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C2B (Consumer-to-Business) – what is it and how does it work?

C2B (Consumer-to-Business) – what is it and how does it work?

November 12,2024 in Online Advertising Glossary | 0 Comments

C2B (Consumer-to-Business) is a relatively new and innovative marketing model that turns the traditional business relationship on its head. Unlike more common models such as B2C (Business-to-Consumer) or B2B (Business-to-Business) where businesses offer their products and services to consumers or other businesses, the C2B model puts the consumer in the role of the one who provides value to businesses. Simply put, in the C2B model, the consumer plays an active role, offering their skills, content, or feedback to businesses.

How does C2B work in practice?

In practice, the C2B model works by consumers providing something of value to companies that companies use to their advantage. This can be content creation, feedback, marketing services, or even innovation and new ideas. In return, businesses pay, discount or otherwise compensate consumers for their contribution.

This model has become increasingly popular with the rise of the internet and social media, where consumers can easily create and share content, provide feedback, or even promote products. Businesses use this consumer activity to build their brand, improve products, or better target marketing.

Examples of C2B in practice

  • Reviews and feedback on platforms – a typical example of a C2B project is the Czech Heureka.cz, where consumers often write reviews about products they use or have recently bought and, in addition to products, also give feedback to shops. This feedback is very valuable for companies, as it not only helps to improve products but also strengthens the trust of other consumers (they are not afraid to also buy on the same site or purchase a product that was previously unknown to them). Companies benefit from this feedback because potential customers often read reviews before they buy something, and Heureka.cz does too because it has a business model based on this and the customer is ultimately happy too, because they don’t have to try on their own if the product or the selling company/distributor is worth a damn.
  • Affiliate marketing – In this model, consumers, such as bloggers or influencers, promote the products or services of companies through their websites or social networks. If someone purchases the product as a result of this promotion, the consumer (affiliate) receives a commission. This type of cooperation is common for example with e-shops or travel agencies and is a win-win in terms of performance. You, as the operator of, for example, an e-shop, only pay for the customer who is brought in and pays.
  • Content creation (User-Generated Content) – consumers can create content themselves, which companies then use for their marketing campaigns. For example, Instagram users often share photos showing products they have purchased and companies use this content to promote themselves. This user-generated content not only provides businesses with authentic advertising but also increases customer engagement.
  • Crowdsourcing ideas and innovation – Some companies actively solicit ideas and feedback from their customers when developing new products. For example, LEGO has a fan program where fans can submit suggestions for new building blocks. If a suggestion gets enough support from the community, it can become a real product, and the author of the idea is rewarded for it.
  • Online auctions or job markets – there are platforms like Fiverr or Upwork where consumers (freelancers) offer their services to companies. This could be graphic design work, article writing, web development, or consulting. Here, consumers directly provide their skills to businesses, which hire them as needed.

Benefits of the C2B model for businesses

Of course, the benefits vary according to the type of project and also cannot always be applied to every project, but we can certainly mention a few common denominators in C2B projects.

  • Authenticity and credibility – consumer content or feedback is perceived as much more authentic than traditional marketing campaigns. Reviews from real users carry more weight than corporate ads because they are based on personal experiences.
  • Low marketing costs – when consumers create content, promote products on social media, or provide feedback, companies save on marketing costs. They don’t have to pay for expensive ads because they have “free” ambassadors in the form of satisfied customers.
  • Innovation and product improvement – thanks to customer feedback, companies can react quickly to changes in the market, improve their products, or develop new ones. Consumers who share their opinions give companies invaluable insight into what really works and what doesn’t.
  • Customer loyalty – when customers see that their opinion is heard and that the company is actively communicating with them, their loyalty increases. They feel that they are part of the process and that their input has a real impact.

