Go-to-market: B2B and B2C compared

The go-to-market (GTM) strategy is the way a company brings its product to market and wins its first customers in a repeatable way. It is not marketing, and it is not just sales: it is the combination of channels, message, price and process that turns a product into revenue. The biggest difference is not between sectors, but between those who sell to other businesses (B2B) and those who sell to the end consumer (B2C). Confusing the two is one of the most costly mistakes for a young startup.

Who decides and how long it takes

In B2C a single person decides, often in a few minutes and emotionally. The product must be immediately understandable and the purchase almost frictionless. Volume matters more than the individual customer: the aim is many buyers with a modest unit value.

In B2B an organisation decides. The sales cycle is long — weeks or months — and involves several people: the one who uses the product, the one who pays, the one who approves. The decision is rational, justified by a measurable return. Few customers, each of high value, with relationships that last over time.

This difference is reflected in everything else: those who sell B2B build a sales and account-management process; those who sell B2C build an acquisition and conversion machine.

The channels change accordingly

• B2C: mass and digital channels — social advertising, paid search, content, word of mouth, points of sale. The acquisition cost (CAC) must be kept low because the value per customer is limited.
• B2B: direct sales, referrals, industry events, technical content, partnerships. A high CAC can make sense if each customer generates recurring revenue for years.

In Switzerland, B2B often has a strong relational component: trust and local roots carry weight, and an acquired customer tends to stay. B2C, on the contrary, requires volumes and a sufficiently large target market, which is not a given in a country of modest size and multilingual.

Price and revenue model

• In B2C the price is displayed, simple, often tested on large numbers. The levers are conversion and purchase frequency.
• In B2B the price is frequently negotiated, customised by tier or volume, with multi-year contracts and subscriptions. The lever is the value the customer recognises, not the list price.

On the Swiss tax side, remember that the VAT (MWST) registration threshold is CHF 100,000 of annual turnover, with a standard rate of 8.1% from 2024. For those selling abroad, the rules of territoriality change: an international B2B model and a domestic B2C one have very different VAT implications, to be clarified before setting prices.

The metrics that count

The two strategies are measured with different indicators:

• B2C: conversion rate, CAC, customer lifetime value (LTV), repurchase frequency, churn rate.
• B2B: length of the sales cycle, average contract value, renewal rate, expansion on existing customers, ratio between LTV and CAC.

In both cases the key number is the LTV/CAC ratio: how much a customer is worth compared with how much it costs to acquire them. If it is too low, the model does not hold up, however much the turnover grows.

Common mistakes

• Applying B2C logic to a B2B product: expecting immediate purchases from a market that thinks in terms of budgets and approvals.
• Selling B2B as if it were B2C: neglecting the sales process and relationship management, which are decisive for renewal.
• Unmanaged hybrids: many products have both souls, but serving two markets with limited resources often means serving both of them badly. Better to choose the priority channel and concentrate.

In summary

• The real watershed of go-to-market is between selling to people (B2C) and to organisations (B2B).
• B2C: fast decision, high volumes, low CAC, mass channels.
• B2B: long cycle, few high-value customers, lasting relationships, direct sales.
• Price, channels and metrics must be consistent with the chosen model.
• The LTV/CAC ratio tells you whether the strategy is sustainable, beyond growth.

How we help you

We help founders structure their go-to-market and read its numbers: revenue model, prices, tax and VAT implications, metrics to monitor in order to convince investors. Let’s talk about your journey.