B2B Sales: A Complete Guide to Understanding the What, Why, & How of Business-to-Business Selling

Question: Besides their status as the largest companies in their respective industries, what do Caterpillar, Microsoft, and Staples have in common? 

Caterpillar manufactures countless types of industrial heavy machinery, Microsoft is famous for its suite of tech-focused solutions, and Staples provides a myriad of office supply essentials. So where is the similarity? 

Answer: Each of these business giants have achieved their massive success by selling their products to other businesses - they are B2B sales masters.

Whether you're a startup looking to scale or an established enterprise looking for new avenues of revenue, understanding the ins-and-outs of B2B sales can give you a competitive edge.  As B2B continues to grow in popularity, it's essential to understand what B2B sales is, why it differs from other sales models, and how to leverage the best tools and strategies for success.

B2B, or Business-to-Business, refers to transactions between businesses rather than between a business and a consumer - also known as B2C. From Caterpillar to Microsoft to Staples, B2B companies sell products or services directly to other businesses, often in larger quantities or on a recurring basis. The B2B sales model typically involves long-term relationships and more complex decision-making processes than the B2C sales model.

In contrast to B2C, where the focus is on individual consumers, B2B sales require a deep understanding of your customers' pain points. Because again, it covers a huge range of industries - from selling software solutions to other tech companies to providing manufacturing parts to an industrial company.

Let’s break them down! Selling is selling, but here are the key differences between B2B and B2C sales:

Target Audience: 
B2B: Businesses 
B2C: Individual consumers

Decision-making Process: 
B2B: Involves multiple stakeholders, often a longer decision-making process
B2C: Typically a single individual, faster decision-making process

Order Size & Frequency: 
B2B: Larger, repeat purchases over time
B2C: Smaller, often one-time purchases

Sales Cycle: 
B2B: Longer sales cycle, requires nurturing and relationship-building
B2C: Shorter sales cycle, often more impulse-driven

Sales Value: 
B2B: Higher transaction values due to bulk purchases or subscription models
B2C: Lower transaction values, smaller margins

Client Relationship: 
B2B: Strong, long-term relationships are vital, often involving personal connections and regular check-ins to maintain trust.
B2C: Relationships are typically transactional and short-term, with less focus on personal engagement beyond the purchase.

Customization Level: 
B2B: High level of customization, as businesses often require tailored solutions to fit their specific needs, such as customized pricing, contracts, or product features.
B2C: Less customization, with products and services generally standardized for mass appeal.

Purchase Agreement: 
B2B: Formal purchase agreements, often involving contracts, pricing negotiations, and long-term commitments.
B2C: Simpler, straightforward purchases, usually without long-term obligations or formal agreements. 

Retention Techniques: 
B2B: Focus on loyalty programs, regular account management, personalized service, and demonstrating consistent value through relationship-building and frequent check-ins.
B2C: Retention often involves loyalty programs, discounts, personalized marketing, and email follow-ups to encourage repeat purchases.

Take an in-depth look on business-to-business sales vs business-to-consumer sales with our guide for B2B vs B2C Sales.

With B2B business comprising well over 50% of the world economy, it’s obvious that B2B sales cover a wide range of industries and products. However, they can generally be broken down into the three common types of B2B businesses:

1. Supply Sales 

These companies sell raw materials or components to manufacturers or distributors.
Example: Dow Chemical supplies industrial chemicals to manufacturers in various sectors.

2. Wholesale/Distribution Sales

Wholesalers or distributors purchase products from manufacturers to sell them to retailers or other companies.
Example: Sysco, a food distribution company, supplies restaurants and food service businesses.

3. Service/Software Sales (B2B SaaS) 

Companies sell software solutions or services to help other businesses operate more efficiently.
Example: Badger Maps, a route planning tool designed for outside sales teams, helps businesses optimize their field sales operations.

A successful B2B sales strategy can be enhanced with the right technology stack. The components of that tech stack are going to depend on your needs, but here are some of the best universal B2B sales tools that are wise to consider:

HubSpot is a comprehensive platform offering marketing, sales, and customer service tools. It is particularly valuable for inbound marketing strategies and integrates seamlessly across departments, providing a holistic solution for B2B companies looking to grow.

