4 Main B2B Client Types
The world of B2B is wide and varied, with each customer segment having its own unique set of challenges, needs, and preferences.
This article is for you if you want to acquire B2B clients and want to know what to expect from clients in this industry.
Client Types in B2B
The primary client types and buyers in the B2B industry are producers, resellers, governments, and institutions.
1. Producers
Producers refer to companies that produce or manufacture goods and offer them for sale to other businesses.
These producers could be anything from small businesses selling food items to large multinational corporations that manufacture electronic goods.
Producers within the B2B space include brands like Caterpillar Inc. and 3M for large-scale manufacturing.
2. Resellers
Resellers, as their name implies, are companies that buy and resell products from producers to other businesses.
These companies do not manufacture their own products; they purchase them from producers and sell them to other businesses.
In this sense, resellers act as a middleman between producers and buyers.
Some examples of resellers include wholesalers such as Costco or Walmart and eCommerce sites like Amazon Business.
3. Governments
Government agencies and institutions make up another key client type in the B2B space. In fact, the US government is the world's leading buyer of goods and services.
These entities are responsible for procuring items for their own use, ranging from office equipment to military products.
Selling to the government isn't as straightforward as it is in the private sector, so vendors must adhere to certain rules and regulations.
Businesses are required to register with the System for Award Management (SAM).
From there, they are required to submit a sealed bid that details what they can provide the US government with and at what price.
However, selling to the government can be quite a challenge because of the regulations involved in the buying process.
Not only that, but due to the scale of the purchases, the buying cycles can be quite long, which can be tedious and not worth the effort.
4. Institutions
Institutions are similar to governments in the sense that they are also buyers of goods and services for their specific needs.
However, unlike government entities, institutions are usually not-for-profit organizations such as hospitals, universities, schools, charities, and NGOs.
These organizations require many goods and services to operate, which is why they tend to buy in large quantities at a lower cost.
They usually buy items such as medical supplies, educational materials, office products, furniture, and more.
4 Buyer Types in B2B Purchasing
While we've talked about the four main types of buyers you'll encounter in the B2B space, it's also important to understand who is behind the buying process in the B2B industry.
Keep in mind that the B2B buying process can be quite long (1-6 months), and you can easily lose a lead along the way, which is why you have to know exactly who you’re tailoring your B2B marketing strategy to.
Here are the four types of people who are involved in the customer/buyer end of the B2B process:
1. End-User
The end user is the person who has an immediate need for the product or service. This can be anyone, from an individual consumer to a business or organization.
The end user is the person who will actually use the product or service and experience its benefits.
As such, they have a huge influence on the buying process, and their needs often dictate what is purchased.
They are quite similar to the customer in the B2C buying process.
2. Decision-Maker
The decision-maker is the person who has the authority to make purchasing decisions.
This can be anyone, from an individual CEO to a committee or board of directors.
The decision-makers are ultimately responsible for deciding what products or services best meet their needs and budget.
3. Buyer
The buyer is the person responsible for finding and evaluating potential suppliers and negotiating contracts.
This could be an in-house team or an external agent hired by the decision-maker.
The buyer's job is to find the best deal that meets the end user’s needs within budget constraints.
4. Influencing Voice
The influencing voice is the person who has an influence on the decision-maker.
This person may not be formally involved in the buying process, but they can strongly influence what products or services are chosen by giving their opinion to the decision-maker.
This could be anyone, from a consultant to a friend or family member of the decision-maker.
Tailoring your strategy to the influencing voice can be quite tricky because it may not be clear from the beginning who exactly the influencing voice is.
Of course, there are ways to increase the probability of securing the influencing voice’s vote.
For example, personalization is highly sought-after in the B2B space, with 73% of B2B executives reporting that their customers expect more personalization during the buying process.
The Four Main Client Types in the B2B Industry
Understanding these various client types is essential for any business looking to acquire B2B clients.
The four main client types in B2B are:
Producers: These businesses produce or manufacture goods and offer them for sale to other businesses.
Resellers: These companies buy products from producers and resell them to other businesses, acting as a middleman between producers and buyers.
Governments: Government agencies and institutions are responsible for procuring items for their own use, such as office supplies, furniture, and computer equipment.
Institutions: Not-for-profit organizations such as hospitals, universities, schools, charities, and NGOs buy items such as medical supplies, educational materials, office products, furniture, and more.
Companies can better serve their customers and increase their bottom line by understanding the four main client types in the B2B industry.
