While we all wish it were a guarantee, succeeding in business isn’t always a walk in the park. Over 23% of businesses close their doors within the first year of opening, and only 34.7% of businesses established in 2013 were still operating ten years later.
While businesses close for various reasons, not knowing which market to operate in can be a major contributing factor when a new business or growth initiative fails. So, which market is best for you and your commercial print sales operation?
From our experience spanning 25+ years and over 500 print manufacturer operations, we’ve learned a number of things that—regardless of which platform you choose—are important to know if you want to ensure success.
Three Models: B2B, B2C, and B2-Vertical Market
Before discussing which model is best for your company, let’s cover their basic definitions and what each entails.
B2B (Business to Business)
Business-to-business companies, also called B2B businesses, are companies whose main clients are, obviously, other businesses. B2B companies have a more complex sales process—their goal is to sell a solution to an entire business rather than just an individual.
Because of this complex sales process, B2B companies focus on providing a large lifetime value. The initial cost of a sale is spread over a long-term relationship with a lot of recurring revenue.
Succeeding in B2B requires in-depth knowledge of customer needs, skill at creating and nurturing relationships, and support for brand-specific products that are often complex and tailored rather than one-size-fits-all. Doing this often requires a platform that has features and benefits related almost exclusively to B2B work.
B2C (Business to Consumer)
Another popular mode is business-to-consumer. As the name implies, business-to-consumer (B2C) companies primarily focus on selling to an individual customer. Rather than fostering large-scale relationships, B2C businesses appeal to consumers who are typically not buying as much or as often.
Target customers for B2C companies are driven heavily by price. In short, they are extremely frugal, and they respond more “in the moment” when searching to buy something. These customers can be expensive to find and more fickle when it comes to submitting orders. They also don’t order often, leading to low lifetime value.
B2-Vertical Market
A specialized branch of B2B businesses comprises companies whose primary customers are part of a particular niche, vertical market, or geography.
For example, perhaps you are a commercial print sales organization with:
- A unique product or process that few other competitors have
- A geographic advantage, such as being the only print shop in an area
- A focus on a particular industry, such as:
- Healthcare
- Senior Living
- Education
- Higher education
- Real Estate
- Franchise-run Hospitality
The lines between B2B and B2-Vertical Market can blur a bit, but when a commercial print sales organization is focused in this manner, it clearly shows in its marketing. These organizations don’t claim to be “everything for everyone” or a general commercial printer—rather, their marketing addresses the unique challenges in a particular space.
In a vertical market, it’s also important to understand that there are fewer possible customers. While some may argue that this makes it easier for marketing, it also means your product or service needs to truly shine in that space if you want to defend your lane.
Which Is Best for Me?
If you’re deciding how to market your company, think about your product or service and your ideal customer. Many businesses think they can simply create a product, do some light-touch marketing, and call it a day. But it isn’t that simple.
Achieving success in B2C in particular requires competitive pricing, SEO, strategic advertising, and smart marketing campaigns—in short, it requires money and time to build success in that space. As you can see, it’s much more than just the product itself!
Join PageDNA’s CEO, Steve Enstad, to learn more about how we support you in achieving your goals in a B2C, B2B, or B2-Vertical Market approach.
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