Price: $20/month - Starter, $100/month - Professional, $150/month - Enterprise

Capterra Rating: 4.5/5

Features: 

HubSpot’s B2B CRM is at the core of its platform, which helps track interactions, manage sales pipelines, and store customer data all in one place. In addition, HubSpot provides a suite of tools for email marketing, social media management, content management, and reporting.

• Lead Nurturing: With HubSpot, sales teams can automate follow-ups, segment leads, and tailor content to specific buyer personas, allowing for personalized communication at scale.
  
  
• Sales Automation: HubSpot’s sales tools include automated workflows, deal tracking, email templates, and lead scoring, which help sales teams work more efficiently and effectively.
  
  
• Reporting and Analytics: The platform provides detailed analytics that allow you to monitor performance, track KPIs, and optimize your campaigns for better results.
  
  
• Integrations: HubSpot integrates with over 1,000 apps and platforms, making it an incredibly versatile tool for B2B companies. These integrations enhance the platform's capabilities by connecting it with popular business software, such as Salesforce, Gmail, Outlook, Slack, Zoom, Badger Maps, Zapier, LinkedIn Ads, and Google Ads.
  
  

Benefits for B2B Sales:

HubSpot is ideal for companies focused on inbound marketing, where generating leads through content and nurturing them over time is the goal. It provides end-to-end visibility into customer interactions, from marketing touchpoints to sales follow-ups. 

This visibility helps sales teams tailor their approach based on each prospect's engagement, ultimately leading to better conversion rates. Its seamless integration between sales, marketing, and customer service allows B2B companies to unify their approach and improve collaboration across departments.

LinkedIn Sales Navigator is a powerful tool specifically designed to help sales professionals find and engage with potential clients on the LinkedIn platform. It's particularly useful for prospecting and relationship-building in the B2B space.

Price: $100/month - Core, $170/month - Advanced

Capterra Rating: 4.5/5

Features: 

LinkedIn Sales Navigator offers advanced search capabilities, which allow users to filter leads based on industry, company size, seniority level, and more.

• Lead Recommendations: Sales Navigator provides intelligent lead recommendations based on your existing network and sales preferences, helping you identify prospects that fit your ideal customer profile.
  
  
• Real-time Updates: The tool alerts you to job changes, shared connections, and posts from key sales prospects, giving you timely insights to engage at the right moment.
  
  
• InMail Messaging: Unlike regular LinkedIn, Sales Navigator allows you to send direct messages (InMail) to potential clients even if you’re not connected, offering a more personal way to reach key decision-makers.

Benefits for B2B Sales: 

LinkedIn Sales Navigator is particularly effective for social selling, a key component of modern B2B strategies. It allows you to build relationships with decision-makers by engaging with their content, commenting on posts, and staying updated on company activities. 

With its robust search features and lead recommendations, salespeople can precisely target their outreach efforts. By using personalized InMail messages and tapping into shared connections, it becomes easier to establish credibility and trust, which are critical in B2B sales.

Check out our guide to learn how you can use LinkedIn Sales Navigator for better prospecting.

If your B2B sales occur in the field, Badger Maps is a must-have for your sales reps. 

It allows you to automatically plan, route, and maximize your time in the field, cutting down driving time by 20%. It helps sales teams save time on their daily planning, maintain better relationships with customers, and be more productive. 

Badger Maps, the Highest Ranked App in the B2B Sales Mapping Apps Category

Image credit to MatrixPlace, a sales consulting firm that wrote an Analyst Report on Sales Mapping Software

Price: $58/month - Business, $95/month - Enterprise, Free 7-day trial

Capterra Rating: 4.7

Features: Badger Maps is a sales route planner designed specifically for outside sales teams, offering a range of features that streamline the process of managing and visiting prospects and customers.

• Route Planning: The core feature of Badger Maps is its ability to plan and optimize sales routes. By calculating the most efficient routes, sales reps can reduce drive time, make more visits, and ultimately close more deals.
  
  
• Territory Management: Sales teams can manage customer data geographically, seeing where opportunities lie on a map. This allows for better territory planning and ensures that no potential clients are overlooked.
  
