⚡️ B2B vs B2C Product Strategy

👋 Hi there - it’s Egemen, thanks for reading Scalable.

Early in my career, I remember the first time I switched from working on a B2B product to a B2C product. The feeling was exactly like getting a new job but in the same company (heads up - not a startup).

In this week’s edition, we’ll touch upon some similarities and differences between B2B and B2C product strategies.

You’ll also get a free framework to help you find the right framing to build a strategy for your UVP.

Here’s a snapshot of what’s on the menu today:

Before we kick things off - here’s a treat: I’ve recently discovered The Runway Ventures, and subscribed. Their publication is pretty neat - I recommend it.

☝️ Scaled this past week: CloudPay

Bringing its total raised to $228 million, CloudPay is the scale of the week!

In a nutshell, here’s what they do:

• Provides cloud-based payroll and payment services to global enterprises

• AI to enhance payroll processing, automation to reduce manual tasks

• With recent funding, they are focused on expanding cross-border payroll services

🧠 Deep-dive: Core B2B & B2C Strategy Characteristics

B2B and B2C strategies aren't as different as you might think initially. Both have the same foundations of strategy - with different tools and approaches to implement them.

In any case, you need to focus on the bigger picture and the overarching strategy, not just the nitty-gritty tactics.

Even if you're building a B2C SaaS, you can't ignore the reality of B2B.

At the very least, you must think about how your business has an impact on partnerships and other companies in the ecosystem.

Almost think like - “how do we sell this thing?”.

Your product might involve B2B partners or vendors, and you'll need to consider their needs, too. Similarly, in B2B, there are different roles, such as the user-focused product manager (or the CEO), who is not just a user but also an internal influencer. It's all about understanding the diverse segments of your audience.

Creating a product strategy is more about identifying patterns. Start with big questions like:

• "What's our vision?"

• "Where do we want to go?", then

• "How do we fit into company-wide goals?", and

• "What are our competitors up to?"

It’s about putting all of the pieces of the puzzle together.

→ The whole point of these infamous “agile” methodologies is to figure out what works for you, not apply a Scrum framework from day 1.

A solid product strategy needs buy-in from all levels. It shouldn't just be a top-down mandate; it should be developed collaboratively. Gather input and thoughts from your team to ensure the strategy is both actionable and beneficial for everyone involved.

Two things to keep in mind here while making behavior-centric decisions:

1. B2C companies can sometimes expand into B2B because consumer behaviors often influence business decisions. However, the reverse isn't always true.

2. B2B needs don't necessarily translate into consumer markets. B2C companies can leverage their success to grow into B2B markets, but B2B companies might struggle if they try to shift into B2C.

I absolutely loved Tim Herbig’s article on this (link above), go check it out!

👉 Whether you're managing a B2B or B2C product, understanding these nuances will help you achieve long-term growth. The right framing will reveal itself over time as you switch between different UVPs and test them in the market.

🗺️ Method: Product Strategy Framework

Creating a product strategy requires a thoughtful approach.

Aligning your product's development with your business goals can be a long road at first.

Here's a checklist to guide you through developing a strategy, whether you're working in B2B or B2C:

Whether you're managing a B2B or B2C product, understanding these nuances will help you achieve long-term growth.

I hope it comes in handy - all yours!

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⚾️ Catch: Midyear Forecast through H2 2024

2024 has resembled 2023 a lot when it comes to startups and venture capital so far.

To nobody's surprise, funding for AI-related companies has nearly doubled, making up a significant portion of venture capital investments​.

The proportion of venture capital going to AI startups has also increased, with 1 in 4 investment dollars now directed towards AI​.

Chip-focused startups are seeing an increase in funding, driven by the demand for AI chips that are faster, more efficient, and cost-effective.

It’s a good read on Crunchbase above.

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