What is B2B CRM?

The rise of business-to-business (B2B) over business-to-consumer (B2C) has been on the increase lately. In fact, according to Statista, in 2018 there were more than 1 million new businesses that were created through online channels alone! This means that as a marketer or entrepreneur it’s increasingly necessary to understand what B2B marketing tools are out there and how they could benefit your company. One such tool is Business Customer Relationship Management (CRM).

In this article we will briefly look at some key definitions related to B2B CRMs, why they exist, and which ones might be right for your business. We'll also give an overview of the most popular types of B2B CRM software solutions available today. Finally, we’ll discuss whether CRM suits B2B better than B2C, and if so, what companies use them.

What are B2B and B2C explain with examples?

There's no doubt about it - the world of business is getting smaller every day. More and more companies are looking towards other countries for growth opportunities instead of just sticking to their own backyard. It seems like everywhere you turn nowadays, someone is trying to sell you something. Whether you're buying a car from Germany, ordering groceries from China, booking tickets for yourself or another person, or even searching for a job abroad, chances are high that you've had contact with one of these services before.

B2C marketing works well because people have already bought products or services from those companies, making it easier for marketers to reach out directly to potential customers and get them interested in what your product offers. However, when you talk about B2B marketing, things become much trickier. You may think that since you don't have any existing relationships with people outside your industry, you won't stand a chance against competitors who do. But guess what? That isn't necessarily true. There are plenty of ways to connect with prospects and build up trust without ever having met them face to face. And here's where B2B CRM comes into play.

What CRM is best for B2B?

A lot of people ask themselves "what is B2B CRM?" but not many know the answer. The truth is that B2B CRM differs greatly depending on several factors. For example, while consumer CRM focuses primarily on customer data management and analysis, B2B CRM should include all aspects of managing and growing a brand's relationship with its prospective clients and partners.

It makes sense then to break down the main components of B2B CRM by function. Here are three different categories you might consider using when choosing a solution for your specific needs:

1. Sales/Marketing Automation Tools

Sales automation is one of the most fundamental parts of any effective B2B campaign. If you want your leads to come pouring in, you need to make sure everything goes smoothly between lead generation, qualification, nurturing, and finally closing deals. A great way to streamline your entire process is by automating certain tasks and procedures. Most modern CRMs allow users to automate processes via smart workflows, intelligent notifications, and advanced scheduling capabilities. These features help to ensure that each step in your strategy runs efficiently and effectively.

Another aspect of selling successfully involves keeping track of past interactions with your leads. While you still need human interaction at times, knowing exactly what happened during each stage of the pipeline allows you to create stronger connections with your prospects. Modern CRMs provide detailed reports that show you exactly how contacts responded throughout various stages of the sales cycle. From these insights, you can adjust your approach accordingly and improve results.

2. Collaborative Workspaces

While many small businesses rely heavily on email communication for daily operations, larger enterprises often require collaboration across multiple departments. Having a central place to store documents, files, and information helps everyone stay organized and informed. With the advent of cloud computing, storing all of your content securely in one place became possible. As a result, collaborative spaces have grown significantly in popularity among large corporations. Some common uses of these spaces include sharing project plans, collaborating on articles, and creating group calendars.

3. Analytics & Reporting Tools

Analytics and reporting tools keep your organization updated on current trends and developments within your field. By analyzing big data sets, you gain valuable insight about your target audience so you can continue improving your campaigns. Data visualization is particularly useful in helping you see patterns in your analytics. When used correctly, this type of visual representation enables you to spot trends that otherwise wouldn’t be apparent. Modern CRMs offer numerous options for both basic and complex analytical functions. They enable you to easily access historical records and produce customized reports based on user criteria. Many CRMs also feature dashboards that present aggregated metrics in real time.

Is CRM good for B2B?

When it comes to B2B, CRM stands for more than simply tracking leads and conversions. To really succeed, you must take advantage of the technology behind your CRM to manage client relations, identify hot leads, and find qualified candidates for your team.

So, does CRM actually work for B2B? Yes, absolutely! According to research conducted by Gartner, 80% of respondents said that CRM was beneficial. Furthermore, 86% said that CRM helped reduce costs and 87% believed that CRM increased profits.

But wait...why aren't more companies implementing CRM? Is it too expensive? Do they believe that CRM doesn't work? Well, maybe none of those reasons apply. Maybe it's more due to lack of knowledge -- it turns out that only 37% of executives surveyed knew anything about CRM. Perhaps it's because they haven't found the right solution yet. Or perhaps it's because they simply don't realize the benefits of applying it. Whatever the reason, CRM definitely works for B2B!

What CRM tool would you recommend to a small B2B SaaS startup with 5 sales reps?

