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Service Development
Service Development
Product Development is an understated activity. My whole life I have always been busy defining my service to my customers - in particular, in a service related environment it is very important to show:
a) what you offer, in non-woolly language
b) how it is delivered
c) what the cost is, no hidden costs. Often you see all sorts of additional costs... I compare this to delivering a television without a power cord.
those three things - clarity and transparency in short - are the matters that give confidence.
From a suppliers perspective, there are four aspects you have to keep in mind:
1. Scalability
2. Package a service as a Product
3. Commitment
4. Recurring Revenue
Mostly you see that companies, in particular starters, create a service around payment for hours worked. I personally believe this is not the right approach because you never will set yourself aside from your competition that way. Particularly now, through E.Factor I read a lot of business plans and see presentations that entrepreneurs have made for their potential clients and I have to say, they don't exactly cheer me up. Often they contain heaps of copy from other brochures and presentations, full of lofty expressions and meaningless phrases.
Look around you to see if you can "package" your service differently, if you can add scaleability. Sell a "quick scan" or create a subscription model for part of your service offering - in that way you create a recurring revenue stream which allows you to employ lower skilled (and therefore less expensive) personnel. That way your mix has a lower sales cost and allows you most likely to realise a higher margin.
If you tell a potential customer, that with your service they will sell 10 or 20% more, or that you save x% in costs - it shows commitment in your price levels and if you link that to your performance, it will create a shared risk taking to the customer.
Avoid at all cost that your service is presented to the customer in the same way as that of your competitor. Think out of the Box!
Need advice or have questions? Ask: adrie@efactor.com
Edited: Sep 28th, 2009
Comments
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- Sep 30th, 2009
Bill Evans
The most difficult aspect I have found in my 24 years of consulting and doing that thru my own business is "selling" the client and the value. It has been my experience that marketing is a much better approach, a lower key more confidence building than thru a push. Presenting ones wares in relation to industry and client circumstances. A critical aspect of marketing is in building and maintaining networks of talented associates. These add to the crediability of what I am "selling" and gives the client confidence that I can bring the needed resources. I have found that by focusing on selling on the financial aspects of using my services (cost reduction or increased sales, etc.) demonstrates to the client a certain niavity on my part about the issues and circumstances the client is in. If resolution of the issues are that certain of an outcome then it unlikely the client needs my experience and perhaps does not really need any consultive help. Bill Evans