If you want to scale up your business and are interested to know the detail about B2B and B2C SaaS, this element is for you. SaaS Story is a one-stop platform that helps its user to take their business to the next level through a useful software solution. As a part of that, today we’ll explore the difference between B2B and B2C SaaS. Let’s drop down the details;
What Is the Difference Between B2B & B2C SaaS?
B2B and B2C SaaS are the most practiced two different types of business models in the SaaS industry. Both business models can be used in SaaS business. Both groups have different benefits when it is all about product or service solutions. However, there are a few key differences between the two models including the range of likely users, the effort of advertising, goal setting, and so on. Let’s go deep into down details;
What Is B2B in SaaS?
B2B in SaaS is referring to the “Business-to-Business” solution or offerings. It means selling products and services to other companies. If any SaaS business aims to sell products and services to other companies or business organizations, then it will call a B2B business in the SaaS industry.
Some Examples of B2B Business;
- Salesforce – It is software that offers customer relationship management solutions. Using Salesforce you will get insight data on the interaction with the customers in every related sector including the sales team.
- Slack – It is a real-time messaging intelligence that helps to link officials, teammates, and others to track, task management, output, and more.
- HubSpot – Hubspot is one of the prevalent inbound advertising and sales platforms worldwide. They help businesses to drive more visitors and convert leads by offering tools to grow the customer experience.
What is B2C in SaaS?
B2C in the SaaS industry stands for “Business-to-Customer” solutions or offerings. It means selling products and services straight to the customer. If any SaaS trade aims to sell products or services direct to the end-users, then it will be a B2C business in the SaaS industry.
Some Examples of B2C Business;
- Duolingo – Duolingo is a great example of a B2C business that works as a communicating language learning management application.
- Netflix – It is another B2C business instance that trades software to watch licensed videos over the internet. Netflix follows a subscription-based pricing model by offering several subscription plans for its users.
- Spotify – The last but not least B2C trading model is Spotify for today. This is a subscription service that offers online and offline ads-free music and podcasts for its customers to stream.
Key Dissimilarities Among B2B & B2C In SaaS Business
| In terms of | B2B (Business to Business) | B2C (Business to Customer) |
| Selling Process | The sales process is complex, longer, and more logical. | The selling procedure is simple, instant, and a bit emotional. |
| Aim of the Product | Mostly aims to solve a particular business issue or manage specific and important functions. | Usually targets personal interests, like entertainment, social presence, new services, etc. |
| Customer Support | Customer support processing is complex and requires more time to solve any issue as it mostly depends on many people. | The customer support process is simple & within a short time as it is mostly independent. |
| Marketing | Mostly focus on lead generation with customer engagement. | Emphasis to increase their brand value, brand awareness, and building. |
| Customer Success | It takes a bit longer to build a huge customer base. | Got more customers within a short period due to emotional sales. |
| Buying Concept | Emphasis on Need instead of Want. | Mostly refers to Want other than Need. |
| Recurring Revenue | Much higher. | A bit lower. |
| Customer Retention | Considerably better. | Lower due to emotional sales. |
Key Similarities Between B2B & B2C in SaaS Industry
Though B2B and B2C business models seem to be dissimilar, they have many similarities too;
- Trust making is mandatory in both groups to generate sales.
- Both groups sell online and offline.
- Both groups emphasize clients’ problem solutions.
- In both group outstanding customer service and boosted customer experience is desired.
- Both groups play a customer-centric sales process.
- For both groups the customer journey does not end with buying, instead, it lasts until after buying.
- Both groups are created & operated by real people.
- Both groups need reality and trustworthiness to be involved.
Difference Between B2B & B2C SaaS | Conclusion
Since B2B and B2C in SaaS, businesses have tons of similarities. But there is a significant difference between B2B and B2C SaaS in the SaaS trade. B2B SaaS mostly involves a much slighter customer base and naturally needs further development and affiliation structure. Subsequently, B2B aims to focus on product resolve skills and with a slow & steady marketing strategy.
On the other hand, the B2C business model mostly emphasises further emotion. So B2C marketing strategy targets distinct customers and they got a higher customer base though they may not loyal. Additionally, the B2C marketing strategy is first & furious. Finally, someone buying a B2B product doesn’t typically does not use it, but with a B2C product, both are typically the same.
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