Before doing business, it is essential to understand the concepts or business models, especially the common ones. Two of the most popular and profitable business models are B2B2C and B2C2B. There are some coincidences between two concepts, which can make the business runners have some misunderstandings.
Our article today will try to help you distinguish between B2B2C and B2C2B clearly and quickly.
How Can You Distinguish B2B2C and B2C2B?
What is B2B2C
A company that follows a B2B2C business model will go through another business to access the customers. However, the customers are still aware that the products they bought come from the initial brand instead of the middleman. This kind of business model is a hybrid.
The operation tries to get a deal with another business, based on rules and approaches of the B2B model. On the other hand, the B2B2C’s goal, which is to try to access as many customers as possible, has some major coincidences with the B2C model’s aim.
Let’s take Google into consideration! Google wants to access the market and needs another company to help with this process. Therefore, it has been in partnership with AOL, which helps it to supply and distribute Google’s goods and services to various markets. They had tight contracts and conditions about the minimum revenues and others to ensure the level of profit of this business model.
The customers who buy products all know Google instead of AOL. Here, Google is the first B (selling business); AOL is the second B (distribution channel) and Google’s target customers are C (customer). That’s the formula of the B2B2C business model in Google’s case.
What is B2C2B
B2C2B defines a special approach to the B2B business model. A company that wants to sell products to another company, starts to attract and sell to the employees of their target company. Then, the internal motivation and effect will motivate the aimed business inside out and convince them to buy products. The selling business plays the B1 role; the employees are customers and the targeted company is B2; that is the diagram of the B2C2B business model.
Here, we have a remarkable example of the B2C2B business model: Linkedin. This platform provides a global network to connect employees from all over the world. It offers various functions to help employees find their opportunities, socialize with others in different enterprises and build brand awareness in the employees’ society.
First, Linkedin supplies services for the staff and when the number of staff is enough, it’s time for Linkedin to conquer the company: sell services to them. Besides, there are a lot of modern companies, who are following this kind of business model, including Slack, DropBox, Uber, etc.
Have you had a distinct view of B2B2C and B2C2B? We hope you definitely have. We hope that you can decide the most suitable business model for your company and develop outstanding strategies to dominate your target market.