Business services are the various tasks and activities that help a company or an organization maintain their operations without actually delivering a tangible product. These services range from information technology that supports other business services such as procurement, finance and shipping to a medical doctor’s service that treats patients.
Intangible assets, untouchable and inconsistent.
Intangible assets are intangible because they do not have a physical form, and cannot be touched. This characteristic makes them difficult to store for future use. It also means that they can’t be replicated or manipulated for commercial gain.
They differ from customer to customer, based on their needs and expectations. This is especially true for services such as healthcare or education, where it’s important to provide a positive experience for the customer.
Consistency is also a factor that distinguishes business services from physical products. It is essential to have the same experience and quality every time a customer uses a service.
Inseparability is the third factor that distinguishes business services from physical goods. In goods, production and consumption take place at different times, while in services both take place simultaneously.
Business services have four critical characteristics that managers must understand to build successful businesses: design, customer experience, cost and service management. These four elements are referred to as the service model, and they are what distinguishes service companies from product companies.
The first critical step in designing a service is to identify the attributes customers will value most. These can include convenience, friendly interaction, and a high degree of value-add. Managers must then design a service that meets these values, or the business will struggle to achieve long-term success.
The second critical step is to make sure that customers receive the highest level of satisfaction with your service. This means making sure that your team members interact with your clients in a positive way, and that the customer service representatives are trained to provide the best support.
The final element of a service is to ensure that it’s cost-effective. This can mean using a cheaper workforce, or finding ways to reduce overhead expenses.
A company’s cost structure can affect how it provides services to customers, such as deciding whether or not it is worth paying extra for an additional service. In some cases, it’s best to outsource certain services, such as accounting or legal advice, so that the company can avoid paying expensive staff salaries.
In many countries, such as India, outsourcing business services is a popular choice for small businesses. In addition to saving money, it also helps businesses focus on their core operations instead of spending their resources on hiring and training new employees.
Outsourcing is also an effective way to deal with talent shortages, as it enables you to hire skilled workers from outside your country. For example, if you need transcription services but don’t have a dedicated staff in-house, it’s better to outsource these services to a firm that can afford to employ specialized professionals with the right skill set.