The world of business has always brought about new surprises every day. In this way, one different business model that emerged in the market was C2B or Customer to Business. In this model, the consumer or the end-user is the one who provides the product or the service to the business. This type of business is more focused on generating value from its customer base. Some of the most popular and successful examples of the C2B business is Shutterstock and Google AdSense.
It is believed that the success of such a business model lies in thorough market research and the level of audience engagement.
So How Does a C2B business work..?
Unlike the traditional way of doing business, the C2B model lets the business extract value, ideas, and innovation from the customers rather than giving them. In this model, the business generates revenue from the willingness of the customers to put their own price. They also contribute data or carry out marketing for the company in return for money or other benefits such as a free or a reduced price product. Some of the industry experts say that the most distinguishing feature of a C2B business is the value that the consumer brings to the business.
There can be numerous ways of doing this, such as the consumers’ co-creating ideas. They can even share products/ service concepts or even solutions with the company with the help of social media. In addition, a C2B business model might include reverse auctions where the customers’ names the price at which they wish to buy a product or a service. Another way is when a consumer gives a business a fee-based opportunity to market the product in the business.
C2B Business in the Digital Era
One of the reasons behind the success of the C2B business is the flourishing age phase of the business. The consumers only need to plug into stay “Plugged into” brands to become a part of the C2B model. There was once a time when the business relationship between the customer and the company was only single directional. However, the relationship has now become bidirectional where the businesses are pushing goods and services to the businesses and vice versa.
Another reason for the popularity and success of this business model is the lowered cost of technologies such as video cameras, printers and the ease in the web development services that today’s consumer has. These technologies have given a greater benefit to the businesses as well as the consumers being a part of the C2B model.
In order to clearly fulfil the C2B relationship, it is important to have all the participants clearly defined. At the same time, in this type of model, the consumers can be anyone who has something to offer to the business. This can be a service or a product. The consumer can even be a person who participates in a survey or a customer who referrers someone.
A business can be a company that is buying goods or services from the customers either directly or through an inter-mediatory body.
Creating and Flourishing a C2B Business
The C2B Business model is new in the market, and for the same reason, it might appear to be difficult to manage at the initial stage. There are underlying legal issues such as how to bill and receive money that needs to be sorted out. As in the traditional setting, a company would pay money to a set of employees. But in this case, the company has to make payments to thousands of people. This task is made easy with the help of the intermediaries, who now takes care of all these issues. The burden of making payments is further made easy with the help of services such as PayPal and Google Pay.
If you want to establish a C2B business, you need to show dedication and a set of special skills. As per the experts, organizations that want to extend their business models to the C2B styles can consider these marketing tools.
- Quantitate survey, segmentation, and qualitative interviews for market research.
- Use of the consumer feedback channels, such as rating and reviews.
- Customer service lines and options for comments and business suggestions
- Accounts and pages on social media channels such as Facebook and Twitter.
You also need to conduct marketing activities at places such as trade journals and be present in trade shows and digital marketing events.
Companies are converting their entire business model into C2B, and most of them have become successful ventures. If you want to establish such a brand, you need to get a better understanding of the overall marketplace and your willingness to go for a new way of doing business.
Source – Business News Daily