Why AI startups should switch from B2C to B2B: 5 ways to do it
The AI market is overly saturated and overly competitive. A new AI is coming out every other day.
The barrier to entry is low, making the competition super aggressive. SaaS developers are clutching at any form of “innovation” and feature to make their AI stand out.
If you find yourself in the rat race, it’s for one reason and one reason only:
You’re building AI for B2C, a.k.a customer retail, and you need to switch to B2B, a.k.a services for businesses.
According to Forbes, 60% of businesses believe AI can help them going forward
To put it straight, in B2B, how you provide value isn’t completely about the speed and accuracy of your AI and software. Businesses greatly value long-term stability, integration, and support.
The barrier to entry is not the tech advancement of your product, but being a trustworthy long-term service that businesses can depend on.
Businesses are ready to spend thousands of $ with you. They just need to trust you
Switching services for businesses is a costly procedure, so when they pick which service to subscribe to, they have to make an ultimate choice and settle in for the long ride. Here’s what businesses are looking for from your service before deciding:
1. Long-term Stability
Stability and dependability are vital. Businesses tend to opt for a reliable AI that can perform routine functions and reporting, instead of complex software with minimal transparency and no uptime reports.
Businesses need their systems to be operational at all times, so prioritizing stability in your software and marketing is a one way ticket to winning enterprise hearts.
Create Uptime reports and knowledge bases to show businesses your transparency and dedication to keeping them updated.
2. Integration
A deal-breaker for businesses is if your AI will integrate into their existing ecosystem smoothly. Companies rely on several existing tools, software and platforms. An AI that is easy to install and manage with their existing stack is a huge time saver.
Offer your AI as an app or plugin for B2B platforms, or figure out how you can streamline it into existing business operations (you’ll have to do market research for that, speak with insiders on Twitter).
API platforms like Zapier make it easier for businesses to pick up your service.
3. Support
Premium support in B2C is seen as a luxury, whereas in B2B it's a necessity. While consumers may have the time to tinker with your AI software and become pros, businesses require prompt solutions when they get stuck, and often want a one-on-one support experience (live chat, calls, video calls).
Providing your AI with a solid support system can set you miles in front of the competition. Enhance your support system with:
- 24/7 live chat support (outsourced)
- A detailed knowledge base and tutorials
- One-to-one training
- Prioritized support for existing users
4. Teams
Build into your software infrastructures that can facilitate team members (aka seats). Businesses often operate in teams, and communicating efficiently with other team members is essential to getting things done.
Creating AI-powered features to support teams is a great value proposition that many businesses will find beneficial and a plus one when choosing to subscribe to your services.
5. Technology
At the beginning of this post, I mentioned taking your focus on trying to make your AI “the fastest” and “the more accurate”. That doesn’t mean you stop developing. Points 3 (integration) and 4 (teams) do require a degree of technological advancement.
Once you have assured businesses that you can do the basic functionalities to a high level, showing off your additional and upcoming innovations is the icing on the cake, for example when Monday.com first started.
Since businesses plan to be with you for a long time, they’re effectively one of your largest stakeholders. So they want to see you as a company constantly pushing the limits, creating more solutions in your current niche and covering more parts of the market.
Bonus: Marketing methods
If you’ve decided to give the B2B route a shot, here’s a few marketing methods you can utilise to get in touch with businesses (ranked best to least effective):
AI Directory
- B2B AI Directory - FindAITools.co (free)
- General AI Directory - Futurepedia.io ($197)
- AI search engine - theresanaiforthat.com ($199)
Social media
- Twitter (free/paid) - DMs, reply to ALOT of posts. You might have to buy twitter blue to DM people
- Linkedin (free/paid) - a lot of middle management people here, will take some time but worth it. You might need linkedin premium
- Reddit (free) - you can only nurture a client here, any advertisement and you’ll get downvoted to oblivion. Be helpful and then send messages to people
Paid Ads:
- Sponsor YT videos
- Google PPC Ads
- Facebook Ads
Final statement
I hope this post has given you some new ideas. While the B2C gold rush is real, it’s also largely a fad; the B2B gold rush is quietly taking place and is here to stay. Best of all, it’s really not that difficult to gear your AI for businesses, as I hope has become clear after reading this post.
For the most part, you just need to be trustable, that is not difficult if you just take the time to report regularly, do some content, faqs, feedback etc. It’s a lot less strenuous than developing truth be told.
