Quick Summary
B2C refers to businesses selling products or services directly to individual consumers. It is the most common business model with shorter sales cycles and emotional buying decisions.
B2C (Business to Consumer) is the business model where companies sell products or services directly to individual consumers for personal use. This is the most common form of commerce, encompassing everything from groceries to electronics to online services.
Characteristics of B2C
- Shorter Sales Cycles: Quick purchase decisions
- Emotional Buying: Decisions influenced by emotions, trends, and branding
- Smaller Transaction Values: Individual purchases are smaller
- Mass Marketing: Reaching large audiences through advertising
- Price Sensitivity: Consumers are more price-conscious
- Brand Loyalty: Important but can be fickle
B2C Business Models
| Model | Description | Examples |
|---|---|---|
| Direct Sellers | Sell directly to consumers online | Amazon, Flipkart, Myntra |
| Intermediaries | Connect buyers and sellers | OLX, Airbnb, Uber |
| Subscription | Recurring revenue model | Netflix, Spotify, Hotstar |
| Freemium | Free basic + paid premium | LinkedIn, Dropbox, Canva |
| Ad-Supported | Free content with ads | Facebook, YouTube, Google |
B2C Marketing Channels
- Social Media Marketing: Instagram, Facebook, Twitter, TikTok
- Influencer Marketing: Partnering with content creators
- Content Marketing: Blogs, videos, podcasts
- Email Marketing: Newsletters and promotional emails
- Search Engine Marketing: SEO and paid ads
- Traditional Media: TV, radio, print (for mass market)
Key Metrics for B2C
- Customer Acquisition Cost (CAC): Cost to acquire one customer
- Lifetime Value (LTV): Total revenue from a customer
- Conversion Rate: Percentage of visitors who purchase
- Average Order Value (AOV): Average transaction amount
- Churn Rate: Rate of customer loss
Key Points
- Direct sales to individual consumers
- Shorter sales cycles than B2B
- Emotional buying decisions
- Mass marketing approach
- Lower transaction values
- High volume required for profitability