If you run a small B2B startup and have five employees, you likely don't have enough resources to invest in a full-fledged enterprise system. Instead, you probably opt for SaaS, meaning subscription-based, web-based applications delivered over the Internet. Although SaaS solutions typically cost less upfront, they usually charge per month rather than a lump sum. Thus, they tend to be pricier overall.

One option is to choose a fully hosted offering, where the provider handles everything from hosting servers to maintaining security measures. Another possibility is to go with a self-hosted solution, whereby you install and maintain the software on a server that's located either inside or outside of your office space. Self-hosting requires additional upkeep, but it gives you complete control over the application. Of course, neither option is ideal for startups.

For starters, going with a self-hosted solution presents two major challenges. First, you'll need to learn how to set up and configure the software. Second, you'll have to pay ongoing fees regardless of usage. Hosted offerings eliminate the latter concern, though they still carry a price tag. Either way, you'll save money in the long term, especially considering that CRM is becoming a standard part of almost every business.

To summarize, B2B CRM is a powerful tool that can help you grow and sustain your business. It provides visibility into your pipeline, allowing you to optimize sales efforts and close more deals. Moreover, B2B CRM can help you attract top talent and boost productivity. Regardless of size, you can reap similar benefits from adopting a solid CRM platform.

How many of your customers are businesses as opposed to consumers? If it's anything like mine, then your answer will probably be "a lot". In fact, some studies suggest that more than half of all companies have at least one customer who does business with them exclusively through their website. This means that they don't use any other channel for buying products or services from these organisations.

The reason why this matters is because if you're selling to just one type of company, then you may not need a comprehensive sales process management system. However, if you're trying to sell to two or more types of businesses -- such as retailers and manufacturers -- then it makes sense to invest in an enterprise-level solution.

So what exactly is B2B CRM? And how should you go about choosing which software package is right for you? Keep reading below where I'll explain everything you ever wanted to know about B2B CRM...

What is the difference between B2B and B2C CRM?

Before we get into specifics, let me tell you a little bit about myself first. My name is Mark O'Neill (@markoneill) and I'm the founder of The Digital Sales Academy (TDSA). TDA was created by my team and our partners back in 2014 and since then has helped thousands of people across the world find new ways of generating revenue online.

If you've never heard of us before, well that's no surprise! We only launched on Product Hunt in early 2016 so there hasn't been much time for anyone outside of Australia/NZ to hear about us yet. But rest assured, we're going places very soon.

However, while the growth of TDA might seem slow compared to others, it doesn't mean we haven't made big strides over the years. For example, last year alone saw over 7,000 people sign up to our free training courses, which offer step-by-step guides on how to become successful digital marketers.

Not bad for someone who started out making YouTube videos explaining how to build websites, eh? So, when it comes to understanding what differentiates a consumer product CRM vs. a B2B CRM, here are three key differences:

1. Consumer Products Have More Complex Buyer Personas

When talking to consumers, it's easy to forget that each person has unique characteristics based around age, gender, location, interests etc. When dealing with individual buyers, it's essential to understand these factors in order to provide a better experience.

For example, say you work for a small manufacturing company that wants to increase its market share but isn't sure whether it needs a mobile app or a web store. Well, maybe it would benefit from both depending on the buyer persona(s), but either way, you still want to make sure you're providing value to every single user.

But if you're working within a larger organisation that sells to multiple industries, then it's likely that the buyer profiles aren't as clear cut. Instead, it's common practice to create separate dashboards for specific departments in order to ensure that everyone gets the information they need.

In contrast, a CRM designed specifically for B2B usually offers fewer options for segmenting users. As such, marketers often end up using the same platform for both B2B and B2C. This is despite having completely different buyer personas.

2. Consumers Are Less Likely To Purchase Again Than Businesses

It goes without saying that consumers tend to buy things more impulsively whereas businesses purchase on a longer term basis. That said, consumers also tend to spend less money overall. One research report found that average annual spending per household in the UK was £3,500 whilst another suggested that US households spent approximately $10,000 a year.

Businesses, on the other hand, tended to spend closer to $25,000 annually. These figures were compiled based upon data collected between 2015 and 2017. What's even worse is that businesses tend to spend 50% more per transaction than consumers.

Now, if you think that sounds extreme, remember that most marketing budgets focus heavily on attracting new leads. Whereas, once a lead has contacted your brand, it becomes increasingly challenging to convert them into paying clients. It's therefore vital to track the performance of existing leads closely so that you can identify areas for improvement.

In addition to this, it's crucial that you collect enough data to inform future campaigns. Without this kind of insight, it's hard to predict the success of future projects.

As mentioned earlier, CRMs can help with this task by offering analytics tools for tracking conversions. Some solutions allow you to see how a campaign performed against certain metrics. Others, however, require you to manually gather this data yourself.

3. Buying Decisions Are Made By Managers & Executives Not Marketers

Let's face it - the primary goal of most marketers is to attract new leads and nurture those already converted into potential customers. After all, that's what it takes to earn commission.

