to using it. Even the most successful B2C company can face these. Below are a few of the most common challenges you should keep in mind and prevent from happening.

• A physical store is necessary

One of the essential things to own is a physical store. While people love to shop online, most of the time, they prefer to have the option of 'seeing before buying.' Because, more often than not, it's the most fun part of the shopping process.

• Marketing can be complex and expensive

Before the product reaches the market, a lot of marketing must be done. This helps to spread awareness about the product and its features, which convinces the customer to purchase it. It would be best if you created an ad that makes customers want to open their wallets.

• Customers form brand loyalty

Once they purchase a product and like it, they return to it again. Buying things on repeat is expected, which is why the product's "first impression" must be good. You have to ensure your product is better than others because customers move to other products if they aren't satisfied.

• Watch out for global competition

In today's world, buying products from any part of the world is easy. Customers can select a country and brand of their choice, no matter where they are. This makes it essential to sell a competitive product.

To Conclude

B2C is the process of selling directly to the customer. If you are a new businessman, navigating and finding ways to grow might be tricky. Luckily, some businesses can help you go through the process smoothly.

GrowthJockey will help you use the B2C business model correctly. We assist with creating a strong brand and provide a smooth customer experience for your customers.

There are five operating model types for B2C, and the best suitable depends on your business. Since every business is different and has different goals, you should do your research before you choose.

At GrowthJockey, we are fully committed to developing customised operating models that effectively address the critical challenges faced by our clients across various industries. Irrespective of your company's size, whether it's a small-scale enterprise or a large corporation, you can now benefit from our tailored solutions.
Take the decisive step towards unlocking the next level of growth for your brand by reaching out to us today!