Decktopus Content Team
There's no doubt that services are a critical part of any business. But what if you could take your service and turn it into a product that you could sell to other businesses? In this blog post, we'll explore the process of productization and how to go about it. We'll also discuss the benefits of productized services and provide some tips on getting started. So read on to learn more!
What is the productization of services?
The productization of services involves taking a service-based business and turning it into a product-based business. This can be done in a number of ways, but the most common approach is to create a software application that can be sold or licensed to customers.
The benefits of productizing a service are many. For one, it allows you to scale your business much more easily. If you have a team of 10 people providing consulting services, then you can only serve 10 clients at a time. But if you have a software application that does the same thing, then you can sell it to 100 or 1000 customers without having to increase your staff.
Productization of services is the creation of a productized service offering.
1. Breaking down the service and project into its component parts
Businesses productize their services in order to increase efficiency and profitability. In productizing a service, businesses focus on modularizing the service into its component parts. By deconstructing the service into its individual steps, businesses can optimize each step to be as efficient as possible.
In addition, productizing a service makes it easier to market and sell the service, as customers can understand and purchase the individual components that they need. productization of services is an essential strategy for businesses that want to stay competitive in today's marketplace.
2. Identifying which parts of the service can be automated
When it comes to productizing a service, one of the first questions that needs to be answered is which parts of the service can be automated. This can be a tricky question to answer, as it requires a good understanding of both the service itself and the product that is being created. In some cases, it may be possible to automate the entire service.
However, in other cases, only certain aspects of the service can be automated, and the product will need to be designed accordingly. The key is to identify which parts of the service are essential to the customer experience and make sure that they are not lost in the productization process.
3. Identifying which parts of the service can be delivered by someone on the team other than the service provider
Many businesses are built on the delivery of services, from law firms and accountants to housekeepers and dog-walkers. In order to be successful, service providers must be experts in their field and deliver a high level of customer satisfaction.
However, there may be opportunities to productize parts of the service in order to increase efficiency and lower costs. For example, a housekeeping service could develop a line of cleaning products that can be used by customers in between visits. This would not only create a new revenue stream for the business, but also provide a more convenient experience for customers.
Similarly, a dog-walking service could develop a GPS-enabled app that would allow customers to track their dog's walks in real-time. By productizing parts of the service, businesses can tap into new markets and deliver an even higher level of customer satisfaction.
4. Creating a pricing structure for the productized service using subscriptions
Traditionally, services have been priced hourly - the client pays for the number of hours the service provider works. However, with the productization of services, this model is no longer as effective. Instead, many service providers are adopting a value-based pricing model, where they charge based on the results they achieve for the client. This approach has several advantages.
First, it ensures that the client only pays for results, rather than for time spent working.
Second, it aligns the interests of the service provider and the client, as both parties are now focused on achieving results.
Finally, it makes it easier to scale the business, as the service provider can take on more clients without having to increase their overhead costs.
As a result, value-based pricing is an attractive option for many service providers.
5. Creating a marketing channel and a sales plan for the productized service for your profitability
As the productization of services continues to increase, it's becoming more important for businesses to have a marketing and sales plan in place for their productized offerings. While productized services can offer a number of benefits - such as increased efficiency and scalability - they can also be challenging to market and sell.
To succeed, businesses need to clearly define their target market and craft a sales pitch that resonates with potential buyers. They also need to put together a pricing strategy that reflects the value of the productized service. By taking the time to create a comprehensive marketing and sales plan, businesses can give themselves a better chance of success in the productized service space.
What are the benefits of productization?
One of the benefits of productization is that it allows you to establish a recurring revenue stream. This is because you can sell your product as a subscription service, which means that customers will pay you on a regular basis in order to continue using your product.
This is a great way to generate revenue because it guarantees that you'll have a steady flow of income coming in, no matter what happens with your business. It also makes it easier to attract new customers, since they know that they can sign up for your service and start using it right away without having to go through any complicated process.