  
• Lead Generation: The tool also includes a prospecting feature that helps sales reps find new leads in their area based on specific criteria, increasing opportunities for engagement.
  
  
• CRM Integration: Badger Maps integrates seamlessly with major CRMs like HubSpot, Salesforce, Microsoft Dynamics, etc. allowing sales reps to update customer information, add notes, and track interactions while on the go.

Benefits for B2B Sales:

Badger Maps brings efficiency to the field sales process by reducing the time spent driving between appointments and helping sales teams make the most of their day. By integrating route optimization with customer data, it ensures that reps can prioritize high-value clients, streamline their schedules, and improve face-to-face interactions. For companies that rely on territory-based sales, the ability to visualize customer locations and manage territories more effectively is a game-changer, boosting both sales and customer satisfaction.

As they say, “Every minute matters in sales” and Badger Maps saves and transforms those would-be lost minutes into productive hours. Sales teams report a 22% increase in sales and a 20% reduction in driving time when using Badger Maps. In fact, the average team of 10 sales reps boost their annual sales by $936,000 - nearly a million dollars! - after implementing the app.

Discover the value of Badger Maps by trying it out yourself. Start a free trial or schedule a demo now!

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The B2B sales process often follows these stages: prospecting, qualifying, pitching, negotiating, closing, and post-sale support or retention. 

However, modern B2B sales strategies emphasize innovation and efficiency. Here are three key strategies:

1. Account-Based Selling (ABS): Focus on identifying and targeting high-value accounts rather than casting a wide net. Personalization and building strong relationships are key.

For more insights on this strategy, check out this episode of Outside Sales Talk where ABS sales expert Jamie Shanks shares actionable insights to effectively use account based selling. 

2. Social Selling: Use platforms like LinkedIn to build relationships, establish thought leadership, and generate leads by engaging with prospects.

To gain a better understanding of the social selling strategy, listen to this episode of Outside Sales Talk where social selling guru Chris “Mohawk” Reed demonstrates how to grow your business through LinkedIn and other social selling tools. 

3. Consultative Selling: Rather than pushing products, the salesperson acts as an advisor, helping the prospect solve specific problems with customized solutions. 

To create a win-win solution for you and your prospects, check out this episode of Outside Sales Talk where consultative selling master Melinda Emerson talks about the importance of understanding customers and tailoring solutions to their needs. 

Want even more actionable insights and detailed guidance on building your personal sales strategy? Check out our Ultimate Sales Strategy Guide to sharpen your tactics.

This is the B2B century. Even conservative reports show that 61% of super start-ups across the world sell B2B products and solutions, with only 39% offering B2C products and solutions. 

Whether you're new to B2B sales or looking to sharpen your strategy, leveraging B2B sales tools and following proven sales processes can set you on the path to success. 

Now get out there and sell to those businesses!

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BONUS B2B FAQ

Is B2B Sales Hard?

The short answer: Yes, B2B sales can be hard. B2B sales is challenging because it requires patience, industry knowledge, strategic thinking, and relationship-building skills. However, for those who enjoy solving complex problems and making lots of money, it can be an exciting and rewarding career path.

What Are Challenges in B2B Sales?

All sales models have their unique challenges, and B2B sales is no different. Before jumping head first into B2B sales, consider some of these challenges:

Long Sales Cycles: B2B sales take longer due to complex decision-making and multiple stakeholders.

Complex Decision-Making: Coordinating with many decision-makers can be time-consuming and challenging.

Highly Competitive Market: The B2B sector can be fiercely competitive, requiring strong differentiation strategies.

Customization Demands: Meeting specific client needs often requires highly tailored solutions, adding complexity.

Complex Processes: Navigating contracts, legal reviews, and compliance can complicate the B2B sales process.

However, the rewards are well worth it, as B2B sales often lead to high-value, long-term contracts.

What Are the Three Main Types of B2B Sales?

Supply Sales: Providing raw materials or components to other businesses.

Wholesale/Distribution Sales: Selling products in bulk to retailers or other companies.

Service/Software Sales: Offering services like SaaS solutions that improve operational efficiency for businesses. 

See the previous section “What are Good B2B Sales Examples?” for more information.