Business services are the activities of individuals or companies that provide non-financial services to other businesses. These services can include advertising, marketing, consulting, travel and facility management, waste handling, security, and staffing.
The value of a service is often intangible, but it has the potential to generate revenue and increase profits. The worth of a service is also based on the needs of customers and how well they’re satisfied with its results.
Unlike products, business services cannot be marketed directly to consumers. To sell services, managers must use a different approach and strategy than product companies.
Understanding the difference between a product and a service is vital to a business’ success. When a customer asks about your company’s services, the best way to answer is to explain them in terms of what they do for people and how it improves their lives.
Many people believe that the only difference between a product and a service lies in the physical form they take, which makes them easier to market. But, as we will see in a moment, a service is much more complex than a physical good.
In addition, services have the potential to attract a broad range of customers, including those with limited time and money. As a result, they are more difficult to manage.
As with any business, a service-oriented company can’t survive long if its offering isn’t attractive to its target audience. Managers must learn to think about the service they offer in terms of the needs and desires of a specific group of people.
The first challenge for service-oriented managers is to change their perspective. They’ve spent so much time thinking about the characteristics of their products that they don’t think about the experiences their customers want when interacting with them.
This is especially true of businesses that focus on delivering high-quality services to their customers. For example, a restaurant’s service quality is highly affected by how its employees interact with the customers.
If the service isn’t fast enough or doesn’t satisfy the customers’ needs, they may never return or tell other people about it. This can be especially dangerous for a business that is new to the market, since it could mean it doesn’t have a chance to build a loyal customer base.
Another big challenge for a service-oriented company is to create an image that evokes positive emotions in the minds of consumers. Whether a company is selling clothing, food, or a computer, consumers have a strong emotional investment in the products they purchase. A good service can turn a customer into a repeat buyer and help the company maintain its reputation as a reliable provider of high-quality goods.
This challenge is why many service-oriented businesses have to go through significant redesign processes. The first step in redesigning a service is to understand its unique qualities and how those features attract and retain customers.