Business services are activities that benefit companies without delivering physical products. This includes such things as marketing, consultation, logistics (including travel and facilities services), waste handling and staffing services to name just a few. Nearly every company requires some level of business service to operate effectively. Some businesses outsource their business services needs to save time, money and to ensure they are getting the best quality of service.
In economic theory, the business services industry is classified as tertiary. This means it is a subset of the secondary sector, which is responsible for manufacturing tangible goods. However, the business services industry is growing faster than the primary and secondary sectors combined. This is due in large part to the emergence of new technologies that allow for greater efficiency and more customization of business services.
Unlike the traditional product-based economy, a successful business service company must focus on the value of its customers and their experience with the brand. This approach to the market has created whole new areas for management that are different from the tools that have been used in the past to manage product-based businesses.
To succeed, business services companies must address four important areas:
1. They need to understand their customers.
Depending on the type of business, it may be necessary to create customer profiles or survey existing customers in order to better understand what kinds of services are needed. This approach can help a company identify unmet needs and develop products or services that are able to meet those needs.
2. They need to focus on their core competencies.
As the world of business continues to become more competitive, it is becoming increasingly important for companies to focus on their core competencies and outsource or partner with other businesses in order to be able to meet all of the demands placed upon them. Having the right kind of business services can also allow a company to improve its bottom line by reducing costs and increasing productivity.
3. They need to be innovative and flexible.
While many business services are relatively standard across industries, it is important for a company to continue finding ways to innovate and be able to adapt to changes in the marketplace. This will enable a business to remain competitive and keep customers satisfied.
4. They need to be able to deliver consistently.
Unlike physical goods, which can be stored and resold at a later date, services are delivered on demand. This means that the quality of a business service can be directly affected by the demand it receives. For example, a customer who dithers while waiting to be served at a fast food restaurant can make the overall service experience less desirable for everyone behind him.
As a result of the increased competition and the changing marketplace, business services companies must continuously strive to provide high levels of customer satisfaction. This is important for retaining customers, increasing revenue and growing their business.