Business services are services that are primarily sold to organizations. They offer intangible value, and include a wide range of different types of services such as consulting, information technology, logistics and waste management.
Companies that offer these services help businesses operate more efficiently by doing things they do not have the time or resources to do themselves. For example, a third-party logistics company may take care of all aspects of online retail fulfillment, from receiving and warehousing to picking, packing and shipping orders. They may also provide consulting services such as advice on optimizing logistics and supply chain efficiency. In some cases, a business service provider may even develop a product or software for its clients, such as a custom sales automation platform.
These services are critical for companies to be successful. They can help them improve productivity, focus on their core strengths and reach new markets. In addition, they can save businesses time and money by eliminating the need to invest in their own infrastructure.
To run a great service business, managers need to think differently. This article presents an approach for crafting a service strategy that builds on four essential elements: customer needs and desires, employee competence, delivery system design and the ability to learn from customer feedback. By understanding these key differences, business leaders can create strategies that make their service business more effective and profitable.