I’ve been a first-time PM for about a year at a B2B start-up, but I want to go into B2C. Could someone please explain the main differences between the B2C function and the necessary skills? In addition, I would like to change jobs because I’m getting a little bored with the way things are going at my current employer. I suppose I don’t know how to explain my desire to leave so quickly, and I’m not sure if my one year of experience is sufficient. If I say I wish to enter the B2C space, is it sufficient? I believe I would be a little happier switching, as I was a BA in consumer at my prior job, and I truly enjoyed it. Well, enough ranting. I would be grateful if someone could assist with the question.
Thanks in advance.
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I don’t really think there’s a huge difference… B2C seems to have more of a consumer-focused aspect but the reality is that many B2B applications’ end users are still people.
B2C is easily understood by the average person, as we are all consumers. B2B is more complex in this regard, but may offer more opportunities for innovation in a less saturated market space.
Either way there is no right answer. If you find more interest in B2C, go for it. My best advice would be to stop doing what others think is interesting and do what you are interested in, because confidence is sexier than anything.
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Rich Mironov wrote a useful post outlining the differences between B2B and B2C product management. Understanding Enterprise Product Companies (mironov.com). The post provides valuable insights for those interested in understanding the nuances of product management in both B2B and B2C settings. It is essential to consider these differences when determining which path aligns best with your goals and interests. In the end, it’s important to choose a path that aligns with your interests and strengths. By understanding the unique challenges and opportunities of each market, you can make an informed decision on which direction to take in your career.
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What makes B2C more effective?
From a framework standpoint, nothing changes. Because b2b is more relational and account driven and involves fewer stakeholders, it likely depends more on qualitative factors. B2C is frequently more transactional.
B2B is more appropriate, in my opinion. For b2b2c, insert the Vince McMahon head explosion. B2C is typically more effective due to its transactional nature and focus on the individual consumer, while B2B is more relational and account-driven, depending on qualitative factors. B2B2C can be complex, combining elements of both approaches, resulting in a unique challenge for businesses to navigate effectively.
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While there are many exceptions to what follows, it’s safe to assume that there are certain generalized distinctions between B2B and B2C in terms of how you conduct consumer research, discovery, prioritizing, and identification of your primary stakeholders.
You will need to rely more on tools to aggregate information at scale, such as A/B testing, the more discrete clients you have (i.e., B2C), since each customer has a relatively low individual revenue impact. These techniques are, therefore, more quantitative. The drawback is that because there are so many covert signals, users are sometimes not subject matter experts, and a great deal of hypothesis and testing is required, it is much harder to truly determine the needs of the market. The benefit is that, as a product team, you frequently get to own the interpretation of consumer needs, and preferences held by any one user don’t carry much weight.
Conversely, when working with fewer distinct clients, each of whom has a significantly larger revenue impact (B2B and especially enterprise), your insights will typically be of a more qualitative nature, depending more on collaborating with customer success and sales/BD teams to obtain firsthand knowledge and on them to help arrange customer interviews. There are advantages to having fewer “voices” in the market, and those that do exist are frequently knowledgeable about the industry. On the other hand, the drawback is that these voices are frequently very prescriptive, and B2B companies risk becoming feature factories that only fulfill the demands of their largest clients in order to appease their internal sales teams’ political needs.
As a last point, I discuss discrete clients and how they affect revenue since, in the B2B space, your product tools and strategy start to resemble the B2C strategy I described much more than the B2B approach when you approach a lot of smaller customers (imagine Shopify working with a lot of tiny businesses).
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B2B is more enjoyable, in my opinion, because it allows you to get to know your consumers better. Consider the fact that you make a direct reference to such and so as an excellent canary or indication… The consumer in question is a major advocate for their organization, etc.
On the other hand, you will also face an increase in sales-driven organizations, or at the very least, pressure, when there are booking quotas! It’s not always a fun process.
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For me, the only reason B2C is “better” is because it is more convenient. Obtaining feedback, usage data, validation information, and more is simplified. When I worked in B2C, we could add a simulated door test to a feature and receive feedback within a week, and no more than two, to validate it. We might implement a randomized survey, conduct A/B tests to identify winners within days, utilize product/marketing analytics to gain insights about large-scale purchasers, and so forth. And developing features that are exclusive to that enormous whale? Indeed, nothing.
Additionally, interacting with the business’s stakeholders was simplified. It was incredibly simple to support decisions with data or to reject irrational stakeholder insistences or ideas.
One can also delegate a substantial amount of work to a farm and effectively conceal it, if that is more to your liking. Ship a CMS that seals in appearance, format, and other elements to the Marketing/Content teams, along with SEO considerations. It is possible to delegate customer support, FAQ management, and support-related tasks to the customer service staff and assist them in integrating the tools of their choosing…
However, that does not improve B2C. Simply simpler.
