B2C: definition
Business to consumer: when your product is aimed directly at individuals rather than companies.
Definition
B2C (business to consumer) refers to selling to the general public. Buying cycles are short, often emotional, and acquisition relies on volume: SEO, social media, word of mouth, mass-market ads. The average deal size is lower than in B2B, so everything hinges on a low CAC and strong retention.
Why it matters
In B2C, because the deal size is small, you can't afford a high CAC: the slightest acquisition inefficiency puts you in the red. That's why retention and word of mouth matter just as much as raw acquisition.
When to use it
You think in B2C terms when the purchase decision is individual and quick. In practice, you optimize entry into the product (signup has to be instant) and you look for high-volume, low-cost channels rather than one-by-one selling.
Example
A monthly-subscription fitness app sold to individuals is B2C SaaS.
Common mistakes
- Tolerating a CAC the deal size can't support.
- Neglecting retention by betting everything on acquisition.
- Copying B2B tactics with too long a cycle.
Don't confuse it with
- b2b: B2B sells to companies with long cycles and multiple decision-makers; B2C sells to individuals on a quick decision.
Related terms
Articles that use this term
Frequently asked questions
- Is B2C simpler than B2B?
- Not simpler, different: B2C requires a lot of volume and strong retention to offset smaller deal sizes.