Who is b2b customer

We have entered the age of the experience economy where customers expect more than ever before. Brands are at battle to outperform on experience such as making the customer journey easier and delivering faster.

The more powerful brands connect more on an emotional level with their customers by invoking feelings such as pride and accomplishment, thus challenging the value paradigm in that customers are often seeking more than functional and rational benefits.

A positive customer experience encourages customers to spend more. By way of example, Amazon — a leader in experience innovation with the likes of Amazon Prime and Amazon Dash — enjoys an industry-leading position on its Net Promoter Score NPS , and attributes more than one third of its revenue to cross-selling. However, many companies fail in delivering an excellent customer experience as customers are four times more likely to leave a service interaction disloyal than loyal.

Poor customer experience drives brand switching and the majority of customers who suffer a bad customer experience spread negative word of mouth. This indicates that b2b organizations have significant work to do to become more customer-focused, but it also highlights an opportunity for b2b firms to differentiate their brands and improve profitability by delivering a superior customer experience. This suggests that almost a third of b2b brands have a structured vision for the execution of strong customer experience, although it is not yet ingrained in the company culture.

With this in mind, how can b2b brands become more customer-centric to the point that the customer experience is embedded into the company culture? In examining the customer experience of over b2b brands, we identified a step-by-step process to achieving b2b customer experience excellence that applies to virtually all b2b brands, as shown in the graphic below.

We then tested how well large b2b brands perform on each of these factors of customer experience excellence, on a 10 point scale where 1 means poor and 10 means excellent.

The far right column of the table indicates the top 3 box score, i. At least a quarter of b2b firms perform well on each step of the process towards customer experience excellence. The highest performance is on the first step, commitment, yet only around a half of b2b firms are committed, i.

This is alarming given that commitment is the foundation to success. In other words, without being committed to delighting customers, it is very difficult to deliver an excellent customer experience. Knowledge-based companies such as those in IT, financial and professional services, healthcare and education rate their customer experience performance higher than companies in trade and services such as wholesale, telecoms and utilities and companies in manufacturing and construction.

Knowledge-based companies typically entail more customer interaction with people and so there is arguably more opportunity to build strong customer relationships. The first step in customer experience excellence is to be committed to satisfying — and where feasible, delighting — customers. Southwest Airlines takes this a step further by capitalizing all those who engage with its brand in some way. These extras drive differentiation yet are usually small actions and have a low cost to implement.

Ritz-Carlton guests are not after a bed and four walls for the night; they are seeking an exceptional experience where every touchpoint with the brand makes the customer feel special. The more sophisticated companies boast customer experience-dedicated teams. These typically comprise a head of customer experience who is supported by someone in a research role to collect and analyze the voice of the customer , someone in a process implementation role to ensure the customer experience is ingrained across all processes , and someone in a culture role typically part of the HR function.

The most successful companies are those with cross-functional teams, i. According to the Service Profit chain, customer satisfaction improvements are linked to employee satisfaction. The more successful companies at delivering an excellent customer experience are those who also understand what satisfies and motivates employees. And they are companies that typically reward employees for exceptional contributions to customer experiences.

Up to 75 employees typically spanning numerous roles across the company are recognized annually at Safelite, all of whom were nominated by their leader or peers. Such displays of employee accomplishments towards the shared goal of delivering exceptional customer experiences ensure that customer centricity is always a focus across the whole company.

Understanding and delivering on customer needs is vital to customer satisfaction but is easier said than done. Customer demands are frequently diverse and increasingly demanding — more customized, cost effective, quicker, etc.

In spite of this, up to half of b2b suppliers believe that quality and price are all that matter. This oversimplification is perpetuated by sales teams driven by short-term sales targets and obsessed with selling on price as opposed to on value. Sales teams are often poor listeners fixated on selling products and services they have to sell, which can be very different from what the customer really wants and values. In the context of communication, business-to-business refers to methods by which employees from different companies can connect with one another, such as through social media.

