BRX Pro Tip: B2C Subscription Models Don’t Translate to B2B
Stone Payton: And we are back with Business RadioX Pro Tips. Lee Kantor and Stone Payton here with you. Lee, there is clearly a very real distinction between B2B subscription models and B2C subscription models. Yeah?
Lee Kantor: Yeah, absolutely. Those are two different distinct models, and there’s two different, kind of, strategies around them. And a lot of B2B companies I see are just trying to slap on a B2C subscription model strategy into a B2B business, and they’re not going to be successful. They’re just going to be frustrated. It’s not going to work out because the buying decision, when it comes to a B2C product, a B2C product usually is less expensive. It doesn’t require a committee to make a decision. The people who buy B2C subscriptions, cancel them quickly. B2B subscriptions usually are more complex. It requires several people in the company to make the decision, especially more expensive ones. There’s a much longer sales cycle. So, the acquisition cost is going to be much higher in a B2B subscription model, so you can’t use the same strategies. If you’re selling B2B subscription, you can’t use the same model that Netflix is using when it’s a B2C product. It’s just, a B2B client needs more bespoke solutions. And that’s hard to pull off in a standard menu of items.
So, whatever subscription model you’re using, if you’re a B2B company, it has to include value-added services like training and support. It has to include regular updates. And these things are not happening in a B2C subscription model. So, you can’t copy the B2C brands when it comes to your subscription model. A B2B subscription model is much more complicated. It requires more buy in. There’s a longer sales cycle. All of these things make it more difficult to just kind of cut and paste a B2C strategy on top of your B2B service.
