Contents
What is C2B?
C2B (customer to business) is an innovative business model in which customers become a source of value for companies and can receive rewards for it. Unlike more familiar models such as B2C (business to consumer) or B2B (business to business), C2B allows customers to contribute to business processes, making them active participants. For example, on review sites, users leave feedback, and companies profit from their publication. If users stop sharing their opinions, the operation of such a business is at risk. In exchange for their feedback, customers receive not only rewards but also recognition of their significance.
There are several popular business models, among which C2B is one of the rarest and least understood. The main models include:
- B2C — business to consumer, a traditional trading model;
- B2B — business to business, where companies sell goods and services to other companies;
- C2C — consumer to consumer, transactions between individuals;
- B2G — business to government, where companies provide goods and services to governmental institutions;
- C2B — consumer to business, where individuals provide services or goods to companies.
Examples of C2B
To better understand the concept of C2B, it is useful to consider several real examples of companies operating under this model:
- Pawnbrokers — a traditional example where businesses profit from the valuables customers bring in as collateral.
- Car buying companies — companies buy cars from individuals and profit from reselling them.
- Stock photo websites — users upload their photos to a platform, and creators receive rewards for downloads of their work.
- “Yandex Rental” — connects property owners with potential renters, earning a percentage from the deal.
- Freelancer search platforms — such sites offer services provided by the users themselves.
Sometimes, the C2B model includes collaboration between companies and freelancers, where clients turn to specialists to perform specific tasks.
C2B in Marketing
The C2B model can be applied not only to build a business but also to its marketing strategies. Users can assist in promoting products, receiving small rewards in return. Key aspects of C2B marketing include:
- Reviews — positive customer reviews contribute to increased sales, as they create a social proof effect.
- Referral programs — customers recommending a product or service to friends help the business and may receive bonuses for it.
- Affiliate programs — here, partners receive rewards for attracting customers while organizing the promotion process themselves.
Case studies also play an important role in C2B marketing, as they generate more trust than regular reviews. Case studies are created in collaboration with customers and provide a detailed description of successful interactions with the product or service.
Advantages and Disadvantages of the C2B Model
Despite the rarity of C2B usage compared to B2C and B2B, this model has its advantages and disadvantages:
Advantages:
- Effective data collection. Crowdsourcing allows for quick and efficient gathering of large volumes of information.
- Reduced research costs. Feedback from real users helps improve products without significant investments.
- Increased trust in the brand. Advertising based on customer recommendations has a higher level of trust.
Disadvantages:
- Low manageability. The results of customer contributions are hard to control, and their input can be unpredictable.
- Dependence on the quality of attracted customers. If there are many partners, the results may average out, reducing predictability.
Ultimately, the C2B model provides unique opportunities for businesses, allowing them to leverage the power of community and active customer participation in creating value.