Tips for B2B2C Products
Finding Harmony Between B2B and B2C in Product Development
The Million-Dollar Question. Imagine you’re leading the development of a product used by two types of clients: one pays the bills, and the other uses the service. Who do you prioritize? While this might seem hypothetical, in B2B2C companies, this is a daily dilemma.
Take Amazon’s marketplace, for example. Sellers (B) pay commissions to use the platform and reach end-consumers (C). At WeWork, companies (B) pay for coworking spaces so their employees (C) can use them as offices. In Google Ads, advertisers (B) pay to display ads to end-users (C) on platforms like YouTube or Google Search.
All these B2B2C businesses face the same challenge: they must simultaneously cater to both "B" (businesses) and "C" (end-consumers). This model creates a natural conflict between the company’s expectations—typically demanding customization and control—and the end-user’s need for simplicity and a great user experience. So, the real question isn’t “Who do you prioritize?” but rather “How do you create value for both?”
How do you find common ground?
Identify Convergence Points Between B and C: Let’s go back to the examples. On Amazon’s marketplace, if buyers can’t find what they want, sellers won’t pay to be on the platform. If the workspace isn’t appealing at WeWork, employees won’t use it, and companies will stop paying. With Google Ads, if users ignore the ads, advertisers will pull their budgets.
Avoid Over-Customization: The goal is to develop features that benefit the majority of both businesses and end-users. Over-customization sacrifices scalability.
Build Teams for Both B and C: Your product team structure should reflect the dual nature of the B2B2C model. While dedicated teams for businesses and consumers are essential, collaboration is crucial to avoid creating disconnected experiences.
In short, managing B2B2C products is an exciting challenge that requires looking beyond the client-user divide to design experiences that create value across the entire chain. The role of the Product Manager in B2B2C companies is, at its core, that of a tightrope walker—carefully balancing the interests of businesses with the expectations of end consumers. Good luck!