As a digital marketing content writer, I spend a lot of time breaking down industry terms, concepts, and strategies, some of which can be more confusing or difficult to understand than others.
However, I have also found that some terms, including “B2B2C marketing,” may do this appear initially too complicated, but upon closer inspection they turn out to be much easier to understand.
In this post I will explain to you what B2B2C marketing is and how it works. I will also show you some examples of popular and effective B2B2C marketing strategies.
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What is B2B2C marketing?
B2B2C marketing is the abbreviation for business-to-business-to-consumer marketing. This is a business model and strategy that typically involves a manufacturer selling its products or services to a separate company, which in turn sells the products or services to consumers.
Importantly, B2B2C marketing is different from B2B or B2C marketing, where companies sell exclusively to other companies or directly to consumers.
B2B2C marketing is actually incredibly common and most of us regularly interact with companies that use this model.
In fact, B2B2C marketing has been around for ages, but has grown in importance over the years as technological innovations have made collaboration easier and more beneficial for businesses.
Now that I’ve given you a basic definition of B2B2C marketing, let’s take a close look at why – and how – it works, and examine some real-world examples.
Why B2B2C marketing works
Personally, I have seen B2B2C marketing take many forms and be used across industries in different contexts.
In many cases, these were simple agreements between two companies where the underlying strategies and mutually beneficial nature of the partnerships were incredibly simple.
And in other cases, the internal operations and processes were significantly more complicated, sometimes involving a product manufacturer, a global distributor, and hundreds of independent retail organizations operating around the world.
However, in virtually every example I’ve encountered, B2B2C marketing strategies tend to follow the same basic rules and aim for similar results. Here are some benefits of this model for businesses.
Shared benefits of partnership and collaboration
The first thing to understand is that B2B2C marketing is essentially a partnership or collaboration between companies.
These partnerships typically arise from the realization that each company has something that the other needs or can benefit from.
In most cases, the first company has a specific product and the second, intermediary company, has access to consumers who would be interested in purchasing that product.
Simply put, when B2B2C marketing is used effectively, everyone wins.
Increased brand awareness and growth
It’s also important to note that the benefits of B2B2C marketing often extend far beyond increasing sales.
For one, joint content creation and marketing efforts between companies help build brand awareness and expand each company’s customer base.
Improved access to consumer data and insights
Additionally, in many cases, the first company gains access to valuable consumer data and insights, allowing them to better identify and understand their target audience. This, in turn, helps them offer more personalized experiences.
How B2B2C marketing works
Now that I have generally described why B2B2C marketing works and how it benefits companies, I would like to highlight a few examples of companies using this model.
The examples I’m about to share will show how B2B2C marketing strategies can vary depending on the product and/or industry.
B2B2C Marketing Strategy Example 1: Frito-Lay
First of all, Frito-Lay is a great company because it offers one of the oldest and most basic variations of B2B2C marketing.
As a manufacturer of popular snack foods, Frito-Lay partners with grocery stores around the world that act as intermediaries and purchase, market and sell its products directly to consumers.
A general aspect of B2B2C marketing that we should keep in mind as we go through these examples is this Consumers will always be aware of the partnership.
In this example, when I go to the grocery store to purchase my favorite chips, I understand that I am purchasing the chips at the store, but also that the chips came from and were manufactured at one of the Frito-Lay facilities.
B2B2C Marketing Strategy Example 2: Instacart
Sticking with the grocery product category, Instacart is another, more modern example of B2B2C marketing in action. However, in this case, the grocery store is the first company and Instacart is the intermediary.
More specifically, if I own and operate a grocery store, I am limited to selling my products to consumers who enter the physical store to purchase groceries.
But by partnering with a delivery service like Instacart, I now have the opportunity to sell my products to people at home without having to worry about the logistics associated with grocery delivery.
B2B2C Marketing Strategy Example 3: Apple
When it comes to the technology industry, Apple is a great example for several reasons. On the one hand, the company pursues different B2B2C strategies that relate to both hardware and digital services.
Second, Apple is an example of a company whose business model is this B2B, B2C and B2B2C all at once.
When it comes to hardware, Apple sells its iPhones to telecommunications companies like Verizon and T-Mobile, who then sell the iPhones directly to consumers (B2B2C). At the same time, Apple also sells its products directly to consumers in its own stores and on its website (B2C).
When it comes to digital services, Apple makes its marketplace, the App Store, available to software developers who can then sell their mobile applications to consumers (B2B2C).
