Updated Date: June 13, 2022
Customer acquisition and retention all cycles back to the quality of your marketing. No matter what type of business you run, your ability to reach customers can be the driving factor that increases sales. However, not all marketing efforts are created equal.
Service-based business marketing is designed to address the special challenges that a service-based business must deal with. Adjusting your methods can have a huge impact on your bottom line.
How Does Service-Based Business Marketing Differ From Product-Based Marketing?
Businesses typically focus on one of two revenue streams: products or services. A product might be a kitchen sink, while the service is the plumber who repairs it. Each concept calls for a different approach to marketing.
The relationship between company and consumer is more long-term with services. When someone hires an HVAC business to install a new air conditioner, he or she may ask questions about their options, schedule an appointment, meet with the technician, and live with the new air conditioner.
This lengthy process requires top-notch customer service at every step. People with good experiences may write positive reviews on online platforms, and they’ll likely return when that air conditioner needs routine maintenance. For product-based companies, customer service is usually only a concern when there’s a problem with the item.
Service-based marketing is all about generating loyal customers and standing out from the competition. A product-based business is more focused on developing a quality product that buyers want to tell all their peers about.
What Are the Distinct Advantages of Service-Based Business Marketing?
Selling services creates amazing opportunities that you may miss out on in product marketing. The most effective benefits make use of your talented service team and technicians:
- Personal interaction with customers
- Flexibility in offerings
- Ability to add new services
Because your efforts are focused on customer retention, you get the chance to connect with those who use your service on a more personal level. Close interaction makes feedback more accessible so that you can adjust your service offerings for your next batch of clients.
There’s also more flexibility when it comes to differentiating yourself from competitors. By listening to a particular client, you can structure a solution that is custom fit for his or her needs. This attention to detail enhances the customer experience and prolongs the relationship.
Additionally, the ability to offer special deals and packages may act as effective lures to reel in fresh customers. The task of creating more services is typically less expensive than developing new products, and these add-ons can be a simple way to reach untapped markets and expand your client base.
What Unique Challenges Do Service-Based Companies Face?
Service-based companies must conquer marketing challenges that the product industry rarely faces. The most difficult ones to address include the following:
- Regional limitations
- Difficult to demonstrate
- Brand recognition
Most services operate within a strict geographic area. Not only does this mean that their customer pool is limited, but it also means they must compete with other businesses in the same zip code. This makes standing out in your marketing campaign especially important.
There’s also a distinct difference when it comes to proving the worth of the product or the service. Consumers typically judge the value of products based on the specifications, descriptions, and reviews. This is all static information that doesn’t continually cost the company money. With services, you must demonstrate your ability to perform the job before the money is exchanged. This sometimes calls for free consultations or trial runs, which ultimately has you working for free until that customer is secured.
The final challenge involves brand recognition. Though this is an issue all companies face, product businesses have the advantage of incorporating their branding into the tangible item they’re selling. It’s difficult to do that with a service. This makes it even more important to develop visual branding that can be easily recognized online or in local advertisements.
How Can You Maximize Your Marketing Potential?
Meeting the challenges of service-based business marketing may require some strategic planning. A good team can help you develop the right brand representation, while regional limitations can be overcome with more focused advertising efforts.
Content marketing is an effective way to demonstrate your company’s skills and expertise so that you have less to prove to incoming customers. It also expands your online presence to help you connect with people who may not yet know you exist.
For a digital marketing agency, Phoenix businesses can rely on, contact us today. At V Digital Services, we can design and execute a marketing plan that strengthens your existing customer bonds and expands your reach to new clients. Our expert team is ready to help you with a targeted strategy that generates results.