Contents
What is B2P?
B2P (business-to-people) is a business model in which companies offer goods or services directly to people, without intermediaries. The main focus is on understanding the needs and expectations of the specific consumer. In the context of B2P, the consumer is always an individual — a person who makes purchasing decisions. This can be either an individual buyer or a purchasing manager or business owner. Thus, the B2P model covers both B2C and B2B segments, but with an emphasis on a personalized approach to each client.
Unlike traditional B2B and B2C models, where the category of the buyer (individual or legal entity) is important, in B2P the main focus is on meeting the needs of the customer. This means that companies must not only send commercial offers but also actively engage with customers, identifying their preferences and individual requests.
Features of B2P Sales
The B2P model has several key features that make it attractive for businesses:
- No intermediaries: Direct interaction with customers allows companies to better understand their needs and offer tailored solutions. This provides the flexibility to manage pricing and offer more favorable prices.
- Personalized marketing: Based on analyzing the needs and expectations of customers. Regular surveys and research help companies adapt their offerings and improve the user experience.
- Promotion through social networks: Social platforms provide opportunities to build trusting relationships with customers, allowing the sharing of useful information and receiving feedback.
For example, the company "Tele2" offers various mobile tariffs that can be customized to meet individual customer needs. Meanwhile, the online store "Taiga" not only sells clothing but also collects visitor contacts to send personalized offers.
How to Build a B2P Strategy
To successfully implement a B2P strategy, companies need to consider several key aspects:
- Personalization of communication: Use social media for active engagement with the target audience to better understand their needs and respond quickly to changes.
- Logistics organization: An effective application processing system and fast delivery of goods are important factors for increasing customer satisfaction.
- Process automation: Optimizing business processes through automation helps improve service quality and reduce costs.
- Data collection and analysis: Using analytical tools to track customer behavior and preferences allows for better adaptation of offerings.
Applying these principles will help companies not only attract new customers but also retain existing ones, creating an active community around the brand.
B2P vs D2C
Although both B2P and D2C (direct-to-consumer) models are focused on directly meeting customer needs and bypassing intermediaries, there are significant differences between them. In D2C, goods are sold directly from the manufacturer to the end consumer, often through their own online stores or social networks. In B2P, however, the seller can be not only the manufacturer, and the buyer can be not only the end consumer. For example, a supplier of bicycle parts can offer their products to both bicycle manufacturers and individual repairers.
Marketing Metrics for B2P
To assess the effectiveness of a B2P strategy, it is important to track key marketing metrics:
- Conversion Rate (CR): Determines how many website visitors completed a target action. A high conversion rate indicates a correct strategy.
- Customer Acquisition Cost (CAC): Shows how much money is spent on acquiring a new customer. Lower costs indicate marketing efficiency.
- Customer Lifetime Value (LTV): Reflects the total profit a customer will bring over the entire time of interaction with the company.
- Customer Retention Rate (CRR): Indicates the percentage of customers who continue to make purchases.
- Net Promoter Score (NPS): Measures customer satisfaction levels and their willingness to recommend the product to others.
- Return on Investment (ROI): The final metric that shows the ratio of marketing costs to sales revenue.
Tracking these metrics allows companies to adjust their strategies and increase profitability, creating more effective and consumer-focused business models.