Business services are activities that benefit companies without producing a physical commodity. Companies rely on these service providers for marketing, production, safety and cost reasons. Some examples of business services are warehousing, data entry and fulfillment and performing light assembly work. Many companies also outsource some or all of their specialized labor needs to business service providers, which help improve efficiency and focus on core competencies.
Business-to-business (B2B) service providers can also offer companies access to a wider range of technologies and expertise than they may have in house. They can also help companies to improve profitability through streamlined processes and reduced overhead costs.
One of the key factors in crafting a successful service business is understanding customer needs and expectations. Getting these right can lead to positive reviews, return customers and referrals. Another important factor is treating every project as if it were for yourself or a family member. This ensures that the customer is treated with the utmost respect and dignity.
The success of a service business is ultimately determined by whether or not it gets four critical things right. This article outlines an approach that recognizes the fundamental differences between product and service businesses, and focuses on the role of the management team in designing these critical elements. It can help managers transform their thinking about what makes a great service business and how to develop and execute on that vision.