SaaS: Could B2B Revenue be better than B2C? -

It's not necessary to search for long to locate instances of B2B SaaS businesses which have enjoyed success using a self-service or motion based on products. Look at Zoom and Slack businesses that were designed specifically to be used by businesses, that use B2C-type onboarding workflows (such as PLG, or product-led growth (also called PLG) to ignite the curiosity of clients and promote acceptance.

It's actually quite telling that the publicly traded number of PLG-led firms more than quadrupled during the years 2015-2020.

Are you thinking about assumptions concerning your B2B-based market-based strategy? assumptions that ignore B2C selling techniques that are hindering your growth potential you're pursuing?

Based on TrustRadius, 87% of buyers in B2B include at least a little element of self-serve in their journey, if not in every aspect. Particularly, out of more than 60% of B2B buyers of young age, 29 percent are in need of complete fully self-service from beginning to conclusion and no representative is required.

I have been recently interrogated by my buddy Steve Lurie, who's the Chief Engagement Officer for B2B Rocks. We discussed one of the major emerging trends in the field of software, and the convergence of B2B and B2C.

What exactly does this mean? My theory is that traditional notions of "B2B vs B2C" hinder many businesses back from unlocking their true potential for growth and the binary distinction will disappear in the near future.

In this article, I'll go over precisely what's happening, how it's happening, why it is crucial, and how you can do to take advantage.

The ways B2B and B2C are Converging

1. Product Growth is Increasing within the Opposite Sector

If SaaS firms have attempted to market, they've done this by determining the best product to sell to one of their two major customers: companies or customers. The decision they make is the basis for their product and sales procedures throughout the course of their operations. Moving beyond this go-to-market motion typically requires a substantial "pivot" and is believed to be a sin within the world of technology.

Although this is still an ideal scenario to determine the first product-market or go-to-market suitability, more and more are companies expanding faster into both segments.

The businesses like Dropbox, 1Password, and Sketch originally found success with freelancers or the general public. Then they began expanding to market for medium-sized businesses and large enterprises. Why? Essentially, the original value idea worked in the B2B scenario.

In Sketch, the enhancement to the UX design features is making it even more essential of design teams working together using the same software and buy multiple licensesrather than purchasing them individually.

Regarding 1Password internet security and ease of use were more efficient when utilized to their greatest extent within the B2B scenario. This was once a privileged B2C company that that recently secured $620 million to increase the reach of its service the largest funding round for an Canadian business ever.

The other side of the coin is that one of the primary factors behind why Zoom was able to grow at the rate it did was its ability to expand into the world of consumers. This was due to an increase in the need for communication via remote due to the pandemic, nevertheless, the fact Zoom had developed a largely self-service that was similar to B2C for B2B users allowed the shift to the market of consumers more rapid.

There are not many instances of B2B SaaS moving towards the consumer market I'm convinced it will increase as software firms are able to consider "users first" (e.g., PLG).

2. B2B Buyers Bring Expectations from B2C to Work

Covid has put the gas in the growing e-commerce market. The expectations we have and the preferences for buying from where and how are completely different. It's been a norm to search for the products we want to buy on our own, and get answers to questions without the need to contact someone.

And we're the same people working.

A 2021 McKinsey research found that almost two-thirds of B2B buyers prefer digital or remote self-serve over traditional person-to-person sales.

We are looking to purchase digitally, and we require self-service options, especially for purchases of larger amounts.

How can you maximize the benefits of these Changes

1. Facilitate the customers to purchase

Based on a PYMNTS report, as well as an American Express report, 67% of B2B buyers "switched to shopping with suppliers that offer a more "consumer-friendly customer experience."

What is the best way to succeed? By eliminating as many friction points as is possible, making it difficult for a prospective buyer to purchase your product or an existing client to raise their MRR by using your product.

Example:

• Do you ensure that your quote and billing process as adaptable and efficient as possible?
• Are you making it simpler prospective buyers of B2B to comprehend the different pricing options you offer?
• Do you have an easy method for customers to use self-service plan changes like including seats?
• Do you provide a simple way for your customers to to pay you (such as localized currency and payment choices)?

Ultimately, the ultimate goal of an "consumer-like" experience can be described as one of control. Zuora found that there are the average of 4 modifications of a subscription program every year. This includes upgrades, downgradesand additions as well as other additions. Any changes to your subscription plan should be easy to make inside your subscription service.

Also, self-service options should extend throughout the life period of a client.

Adopting B2C UX expectations and practices will allow B2B SaaS businesses to deliver an optimal purchasing and management of subscriptions that enhances the life-time price for the customer and also the satisfaction of your service.

2. Find out what your primary markets are.

What assumptions do you have about why you're only advertising to a certain market but not to different market segments? It's important for companies to make sure they're not basing their decisions on incorrect or inaccurate beliefs about the reason the market they're targeting is not other markets.

The new markets could comprise consumers and companies and industries that are not yet established, or countries that are in the process of becoming.

There are a variety of innovative solutions that make it simpler to iterate on your sales or product and also expand into new market.

Are you in a place to profit from them?

3. Get Ready to be Iterative

The most lucrative SaaS companies in the coming 3-5 years will be the ones which have the highest level of consistency.

Iterativeness has become instilled within the culture and mindset of startups. We're all aware of the ideal method to "start thin," but all too often, companies are unable to maintain this flexibility when they develop.

You must be able to iterate on the market fit and go-to market strategies so that you can capitalize on new opportunities, such as the kinds of customers they are attracting and their personalities that are continually evolving.

Intellectually, we know it's essential to possess this type of flexibility. In reality, however this becomes more difficult to do and, at a minimum in your own.

There are many ways to solve for this. One strategy is to construct an entire platform that connects all of the essential elements which require iteration. Here, we accomplish this through connecting pricing, payment and management of subscriptions and taxation on one platform.

A lot of people find it easier to streamline the process and makes them effective in their execution. The majority of software businesses are slowed by challenges that do not fall under their main capabilities due to being faced by challenges that they didn't see in the process of pursuing market opportunities that aren't there yet. There's a possibility that you'll spend a whole quarter learning about sales tax or redesigning your billing process in the event that you'd like to incorporate new payment methods.

The most successful companies anticipate these surprises and instrument their business to react quickly without disrupting their development efforts. This one is often a problem.

A Final Thing about B2B and. B2C is an untrue option

The piece started by asking: Is B2B revenues really superior to B2C?

In reality, B2B and. B2C isn't the best method to approach this issue.

There were once stark differences between how we dealt with B2B in comparison to. B2C, however these days we're seeing ideal customer experiences converge.

Software of all kinds is purchased by people -it does not matter whether you're selling B2B software , or B2C.

Kurt Smith Kurt Smith leads the Product team. He focuses on market research and strategic design of new products that offer an unparalleled e-commerce experience for the world-class software firms that collaborate with . Prior to joiningthe team, Kurt was an operating principal of Accel-KKR Consulting as well as he earned the MBA from the Wharton School at the University of Pennsylvania in Strategic Management.

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