“B2B” and “CRM” are abbreviations that you’ve most likely met before, online or when someone talked about them.
Naturally, you’ve probably been wondering what they mean, and that’s why you’re here. So, continue reading this article in order to find out how much your business’s future can change!
We are here to explain to you what B2B and CRM mean, the benefits they offer, and why you need a CRM software if you have a B2B Company, so that you’ll enjoy real success!
What does B2B mean?
B2B means Business-to-Business, more exactly, it refers to an exchange of products or services between companies, rather than between companies and individual customers.
Therefore, a B2B transaction is done between two companies, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.
In B2B, a company sells a set of products or services to another company. Usually, it’s a group or a department that utilizes the provider’s product or services.
Sometimes a single user from the buyer makes a transaction in order to support the objectives of the companies. And other times, B2B transactions imply the product being used by the entire company, such as: office furniture, computers and productivity softwares.
B2B transactions happen, mostly, in the supply chain, where a company will buy raw materials from another company in order to be used in the manufacturing process. The finished products can then be sold to individuals through company to consumer transactions.
Also, this type of B2B transaction is common for the auto industry, for property management, as well as for housekeeping and cleaning companies.
Regarding communication, Business-to-Business refers to methods in which employees of different companies can connect together, such as through social media. This type of communication between employees of two or more companies represents B2B communication.
You should keep in mind that…
You need to plan business-to-business transactions in advance in order to to succeed. These types of transactions rely on the company’s account management team to establish business relationships with clients.
These relationships should also be cultivated, usually through professional interactions before sales, because this is the only way in which successful transactions will take place.
Why are marketing strategies needed?
If you want your business to connect with clients, it’s very important to apply strategies and marketing tactics! Commercial publications help in this regard by offering businesses opportunities to advertise, both in print and online format.
Moreover, the presence of a company at certain conferences and trade fairs also increases the visibility of the products and services that you can offer to other companies. Thus, you are very likely to gain new customers.
How does a large transaction of products go when it comes to Business-to-Business?
You should know what a large transaction of products means, because it’s quite different from an ordinary transaction between a company and an individual.
Let’s see what this type of transaction includes:
- a business decision maker, such as the person in charge of the budget;
- a technical decision maker, such as the person in charge of the product evaluation;
- a deciding factor, such as the responsible person who contributes to the final decision;
Large purchases can often involve a request for a proposal, in which the buyer asks potential sellers to submit details about the products, terms and prices.
B2B is an important concept because every business needs to purchase products and services from other businesses in order to launch, operate and develop!
Over time, we are sure that you’ve had many professional challenges. Which is normal, so you don’t have to worry, just be confident that every problem has a solution, for sure.
Let’s see what challenges you can expect, if you choose to do business-to-business transactions:
- Customers retention may be difficult
B2B companies often face difficulties in making buyers purchase repeatedly.
- Limited Market
Even though B2B companies can target organizations in many industries, the business market still has its limits. This makes B2B transactions quite risky for small and medium-sized organizations.
- Competitive Market
Because the B2B market is quite small, it is very competitive.
- Longer decision-making process
Decision-making processes for these businesses can take time because many interested parties are involved in the transactions.
- Price negotiation
Many B2B buyers make wholesales, so they usually negotiate better prices, asking for discounts or additional services.
- Supply chain management can be quite complicated
This is especially true when multiple partners are involved in the supply chain and all of them need access to the same information. Improper communication at any point in the supply chain can slow down the process quite a bit.
Well, this is where a CRM Software comes in! But first…
What is a CRM Software?
You are probably eager to find out what a CRM Software is and how it can help you when you make B2B transactions.
You should know that CRM is the abbreviation for “Customer Relationship Management”. Specifically, it’s a system that handles the excellent management of your company’s interaction, both with potential customers and with existing ones, including its partners.
It’s a management model based on placing the customer in the center of the company’s attention to maximize their satisfaction, loyalty and acquisition levels.
Therefore, CRM helps you by constantly collecting the data of prospects or customers, analyzing it and using the accumulated elements to improve the relationships and results of your business.
This Software helps your employees (who work with customers) or sales agents to be always ready to respond to customer needs and to be a reliable help in everything related to the services and products you offer.
Learn more about CRM Software, here!
Why CRM Software helps you with the challenges of a B2B business?
As mentioned above, a CRM software is a system that handles the excellent management of your company’s relationships with its partners, customers and prospects.
So, what’s in it for you, more exactly?
- a complex centralized database with information about all the customers, partners and prospects of your company;
- efficient organization, because every employee can set tasks that need to be done, and get notified by the software – so he can’t forget when he has a certain thing to do;
- saved documents and conversations in the profile of each client, prospect and partner;
- solving internal problems in a timely manner, thanks to the tickets you can make directly in the app. Thus, you will satisfy your customers and partners with everything your company represents!;
In this way, you can be sure that your company will follow an upward trend, if you choose a CRM software to help you!
What we aim?
The purpose of this article is to understand what a B2B company means, but also what a CRM software is and how it can help you if you have this kind of company. So, it’s time to do a little recap.
So, today you’ve learned that:
- B2B means Business-to-Business, more exactly, it’s an exchange of products and services between companies, rather than between companies and individual consumers.
- B2B transactions tend to happen in the supply chain, where a company will purchase raw material from another company so they can use it in the manufacturing process. Consequently, they sell the finished to individuals through company-to-consumer transactions.
- If you want your business to connect with customers, it’s very important to choose strategies and marketing tactics; but also to participate at certain conferences and trade fairs.
- A large product transaction involves: a responsible person for the budget, another for the product evaluation and someone responsible for the final decision.
- Business-to-Business companies can face some challenges, such as:
- Difficulties in long term customer retention;
- Limited Market;
- Competitive Market;
- Long decision-making process;
- Price negotiation;
- Complicated supply chain management;
- CRM is the abbreviation for ”Customer Relationship Management”. It’s a software that handles the excellent management of your company’s interaction with both potential and existing clients.
- The benefits of a CRM Software in B2B companies are:
- a complet, complex and centralized database;
- efficient organization of employees;
- saved documents and conversations in the profile of each client, prospect or partner;
- solving internal problems in a timely manner;