On the flip side, executives and managers typically look after sales and operations rather than driving traffic and nurturing relationships. They may occasionally visit social media sites or attend events hosted by brands. But, unless you manage to convince them that your product or service could potentially solve a problem they currently face, chances are that they won't bother contacting you again.

Therein lies the main challenge faced by B2B sellers. Unlike consumers, they rarely receive immediate gratification when purchasing goods or services. Rather, they expect to wait months or sometimes even years until their problems are solved. Therefore, it's difficult for marketers to generate interest among senior staff members.

What Is B2B in CRM?

Well, this depends entirely on which industry you're operating in. Let me give you an idea though. Most B2B firms operate in the following sectors: Finance & Insurance, Manufacturing & Technology, Healthcare & Pharmaceuticals, Consulting Services, Professional Services, Retail & Wholesale, Transportation & Logistics, Education & Training, Media & Publishing, Legal & IT Professionals, Construction & Engineering, Food & Drink, Financial Institutions, Real Estate & Property Management, Agriculture & Livestock Production, Public Sector and Governmental Organizations.

These are the kinds of companies that would ideally benefit from a highly integrated CRM solution capable of handling large amounts of data.

What is the most important difference between B2B and B2C?

When it comes down to it, there's actually a huge amount of similarities between the two markets. There are certainly key differences, however, particularly when it comes to how many channels businesses utilise.

According to Statista, almost 70% of consumer purchases come via physical stores or shopping centres. Whilst, for businesses this figure drops to just 15%. Furthermore, according to Forbes, 72% of internet shoppers prefer to shop offline whilst only 28% opt for online purchases. On top of this, 73% of respondents stated that they'd consider switching suppliers if they didn't trust the site on which they purchased their products.

Given this, it really shouldn't come as a surprise that B2B marketing strategies differ significantly from their counterparts aimed at individuals. According to Harvard Business Review, the majority of B2B marketers use email marketing to connect with prospects and cultivate long-term partnerships. On the other hand, personalised emails and automated drip campaigns are used by nearly 90% of B2C marketers.

The takeaway message here is that while B2B and B2C marketing tactics vary greatly, the fundamental principles remain largely unchanged. You still need to capture attention, establish credibility, demonstrate relevance and encourage consideration. All of these steps must be taken care of if you hope to succeed in either sector.

And now you know everything you need to start taking advantage of the incredible benefits offered by B2B CRM. Hopefully, this article gave you valuable insights into the many applications available today and how they stack up against one another.

If your business has multiple employees then chances are that you're using some sort of customer relationship management (CRM) system. However, what exactly does this mean? What makes it different to other types of CRMs used by businesses? And why should you use one at all?

In today’s article we will answer these questions with our top tips on how to choose the right CRM solution for your business. We'll also cover what B2B stands for, as well as which type of companies benefit from using a specific software package. Finally, we'll reveal the most popular B2B CRM solutions available in 2020.

What are the 4 pillars of CRM?

When talking about CRM there's usually one question asked more than any other – ‘what is CRM anyway?’  Well, when looking at CRM through the lens of its four main pillars, it becomes clear just how big a role each plays in ensuring effective communication between customers and suppliers.

The first pillar is called Contact Management or Customer Relationship Management. It encompasses everything involved in maintaining contact with existing clients, new leads, and potential prospects. This includes tracking sales opportunities, managing contacts, keeping track of past interactions, creating marketing campaigns, and much more.

The second pillar is known as Sales Enablement or Sales Automation. The purpose here is to streamline processes like lead generation, qualification, and closing deals. These days, many vendors offer a combination of both elements in their product suites, but they may still be referred to separately depending on who you speak with.

Thirdly, Marketing Automation refers to the tools and services offered by vendors to help automate repetitive tasks such as nurturing leads, generating content, scheduling email blasts, etc.

Finally, Productivity Tools encompass anything relating to productivity, including time-tracking, project management, document organization, and collaboration. When thinking about these tools, remember that they aren't always specifically designed for selling purposes. They often serve double duty across multiple departments within a company. For instance, an employee could have access to Time Tracker software while working remotely, so he/she doesn't have to worry about being late after hours.

Now let's look into the details of each individual category.

What B2B means?

While B2C is generally associated with consumer goods and service providers, B2B refers primarily to large corporations operating in various industries. Businesses in this sector include banks, insurance firms, healthcare organizations, financial institutions, manufacturing companies, IT specialists, professional services, transport, utilities, and government agencies among others.

Some people even consider small businesses to fall under the umbrella of B2B. While this might not be true everywhere, it certainly applies to businesses where products or services are bought exclusively by larger enterprises rather than individuals directly. Think of restaurants, retail stores, fast food chains, auto dealerships, travel agents, hotels, airlines, and car rental companies. Even if you sell to consumers only occasionally, you would probably qualify as a B2B entity.

