If your business is suffering from inefficient service delivery and a nonrepeatable process, this is not only frustrating, but also time consuming and a drain on your resources. However, with the right growth strategy framework, such as service package productization, your organization can become an expert in your niche and market your services lucratively.
Productization is the process of packaging your consulting services into a set of products that can be easily sold to clients. The truth of the matter is, “repeatability” is more profitable. Creating service packages for your business can be a great way to streamline the sales process and provide clients with a clear understanding of the services and value that you offer. This approach can help you to increase revenue, reduce the time and effort required to close deals, and improve client satisfaction. Read more about these benefits below.
12 Benefits to Service Package Productization
Clients Know Your Value
One of the key benefits of creating service packages with a professional services company is that it allows you to clearly communicate the value that you offer to clients. When you package your services into a set, it makes it easier for clients to understand the specific benefits and outcomes that they can expect to achieve by working with you. This can help to increase the perceived value of your services and make it more likely that clients will choose to work with your company.
Time Efficiency
Productization can help you to close deals more quickly and efficiently. When clients are presented with a clear set of service packages, they can quickly identify the one that best meets their needs and budget. This can reduce the time and effort required to close deals and make it more likely that clients will choose to work with your company.
Increased Sales
Productizing services can lead to increased proposal-to-sales conversion ratios. By clearly communicating the value of your services through well-defined service packages, clients are more likely to understand the specific benefits and outcomes they can expect to achieve by working with your
company. This can make it easier for them to make a decision to buy, which can lead to higher conversion rates.
More Reliable Estimates
Productizing services can lead to improved reliability of estimates. When services are packaged into defined products, it becomes easier to estimate the time, resources, and costs required to deliver them. This can lead to more accurate estimates and improved predictability for both your company and the client.
Measurable Performance
What can be measured can more easily be adjusted for growth. Productizing services can lead to more measurable performance from repeatable services. In creating defined service packages, you can develop standard procedures and processes for delivering those services. This allows you to consistently deliver the same level of quality and value to clients, which makes it easier to measure and track performance over time.
Smarter Hiring
Productizing services can lead to accelerated recruiting, hiring, and ramping. When you define service packages and standard procedures, you can more easily identify the skills and experience required to deliver those services. This can make it easier to recruit and hire the right talent and to train and ramp up new resources more quickly.
Easier Hiring
Productizing services can enable firms to staff with less experienced resources. Developing standard procedures and processes for delivering services can help you more easily train and onboard new resources, even if they don't have as much experience. This can help to increase the availability of resources and improve scalability over time.
Stand Apart From the Crowd
Another advantage of productizing services is that it can lead to improved intellectual property value around methods, tools, and processes. You can create valuable intellectual property that can be used to differentiate your company from competitors. This can help to increase the perceived value of your services and make it more attractive to potential clients.
Project Optimization
Productizing services can lead to superior project governance. This can improve your ability to manage and oversee projects and can help to ensure that projects are completed on time, within budget, and to the desired level of quality.
Risk Management
Productizing services can lead to reduced risk and improved consistency and quality. You can more easily identify and manage risks, which can help to improve the overall quality and consistency of services and reduce the risk of unexpected problems or delays.
Revenue Recognition
Lastly, productizing services can lead to greater revenue recognition. Productization allows you to identify the specific services and deliverables that are being provided to clients, and define when you’ve met client obligations. By answering the ever-present question of “when are services rendered?” your accounting is better defined and less ambiguous.
How Do I Package Services?
To create service packages for your business, start by identifying the core services that you offer. Once you have identified them, you can then package them into different service packages that are tailored to the specific needs of different types of clients.
It is important to note that packages must have predetermined deliverables.
In addition, it's important to ensure that your service packages are competitively priced. To do this, you should research the prices of similar services offered by other firms in your industry. This will give you an idea of what clients are willing to pay and allow you to price your service packages accordingly.
ALTA Powers Your Account Growth Strategy
Productization of your service packages is a great way to streamline the sales process and increase revenue for your consulting business. By clearly communicating the value that you offer to clients and packaging your services into a set of products, you can make it easier for clients to understand the specific benefits and outcomes that they can expect to achieve by working with you. This approach can help you to increase revenue, reduce the time and effort required to close deals, and improve client satisfaction.
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