Benefits of the C2B model for consumers

  • Rewards and benefits – consumers can receive various rewards for their activity, such as discounts, financial compensation, or even free products. This is particularly attractive for those who actively engage in product reviews, providing feedback, or creating content for companies. Rewards serve as motivation while providing consumers with tangible value for their time and effort.
  • Ability to influence products – With the C2B model, consumers have a direct impact on how products look or what services companies offer. Consumers feel that their voice counts and that they are involved in the development of the products they subsequently buy. This strengthens their loyalty and makes them feel that they are not just passive recipients but co-creators. If a customer wants a particular improvement or new feature, they can suggest it in feedback and, if the suggestion is accepted, they see that their opinion actually influences the final product.
  • Personalized services – thanks to the feedback companies receive from consumers, they can better tailor their products and services to the specific needs of their customers. Consumers get personalized and better-matched products that are more tailored to their individual preferences. This leads to increased satisfaction as customers receive products that better match their needs and wants.
  • More credible and trustworthy information – One of the key benefits of the C2B model is the authenticity of information. When consumers share their opinions about products or services, other customers perceive this feedback as more credible and trustworthy than traditional corporate advertising. Consumers can save time and money because someone else has already done thorough product testing, wrote a review, or tried the service itself. They do not have to make blind purchases themselves and rely only on the promises of manufacturers.
  • Saving time and money – when consumers read reviews or watch user-generated content, they save time and money. They don’t have to invest in products or services that turn out to be unsuitable. For example, when buying electronics or other more expensive products, user reviews give them key information that they would otherwise only get after testing them in person. This means that they can minimize the risk of making the wrong purchase while maximizing their investment in quality and proven products.
  • Reducing risk – under the C2B model, consumers can rely on the opinions of others who have already tried the product. This means they can reduce the risk of buying a poor quality product or using a poor service. Because others have already been through the process of testing or using the product, it is possible to get a clear picture of whether the product actually meets expectations and is worth the investment.
  • Collaboration with companies – The C2B model allows consumers to work directly with companies. Whether it’s providing feedback, making suggestions for product improvements, or creating marketing content, consumers are actively involved in the running and growth of the business. This process not only strengthens the relationship between the company and consumers but also creates a two-way communication that is beneficial to both parties. This gives consumers the opportunity to see how their opinions and ideas impact the real world.
  • Increased loyalty and sense of engagement – when consumers are involved in decision-making processes, they feel more connected to the company. This sense of engagement often leads to increased loyalty and longer-term relationships. Consumers tend to support companies that value their input and actually respond to their feedback.
  • Leveraging technological innovation – with the rise of digital technology, it is easier than ever for consumers to interact with companies and contribute their ideas or experiences. Modern platforms and apps allow for quick and efficient feedback, whether it’s rating products, sharing user experiences, or providing recommendations for other customers. These technological advances give consumers more control over how products are perceived and promoted.

Possible negatives of the C2B model

Although the C2B model brings a number of advantages, it has some significant negatives that need to be mentioned:

  • Quality control and manipulation of ratings – not all consumer-generated content is of high quality or suitable for corporate marketing. And not all such content is genuine. Unfortunately, here too, once something is done just for the money, it devalues the entire concept. Since today projects like Heureka.cz, Firmy.cz, GoogleMaps, or Trustpilot, which allow users themselves to post reviews, the whole thing is easily exploitable. Simply companies pay discussants to review them positively in exchange for money/products or discounts (in the best-case scenario). At worst, they use fully automated systems that, by some logic, post reviews automatically, and often they’re almost indistinguishable from actual reviews from real users, which AI has contributed a lot to in recent years.
  • Devaluation of user reviews – another drawback is the short-term focus of some consumers who participate in C2B programs only for immediate reward. These customers may not be genuinely interested in long-term collaboration or product quality, which can lead to superficial reviews and weak feedback that won’t help the company in further product or service development. Or, again, the devaluation of genuine reviews, because logically a consumer who sees that his experience of a product is diametrically opposed to the description of the review will distrust these reviews altogether or approach them with a certain amount of skepticism next time. This will inevitably lead to people not trusting the reviews at all, which will lead to a growing distrust of the whole review system and C2B projects will struggle.
  • Lack of transparency – with the advent of influencers, concerns about the transparency of certain posts and statuses from influencers have simply started to emerge. Although influencers should always state that they are paid collaborations, this does not always have to be the case. The same then applies to independent reviews, as you never know if the product or company has actually been reviewed by someone unbiased, which is just another way of misleading the customer. This lack of transparency can have legal implications and damage the credibility of a brand, but it also leads us once again to just urge greater caution. In short, when you see somewhere that someone is promoting a free service, it’s a good idea to use critical thinking and try to verify that experience from a few more trusted sources (this requires some time spent searching, where the rule is that when I can’t verify something and it looks too tempting, don’t buy it, don’t order it, because it’s probably just another trap for you as a customer). Some consumers may feel that they are constantly bombarded with requests for reviews or feedback. This can lead to negative feelings towards the brand and a decreased willingness to provide honest feedback.
  • Risk of losing control of the brand – When companies rely on customer-generated content, they risk losing control of how their brand is presented. Consumers may create content that does not align with company values, or may even be misleading or damaging to the brand image. As the C2B model becomes increasingly popular, companies may also face challenges coordinating and managing large numbers of users and their content. This can be particularly challenging for smaller companies with limited resources and capacity. Consumers can also quickly become disinterested in engaging with firms under the C2B model if new trends or changes in the market emerge. Thus, firms must constantly innovate and adapt their approach to maintain the interest and activity of their fans and customers.

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