Services are not tangible; it is up to you to clearly articulate what your company can do for customers. Service Marketing  requires specific strategies. It may be apparent to you what you can do for the customer, but helping the customer understand why your team is the best option to help them and resolve the problem is critical.
Take the time to understand these three things:

1. What are the strengths and weaknesses of your service operation?
2. What are the strengths and weaknesses of your competitors?
3. What are the needs of your customers?

#1 Your value proposition:

Once that is understood, it is time to analyze this information and determine gaps that should be fixed to gain a competitive advantage. This exercise will give you clarity on what should be a part of your “Value Proposition.” This term is sometimes overused, but this is what we mean when we use this phrase:

“A promise of value to be delivered should a customer decide to buy. Clear communication of what differentiates your service or product. What makes it a superior alternative for the customer.”

Once you know your value proposition, then take the time to educate your team. Members of your organization need to understand and be able to communicate as they represent your business every day.

#2 Reputation and Referrals:

Selling services is very intertwined with trust and relationships. First, this is a reason why monitoring and managing online feedback about your business is essential. Second, make sure that you are doing everything you can to have your happy customers and your staff advocate for your business. Two frequently used options are:

1. Referral programs: Offer customers a benefit like a service discount or some other bonus for a customer referral. Happy customers will provide referrals and references for you when asked.
2. Be visible: Take the time to demonstrate your service or technology that makes you a better alternative at a local event, tradeshow. Write an article or join an industry council. These or other similar actions will have a positive benefit on your reputation.

Take the time to learn what your customers think about your business. Understanding these strengths and weaknesses is key to taking steps to improve reputation. This information can be gathered through a survey, focus groups, or other means. Understand that online surveys where your employees ask some customers to respond to a brief phone or online survey are not the same thing, and typically the most significant value of this type of surveying is marketing not getting a clear insight into your strengths and weaknesses.

#3 Education:

As products and services continue to become more complex education is critical. 150 years ago buying or fixing a shovel was very straightforward. To purchase a shovel, visually evaluate it to make a personal determination if it was suitable for your application or trust that the salesperson had your best interest in mind. If it broke, purchase a new handle and install it or have it installed. The complexity of options was limited.

Today things are very different and the approach to service marketing needs to change to fit. A mini-excavator is today’s commercial equivalent to the shovel and a team of labors. Even a mini-excavator has numerous options and features. A Case CX17C has 11 options available, this adds to the complexity of a customer making a buying decision. The support required after the initial sale is equally complex as we should not just be thinking how we support a machine failure but rather what services and support will the customer need over the life of the machine. We need to determine when accessories like compactors, add-on GPS, fluid analysis, training and other services should be offered. Your sales team needs to have knowledge of the products and services; however, there is more. Educating customers is the key to helping them understand the potential value of sophisticated machine options for their business. Similar issues exist when discussing service options with customers.

Another example of the impact of education is the following. Telematics systems that report back on the health, position and other details of a machine has been an option or standard on construction equipment for over a decade now. When customers are questioned about the value of telematics on machines with the technology, their responses vary greatly but typically fall into two categories. “Telematics allows my dealer and manufacturer to support my machines better as a business partner, and it benefits my profitability” or “I see no value. I didn’t know I had it. No one has shown me how it benefits my business.” It should be evident how offering education and explaining how a similar business uses technology to their advantage could be beneficial and help the customer purchase based on the available technology versus viewing it as an unnecessary cost incorporated into the product which could cause you to lose the sale.

There are also very simple examples of service marketing like contacting customers before scheduled service is required.  It is an opportunity to educate them on what needs to be done to maintain optimum performance. Schedule a service call or offer the opportunity to provide the required parts.

#4 Online Marketing

Do you have an online marking plan?  Service marketing is also virtual. Today, just having a website is not enough. In previous articles, I communicated a very high percentage of prospects prefer to do initial research online before engaging your team. As an individual, the last time you made a major purchase, did you try to learn about the product or service online at any point during your buying process?

