Are There Differences Between B2B and B2C Transactions in Terms of Customer Satisfaction (A PI Q&A)
Are There Differences Between B2B and B2C Transactions in Terms of Customer Satisfaction (A PI Q&A)
Which components determine customer (dis)satisfaction in a B2B and B2C environment, and what are the greatest differences between these two environments concerning customer (dis)satisfaction?
My Response:
This is an extremely broad question as there are numerous elements that contribute to customer satisfaction.
Given that we are discussing an electronic transaction, in which automation is a core element, the key to automating any process is to “free the data from the document.” According to Bankers Online (http://www.bankersonline.com/), true electronic transactions (including approvals) are 75% less expensive than a paper-based process.
In fact, and specifically referencing the relationship between a seller and consumer buyer (B2C), an American Bankers Association (http://www.aba.com/default.htm) report indicates that there is a “fall-out” rate between 50 and 95% associated with non-electronic transactions in which traditional exchanges such as regular mail are used.
(Note: both of the above referenced sites are worth accessing in terms of statistics on B2B/B2C electronic transactions.)
So the advantages of a B2B/B2C exchange is painfully obvious.
Within this context, B2B and B2C transactions share similar transactional objectives in terms of outcomes including ease and speed of order submission and payment, reliable delivery and product quality, and solid support mechanisms should a problem occur at any stage of the transaction (including post delivery).
Added service requirements that are indigenous to a B2B transaction (especially given the advent of P-Card utilization in the corporate world) however include advanced reporting mechanisms on usage and contract compliance, catalogue maintenance, as well as rebate tracking to name just a few.
That said the “personal” aspects of a B2C transaction represents the greatest opportunity for customer dissatisfaction since by its very nature it is based on subjective elements that are not normally part of a business or B2B purchase.
Certainly the fact that the more “impersonalized” nature of B2B purchases which usually involve ongoing relationships with the same group of vendors, lends itself well to a greater opportunity (and motivation) for both buyer and seller to work together to correct problems.
Conversely, the B2C purchase usually involves a much higher percentage of “one-of” relational exchanges between buyer and seller. Therefore the same level of motivation to work through problems with a long-term perspective in mind is not likely present. Therefore the responses to a problem are far more acute and emotional.
These natural transactional characteristics means that the likelihood of a satisfactory resolution to a problem is much greater within the B2B exchange, thereby lowering the overall level of dissatisfaction.
Once again, I would suggest that you visit the aforementioned sites to obtain hard, statistical data on the differences between B2B and B2C transactions.
To submit questions please forward an e-mail to procureinsights@rogers.com with “PI Q&A” in the subject line.
Are There Differences Between B2B and B2C Transactions in Terms of Customer Satisfaction A PI QA - To learn more about this author, visit Jon Hansen's Website.
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Reader Question:
Which components determine customer (dis)satisfaction in a B2B and B2C environment, and what are the greatest differences between these two environments concerning customer (dis)satisfaction?
My Response:
This is an extremely broad question as there are numerous elements that contribute to customer satisfaction.
Given that we are discussing an electronic transaction, in which automation is a core element, the key to automating any process is to “free the data from the document.” According to Bankers Online (http://www.bankersonline.com/), true electronic transactions (including approvals) are 75% less expensive than a paper-based process.
In fact, and specifically referencing the relationship between a seller and consumer buyer (B2C), an American Bankers Association (http://www.aba.com/default.htm) report indicates that there is a “fall-out” rate between 50 and 95% associated with non-electronic transactions in which traditional exchanges such as regular mail are used.
(Note: both of the above referenced sites are worth accessing in terms of statistics on B2B/B2C electronic transactions.)
So the advantages of a B2B/B2C exchange is painfully obvious.
Within this context, B2B and B2C transactions share similar transactional objectives in terms of outcomes including ease and speed of order submission and payment, reliable delivery and product quality, and solid support mechanisms should a problem occur at any stage of the transaction (including post delivery).
Added service requirements that are indigenous to a B2B transaction (especially given the advent of P-Card utilization in the corporate world) however include advanced reporting mechanisms on usage and contract compliance, catalogue maintenance, as well as rebate tracking to name just a few.
That said the “personal” aspects of a B2C transaction represents the greatest opportunity for customer dissatisfaction since by its very nature it is based on subjective elements that are not normally part of a business or B2B purchase.
Certainly the fact that the more “impersonalized” nature of B2B purchases which usually involve ongoing relationships with the same group of vendors, lends itself well to a greater opportunity (and motivation) for both buyer and seller to work together to correct problems.
Conversely, the B2C purchase usually involves a much higher percentage of “one-of” relational exchanges between buyer and seller. Therefore the same level of motivation to work through problems with a long-term perspective in mind is not likely present. Therefore the responses to a problem are far more acute and emotional.
These natural transactional characteristics means that the likelihood of a satisfactory resolution to a problem is much greater within the B2B exchange, thereby lowering the overall level of dissatisfaction.
Once again, I would suggest that you visit the aforementioned sites to obtain hard, statistical data on the differences between B2B and B2C transactions.
To submit questions please forward an e-mail to procureinsights@rogers.com with “PI Q&A” in the subject line.
Are There Differences Between B2B and B2C Transactions in Terms of Customer Satisfaction A PI QA - To learn more about this author, visit Jon Hansen's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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