Business services refer to the activities that are performed to aid a business enterprise in accomplishing its trade operations. These include banking, warehousing, insurance and communication among other services that are necessary to run a business effectively.
Unlike goods, services cannot be stored for future use, and they must be delivered when demanded. In addition, they must be of high quality, as businesses want to be known for offering high-quality services.
The service industry is one of the largest sectors in the European economy, contributing 11% of EU GDP and supporting over 11 million jobs. Its growth potential is substantial, and European policy makers are leveraging its importance by taking action to increase their competitiveness and support its growth.
To provide good services, businesses must focus on four key elements: design, experience, value and relationship. These are the core principles of what I teach students in my course “Service Models.”
Design:
As with product companies, service businesses must carefully consider the characteristics that customers value and that will make them willing to pay a premium for your service. This means focusing on the ways that your offering reflects and meets their needs, while simultaneously minimizing the cost of providing it.
Experience:
A good service should enable the customer to interact with a company in a way that enables them to feel that they are being treated with dignity and respect. This will increase their likelihood of purchasing your services again or referring you to their colleagues in the same industry.
Value:
A good business service is aligned with the goals of a company’s employees and customers, while supporting its ability to be profitable. This can be accomplished by documenting the value that a business service department provides to the organization and its customers, as well as by making sure that employees have access to self-service portals that allow them to manage their own processes.
Relationship:
A business service must build strong, meaningful relationships with its customers, both in person and over the telephone. This can be done by creating a positive customer experience through friendly, convenient interaction.
Value:
A service can be worth more or less depending on the value it adds to a customer’s life, such as convenience, privacy or comfort. This can be determined through surveys or market research.
The relationship between the service and its consumer can also be defined through interviews or surveys with the consumer. This will help the service provider understand how to serve the customer best.
The relationship between a service and its consumers can be very complex, as different types of people can have different needs. It is important to know these needs when developing a business plan. This will ensure that the service has a clear path to success and that it can deliver on its promise of value.