Strategies Used by Companies in the Service Sector
Companies who provide services as opposed to a tangible product have to employ different strategies in their marketing and sales efforts. Service businesses offer an intangible product and as a result people in the company become very important. In the service sector, past performance is the indicator of future outcomes. A company's credentials; expertise of management and employees; and testimonials of clients become the necessary strategies to facilitate new business.
Company Credentials
Service sector companies must develop a formal protocol for communicating the company's history, background and list of services to prospect clients. This is known as a credentials presentation. The credentials document can be a paper document that is provided to prospect clients but also should be created as an oral presentation that can be delivered by a company representative.
Credentials are often the first bit of company information presented in a new business pitch. It answers specific questions: Who is the company? What is its mission? What is its service offering? These are basic points that service sector companies need to address as they approach new business development.
Establishing Expertise
Service sector companies often need to differentiate themselves by establishing their business as experts in their particular niche. Often service companies tend to provide a commodity service offered by many similar outfits. To differentiate themselves as the specialists in their field, they attempt to manufacture a distinction for themselves, often by stating they have a particular expertise or a unique approach to meeting challenges and opportunities in their sector. Increasingly, this expertise is communicated in blogs or newsletters.
Whether it's a hairdresser who claims to be the best colorist in town, or a graphic designer who sets himself up as an expert in hand-drawn as opposed to computer-aided design, establishing expertise is important marketing strategies employed in the service sector.
Past Work Performance
Having past clients testify as to the quality of the finished work, the level of service provided or the fairest of pricing, can be an important strategy for service sector businesses. Often companies will ask a past client if they can use their name and a favorable quote in marketing materials. Other companies will create a portfolio of past work that speaks for the client in lieu of a personal testimonial.
Creating a portfolio of past work is critical for service sector businesses. Graphic artists keep copies of their past work in a portable binder that they carry with them on sales calls. Hairdressers may keep an album of attractive hairstyles and haircuts for new clients to review. The Internet has given every company the opportunity to showcase past work in a professional and attractive presentation that continually acts as a sales and marketing tool for the company.
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