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10 Reasons for Productizing Your Service Business
Productizing your service business has many advantages. It can help you scale your business, attract new customers, and improve your bottom line. Here are 10 reasons to productize your service business.
What is productizing?
Productizing is the process of turning your services into products. This can be done by packaging your services into an online course, ebook, or membership site. It can also be done by offering a subscription-based service, or by creating a physical product that delivers your services. You can use a simple SMS reminder or email marketing to notify customers of any product development or launch.
Below are some of the main reasons it makes sense to productize when and where you can.
It can give you a competitive advantage
If you’re the only one in your field offering a productized service, you have a huge leg up on your competition. Why? Because you can offer a standardized, repeatable service that’s easy for your customers to understand and purchase. This is much more appealing than trying to explain what you do in a way that makes sense to each individual customer.
Plus, when you productize your service, you can show would-be customers exactly what they’re getting before they make a purchase. This is a big selling point that your competition is likely missing.
In short, if you want to stand out from the crowd and offer your customers a better experience, productizing your service is the way to go.
Productizing is easier to scale
When you productize your service, it becomes much easier to scale because you’re not relying on yourself (or a small team of people) to do all the work.
Instead, you can document your process and train others to follow it. This allows you to take on more customers without having to worry about quality control.
And as your business grows, you can continue to add more products and services to your lineup. This gives you a much better chance of success than trying to scale a traditional service business, which is often limited by the number of hours in a day.
It makes marketing easier
Productizing your service also makes marketing easier, as it lets you better target a specific audience with your marketing efforts and craft a message that resonates with them.
For example, let’s say you offer a productized social media management service. You could target small businesses that are looking for help with their social media but don’t have the time or resources to do it themselves.
This is a much more effective approach than trying to market your services to everyone and hoping that someone bites.
Productizing increases profits
When you productize your service, you can charge more for it because customers are willing to pay more for a product that’s easy to understand and purchase. Plus, since you’re not trading hours for dollars, you can make a lot more money with a productized service than a traditional service.
And if you package your productized service in a subscription, you can make even more money by recurring revenue. This is a great way to increase your profits and the stability of your business.
It attracts better customers
Productizing your service will also help you attract better customers. This comes down to the fact that when you offer a productized service, you’re making it clear who your target market is. This allows you to attract people who are actually interested in what you’re offering.
And since you’re not trying to appeal to everyone, you won’t waste your time on tire kickers and tire-spinners. This will save you a lot of energy and frustration in the long run. You can also use your marketing efforts to attract even more of your ideal customers.
It makes selling easier
When you productize your service, selling becomes much easier. It makes sense because you are now able to explain more clearly what your service is and how it can help potential customers. You can also show them exactly what they’re getting before they make a purchase.
This is a big selling point that your competition is likely missing. In short, if you want to make selling easier, productizing your service is the way to go.
When you make selling easier, what you are essentially doing is decreasing your cost per acquisition. This is the amount of money you spend to acquire a new customer.
It makes delivering your service easier
The reason it can be easier to deliver your service is because you will have systems and processes in place that you can follow. This makes it much easier to deliver a consistent experience to your customers.
It also means that you can outsource some or all of the work to other people. This can free up your time so that you can focus on other areas of your business.
You can use it as a lead-generation tool
Productizing your service can also be a great lead-generation tool. This is because when you offer a free or low-cost product, you can attract people who are interested in what you have to offer.
The alternative is to try to sell your services to people who have no idea who you are or what you do. This is a tough sell, and it’s often not worth the effort. But with a productized service, you can offer potential customers a taste of what you have to offer without asking for anything in return.
You can then use these leads to upsell them on your other products and services. This is a great way to grow your business without spending a lot of money on advertising.
There are less customer service issues
Productizing your service also comes with some built-in customer service advantages. This is due to the fact that when people purchase a product, they generally have fewer questions and concerns than when they purchase a traditional service.
This is because, with a product, they know exactly what they’re getting. They don’t have to worry about the details of the service or whether they’re getting what they paid for.
Of course, you still need to provide excellent customer service. But you’ll likely find that there are fewer customer service issues when you productize your service.
Conclusion on Productizing
Productizing your service is a great way to grow your business. It allows you to charge more, attract better customers, sell more easily, and generate leads. Plus, there are fewer customer service issues to deal with. If you’re looking for a way to take your business to the next level, productizing your service is the way to go.