Product Manager’s daily roles and responsibilities are the same, whether working with business-oriented users or managing a consumer-oriented product. Each role and languages are different for the product manager in the Product Management Organization when it comes to B2B and B2C. Read to learn where they overlap. Let’s find out!
Difference Between The Industry Knowledge Of B2B And B2C
Product Managers must gain a degree of competence in their target sector to manage B2B products effectively. Without diving a bit further and doing some study, it’s difficult to tell what a medical administrator, banker, or construction management truly cares about. It’s not unusual for Product Managers to have prior expertise in the sector they’re pursuing. However, most people come to the table with little to no experience. Product Managers must do their studies to establish trust and effectively prioritize tasks. During the Product Manager Interview Questions, the prospects must have answers related to B2B and B2C. It will increase their chances of getting hired.
B2B product management necessitates in-depth client interviews and site visits and keeping up with industry news to grasp how your solution may make things better, faster, or cheaper for customers. If you’re successful, your B2B Product Manager will acquire the confidence of their sales teams and developers, who will believe in your capacity to comprehend what the market wants.
B2B PMs vs. B2C PMs Population Management
B2C Product Managers often have a more extensive user base (or total addressable market) than their B2B counterparts (unless they work at Microsoft). That’s not to say that B2B products aren’t effective. Still, compared to a standard consumer app, even the most successful business-oriented solutions will only be used by a small percentage of the population. However, having a more extensive and more diversified user base has its own set of issues. A logistics solution’s Product Manager will usually have a solid idea of who uses it. Still, consumer products have a user demographic that might include nearly anybody, which B2C PMs should consider.
Product Metrics For B2C vs. B2B
B2C indicators are measured on a much broader scale. For example, B2C firms don’t get thrilled about tens of thousands of customers, but for many B2B enterprises, it would be a huge win. So, as a Product Manager, what changes when millions of users are involved? Customer turnover is a concern for both B2B and B2C Product Managers, but it is a more severe issue for B2C. Multi-year contracts for consumer apps are pretty uncommon. Users can leave at any time for the smallest of reasons. As a result, client retention and loyalty measures take precedence.
B2C indicators like customer acquisition cost (CAC) and lifetime value (LTV) aren’t as crucial in B2B product management. B2C Product Managers must ensure that the LTV remains more significant than the CAC when growth is contingent on adding more users and optimizing revenue potential. Otherwise, the entire firm will wind up with an upside-down business model.
While B2B Product Managers may be concerned with how much time users spend using their product or how many features they utilize, advertising-driven consumer applications place a considerably higher value on these metrics. More money equals more time spent, more sessions, and page views.
B2C vs. B2B Product Managers Release Frequency
Things that are new, intriguing, and unique are ideal for amusement. But it’s not so welcoming while attempting to finish your work.
B2B Release Frequency
B2B clients frequently have a wish list of changes and new features they would like to see in the product. However, aside from their pet projects, they aren’t interested in making many such improvements to the product. Because changes disrupt habits and may cause workflows and integrations to become inoperable, changes may necessitate extra staff training, which might be difficult to schedule. B2B product managers group important new releases together to minimize interruptions. When they make further modifications, they try to make them optional and settings-driven rather than affecting everyone’s experience in the same way.
B2C Release Frequency
Changes are often well received by consumers. They’re eager to obtain additional features, more material, more game levels, or anything else that makes their experience even better and more enjoyable. Users anticipate similar behavior in your goods when they grow accustomed to UX components in other applications. They typically don’t mind a gradual learning curve as long as there are some user-friendly cues and the reward of a more incredible experience. They’re generally open to the new venture if there are no additional performance issues or lost user data. However, not all changes are beneficial. If they lose something they care about, they may lose themselves.
B2B and B2C product managers share many tasks and use the same skills and tools. On the other hand, their strategy aims and execution will be vastly different. Some product managers may find it simple to move between the two methods. Others may have strong feelings towards one over the other. Those in charge of a B2C product may be frustrated by the lack of assurance and many users. Fortunately, there are lots of options available. But, regardless of the product, we’re all attempting to accomplish the same goal, just in somewhat different ways.