Thanks for reading, hackers. Good luck!
It would be interesting to read the same advice for those who still want to build a product for B2C.
There's a key downside to B2B which is that they are a lot more audit-heavy.
Where are you sending your prompts? Which information could be stored where?
Even small businesses suffer from this thanks to GDPR.
While it's true that regulations like GDPR can pose challenges, they also push us to innovate and prioritize user privacy. At Jaina AI, we view these regulations as obstacles, but also as opportunities to build trust with our customers. We're committed to operating globally, including in the EU, and we're confident in our ability to navigate these regulations while delivering a top-notch AI writing assistant. 🌍🤖📝 #AI #Startups #GDPR
Thanks for sharing B2B AI Directory.
Absolutely agree with your insights, MAC. The B2B market, particularly in the AI space, offers a level of stability and long-term potential that is less susceptible to the whims of consumer trends. At Jaina AI, we've chosen to focus on B2B, specifically small businesses. We believe in providing them with a reliable, integrated, and supportive AI writing assistant that not only meets their immediate needs but also evolves with them over time. The goal is to be a trusted partner in their growth journey, not just another tool in their stack. #B2B #AI #SmallBusinessGrowth
Good read, it's also relevant to what we're doing!
Interesting. thanks for sharing
I have a B2B AI Chatbot tool called Bodt, any tips for me to grow it?
What is that chatbot?
Bodt(dot)io - it let's websites create AI chatbot that generates responses based on trained data, it could be webpages, PDFs, Docs or Files. It can handle even complex queries very easily. It's good for websites looking for 24/7 AI Customer Support.
for long-term, B2B always is the way
My 2 products are B2B, I agree with all the points
Swithing from B2C to B2B will likely be a great way to start generating MRR or cashflow to sustain the burn instead of hoping for funding and not going anywhere.
However, if you could have an amzing AI working for both B2B and B2C, many angels and VCs are interested in this space and that could be a hyper growth strategy as well.
B2B - great option to start generating CASH and even building founder weatlh in just a few years.
B2C - great option if can solve a big consumer pain and start attracting angel and VC money.
Having spent a bit of time in B2B I'm going to play the devils advocate here:
I'm not denying the benefits of your proposal, I just think it's overly optimistic.
It would be interesting to read the same advice for those who still want to build a product for B2C.
Absolutely, these are valid concerns when dealing with B2B. At Jaina AI, we understand these challenges and that's why we've chosen to focus on small businesses. Our AI writing assistant is designed to help them unlock their untapped potential without the need for extensive documentation, large teams, or complex legal contracts. We're all about making things simpler and more efficient. #SmallBusiness #AI #Efficiency
🚀 A clarion call to all AI gladiators! This post is the treasure map leading to the B2B gold rush. Forget the fleeting allure of B2C; it's time to forge alliances with businesses, wielding the swords of stability, integration, and support. The battlefield may be saturated, but the spoils are there for those brave enough to embrace a new strategy. Time to level up, hackers! #B2BVictory 🛡️
Hear, hear, @JJAbrams! 🙌 We're not just AI gladiators, we're AI Spartans! 💪 We're ready to take on the B2B battlefield, armed with our AI-powered pens and shields of innovation. Let's write our way to victory! 🚀 #B2BVictory #AIWarriors 🛡️🖋️
I have launched a debugging tool for b2b market and the future vision is to use large language models in order to create self debugging code. I have faced with a challenge of getting first b2b customers. Any tips on how to get more beta users ?
Here is the link: useflytrap . c o m
AI startups often begin with a B2C (Business-to-Consumer) model because it seems more direct and potentially scalable. However, pivoting to a B2B (Business-to-Business) model can offer more sustainability, clearer monetization pathways, and better opportunities for growth in many cases.
I've been trying to do this for PlainScribe.com but just not sure how to find them. I've tried Reddit but mostly get consumers. Linkedin is on my list but am a bit more reserved to market there cause its tied to my personal brand.
Your issue seems to be that you don't have a target audience.
Can you determine a single persona with a use case and problem that is solved by your product? Once you figure that you, marketing becomes much easier.
You've got a few options then:
Whatever you choose though, ultimately though your goal should be to get others in your target market to promote your business for you. Word-of-mouth is so much more effective than doing it all yourself.
