Considerable Transaction Models for small businesses B2B2C, B2P2C

Commercial transactions are represented as acronyms based on the target audience with whom a particular business does a transaction with. If a business serves directly to a customer, it is #B2C (customer is the user of the product/service), if the products or services are meant for another business entity it is represented as #B2B (a business entity uses the product/service of another business entity), the products and services created to be used by government is represented as #B2G (Government is the user of a product/service) rather than bringing it under B2B generically.

For small businesses, especially during the pandemic, the emerging models like #O2O, #B2B2C and #B2P2C would help to reach their customers in less time with less cost.

Several new models are emerging with changes happening in the business environment and with the advent of new technology. Factors that are leading to emergence of new types of trade or business models are as follows:

1. Changing needs of consumers

2. Value Innovation in existing products

3. Value added services offered by organizations

4. Increased awareness of trends and updates among consumers

5. Adaptation to technology by consumers

6. Elevated expectation of consumers in product or service delivery

7. Changing lifestyles among all segments of customers

8. Big brands reaching out to rural areas

9. Innovation in marketing approaches

10. Occurrence of a crisis

There arose models like O2O even before the Pandemic which stands for Online to Offline wherein the business draw potential customers from online channels to make purchases in physical stores. This model helps in accelerating the business of retailers. #Reliance #JioMart is a good example for this O2O business model. Retailers can reach out to more customers using this strategy by partnering with a company who has the capability to leverage technology for the benefit of local retailers at the same time offer convenience to customers. Customers are identified online based on their profile and interests and are triggered to make purchases by visiting the stores. Initially the O2O revolution was led by #Alibaba. In order to stay competitive in the present scenario, neither the traditional retail model nor the pure online retail will succeed, a shift to O2O will be required based nature of goods sold and the location to make the process more efficient and powerful. The first and most important benefit that O2O brings out is that retailers will gain brand reputation.

Taking in to consideration the online purchase decision making process which consists of the following steps:

· Identifying the need

· Information Search

· Evaluation

· Purchase Decision

· Post Purchase Evaluation

The above model holds good.

Now coming to the B2B2C Model, a company does business with another entity rather than accessing the consumer market directly. Yet the final consumers will recognize the brand of service provider or product manufacturer through the middle entity. One business use service of another business t reach the customer.

A very common example that we can relate is #Swiggy. A new restaurant opened in a locality is not known to many customers, the restaurant partners with the most reliable and preferred delivery partner whose application is already being used by several customers. The customer uses a particular application like Swiggy or #UberEats and get to know about the unique variety of food available in your restaurant and places an order, this is how it works. A kind of hybrid model or a collaborative process by which new delivery channels are created in a cost-effective way. How is this becoming cost effective? You are getting connected with an entity who is already having a big customer base. Power of third-party influence will help you to reduce your cost of customer acquisition.

Now a days, digital has changed everything and then came the B2P2C model where, a brand finds an influencer who has huge network of followers and that followers in-turn are the target audience for the product. The influencer uses information to create content that will highlight the features and benefits of a particular brand and is shared with the followers. Here the Business partners with an #influencer, who is a person and the power of his/her influence among his followers create customers for the brand. This is found trending and is identified by small businesses to promote their products to right target for less cost in less time.