Why is Services Marketing Different?

Marketing services is distinctly different from marketing products and requires a different approach. Within the technology space services exist as a standalone business such as IT Services and as a supporting component of a product, such as training or implementation services

In this post we’re going to examine the characteristics that make the marketing of services unique and look at techniques that can be used to grow a services business.

Selling the Invisible

Services marketing is often referred to as “selling the invisible” because the buyer purchase is intangible. Services are not physical and cannot be possessed or inventoried. Additionally, there is nothing you can do to make services tangible.

Delivery Cannot be Separated from Production

People deliver services and the production of the services cannot be separated from the production of the services. Examples would be a haircut, a medical exam, installing software, or diagnosing a network problem.

Quality and Consistency Vary

Service quality and consistency are subject to great variability because the delivery of the service can change so much due to people factors and due to customer requirements. Ultimately the buyer will never know for sure how good the service is until it is delivered.

Delivery Involves a Process

Usually there is a process involved in the delivery of a service, either formally or informally. In the case of Launch Clinic, we use the Product Launch Framework as a methodology for planning and managing a product launch.

Pricing May Vary for Similar Services

Pricing may very for similar services

Techniques to Consider

If you are early in the process of getting your services company off the ground you will want focus on a few items that should make a significant impact on your selling process.

Reputation of the Founders

The early gigs you get for the services you deliver are going to be on the strength of the founders’ network and reputation. Work your network to get those initial customers and do whatever it takes to get testimonials and references.

Have a Documented Methodology

As a service provider you should have a documented methodology that you use to deliver your services. The methodology demonstrates your approach to delivering the services that leaves an impression in the buyer’s mind that your process isn’t open ended. The methodology tells your buyers that you know what you’re doing and you’re not going to “wing it”.

The methodology helps to convey to your prospects that you will deliver a level of quality and consistency.

Customer References and Testimonials

For a service provider nothing can have more impact than when your customers lavish praise on your company’s ability to deliver. Work carefully and methodically to cultivate and document that praise and don’t be shy about sharing it with your prospects and other influencers. The best way is to ask and to keep vigilant for testimonial opportunities. Think “Can I quote you on that?”. The quotes an be used on your web site, in your marketing materials and in your sales process. It’s easily one of the most important things you should strive to achieve.

Focus on the Value You Deliver

Customers want to know what you can do for them, not what you do. Depending on the service you deliver it may be important to indicate which technologies your team is competent with. However, it’s more important to convey the value you can deliver and why your company is the one to deliver that value.

After working in lots of roles throughout my life, I’ve come to appreciate the benefits of working in the restaurant industry more than most from a service perspective. Carfi’s post from Chicago reminded me of that.

I don’t often think back to being a waiter (oh the ramen noodle days), but I do recall getting most of my customer centric approach to service from being a waiter. Loyalty and ongoing spend was more important than the margin of any given interaction. Some things are always transferable and relevant. That being said, this is a under appreciated adage.

I had a job at a Big Boy in Ypsilanti, MI. I mainly liked worked days because I got free food, I lived on slim jims, patty melts and cole slaw. Nevertheless, I was rapidly indoctrinated in the restaurant way of life. The whole essence of a restaurant is service.

This guy who managed me at the big boy – put it fairly well “These people are paying for service or they would have done it themselves – so serve”. That is almost an exact quote and clearly great leadership skills for a bunch of college kids. As a person who loves a good meal and good service, I’ve come to take it almost for granted.

Not only do we take it for granted as consumers, we wildly forget about it in our daily interactions and overall management of our products and businesses. If someone didn’t want service they would do it themselves – hmm.

While not practical in some scenarios – I’m not going to build a car, but I do still buy service when I get a car. Service is a key influencer in buying and the general experience of being a customer is an important part of the product.

Essentially the age old adage of the “customer is always right” may be a concept of yesteryear in many industries and may have never existed in some industries. I mean it wouldn’t be an adage if there wasn’t something to it – right?

The good news is what’s old is new again – the social customer is here!

So what is it that consumers are entitled to? How can a business drive extended value for both themselves and the customer? Loyalty should be a variable for most of your product decisions, but definitely in ALL customer interactions.

The informal word of mouth impact is gaining momentum thanks to web 2.0. With the increasing relevance of social networks, word of mouth is increasingly more important within the corporate decision making process, the customer may be right right again! Back to the future! This whole “interweb” thing is working out.

I know at times it clearly appears the customer isn’t right at the end of quarter or when analyzing margin, but really? To better understand what a social customer is:

THE SOCIAL CUSTOMER MANIFESTO

• I want to have a say.
• I don’t want to do business with idiots.
• I want to know when something is wrong, and what you’re going to do to fix it.
• I want to help shape things that I’ll find useful.
• I want to connect with others who are working on similar problems.
• I don’t want to be called by another salesperson. Ever. (Unless they have something useful. Then I want it yesterday.)
• I want to buy things on my schedule, not yours. I don’t care if it’s the end of your quarter.
• I want to know your selling process.
• I want to tell you when you’re screwing up. Conversely, I’m happy to tell you the things that you are doing well. I may even tell you what your competitors are doing.
• I want to do business with companies that act in a transparent and ethical manner.
• I want to know what’s next. We’re in partnership…where should we go?

I clearly think we are all social customers, perhaps we need to be more mindful social product managers.

On a random note, I’ve been struggling to develop a business metaphor around FIFO. Ideas?