Services are naturally intangible and it is difficult to quantify their results. This is a sticky situation for professional services firms. Often times their clients are blindly trusting (hoping) that their service provider does their job properly. These clients usually need to see references or other 'proof' of the provider's work to validate that they are making the right choice.
A manageable way to alleviate these concerns from the client is to ascribe tangible features to service offerings. By creating service packages with defined features, the client understands the scope of the services that the provider is supposed to deliver. In other words, professional services firms need to turn their services into products - a term called "productization".
Productizing services can be difficult to understand and implement at first because it feels unnatural. After all, your professional services firm doesn't supply products, it supplies services like the name says. That's the point of the firm, to provide services - not products. However, there are several key benefits to productizing your firm's services. In fact, more and more services firms are starting to turn their services into product offerings. Why is that?
- Clients are increasingly demanding.
Clients expect more from their services provider than ever before. Professional services firms are having to adjust how they interact with customers and provide their services.
- Services have become commodities.
In today's market, you have to decrease prices in order to increase profit margin - the opposite of what it was only a few years ago
- Projects are continuing to get more complex.
Technology is always evolving and changing. This pushes professional services firms to be increasingly innovative in order to make themselves stand out.
- The emergence of cloud services.
Cloud solutions have increased the options for prospective clients and affected how they interact with those service providers.
These movements in the market have driven many professional services firms to create products from their services. And... they are finding success doing it!
Learn the 3 benefits of productizing services by downloading the "Turning Your Services Into Products" white paper. This may just give you the spark to get the ball rolling!