HOW TO PRODETIZE YOUR BUSINESS
The 8-Step Process of Turning Your Service Into A Product
Step 4 – Branding
The goal is to make your customers feel like they are buying a thing. Products have brands and branding your new product to make service offerings feel more tangible will lead to success in the marketing of your product.
Step 5 – List your tangibles, as in your “ingredients”
What will customers get when they buy your product? Shifting from a service to a product is largely about how it is branded to consumers. Listing the ingredients in each of your offering will help make the transition from service to product more seamless for both you and your customers.
Step 6 – Plan for objections
While feedback for services can be dynamically addressed on the spot as you are the interacting with the prospect first-hand, these personal interactions are oftentimes lost when selling a product. Consider what potential objections customers may have and preempt them.
Step 7 – Price it
Services tend to be quoted by the hour, day, or project. Products publish their price, making them feel more tangible. This published price communicates to your consumers that you have a standard offering that doesn’t change for each consumer.
Step 8 – Go time! Manufacture scarcity
Give potential customers a reason to act today rather than tomorrow. One benefit of services is that you have sales leverage because your time is scarce. With a product business, your offering is always available. Manufacture a reason to act from scarcity to encourage consumers to act fast and purchase your product.
This 8-step process of productizing your service makes it tangible for consumers. Somשe of the most successful services companies package their services like products. Today, in the depths of the coronavirus pandemic, productizing is more important than ever.
Why is is so important to prodectize your business and how?
One of the most value building strategies is “prodectizing your business”.
The answer for that lies Turning a service into a product that solves a specific problem can transform your business and offer opportunities for growth. As seen during the coronavirus pandemic, many generic services are being replaced by laser focused products. For example, consumers have begun opting for in-home workout products over personal training services. Productizing, or the act of service businesses shifting to products, can be done in eight different steps to transform your business and adapt to the ever-changing industries and markets.
Step 1 – Find your niche – MAke prodectize your business simple
While many services can be adapted and customized for a variety of consumers, products need to fit one type of consumer. Niche your product down to a cohort of people whom all share the same need. This allows you to efficiently reach potential customers through things like Facebook groups set up to serve a specific target. When deciding your niche, consider the following attributes of an ideal customer:
- Demographics – age, gender, income
- Firmographics – company size, industry
- Life Stage – just married, retired
- Company life stage – start-up, mature, etc.
- Psychographics – motivations, personality traits
Identify your TVR, “Teachable, valuable, repeatable”.
In the process of productizing your service, identify the services you offer that are teachable to employees and valuable to repeat customers. Score each of your services on a scale of 1-10 on the degree to which you can teach employees to offer the service, how valuable your niche finds the offering, and the degree to which they have a recurring need for it.
Step 3 – Define your product’s role
What exact problem does your product solve for your niche? Using the highest scoring service from Step 2, examine not only the features you plan to offer, but also the benefits of buying.