Telemarketing is a technique used to communicate directly with customers and potential customers to promote a product or service. It is an effective way of marketing and can have many benefits, which is why the outbound telemarketing market looks all set to cross $12.94 billion by 2028.
While telemarketing can be used for both business-to-business (B2B) and business-to-consumer (B2C) companies, there are some differences between the two types of businesses regarding their telemarketing strategies.
B2B Telemarketing
B2B telemarketing is the process of selling products and services to businesses through telecommunication channels. It’s a subset of B2B marketing, including advertising, direct email, and promotional events.
B2B telemarketing is used to build relationships with potential customers. The goal of this technique is to establish your company as an expert in your field so that when they’re ready to make a purchase decision, they’ll turn first toward your company for advice.
There are many things businesses can achieve with the help of B2B telemarketing. Blue Valley Marketing says B2B telemarketing can help with lead generation, surveys, market analysis, database updating, event signup, etc.
It can also help implement omnichannel marketing strategies, which are crucial for success in today’s digital world. According to a McKinsey report, 83% of B2B executives believe that having an omnichannel strategy in place is more or, at least, equally effective compared to conventional methods.
B2C Telemarketing
B2C telemarketing is a marketing approach that focuses on selling products and services to consumers. In this context, the customer is king; you want them to feel they’re getting good value for their money by purchasing your product or service. The focus of B2C telemarketing is on product and customer service. Cold calling, in this context, has a 2% success rate across various industries.
Telemarketing campaigns targeted at B2C markets tend to be broad in scope. They aim for mass audiences rather than targeting specific groups of people with similar interests or needs. This means that companies using this method often have large advertising budgets available for their campaigns because they need exposure across as many demographics as possible to reach enough potential customers interested in buying whatever they’re selling.
Differences Between B2B and B2C Telemarketing
There are several differences between B2B and B2C telemarketing, including the following:
Target Audience
When it comes to B2B telemarketing, you will be targeting business owners and decision-makers. This means your audience will be more educated on the product or service they seek. They’ll know what they want, which makes them harder to convince. You’ll need to do more research to personalize your messaging to resonate with them specifically, which can be expensive.
However, suppose you’re selling something like insurance policies or mortgages. In that case, it is B2C telemarketing because the potential customers are end consumers. This will be a general audience who may or may not have the proper knowledge about your products or services. Here, you will have to be more informative than salesy.
Communication Style
In B2B telemarketing, you’re selling to a business. You’re not selling to general people because your target audience comprises executives, managers, and decision-makers interested in making money for their company through whatever means possible.
They will likely have a general idea of what your product or service can do. Hence, you must have a tone matching their knowledge level. However, they would want to know what they can do specifically with your product or service and how it will help them grow their business further than before.
In B2C telemarketing, your target audience is consumers with disposable income. However, they may not be as analytical when making purchasing decisions because they don’t have the same financial concerns as businesses when buying products or services. Their focus tends to be more emotional than transactional. They want something that makes them feel good about themselves.
Marketing Strategy
B2C telemarketing is focused on brand awareness and customer acquisition. In this environment, your marketing strategy should highlight the benefits of your product or service and why customers should choose you over the competition.
In a B2B environment, lead generation and prospecting are critical components of any successful telemarketing campaign. It’s important to remember that while there may be similarities between B2C and B2B marketing strategies, many differences must be considered when developing a plan for your company’s telemarketing efforts.
Sales Cycle
The B2B sales cycle is typically longer than the B2C one and more complex. This is because many stakeholders, including multiple buyers and sellers, are involved in a business-to-business transaction.
In addition, the buyer may be from another company with little authority over purchasing decisions at their firm. To ensure that all parties are aligned on price points and other critical terms of sale before committing resources towards closing a deal, these deals take longer than those in which only one party needs to be convinced.
Lead Generation
Lead generation is very different in B2B and B2C telemarketing. For instance, in B2B, the prospect will be qualified individuals with a strong background and possibly an in-depth knowledge of how your product operates and what benefit they should get from it. This reduces the nurturing process, as the lead already has sound knowledge.
But in B2C, the nurturing process will likely be longer because the lead might not know what your product is and how it will help daily. Hence, having a long lead nurturing cycle is also beneficial in this situation. Once your lead has all the knowledge about your product, making sales becomes easier.
Technology and Tools
As we’ve discussed, the main difference between B2B and B2C telemarketing is that one focuses on B2B, while the other is on B2C. But there are also some key differences in how each type of salesperson uses technology and tools.
In terms of technology, B2C salespeople tend to use more basic tools than their B2B counterparts. This could be because they need less help or guidance than their counterparts. It could also be because they don’t have access to as many resources simultaneously. The average consumer doesn’t have access to an entire team of experts at their fingertips like many businesses do.
Conclusion
Telemarketing is integral to any business, but the approaches used for B2B and B2C telemarketing are very different. Understanding these differences is essential to tailor your campaign to fit its target audience.