Some other benefits of productization are:
- Increased profit margins
- Easier to scale
- Increased predictability
- Greater customer satisfaction
- Improved quality control
- Increased efficiency
How can you productize your service?
You can productize your service by creating a system that takes the guesswork out of the process for your clients. This could involve developing a questionnaire or questionnaire template to help you understand your client's needs and preferences, as well as providing guidelines or a workflow for producing and delivering the content.
You can also create additional products or services that complement your core offering. For example, you could offer copywriting, editing, or proofreading services to help your clients produce high-quality content. Or you could develop templates or other resources that your clients can use to help them get the most out of your writing services.
What are some examples of productized services?
Some examples of productized services are:
- Pre-packaged consulting services
- Fixed-price web design or development services
- Social media marketing services
- Search engine optimization (SEO) services
- Pay-per-click (PPC) management services
- Email marketing services
- Copywriting services
- Graphic design services
How do you price a productized service?
Productized services are services that are packaged and priced as a product. In other words, they are services that are standardized and can be purchased without customization.
Productized services are often seen as a more efficient and cost-effective way to deliver services since they can be delivered in a more predictable and repeatable way.
There are a few different ways to price a productized service. The most common is to price it based on the value it provides to the customer. This means that you would charge a flat fee for the service, based on the perceived value of the service to the customer.
Another way to price a productized service is to price it based on the cost of delivering the service. This means that you would charge a set price for the service, based on the costs of delivering the service (e.g. labor, materials, overhead, etc.).
The third and final way to price a productized service is to price it based on a combination of the value it provides to the customer and the cost of delivering the service. This means that you would charge a combination of a flat fee and a set price for the service, based on both the perceived value of the service to the customer and the costs of delivering the service.
Pricing a productized service is an important decision, as it will have a direct impact on the profitability of the service. It is important to consider all of the different pricing options before making a decision.
How do you market a productized service?
Productized services are becoming increasingly popular, as they offer a number of advantages over traditional services. For one, they are generally easier to market and sell, as they can be packaged and priced in a way that is easy for potential customers to understand. Additionally, productized services tend to be more scalable and efficient, as they can be delivered in a more standardized way.
So, how do you go about marketing a productized service? Here are a few tips:
1. Define your target market.
Before you can start marketing your productized service, you need to identify your target market. Who are you selling to? What needs does your target market have that your productized service can address? Answering these questions will help you craft your marketing message and choose the right marketing channels to reach your target market.
2. Create a sales page.
Once you have a clear understanding of your target market and what they need, you can start creating a sales page for your productized service. Your sales page should be clear and concise, and it should highlight the features and benefits of your service. Be sure to include pricing information and a call to action, so potential customers can easily purchase your service.
3. Drive traffic to your sales page.
Once your sales page is complete, you need to start driving traffic to it. There are a number of ways to do this, including paid advertising, search engine optimization, and social media marketing. Choose the marketing channels that will reach your target market most effectively and start driving traffic to your sales page.
4. Convert visitors into customers.
Now that you're driving traffic to your sales page, you need to start converting visitors into customers. This can be done by offering a free trial or a discount for your service. You can also use effective copywriting and design to increase the conversion rate on your sales page.
5. Upsell your customers.
Once you have customers, you can start upselling them on additional products and services. This can be done by cross-selling complementary products or by offering premium versions of your productized service. Upselling your customers will help you increase your revenue and grow your business.
How do you scale a productized service?
Productized services are a great way to scale your business. By turning your service into a product, you can offer it to a wider audience and make it more accessible. You can also automate some of the delivery process, which can free up your time to focus on other areas of your business.
There are a few things to keep in mind when productizing your service. First, you need to make sure that your service can be delivered consistently and reliably. Second, you need to ensure that your product is easy to use and understand. And finally, you need to make sure that your product is priced competitively.
Productized services can be a great way to scale your business. By turning your service into a product, you can offer it to a wider audience and make it more accessible. You can also automate some of the delivery process, which can free up your time to focus on other areas of your business.