Business services include all activities that provide a benefit to a company without supplying physical products. Companies rely on these services for marketing, production, safety, cost and convenience purposes–especially for larger companies that need to keep up with work demands.
The business service sector is one of the largest sectors in the European economy, generating around 11% of GDP and contributing to a wide range of industries. It is an essential component of the service economy, providing goods and services that are increasingly combined in new ways to add value.
What is the Difference between Goods and Services?
Goods can be stored for future use, while services must be delivered when requested. In addition, a service provider cannot sell an item of a service that is no longer needed; it must be consumed at the time of the request.
What Are the Qualifications for a Career in Business Services?
If you want to start a career in business services, you’ll need to earn at least a high school diploma and computer skills. You’ll also need to have customer service experience and a strong work ethic. For a more professional career, you’ll need a bachelor’s degree in your field.
How to Design a Successful Service Businesses
The management of services is fundamentally different from that of product businesses. Whereas product businesses focus on how to make a good product, the managers of service businesses focus on how to make a great service.
To define and design a successful service, the manager needs to understand the customers’ needs and how they interact with the services. Then, the manager must balance those needs with other important factors such as the environment in which the services are designed to operate.
A manager should consider the following questions when designing a business service:
What does my customer need?
In a product-oriented business, the question is simple: “What does this business produce?” The answer to that question can help managers craft a description of their business. In service-oriented businesses, however, that question becomes much more difficult.
What do customers compare my service to?
In product-oriented business, the answer to this question may lead a manager to focus on the characteristics that make a product stand out from its competition. For example, a consumer may compare an airline’s flight schedule to that of a competitor’s.
What do they like about my service?
In a service-oriented business, the answer to this question is often more subjective. For example, a customer might say that she liked my service because I was friendly and easy to talk to.
What is the most important characteristic of my service?
In a service-oriented business, the most important characteristic of my service is its customer experience. If the service is not a good experience, then it will be difficult to attract and retain customers. In addition, if the service is not a good experience, customers will likely complain about it to other people. The service provider will have to take steps to improve the experience, which can be costly and time-consuming.