B2G (business to government) is the process of selling to federal, state, or local government agencies, while B2B (business to business) refers to the process in which one company sells its services or products to another company.
But is that the only difference between these two sectors? And are there any similarities?
Here’s everything you should know about B2G vs B2B sales.
B2B Is More Dynamic Than B2G
The B2B space is much more dynamic than B2G, therefore evolving faster. This means that technology companies have an excellent opportunity to expand into B2G and apply the same sales models that have already proven to be successful in the B2B space.
For instance, while cold-emailing may be a little outdated in the B2B space, it’s very much alive in B2G. As a matter of fact, at BizCusp we see this ‘old B2B strategy’ every day in our work with government agencies. Prospecting email addresses and cold pitching your innovation is still the best way to develop opportunities with government agencies.
On the other hand, social media channels like LinkedIn that prevail in B2B are still not commonly used in the B2G world. This is because government officers often don’t have (or don’t use much) their LinkedIn profiles and are impossible to reach via this network.
When Selling Innovative Solutions, the Approach to B2G Sales Should Be The Same As With B2B
Even though B2G and B2B are different markets, your sales approach when offering innovative products or services should be the same; the sales cycle for selling innovations to Government is like any other B2B sales cycle.
If you have an innovation and the government doesn’t know about it, you need to present it to potential users in the B2G market. Agencies can’t issue an RFP if they don’t know that a solution like yours exists! So, prospecting to key people, presenting your innovation, and following up with those opportunities is a must.
B2G Sales Cycles Are Much Longer Than B2B
Another key difference to consider is that B2G sales cycles tend to last much longer than B2B. And we’re talking years, not months. So, you need to be patient to reap your benefits.
Although the steps in the sales cycle are the same - from prospecting to closure - with government agencies, the process just takes much more time. The key to success with B2G is to plan accordingly and arm yourself with patience.
B2G Offers Many More Unexpected Opportunities Through RFPs
Another important thing to take into account is that the government offers unexpected opportunities through public RFPs that you could serve. Even if you were not aware that a certain government agency was looking for the type of products or services you offer, you can very easily find out; it’s just a matter of keeping up with the latest public RFPs. This is not so common in B2B.
That’s why if you’re looking into selling to government agencies, you need to implement continuous monitoring of public RFPs as well as an evaluation process to decide whether you should bid or not. This process demands thorough know-how, attention to detail, and resources, so make sure you plan it out accordingly.
B2G Often Requires Public Open RFPs
Public agencies looking to procure over certain thresholds (usually very low) need to issue public open RFPs. Again, this is not so common in B2B.
Since these RFPs need to be public, there will likely be more competitors, so you need to be prepared for a competitive process. If you created an opportunity and did everything right, your company should be the favorite vendor. Still, you need to be ready for a competitive process in order to succeed.
B2G Broad Procurement Opportunities Are More Relevant
Finally, both B2G and B2B markets offer broad procurement opportunities, but they are much more critical in B2G. Since significant amounts of government spending go through these pre-qualification programs, it’s important for technology companies to study them and apply for the most suitable ones.
It’s up to technology companies to find the best fit for them and locate suitable opportunities in their countries. Some of the most popular programs include GSA Schedule and NASPO in the USA, and European Commission Framework Contracts in the EU.
At BizCusp, we help technology companies win business in both B2B and B2G through Sales as a Service packages and custom business development projects. Contact us to find out more about our services.
Hey! It's me, Javi, the BizCusp Lead Consultant
Just two quick notes:
#1 If AI in proposals is something that interests you, I go deep dive with particular use cases here: DeepRFP/blog, such as, for example, executive summaries, compliance matrices, outlines, color teams, assessments, and more. It is also where you can try 15+ AI bidding tools for free.
#2 I talk proposals twice a week with 2000+ professionals here: jescartin.com. Of course, we discuss tech & AI, but also a bunch of bidding tips, career insights, stories, ideas, and other good stuff. Join us!
