Let us begin with what is most important: product-related services are becoming the driving force for product sales – today and in the future.
In saturated markets, top performers are initiating purchase incentives with additional, product-related services. Even though machines, devices and technologies are generating sales, customers already prefer vendors with additional, product-related services.
The Four Advantages of Product-Related Services
1. Customers award service with loyalty.
2. Companies stick out from the competition.
3. Service providers develop an additional source of income.
4. Sales are not determined by pricing.
Service fosters loyalty
The greater a product's benefit, the more satisfied are your clients. Service level agreements including maintenance, check-ups and workshops provide added value. Customer satisfaction finds expression in subsequent orders and recommendations, which require less incentives than altogether new clients.
Service creates new USPs
It is very challenging to stick out from the crowd by emphasizing product features in saturated markets. Not every company has the means to invest in R&D. Smart service concepts create publicity and differentiate vendors from the competition. If services improve the usability of products, customers will take this into consideration when they make a decision. Positive side-effect: the contact between employees and clients generates valuable insights into the needs and handling for/of products. These insights can then be used for the development of new products and services.
Services generate revenue
In times of declining innovation curves, long product development cycles and fierce international competition, vendors counter stagnant revenues with additional, product-related services. High-priced long life products can generate more revenue on a regular basis when coupled with service packages.
From Contact to Revenue
Stop Downward Prices Spiral
Selling products at the lowest price will damage your brand in the long term. The potential for innovation declines. For long-term sustainability, it is better to offer customers more flexibility, usability and more efficient application options with great products and fitting services. Customers are willing to pay a reasonable price as long as they can expect a high degree of usability.
How to Develop Product-Related Services
Learn how to develop product-related services by downloading our info graphic on the subject:
The best services enable clients to use products more efficiently, for a longer period of time and with more usability. Add to this services that create an added value, services that upgrade a product. There are many possibilities. Survey your clients on their experiences with your products. The analysis of their feedback will bring to light services that clients will appreciate and be wiling to pay for.
Once all needs have been identified, they can now be categorized. What services do clients require? Do they want to work more efficiently with your products? Are they interested in specific product applications or more flexibility?
3. Create services / service packages
Prioritize the various needs according to feasibility, market chances and required investments. Now discuss which services offer the greatest chances at success and should therefore be established. Then develop services for the individual target groups.
Of course you need to market your services. Develop a marketing strategy before launching the new services.
The benefits of product-related services:
✓ Services enable growth in stagnant markets.
✓ Only a few companies sell products with services, but they do so successfully
✓ Services foster customer loyalty
✓ Services create significant competitive advantages.
Our services: In order to develop product-related services strategically, you can count on our assistance during all four steps of the process: we do market analysis, support you during the prioritization process, offer advise on market chances and develop a marketing strategy with you.
Services are marketed differently than products. There are many stumbling blocks to be avoided. Learn all about this in the second part on service marketing in December.