As a content writer in the digital marketing space, I spend a lot of time breaking down industry terms, concepts, and strategies, some of which can be more confusing or difficult to grasp than others.
However, I have also found that some terms, including “B2B2C marketing,” might seem to be overly complicated at first, but turn out to be much easier to understand once you investigate them.
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In this post, I’ll guide you through what B2B2C marketing is and how it works, as well as provide a few examples of popular and effective B2B2C marketing strategies.
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What is B2B2C marketing?
B2B2C marketing is short for business-to-business-to-consumer marketing. It’s a business model and strategy that typically involves a manufacturer selling its products or services to a separate business, which in turn sells the products or services to consumers.
Importantly, B2B2C marketing is distinct from B2B or B2C marketing, in which businesses sell exclusively to other businesses or directly to consumers.
B2B2C marketing is actually incredibly common, and most of us engage with businesses utilizing this model on a regular basis.
In fact, B2B2C marketing has been around for ages but has grown increasingly prevalent over the years as technological innovation has made it easier and more beneficial for businesses to collaborate.
Now that I’ve provided you with a basic definition of B2B2C marketing, let’s look at exactly why — and how — it works and explore some real-world examples.
Why B2B2C Marketing Works
Personally, I have seen B2B2C marketing take many forms and be used in various contexts across industries.
In many cases, these have been simple arrangements between two businesses, in which the underlying strategies and mutually beneficial nature of the partnerships were incredibly straightforward.
And in others, the inner workings and processes have been considerably more intricate, sometimes including a product manufacturer, 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 set of rules and target similar outcomes. Here are some of the ways that this model is beneficial for businesses.
Shared Benefits of Partnership and Collaboration
The first thing to understand is that B2B2C marketing is essentially a partnership or collaboration between businesses.
These partnerships are typically formed by recognizing that each business has something the other needs or can benefit from.
In most cases, the first business has a particular product, and the second, intermediary business has access to consumers who would be interested in buying that product.
Put simply, when B2B2C marketing is utilized effectively, everybody wins.
Elevated Brand Awareness and Growth
It’s also important to note that the benefits of B2B2C marketing often go far beyond increasing sales.
For one, collaborative content creation and marketing efforts between businesses help build brand awareness and grow each company’s consumer base.
Increased Access to Consumer Data and Insights
Additionally, in many cases the first business will gain access to valuable consumer data and insights, allowing them to better identify and understand their target audience. This in turn helps them provide more personalized experiences.
How B2B2C Marketing Works
Now that I’ve given a general description of why B2B2C marketing works and how it benefits businesses, I’d like to highlight a few examples of companies that use this model.
The examples I’m about to share will demonstrate how B2B2C marketing strategies can vary depending on the product and/or industry.
B2B2C Marketing Strategy Example 1: Frito-Lay
Frito-Lay is a great company to start with because it offers one of the oldest, most basic iterations of B2B2C marketing.
As a manufacturer of popular snacks, Frito-Lay partners with grocery stores around the world, which act as intermediaries that buy, market, and sell its products directly to consumers.
One common aspect of B2B2C marketing to keep in mind as we go through these examples is that consumers will always be aware of the partnership.
In this example, when I go to the grocery store to buy my favorite chips, I understand that I am buying the chips from the store, but also that the chips originated from and were manufactured at one of Frito-Lay’s facilities.
B2B2C Marketing Strategy Example 2: Instacart
Sticking with groceries as a product category, Instacart is another, more modern example of B2B2C marketing in action. In this case, however, the grocery store is the first business 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 walk into the physical location to purchase groceries.
But by partnering with a delivery service like Instacart, I now have a way to sell my products to people in their home, and without the need to worry about the logistics involved with food delivery.
B2B2C Marketing Strategy Example 3: Apple
Moving on to the tech industry, Apple is an excellent example to look at for a few reasons. For one, it engages in different B2B2C strategies related to both hardware and digital services.
Secondly, Apple is an example of a company whose business model consists of B2B, B2C, and B2B2C all at once.
In terms of hardware, Apple sells its iPhones to telecommunications companies, such as 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 at its own stores and on its website (B2C).
Regarding digital services, Apple provides its marketplace, the App Store, to software developers who can then sell their mobile applications to consumers (B2B2C).
