Business services are intangible goods sold to businesses and typically entail the delivery of professional or technical advice, management consulting and support functions. A broad range of services fall into this category, from product as a service (where products such as computing equipment are sold for a monthly fee together with operation, maintenance and management) to advisory services provided by investment banks concerning business financing and top level strategy.
While a physical product business has to invest in manufacturing and distribution costs before making money, a service-based business can get started almost immediately. For example, a copywriter can start writing content for clients and begin to make money almost instantly. However, the success of a service-based business often depends on how well it gets four things right.
1. Customer experience – Provide outstanding customer service to gain and retain clients and promote word-of-mouth referrals. 2. Flow of work – Develop and implement processes that allow customers to interact with your brand in ways they find convenient, easy and valuable. 3. Value creation – Provide unique, high-value service experiences that differentiate your brand from competitors. 4. Customer involvement – Recruit and train employees to be highly competent in customer-facing roles.
Successful service companies are able to meet the needs of both individual consumers and other businesses and organizations, although many place a greater emphasis on meeting the needs of one or the other. For instance, a company that provides pet grooming services will not usually waste advertising dollars trying to reach commercial establishments, as their primary market is going to be individual consumers.