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Increased volume, increased testing, and quicker outcomes can all contribute to improving B2C relationships. By delegating tasks and responsibilities to the appropriate teams, efficiency and customer satisfaction can increase. It is important to strike a balance between delegating work and maintaining control over the overall strategy and direction of the business. With clear communication and a well-defined delegation process in place, a company can streamline operations and ultimately improve B2C interactions.
By empowering teams to take ownership of their tasks, businesses can foster a sense of accountability and drive towards achieving common goals. This collaborative approach can lead to better decision-making and innovative solutions that benefit both the company and its customers.
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Transitioning from a B2B (Business-to-Business) product management role to a B2C (Business-to-Consumer) role involves some differences in focus, strategies, and skill sets. Here are some key distinctions between B2B and B2C product management, along with considerations for making the switch:
B2B Product Management:
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Customer Relationship Complexity:
- B2B relationships often involve fewer, but larger and more complex clients.
- Dealing with long sales cycles, multiple stakeholders, and customized solutions.
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Sales Process Involvement:
- Closer collaboration with the sales team to understand specific client needs and requirements.
- Products may require customization to meet the unique demands of each business.
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Product Customization and Complexity:
- Products are often more complex, with customization options based on client needs.
- Focus on creating value for businesses through efficiency, cost savings, and tailored solutions.
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Decision-Making Process:
- Decision-making involves several layers of approval within the client organization.
- Emphasis on building strong relationships with key decision-makers and influencers.
B2C Product Management:
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Mass Appeal and User Experience:
- Products need to have mass appeal and a seamless user experience.
- Understanding and catering to the needs and preferences of a diverse consumer base.
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Shorter Sales Cycles:
- Sales cycles are typically shorter, and the focus is on high-volume transactions.
- Quick decision-making is crucial in the consumer market.
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Brand Perception and Loyalty:
- Building and maintaining a positive brand image is essential for consumer trust and loyalty.
- Focus on user feedback and continuous improvement to meet consumer expectations.
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Marketing and Promotion:
- More emphasis on marketing and promotional strategies to reach a broad audience.
- Creativity in advertising and branding is often more prominent in B2C.
Considerations for Transition:
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Communicate Transferable Skills:
- Highlight your skills that are transferable between B2B and B2C, such as market research, data analysis, and project management.
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Emphasize Previous B2C Experience:
- Mention your previous experience as a BA in consumer at your prior job to show your familiarity with the B2C space.
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Express Personal Motivation:
- Communicate your passion for the B2C domain and your desire for a more dynamic and consumer-focused environment.
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Continuous Learning and Adaptability:
- Showcase your ability to adapt and learn quickly, emphasizing your willingness to bring your B2B experience into a new context.
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Networking:
- Leverage your professional network, including connections from your previous B2C role, to explore potential opportunities.
Remember, one year of experience is not too short, especially if you can demonstrate valuable skills and a clear motivation for the transition. Be honest about your desire for growth and a new challenge in the B2C space during interviews or discussions with potential employers.
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Methods for conducting product validation and the sales process will vary.
Building the proper product, marketing, engaging, converting, and expanding are all components of B2C sales.
You have access to a greater number of consumers in B2B, but clients and other intermediary stakeholders must be persuaded of the importance of validating and conversing with end-users. If they succeed, this could be quite thrilling. If they do not comprehend, you will need to exercise patience, continue gathering data, and resolve the issue until they eventually come around.
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I, too, am a new PM, so I cannot provide extensive guidance regarding the channel distinctions; however, I can offer some insight regarding the change inquiry.
It was evident from the moment I started working as a marketing manager for a new organization in January 2020 that we wouldn’t be a good cultural fit (to be candid, it didn’t look good even before the COVID-19 pandemic, but it became abundantly obvious afterward). I began my search approximately nine months after beginning, and in response to the query of why the abrupt change occurred, I stated that the culture did not mesh well with the position. My sole criticism of my former employer was that we weren’t a good fit for each other.
“While I maintain an interest in business-to-consumer (B2C) transactions, the objectives of my present organization and my personal interests do not appear to be as congruent as I initially believed.” Ensuring a profound cultural alignment is a primary consideration in my pursuit.
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If you work in B2C, you’re more likely to conduct split testing, cohort analysis, and usability testing to improve UX.
Data and UX are extremely important because everything is self-service, and incremental improvements have a significant impact on the bottom line.
For B2B, you’re more concerned with sales and customer success; the metrics are business-oriented, and having a good pitch deck is more important than refined UX.
Of course, many companies, such as Slack, Zoom, and Notion, are blurring the lines by providing bottom-up / product-led SaaS and operating more like B2C businesses with sales bolted on to upsell organizations that have already adopted the product.
But generally speaking, the data you look at and the people you work with will be different, which largely depends on the volume of customers using the thing and the CAC / LTV sizes.
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