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This is often B2C because the value is in quantity of customers, and there’s 100x more consumers than businesses. $1/mo 100,000/mo means Global 2000 only, large-scale projects that require multiple departments for decision and approval, long salescycles (9-18 months) which requires massive cash spend to bide your time.
There are a few reasons as to why entrepreneurs should venture into “B2B” (“Business to Business”) service based companies as opposed to any form of “B2C” (“Business to Consumer”) company, “B2B” product-oriented company or strictly a web-based B2B firm. What Is “B2C&# ?
So, while you might have fewer clients than a B2C business , each client can potentially contribute a much larger chunk to your bottom line. This rational buying process can lead to more predictable salescycles and less whimsical decision-making from your clientele. We’re talking hefty invoices and significant transactions.
In my case (LucidEra -- a SaaS analytics provider focusing on sales, marketing, and financial analytics), weve found that success requires not only building some best practices for analytics into our solution, but also coming up with a repeatable and scalable way to show the customer how to use the analytics and how to interpret the results.
This isn’t limited to the B2C space. Three out of every four B2B buyers would rather self-educate than learn about a product from a sales representative, according to Forrester. A big downside of the high-touch sales model is that the CAC is out of control, and the salescycles are extremely long. Image source ).
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