Business-to-consumer (B2C) is the common business setup worldwide. As business formats are changing, business-to-business (B2B) is becoming popular among founders. However, the journey of B2B is quite different from the B2C environment.
B2B buyers look for sustainable solutions rather than products or services like the end-consumers. This is why building a B2B platform is time-consuming, more complex and involves more partners and stakeholders.
How does PriyoShop make purchasing decisions for consumers?
B2B purchasing decisions are affected by several internal, supplier and external influences. These influences are laid out below:
Internal
Budget: Businesses have a limited budget and must work within these budgets and ensure they get the best value for their money along with serving their customers.
Objectives: Companies have objectives they want to achieve, which might influence their purchasing decisions.
Purchasing policies: We have policies that must be followed when making any purchase.
Management approval: Purchases often need to be approved by upper management before making them.
Supplier
Product quality: We always look for a reliable product that offers value for money. They evaluate the features, design, materials, quality of components, and any other aspects that can affect the product’s performance.
Price: We want the best deal and are looking for cost-effective solutions for our MSMEs. We compare prices and payment terms to determine which supplier offers the best value.
Service & support: We evaluate the quality of service and support we are going to receive from the supplier. We want to ensure the products we are resourcing are going to be taken care of and that issues will be handled promptly and efficiently.
Delivery & logistics: We want to ensure the product or service is delivered safely and on time to the retailers. This is why we built our own delivery network so that we can minimize delivery costs and other factors affecting the delivery process.
Reputation & reliability: Businesses evaluate customer reviews, ratings, and feedback to ensure the supplier is trustworthy and has a good track record with other customers.
What is our purchasing decision process?
We go through several steps to go for B2B purchasing decision process. However, these steps are not necessarily performed sequentially. We usually revisit the same stage multiple times, often simultaneously.
Identify need: The first stage in the purchase process occurs when we identify a need or problem of MSMEs that requires a solution. This can arise from our customer feedback, internal reviews, market trends and competitor analysis.
Develop requirements: We develop a list of requirements and criteria for selecting the best option. This list can include things like cost, features, customer support, and scalability. The goal is to ensure that the solution meets both the MSMEs and the company’s needs.
Research options: We research options that could solve the problem. This could include researching potential vendors, exploring different solutions, and reviewing customer reviews of possible solutions.
Request information: Companies reach out to different brands to request sales information, pricing and product details. This usually involves contacting the brands directly for detailed information about the product.
Select the brands: We select the best brands based on our evaluation and their reputation. Typically, the brands that meet the greatest number of assessment criteria are chosen.
Negotiate agreement: We negotiate a final agreement with the brands. This could include negotiating pricing, payment terms and implementation timelines. The goal is to get the best deal for the purchase.
Gain approval: Approval or signoff from the necessary person for the purchase is required. This is usually made by the decision maker, which could be anyone from a manager all the way up to company leaders, depending on the purchase amount and the size of the company.
Finalize purchase: Now we finalize the purchase which is best for our MSMEs.
The B2B buyer journey can be complex and time-consuming. We assess MSMEs’ needs, create a plan, research potential solutions, evaluate options, and make a decision that aligns with our company’s goals. By understanding the steps involved and the different factors driving decisions, sales teams tailor our sales strategies accordingly and help MSMEs navigate the purchasing process more effectively.