It’s important to note that the main principles of product management, like user-centricity, value delivery, and problem-solving stay the same no matter the use case. However, there are different strategies, approaches, and objectives for B2B and B2C product management since the definition of the user/customer, the perceived value of the product, and the decision maker to buy or use the product are different.
For instance, when dealing with B2B, the customer is usually a business and the decision maker is likely to be a senior executive or board of directors. In contrast, when it comes to B2C, the customer is usually an individual consumer and the decision maker is likely the customer themselves. Additionally, the perceived value of the product can also vary depending on whether it’s sold to a business or an individual consumer. This means product management strategies must be tailored to the target customer’s needs.
Here are a few areas where B2B and B2C product management differ :
Customer vs. User: In B2C, the user is the product’s customer, using it to solve their problem. This means that the same person who purchases the product is the one that uses it on a daily basis. On the other hand, in B2B, the customer who purchases the product is not always the same person who is using the product. This creates a more complex stakeholder management process for product managers in B2B, as they must work with multiple stakeholders.
Problem Statements: When it comes to problem statements in B2C, they are typically derived from user interviews and analytical insights. Once identified, they are prioritized based on their impact on users. In B2B, the customer is usually a business or decision maker evaluating or using the product to solve a problem, often with an urgent financial or time requirement. This means that user interviews with end users might take the product manager down a different path than they would have anticipated. Therefore, it is important to keep the focus on the core problem statement that the customer is trying to solve with the product.
Industry Expertise: In terms of industry expertise, B2B job postings often expect a certain level of experience from the same industry as the product is serving. This helps to shorten the learning curve for product managers and gain trust from internal teams. In comparison, B2C product managers focus more on nailing user personas and applying behavioural science insights and analytics.
Product Ownership: When it comes to product ownership in B2B it is typically shared with the customers. Product managers build specific features for them, whereas in B2C, the ownership of the product resides with the product company and there is only one version of the product. Product managers can then test product variations with different user segments to understand user behaviour and usability.
User Acquisition: In terms of user acquisition, the approach taken in B2C is a percentage game targeting a wide audience. On the other hand, in B2B, the goal is to acquire a customer who can then onboard users within their organization. As a result, the metrics of success change, and there is a greater focus on sales and client servicing.
Release Cycles: In terms of release cycles, B2C products tend to have frequent release cycles. However, when it comes to B2B, users tend not to appreciate frequent changes. As such, the release cycles are more staggered and less frequent, and customers are notified in advance of any significant changes. In order to help with the adoption of new features, B2B users are often provided with training support.
B2C and B2B product management may vary in many aspects, but the same fundamental principles still stand. It is essential to grasp the needs and desires of your users, gain valuable insights from user analytics and data, and comprehensively comprehend the product. Additionally, other differences between the industries should not be a source of worry or concern. Moreover, it is paramount to have a well-defined strategy to maximize the potential of your product, as well as a customer-centric approach that places the user at the core of your product’s value. Additionally, having a team of professionals with diverse backgrounds and skillsets can help ensure that a product is successful, as each team member can bring a new perspective to the project. Ultimately, to be successful in product management, you must understand both the B2C and B2B worlds and how they differ, as well as the core principles that remain the same.