This year 87% of customers will use online reviews about products and the retailers they use to shape their buying decision. In 21 years, it is projected that 95% of purchases will be made online. Even if you are in an industry where change is slightly less dramatic, this change will impact every business. Do you have a service marketing strategy to prepare for this transition? Here are a few questions to consider about your current online presence and marketing plan.

1. Do you understand how much traffic you have?
2. What are visitors doing on your sight?
3. Who are they?
4. Are you using their visits to start a relationship?
5. Does your site provide value to your customers?

#5 Partners

A service marketing opportunity that is not often embraced until customers actively demand it is joint ventures and partnerships. They can be formal or informal. Look for a chance to offer complementary services or products. Here are two examples of this that work well for both partners.

Topcon is a designer of GPS / GNSS based hardware and software that provides automation capabilities to excavators as well as other products. For the mutual benefit of their partners and their customers, they have partnered with the suppliers that make the software that designers use to create site designs and building designs.

Manufactures like Komatsu have also partnered with Topcon to develop new products like the PC210LCi-11. Through this partnership, they have created a product that provides semi-automatic control to improve accuracy and productivity. Equipment dealers selling Komatsu construction equipment have also taken part in the benefits of partnering by selling and supporting Topcon equipment also. With this action, they have improved their “value proposition” to customers by being able to provide a construction site solution versus equipment or technology independently.

Here is an example of this that is found in another industry, real estate. Real estate companies frequently have partnerships with lenders, builders, insurance agents, and property management companies. There are mutual benefits and convenience that is brought to the customer. Typically, margins for each service also improves in these situations.

For your employees, there are also benefits in working with a small group of companies that you are partnered with as it limits the need to learn about the business process of a new company every time they assist a client that is using services from multiple companies as a solution to their issue.

An excellent opportunity for you or a business development consultant to add value is to evaluate your customers’ needs, identify and develop potential partnerships that could address the needs of your customers.

Summary:

Service marketing can be complicated, but as with any other area of marketing, having a plan is key to success. The plan should have at least these six elements within it.

6 Service Marketing Plan Elements

1. Business Summary: It includes necessary information about the business, goals, and mission. A SWOT analysis should also be a part.
2. Business Initiatives: An outline of the projects and initiatives that will be done in support of the business goals.
3. Target Market: Market research in support of understanding the industry you are selling in into, your competitors, and the profile of your likely buyers.
4. Market Strategy: Outline how you will meet the needs of the customer and what will differentiate you from your competition.
5. Budget: Outline the costs to execute the strategy and how much money the business will allocate to implement the plan.
6. Marketing Channels: Explains what channels will be used to market including, social media, online ads, print, vehicle branding, etc.…

Key strategies to consider when developing the marketing plan are not limited to but should include the items discussed in the article. Here are some questions to help drive the conversation.

5 Service Marketing Strategies

1. Value Proposition: Can you clearly articulate the organization’s value proposition? Are we confident that it satisfies an identified customer/client need and that the organization is ready to deliver?
2. Reputation & Referrals: Do you have a process in place to monitor customer reviews and other customer communications that impact company reputation? Do you have a clear plan to encourage customers to refer new prospects to you?
3. Education: Is your sales team fully educated and prepared to educate customers about your equipment, service, and services? Do you offer opportunities for your customers to become more educated about your offerings, both online and using other suitable venues?
4. Online Marketing: Have you benchmarked your competition online presence? Have you done a review of site analytics with your site developer or whoever maintains your site to understand opportunities?
5. Partnering: Have you spoken to your customers lately to understand “pain points” and opportunities for them that are closely related to products and services that you currently offer? Are you actively seeking partner businesses that would benefit customers if you decided to do coordinated marketing like real estate agencies and mortgage brokers frequently provide?

Ideate Consulting Group partners & consults with small and large enterprise to apply organic business growth methods that are proven and time tested to grow sales and revenue long term.

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