Business services are activities that benefit companies without supplying physical products. These include marketing, production and other professional services that support all the other work of a company but aren’t directly related to manufacturing products. Examples of business services are accounting, consulting, facility management and market research.
A successful service business is based on a unique value proposition. For example, a coffee shop may be able to attract customers by offering convenience and friendly interaction. A janitorial company, on the other hand, may compete by offering extended hours or higher scope of service. Moreover, a service company must continually evaluate its customer’s needs and wants, because their perception of value can change quickly.
The main difference between a service and a product is that products can be stored for future use, but services are consumed immediately. Another key difference is that customers are often involved in the operational processes of a service business, sometimes to a significant extent. For example, a customer who dithers at a fast-food counter affects the efficiency and quality of service for everyone behind him.
Companies in the business services industry must continually innovate to attract and retain customers. They must be able to adapt quickly to changing market conditions, and they should provide a variety of convenient and cost-effective services. For example, many businesses offer remote and mobile services to enable their employees to work from home or on the go. In addition, some companies offer outsourcing services for specialized tasks that they cannot handle in-house.
