Every business is a service business
The increasing battle for customer attention, loyalty and pocket makes every business a service business. Listen to Pavlo chat about this here.
The product is there to create traffic towards the business through its use and value but once a customer is there, the product is backed up by service promises. The experience a customer has with the product determines the success of the products future. Of course, the higher the price tag of the product, the more so this holds. Wrapping service around your product also brings very interesting additional revenue streams.
At the same time, all services businesses should become product businesses. This is important to get that service business to sell its offerings like a product business would.
Every product business should be a service business to:
- Provide a competitive advantage on products that are generic
- To generate additional revenues and margins
- To create marketing and sales opportunities
But how do you do this practically?
Here are a few examples of how to wrap your product with services
Build confidence in the customer’s experience E.g. Fibre to home
- The residential customer doesn't need to worry about setting anything up – everything is done by the fibre provider and theydon't leave until it's up and running.
- The business customer where fibre is bought into the office has everything installed and up and running and tested as opposed to a website with instructions
Take time and cost out of the customer’s experience e.g. Flat packed furniture or braai
- Assemble at site or the point of purchase
- Saves time which means cost for customer
- Puts you in front of the customer longer – upsell other products like braai equipment
Take risk out of the customer’s experience e.g. Buy a tree
- Delivery of the tree
- Planting of the tree
- Both remove risk of damage or death of the tree
Creates marketing opportunities
E.g. After installation of a kitchen or an expensive stove, provide a dinner party
- Celebrates the product
- Demonstrates the product
- Creates word-of-mouth
E.g. Delivery of an expensive car, depending on customer and reason for purchase
- For Performance – include a race track experience or 4×4 experience
- For Status – deliver to work with a ribbon
Enable services across a spectrum of self-help to fully serviced e.g. buffet or à la carte
- Increases the scope of who you serve
- Puts control and power into customer’s hands
Building loyalty and marketing trust e.g. a piece of tech or a cinema house
- Priority queuing or notifications e.g. invitations to premiers
- Idea of a club, VIP, status especially if its desired builds brand ambassadors and promoters
Securing life-long value of customers e.g. Car industry and OEM brands
- Trade in deals and payment structures tie you into the brand
- Originated by BMW with a 1,3,4,5,7 etc series
Getting ahead of the customer’s product lifecycle e.g. a provider of kid’s bedroom suites
- Example of the literacy development and trade in options
- Once off sale turning into a 10-year gig with 4 sales