- May 12, 2011
- Posted by: Paul Foster
- Category: Achieving Innovation in Business, Business Growth Advice, Customer segmentation, Grow a Business
In the old days, your business was either a “product” based business or a “service” based business.
The traditional furniture store sells a product: furniture.
The traditional law firm sells a service: the lawyer’s time.
To be a successful furniture store today, however, the service provided may be as important to the customer as the purchased product. If the salesperson is able to suggest the coordination of a bedroom set and educate the buyer on product choices, these services can make the sale. Prompt delivery is also a valuable service, as is post-sale follow-up.
Converge products and services
From my business advisor perspective, a ‘product’ based business is only as successful as its ‘service’ ability – and vice versa.
Do service provider businesses only sell services? In my experience, the service business that is able to package their services in the form of ‘products’ is a more successful one. This packaging of services as a product allows for the opportunity to leverage knowledge and fulfill customer expectations in a systematized manner. The traditional service provider has to work an hour to get an hour’s pay. The service as a product makes it possible to sell knowledge as a product to many customers at once.
If you are a struggling product based business, the solution may be in the service area.
If you are a struggling service based business, you might consider packaging up your service as products.
In conclusion, it is clear that product and service businesses have converged to the benefit of the consumer and the small business owner.
Has your business seen success by the packaging of products and services? We’d love to hear from you.