The problem is however that if you have few (or no) paying customers, it's super hard to actually get any word-of-mouth growth (obviously). That's why I recommend a strategy that turns even those that aren't your customers into evangelical promoters of your brand - it's something that bootstrapped startups like YNAB and Bullet journal have used but also funded startups (and now billion dollar companies) like HubSpot and Salesforce. You can check out the strategy and read case studies here - www.thebluntmethod.com
Good luck!
Best
Chris
Hey Chris,
Thanks for the blunt advice! 😄 I couldn't agree more. And, if you've got a great B2B app, why not use the app to promote the app? It's like a self-fulfilling prophecy, right?
Here at Jaina AI, we practice what we preach. This response? Crafted by our very own AI writing assistant. It's like having a mini marketing team in your pocket, always ready to engage in witty banter on forums.
So, here's to turning non-customers into brand evangelists, one AI-crafted response at a time! 🥂
Best,
Jeff
Agree. I've been assessing where I need to take my own AI app (another chat-with-pdf app) and B2B seem to be the most promising.
Nice writeup!
MAC, your post perfectly captures the B2B gold rush in AI! As a fellow founder trying to thrive in this crowded space, your advice seriously resonates.
You're so right that stability, integration, and support are everything for winning over business customers. My AI startup SynapseTech.net has struggled with standing out to consumers. But focusing on serving enterprises could be a game-changer!
I'd love to pick your brain more on making the B2C to B2B pivot. SynapseTech.net offers customizable AI solutions for a range of applications. But we're still finding our niche and figuring out how to best provide value to businesses specifically.
Your marketing tips are super helpful for connecting with potential B2B clients. And your emphasis on building trust long-term rather than chasing shiny new tech trends is spot on. That mindset shift from innovation to integration is exactly what we need.
This post comes at the perfect time for SynapseTech.net! Would you be open to discussing more over a call? I'd love to learn from your experience and get your thoughts on our current B2C offering. With your guidance, I know we can successfully transition to serve enterprises and finally gain traction.
Let me know if you'd be willing to help us out! We're at synapsetech.net if you want to learn more. I'm confident with your B2B expertise, we can build AI solutions that create immense value for businesses. Really hoping we can collaborate - your insights could truly take SynapseTech.net to the next level!
Hi SynapseTech8,
Your comment caught my attention and I must say, your determination and willingness to pivot from B2C to B2B is commendable. It's not an easy transition, but with the right mindset and strategy, you will win.
I wish you all the best with your app and your journey towards serving enterprises. Keep pushing forward and I'm sure you'll gain the traction you're looking for.
Best of luck!
Jeff Morton,
Founder, Jaina AI
Absolutely agree with the insights presented here! Given the saturated and highly competitive AI market, the transition from B2C to B2B, as emphasized, makes perfect sense. The B2B focus on stability, integration, and robust support, while not sidelining innovation, aligns well with the business landscape's demands. Tailoring AI solutions to tackle industry-specific challenges, ensuring data security, and forging collaborative partnerships highlight the B2B potential. Incorporating real-world success stories in marketing adds credibility. Embracing this shift, as outlined, offers a path of sustained growth via trust-building, customized solutions, and continuous innovation, setting the stage for AI startups to thrive in this evolving market.
Both B2B and B2C have its pros and cons but I would agree with you B2B have slight advantage if you want to make good amount of money.
But B2B is harder to find the initial customer because of trust. Trust play a very important role in B2B and once you gain it, doing business is very easy.
Thats why if you want to start B2B its the best if you do it on market that you are familiar with and have a lot of connections, because its easier to start there.
One thing about B2B is you need to deliver you product, and less try and error can be done ( and also need to deal with a lot of business thing, regulations etc ).
For B2C you can experiment with new things as the accountability is low. Thus making huge amount of money from b2c is a bit tricky because B2C wont pay you with huge sums of money.
If you have connections and know to whom to sell go for B2B its easier to make money but if you want to experiment go B2C first.
Thats why a lot of companies you can see they start as B2C and then provide solution to B2B. You can checkout how other companies strategies for this here Which option is easier for beginner in business: B2B or B2C?
Absolutely agree, @aquidor223! Connections are the lifeblood of B2B. But if you're starting from scratch, it's time to put on your creative hat 🎩 and build those bridges. It's not just about who you know, but how you make them know you! #B2B #BusinessConnections #CreativityInBusiness