Business services are a broad category of activities that assist businesses but do not result in a tangible product. They make up a large part of the economy and are vital to many small and medium sized companies. Business services are also increasingly being used to add value to products through new combinations of goods and services.
Insurance services are a common and essential business service. They provide coverage for employees and their families in the event of a disaster, as well as for a company’s practices and property. This protection gives employees peace of mind, and also frees up company resources to devote to other areas of need.
Legal services are another important business service, as they help companies with legal matters like negotiating contracts and settling disputes. The availability of these services can be crucial to a company’s success, and they are usually provided by lawyers who specialize in the relevant field.
Recruiting services are also a vital business service, as they are responsible for finding qualified employees for companies. These professionals are experts at screening and selecting candidates based on their skills and experience, and can save companies valuable time and money by eliminating applicants who are not a good fit for the job.
Technical support services are an important business service, as they help companies troubleshoot network and computer issues so that they can remain productive. These professionals are available to assist with a variety of technology problems, and they can often fix these issues in a timely manner.
Educational and training services are also a business service, as they allow companies to hire trained professionals to teach employees the necessary skills for their jobs. These professionals can help with everything from basic computer training to advanced courses in specialized subjects.
Utility services are also a form of business service, as they help keep companies running smoothly by providing water, electricity and gas. These are typically offered by private companies or government agencies.
As with product companies, the success of a business service depends on the quality of its offering. Service providers can attract and retain customers by providing convenience, friendly interaction, and competitive prices. In addition, they can differentiate themselves from competitors by addressing unique customer needs and desires. This requires a shift in the perspective of managers, as they must focus on designing experiences rather than products. This is a challenging task, as it is difficult to determine the characteristics that customers will find most appealing. However, as research and practical experience accumulate, some general principles are emerging. These include: