Productizing Service, A Winning Strategy

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By Olufunke Akinloye

Selling Service as a Product has become a big phenomenon especially since technology has taken a dominating space in all areas of commerce. The need to offer service that is packaged into a repeatable offering for ease of purchase is now the norm.

With the ever evolving and growing global competitive landscape, entrepreneurs that want to stay relevant need to offer services in shelf ready form to deliver clear tangible value.

Time is the most valuable resource of every service provider especially because it is capped, hence time is literally money. The more clients one can service within a period the more money the business can make which should translate to more profits. Productising a service therefore gives opportunity for the business to scale easily this is because the business model is not built around customising value for every individual customer. There is also the advantage of providing the service in parts of graduated value for proper pricing.

Here are the essentials to turning your service to products

Observe your customer buying pattern: If you observe that you are proffering same solution repeatedly or observe there is a pattern to how the customer issues come up and how far customers are ready to go to resolve it then there is an opportunity to productize. Also, if you see that the various customer issues arise from a core problem that you can solve, then it is time to capitalise on it and turn it into a shelf ready product

The process of packaging the service into product becomes innovation for the entrepreneur which is a strength for the profit trajectory of every business. Deep customer understanding is central to innovation such that the correct service is packaged and offered for purchase at the right price. Ultimately customers will only buy what is valuable to them and when this is put right the Business gets better for it.

Ability to deliver consistent tangible results: Customers want value that is why they would pay for either product or service. When an entrepreneur identifies that he can consistently deliver tangible result that meets customer expectation it is clear that the service can be productized. The business needs to identify the problem and evaluate their ability to efficiently deliver predictable results. This doesn’t happen with the snap of a finger, it works with standardized operating procedures, effective collaboration and efficient communication. 

Evaluate the market size.

Having identified your capability to deliver tangible results repeatedly and you have also identified your customer need, it is imperative to evaluate the size of the addressable market. Often many entrepreneurs get into the frenzy of ticking the innovation box they forget to check if there is really a market for it. In cases like this the products only last for a short while with production capabilities grossly underutilised.

While productising your service comes with efficiency and bigger opportunity to scale, it is not important to consider your current positioning in the market. The changes you must make as a market leader may not be as drastic as non-key players in the same industry. You may however take the decision to productise if you intend to capture new markets. In event the market is identified there might be need to partner with organisations that can help your business deliver a robust service that can take over the market.

Conclusion

If you choose to offer your service customised or you productize it, what is important is that you deliver tangible result that is scalable and sustainable. An entrepreneur always need to keep an eye on the ever evolving consumer need and must prepared to build capability to deliver when the sizable opportunity is identified.

Olufunke Akinloye is a Group Head Marketing, Strategic Outsourcing Limited.

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