7.9 Strategy

Services Marketing

If you are marketing a service, you already know that there are certain basic characteristics which differentiate your business from an organisation which simply markets a product. Alternatively you may be supplying products, but have a strong service element associated with that role e.g. the retail business.

For service industries three extra elements have been added to the marketing mix: who gives the service (people), how the service is given (process) and the environment in which the service is given (physical evidence).

This is because services are intangible and inseparable from the provider of the service. It is often difficult to maintain consistency of service and you face the constant challenge of matching demand with supply as you cannot store a service. Your customers do not end up owning a physical item, but leave you having enjoyed an experience.

7.9.1 People

Services are provided by people for people, and if the people providing the service are inefficient, rude or unkempt, your customer's experience will be spoilt. Whilst good customer care is important whatever you are selling, if you are selling services then your product is ruined. Your strategies need to cover the following:

  1. Selection and Training - are you recruiting the right people in the first place? Are you providing them with the tools to do the job? Training does not need to be expensive - you can carry it out yourself, or set up team meetings to practice role-play.
  2. Internal Marketing - are you actively promoting a culture of service within the firm? This could include good service awards, staff newsletter and team meetings.
  3. Presentation - do your staff behave and dress in a manner that reflects well on you as an organisation, and your service.

7.9.2 Process

You need to consider strategies that will ensure that your team can deliver a consistent level of service to all customers at all times. In a service industry busy periods and quiet periods are often unavoidable, and encouraging staff to follow routines will help to ensure that whatever the pressures, a level of service will be maintained.

7.9.3 Physical Evidence

You can treat the appearance of your staff and your premises in the same way that packaging can be used to create or enhance brand image. As your product is intangible, staff and premises are often the only tangible elements a customer sees. Would your staff benefit from a uniform? If customers' visit your premises, is there a unique feature about the building or location you can exploit? Alternatively can you create a brand image using distinctive décor? This 'corporate identity' is especially important if you have more than one outlet.

In addition, you might consider other things that your customers can take home with them that are physical evidence of the service you provide. This could include membership cards, loyalty cards, or certificates. Companies which provide gift experiences such as helicopter flights often send out videos and gift certificates in a presentation pack before the flight, and a certificate of achievement afterwards.

Services Marketing

  • Worked example

Next