This type of communication between the employees of two or more companies is called B2B communication. The internet provides a robust environment in which businesses can find out about products and services and lay the groundwork for future business-to-business transactions.

Company websites allow interested parties to learn about a business's products and services and initiate contact. Online product and supply exchange websites allow businesses to search for products and services and initiate procurement through e-procurement interfaces. Specialized online directories providing information about particular industries, companies and the products and services they provide also facilitate B2B transactions.

Business-to-business transactions require planning to be successful. Business-to-business relationships must also be nurtured, typically through professional interactions prior to sales, for successful transactions to take place. Traditional marketing practices also help businesses connect with business clients.

Trade publications aid in this effort, offering businesses opportunities to advertise in print and online.

Business-to-business transactions and large corporate accounts are commonplace for firms in manufacturing. Samsung, for example, is one of Apple's largest suppliers in the production of the iPhone. B2B transactions are also the backbone of the automobile industry. Many vehicle components are manufactured independently, and auto manufacturers purchase these parts to assemble automobiles.

Tires, batteries, electronics, hoses and door locks, for example, are usually manufactured by various companies and sold directly to automobile manufacturers. Service providers also engage in B2B transactions. Companies specializing in property management, housekeeping, and industrial cleanup, for example, often sell these services exclusively to other businesses, rather than individual consumers. Business Essentials. Company Profiles. Family Finances. Your Privacy Rights.

To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. A product of the digital revolution, these businesses sell products directly to other companies using e-commerce platforms, while also sharing data and updates for products or services.

There are many types of B2B e-commerce companies, but three of the most common are web development, supply and procurement exchanges, and infomediaries. Every business needs a website, but few business owners have the time or skill set to build an optimized site from scratch. Web development companies and, more generally, digital marketers are B2B services that handle the creation and maintenance of company websites, plus digital advertising services like content creation and search engine optimization.

These services are indispensable in the ever-expanding digital environment that dominates the modern business landscape. Though web development companies didn't exist until a few decades ago, they've become essential partners for any business ready to get off the ground. Otherwise known as e-procurement sites, these companies serve a variety of industries and often focus on a niche market.

A company purchasing agent can shop for supplies from vendors, request proposals and even make bids for purchases at specific prices. These B2B websites enable the exchange of product supplies and procurement. Specialized or vertical industry portals provide a subweb of information for a specific industry or vertical, such as healthcare, construction or education.

These sites provide product listings, discussion groups and other features. Vertical portal sites have a broader purpose than procurement sites, though they may also support purchasing. Brokering sites fulfill companies' supply and procurement needs in another way. These sites act as intermediaries between service providers and potential business customers. For example, a construction company may need to lease equipment.

A broker site can help the construction company find an equipment lease from a manufacturer. There are also information sites, or infomediaries, that provide specialized information on specific industries for companies and their employees. These specialized search sites can include trade and industry standards organizations' sites.

Did You Know: Though B2B services are critical to the success of many industries, when considering your company's potential, do not limit yourself to one model. Though B2B services are critical to the success of many industries, when considering your company's potential, do not limit yourself to one model. B2B, B2C and C2B models need not be mutually exclusive: Combining their particular strengths could generate great opportunities for your business.

If you want to get into the B2B market but don't know where to start, visit our list of B2B business ideas. Matt D'Angelo contributed to the reporting and writing in this article. Some source interviews were conducted for a previous version of this article. What Is B2B? Adam Uzialko. What is a B2B business? This guide includes all you need to know about a business that primarily provides goods or services to other companies.

What is a B2B company? How to develop a marketing plan for a B2B company Marketing and branding B2B products or services requires a unique approach. To improve your B2B marketing campaigns , here are some things you should keep in mind when interacting with other businesses: A well-trained and knowledgeable sales team will allow you to build effective relationships. You're speaking directly to high-level company decision-makers, not average consumers, so you should set the tone of your messaging accordingly.