Meanwhile, Apple 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 runs one of the largest and most successful B2B2C marketing operations in the world.
By providing an ecommerce marketplace, along with warehouse, customer support, and delivery services, businesses and manufacturers across industries gain the ability to sell their products to a wider range of consumers than they would normally have access to.
It’s also worth mentioning that, like Apple, Amazon also manufactures and sells its own products to consumers on its website (B2C), while also producing and distributing its own software solutions to businesses (B2B).
By this point, I hope you’ve gained a better understanding of what B2B2C marketing is and how it works in different industries and contexts.
Now, I want to examine a few specific strategies that can help businesses 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 in which both businesses lean into the collaborative element of their partnership, finding creating ways for each to benefit while optimizing the experiences and satisfaction of the end consumer.
For example, I once worked for a small clothing company with a uniquely talented creative team and exclusive access to influential brand ambassadors. But they also had extremely limited capital, ecommerce capabilities, and access to consumers.
By partnering with a much larger, more established fashion brand, they were able to execute a collaborative campaign and get their products in front of a larger audience — all while providing their partner with high-quality creative content and a valuable influencer co-sign to help revive the brand’s image.
Here are just a few effective B2B2C marketing strategies that emphasize collaboration and mutually beneficial outcomes.
1. Collaborative Marketing Campaigns
Fostering brand awareness is often important to both businesses within a B2B2C marketing partnership.
As such, broadcasting your collaboration via creative advertising campaigns can be a great way to call attention to both brands as well as their specific services and product offerings.
For example, influencer marketing has become an increasingly effective way to reach online consumers and bring brands into the spotlight.
Whether it’s launched on social media or in the form of a television or streaming service advertisement, engaging a celebrity to promote the collaboration between brands will help ensure the partnership doesn’t fly under the radar.
Best for: B2B2C partnerships in which both companies have a significant consumer-facing element. For instance, if Samsung and Verizon collaborate on a campaign advertising a new mobile device combined with a service promotion, both businesses can increase sales based on the same campaign.
Pro tip: Using unified marketing software like Marketing Hub can be a big help here as you collaborate on campaigns.
2. Referral Programs
While by no means a new concept, establishing a referral program remains one of the most effective ways for businesses to collaborate to each party’s benefit.
In the case of B2B2C marketing specifically, this can allow an intermediary to be compensated for the sale of the first business’s product rather than merely supporting them or providing access to consumers.
Referral programs can be rolled out in a variety of ways, but in many cases, it’s as simple as agreeing on a fair commission for the intermediary based on each individual sale of a product or service.
As an example, if I own a SaaS company and partner with an online marketplace to sell my solutions, it might make sense to offer a 10% commission on each sale, particularly considering the sale wouldn’t have been possible without their services.
Best for: Businesses selling high-ticket items or services, such as SaaS and FinTech companies. In B2B2C marketing, referral programs tend to work best when the products being sold are more expensive.
Put simply, high-ticket items provide a better incentive for the intermediary, and the financial impact of the referral arrangement for both parties is much easier to estimate and track.
3. Personalization Based on Data Sharing
Finally, in many B2B2C partnerships, data sharing is one of the most important and valuable components of the relationship.
This is primarily because it allows businesses to gather and analyze consumer insights to create more personalized experiences, ensuring both a customer’s immediate satisfaction and making it easier to market similar products to them in the future.
For example, if I run an ecommerce platform that hosts and sells a company’s products, evaluating data related to that company’s consumer base will tell me more about who they are and what they like.
I can then use this information to offer those consumers additional products that align with their past purchases, behaviors, and preferences.
Best for: Businesses across industries that have advanced data management capabilities and processes. Personalization is an excellent tool, but there are certain instances in which data sharing is not a part of the B2B2C marketing partnership, or in which a business may not have the level of digital maturity or marketing software needed to make sufficient use of consumer data.
B2B2C marketing is a versatile solution.
The main thing I’ve learned from this post — and I hope you have too — is that B2B2C marketing is an incredibly diverse business model. It can take on virtually limitless forms and be implemented via a wide range of strategies.
The bottom line is that B2B2C marketing is a versatile solution for addressing a variety of needs. While the specific way it’s implemented will depend on both the businesses’ capabilities and what they’re looking to accomplish, it definitely has something to offer companies at all stages of their journey.
