Service companies not only have to perfect the skill they bring to the market and make it appealing, they have to place a lot more importance on workforce and consumer involvement. This applies more so to service companies than product companies since consumer involvement is quite integral to the production phase as well. Despite the challenges, here’s how you can use the distinctions of a service company and perfect them to create a profitable business:
When it comes to product design, you can attribute desirable features to what tops sales. Service design, however, is dependent on experiences. You can market your brand as being family-friendly or convenient etc. and also think about what you offer that sets you apart from the competitor and makes you all the more of a compelling choice- is it the extended hours, affordable prices, convenient location? Also keep in mind that your company will not be able to provide everything. You may have to downplay some aspects just so you can excel in others- for example, a business might work later hours but this also means increased prices. The means justifies the end.
Don’t forget to identify which marketing channels work best for you. In a service related industry, you could be catering to a variety of people- each having their own preferences when it comes to adverts. However, in this day and age, you simply cannot deny the importance of social media. These platforms have incredible reach so even if you do opt for conventional methods, don’t forget the upkeep of your digital platforms as well, if you want to guarantee maximum impact.
In a service company, excellence is demanded- any mishaps could ruin your reputation for years to come. And how do you fund this excellence? Through a well-thought of price tag. You could take the classical approach and ask customers to pay upfront but more often this does not cover the costs in total. For example, a customer at a coffee shop would spend hours idly by just off one cup of coffee. To balance this, you could also attempt to strategically lower costs where possible.
In a service company, you definitely aren’t hiring just for skill. Plenty of attention needs to be given to the attitude of your potential recruit during selection process. As the saying goes, recruit the attitude and train the skill. Because dealing with customer can really take its toll on your patience and it definitely isn’t for all personality types. Of course, if you do find candidates with both the capability and attitude, it stands to reason that they will expect higher wages. If you want to remain competitive, you’ve to realize that you will have to sacrifice one element for the other.
Service companies can be a lot more demanding than product companies when you consider the consumer interaction aspects but this is definitely something you can work in your favor if you can go about working on these critical 4 aspects.