The hyper-competitive market of today is pushing manufacturers to shift from a B2B to a customer-centric B2B2C model. This model provides an enhanced buying experience to their customer by using advanced technology. It provides manufacturers with new opportunity to capture more customer data and analyze them in a way to suit their business requirements.
While retaining B2B channel is important for some businesses, there is shifting trend of opening up an entirely new B2C channel, allowing organizations to digitally transform and innovate their sales strategies with a purpose to capitalize the new resources to gain better revenue opportunities.
Business-to-Business-to-Consumer (B2B2C) is a marketing/sales channel which represents business-to-business (B2B) as well as business-to-consumer (B2C) model resulting in a complete trade cycle. It uses e-commerce as a medium for its trading and transaction services.
Advantages of B2B2C model
- Advanced predictive capabilities – The B2B2C model provides manufacturers with detailed insights about consumers and their buying patterns using business intelligence and data analytics. Its advanced predictive capabilities provide accurate information on customer segmentation and help in forecasting demand.
- Value-based partner ecosystem – Creating the right blend of partner ecosystem is extremely important for the success of any manufacturer. The B2B2C model helps in implementing the right technology environment that can support, streamline and improve process visibility. It enables transparency and accountability covering all the partner touch-points.
- Cross-Selling and Up-selling – The B2B2C platform is helpful to both consumers and business clients, especially for Manufacturers who deal with complex products as this platform guides the customer in selecting the right product, either based on previous purchase or by knowing their present requirement.
- Saves costs – Organizations see long-term benefit in reaching directly to customers in a B2B2C or direct-to-consumer scenarios. It reduces the role of middleman and saves costs for manufacturers, allowing organizations to use these margins to enhance their products and services. Further to this, it provides organizations with a platform to build stronger relationships with end users and strengthen their brand loyalty.
Digital platforms are drastically changing the customer interaction patterns. Sales/supply channels are evolving, allowing companies to sell directly to end consumers. This trend has impacted the whole B2B spectrum, forcing organizations to increase their focus on building a strong and ongoing relationship with end consumers. This effort will provide end customers with a complete and comprehensive buying experience.