What is an example of B2B?

One thing that unites all B2B entities is that they must deal with lots of information flowing back and forth between customers and suppliers. If you've ever been involved in buying something online, you know that once you make a purchase you receive tons of emails, invoices, receipts, statements, and offers. All those communications form part of your digital life, and they're vital to running your business effectively.

Even though many people mistakenly think of ecommerce platforms as solely focused on B2C transactions, there are plenty of B2B options out there too. In fact, some ecommerce sites cater almost exclusively to B2B buyers. You may see them advertised alongside traditional retailers, especially around Black Friday and Cyber Monday. Some of these platforms are better suited to dealing with complex requirements like supply chain logistics and inventory control. Others focus more on data analysis and reporting.

What is B2B and B2C meaning?

There are two sides to every coin, and that principle holds true for the concept of B2B vs B2C. So before diving deeper, take a moment to understand what "B2C" really means.

As mentioned earlier, B2C refers to businesses like yours, whereas B2B refers to bigger players in several fields. As a result, B2B tends to involve more money, higher stakes, and greater complexity. That said, there are no hard-and-fast rules regarding whether or not a particular industry falls under the B2B banner.

However, if you want to get down to brass tacks, here are five general guidelines to follow:

1. Most B2B products are sold to customers via direct channels. There are exceptions, however, and certain B2B vertical markets are dominated by intermediaries. Examples include accounting software, legal counsel, banking and finance, real estate brokerage services, and investment advice.

2. Generally speaking, B2C software packages tend to be simpler, less expensive, and easier to learn and implement than B2B ones. On the flip side, B2B solutions typically come with advanced functionality such as multi-channel capabilities, sophisticated analytics, and enterprise-level security.

3. B2C software tends to be aimed at smaller businesses, startups, freelancers, and SMEs. By contrast, B2B applications tend to be geared towards medium-sized enterprises (SMEs), Fortune 500 companies, and global conglomerates.

4. Many B2C software products require little training, whereas B2B apps are harder to master without proper instruction.

5. B2C brands are more likely to emphasize user experience over technical prowess. Conversely, B2B developers prioritize speed, reliability, scalability, performance, and stability.

With that sorted, now let's look at some of the most common B2B CRM solutions currently available on the market.

What are the 5 best B2B CRM solutions?

It goes without saying that choosing the right CRM for your needs requires careful consideration. After all, you don't want to spend thousands of dollars on something that isn't going to provide enough value to justify the cost. Fortunately, there are plenty of B2B solutions on the market that meet the criteria outlined above. Here are the five most prominent ones:

Bitrix24

Launched by Russian entrepreneur Pavel Durov, Bitrix24 is arguably the world leader in cloud-based CRM software. With nearly 200,000 users globally, it boasts impressive stats including 99% uptime, 24/7 support, and free unlimited storage space.

Zoho Corporation

Founded in 2000, Zoho is another leading provider of B2B CRM solutions. Its flagship offering is known as Zoho Creator. Although it lacks the name recognition of Bitrix24, Zoho nonetheless manages to hold its own against competitors like Microsoft Dynamics 365 and SugarCRM thanks to its powerful feature set.

Hubspot

Headquartered in Boston, Massachusetts, Hubspot was founded by former Google exec Dharmesh Shah in 2008. Since then, it has grown to become one of the biggest names in the field of web-oriented CRM. Hubspot provides a range of products and services including HubSpot Cloud, HubSpot Analytics, HubSpot Content Manager, HubSpot Campaign Builder, and HubSpot Contacts & Leads.

Salesforce

Established by Marc Benioff in 1999, Salesforce remains the largest player in the CRM game. Nowadays, it operates in more than 150 countries, employs 25,000 staff members worldwide, and handles millions of annual transactions.

Freshsales

Based in Israel, Freshsales specializes in helping businesses manage customer relationships in high growth sectors like technology, media, advertising, fashion, and entertainment. Their core CRM platform comes complete with everything needed to run a successful campaign, from automated workflows to integrated social networking.

These five products represent just six of the hundreds of B2B CRM solutions available today. Each one excels in its own way, so feel free to check out the rest of the list below. Just keep in mind that finding the ideal tool depends largely on the size and nature of your business, as well as the specifics of your industry.

How else can I find the right B2B CRM app for my company?

You can try asking yourself some key questions about your company and the kind of CRM solution you'd ideally prefer. Once you have a clearer picture of what you actually need most, you'll be able to narrow down your search accordingly. Below are three suggestions based on this approach:

Ask yourself the following questions:

Do you handle sensitive personal data? Does your firm operate internationally? Do you employ remote workers? Are you planning to expand operations in the near future? Will you be acquiring additional assets soon?