If you know anything about business, you must have heard of the terms B2B and B2C. These are two separate business models that serve different types of customers, one being businesses and the other direct to consumers. If you’re looking for a trusted online slot operator, Malaysia, then having an idea about B2B and B2C would help you understand which is better. In this article, that’s what we will talk about.
What is B2B business?
B2B, the abbreviated form of Business-to-business, is a process in which one business makes a commercial transaction with another business. So if a business provides something they produced to another business as a raw material that will produce output, it will be a B2B business transaction. An example is when a food manufacturer purchases salt.
It will also be B2B when a business needs the services of another for operational purposes or a business re-sells goods and services produced by another company. So basically, if the food manufacturer employs an accountancy firm to look over their finances, or if a retailer buys the end product from the food manufacturer to resell it, then it is also a type of B2B business.
Business-to-business transactions are a very common scene in a typical supply chain. This is because companies are always purchasing components, services, and products such as other raw materials for use in the manufacturing processes of their own business. For B2B transactions to work out, long-term planning is required.
When employees of two or more companies communicate and form a connection through a medium, typically social media in the current age, it is called B2B communication. This is usually how the business to business relationships are formed. These relationships must be nurtured through professional interactions prior to sales so that successful transactions can take place.
So how does this translate when it comes to the slot industry? Basically, if a casino operator engages in some kind of transaction with other businesses, it will be called B2B business. For example, they might buy slot games from manufacturing companies like NetEnt, Aristocrat, Playtech, etc. Or they might employ gambling agents from a firm to look over the casino activities.
What is B2C business?
B2C stands for Business-to-Consumer and is also known as Direct-to-consumer or DTC business. This refers to the process of selling products directly to customers bypassing any third-party retailers, wholesalers, or other middlemen. So as you can guess, B2C brands usually specialize in a specific product category and usually conduct the business mostly online.
In this concept, the product is sold directly to the customers without there being any intermediaries. As a result, any kind of third-party clients are eliminated from the middle of the process, so there remains less chance of product damage or any kind of fraudulent activities. This process also makes business administration easier without needing any complicated recording of inventory, shipments, and business transactions.
But the biggest advantage of the B2C business model is how its primary focus is always the customers, which ensures a stronger brand loyalty. This type of business also enjoys lower costs compared to physical retail as it doesn’t have to count on costly business components like employees, renting, physical store establishment, mailing confirmation, etc.
So as you can probably tell; casino operators who conduct B2C business always present their games directly to the consumers, as in the players. This means that they never involve any middleman in the process. They make the games themselves, operate the casino themselves; and also present the casino to the public themselves. They never hire any kind of gambling agent for performing the activities.
What is the difference between B2B and B2C in the casino industry?
The main difference between B2B and B2C is that the first one refers to commerce transactions between manufacturer and retailer; and the second one is the retailer supplying goods to the consumer. In B2B there are business people on both sides; whereas in B2C there is normally one business person and one consumer.
Again, in case of B2C, the decision is aligned according to the needs of other businesses; while in case of B2B, the customers’ needs, demands, and expectations get the biggest priority when it comes to the decision making process. A B2B business will have many sellers and connections with different stores; but B2C businesses will usually have only one supplier. B2B concentrates on raw data for another company, but B2C focuses on producing something for consumers.
In the casino industry, if the operator runs a B2B business; then he will be more focused on establishing business relationships with other casinos, gaming and manufacturing companies, agent firms, software engineers, and such. The operator might buy games from the manufacturing companies which they will then present to their customers through a gambling agent, which they will hire for a firm. This is the image of a typical B2B casino operation.
For the B2C system, the process is more simplified; though the workload on the casino operator will be more in comparison. Suppose it’s a slot casino. They will program, design, and manufacture the slot games based on what’s popular and demanded among the players. They will directly sign the players up; guide them through the casino, conduct the transactions, and it will all happen online. That’s why the B2C system is usually followed in many online casinos.
A B2B transaction entails the casino direct-sourcing contract management. This will involve negotiating terms that establish prices and various other factors such as pricing, carrier and logistics preferences, etc. For B2C casino operators, the transaction is clearer. Time is also different as B2B has a slower process than B2C which is concluded in shorter periods; usually minutes or days. B2B will require investment upfront for the casino but B2C won’t have to spend much money on infrastructure.
Another great thing about B2C casino operators is the fact that they can incorporate more seamless transactions as options. Cybercash allows businesses to accept a wider range of payment options, which is why you will always get a lot of payment options when you play in a B2C casino, which you won’t usually see in B2B ones.
In conclusion, between B2B and B2C casino operators, it is always better to lean towards B2C ones such as trusted online slot game operator Malaysia.