Apple now also sells its own software solutions and platforms such as Apple Business Manager directly to business owners to support their operations (B2B).
B2B2C Marketing Strategy Example 4: Amazon
Amazon operates one of the largest and most successful B2B2C marketing companies in the world.
By providing an e-commerce marketplace, warehousing, customer support and delivery services, companies and manufacturers across all industries gain the opportunity to sell their products to a wider range of consumers than they would normally have access to.
It is also worth mentioning that, like Apple, Amazon also produces its own products and sells them to consumers via its website (B2C) and at the same time produces its own software solutions and sells them to companies (B2B).
I hope that at this point you have gained a better understanding of what B2B2C marketing is and how it works in different industries and contexts.
Now I want to explore some specific strategies that can help companies maximize the impact of their B2B2C marketing efforts.
3 effective B2B2C marketing strategies
From what I’ve seen, the most successful B2B2C marketing strategies are those where both companies embrace the collaborative element of their partnership and find ways that can benefit both while optimizing the end consumer’s experience and satisfaction.
For example, I once worked for a small clothing company with a uniquely talented creative team and exclusive access to influential brand ambassadors. However, they also had extremely limited capital, e-commerce capabilities and access to consumers.
By partnering with a much larger, more established fashion brand, they were able to run a joint campaign and introduce their products to a larger audience – all while providing their partner with quality creative content and a valuable influencer who co-signed to help promote the image of the revitalize the brand.
Here are just a few effective B2B2C marketing strategies that emphasize collaboration and mutually beneficial results.
1. Collaborative marketing campaigns
Promoting brand awareness is often important for both companies in a B2B2C marketing partnership.
Therefore, spreading your collaboration through creative advertising campaigns can be a great way to draw attention to both brands and their specific services and product offerings.
For example, Influencer marketing has become an increasingly effective way to reach online consumers and put brands in the spotlight.
Whether it’s published on social media or in the form of a television or streaming ad, enlisting a celebrity to promote a collaboration between brands helps ensure the partnership stays under the radar.
Best for: B2B2C partnerships in which both companies have a significant consumer-facing share. For example, if Samsung and Verizon collaborate on a campaign to promote a new mobile device combined with a service advertisement, both companies can increase their sales based on the same campaign.
Pro tip: Using a unified marketing software like Marketing Hub can be a great help when collaborating on campaigns.
2. Referral programs
While the concept is by no means new, setting up a referral program remains one of the most effective ways for companies to collaborate to the benefit of both parties.
Particularly in the case of B2B2C marketing, this may result in an intermediary being compensated for selling the first company’s product, rather than simply supporting it or providing access to consumers.
Referral programs can be introduced in different ways. However, in many cases it is sufficient to agree on a fair commission for the intermediary based on each individual sale of a product or service.
For example, if I own a SaaS company and work with an online marketplace to sell my solutions, it might make sense to offer a 10% commission on every sale, especially considering that the sale is not possible without their services would have been.
Best for: Companies that sell high-priced items or services, e.g. B. SaaS and FinTech companies. In B2B2C marketing, referral programs typically work best when the products sold are more expensive.
Put simply, high-priced items provide a better incentive for the agent and the financial impact of the referral agreement for both parties is much easier to estimate and track.
3. Personalization based on data sharing
After all, in many B2B2C partnerships, data exchange is one of the most important and valuable parts of the relationship.
This is primarily because it allows companies to collect and analyze consumer insights to create more personalized experiences, both ensuring a customer’s immediate satisfaction and making it easier for them to market similar products in the future.
For example, if I run an e-commerce platform that hosts and sells a company’s products, analyzing data about that company’s customer base allows me to learn more about who the company is and what they like.
I can then use this information to offer these consumers additional products that match their previous purchases, behaviors and preferences.
Best for: Companies across all industries that have advanced data management capabilities and processes. Personalization is an excellent tool, but there are certain cases where data sharing is not part of the B2B2C marketing partnership or where a company may not have the level of digital maturity or marketing software required to sufficiently leverage consumer data .
B2B2C marketing is a versatile solution.
The most important thing I learned from this post – and I hope you did too – is that B2B2C marketing is an incredibly diverse business model. It can take almost unlimited forms and be implemented using a variety of strategies.
The bottom line is that B2B2C marketing is a versatile solution to meet different needs. While the specific method of implementation depends on both the companies’ capabilities and their goals, it definitely offers something to companies at all stages of their journey.
