You will agree that there is a big difference between running a company which offers products and one which offers services. As compared to a product based company, a service based company faces many problems in its operations. They have to take meetings with clients/employees which consume a lot of time, they have to reply to every client who signs up, and many such works.
They have to juggle their time between many responsibilities which otherwise could have been utilized for other more useful works. The need has aroused to streamline the processes such that time wastage will be reduced to a minimum. This has brought forth, the concept of “productizing your services.”
What is “Productizing a Service”
The process of selling a product and a service differs. Let’s see what all tasks happen from the beginning of the process of a customer buying a product. The customer should know about four aspects of the product:
- What the product contains, what it is.
- The benefits & features.
- The scope of usage and its price.
- The time of delivery.
The productization of a service is on a similar path. You just have to apply the above basic points and a few others like processes, expected outcome, and the testimonials. Then you bundle the service offering in a neat package and sell that to your clients.
Let’s take an example of a digital marketing service, you can make “packages” of fixed prices that will contain fixed amounts of different sub-services like social media marketing, running ads, PPC, likes/comments, etc. you also add a set process plan, expected delivery date, and results. This way, you have productized your service.
What is the impact of productizing a service?
When you productize your service, it becomes more appealing, the outlook of the customer change towards it. You may notice some of the following changes/benefits:
Revenue will increase because of more sales, more clients. This means companies going in losses may experience profits after productizing their services.
Deliver processes become clearly defined, as well as the service offering.
- Employees may become better at their jobs.
The clients/customers know exactly what they are getting.
Hiring becomes simpler as you do only a few tasks as a business.
Easier and faster scalability, the stability of the business will increase.
- You will be able to make a brand out of your service.
With the success of some productized services, you may as well start offering more variations of the services.
The businesses that have productized their services have experienced many benefits in their operations. It really opens up a path for growth and scalability in the future.