Tweet

Your Path to Effective Service Selling

Written by: Kendra Lee

Article Overview: Selling services is far different than selling products, and for reps who want to be successful at "service selling", it's imperative to understand where the differences exist.

Your Path to Effective Service Selling

Selling services is far different than selling products, and for reps who want to be successful at "service selling", it's imperative to understand where the differences exist.

Many consumers today are accustomed to purchasing services such as warranties attached to a new product, or subscription services such as cable television or Internet. Another kind of service is professional services. These business services may provide technical, strategic or consultative help as needed. While consumers may be accustomed to companies selling a service attached to a product, they may not be as familiar or comfortable buying professional services for their company.

The biggest distinction between products and services is that while products are tangible, services are intangible. With products, such as a computer or flatscreen TV, a person receives instant gratification following their purchase. For a customer who makes a decision to purchase services, the resulting gratification won't be as immediate and will require more commitment on their part. It's because of this distinction that trust, credibility and solid client relationships are critical success keys to selling both product and professional services.

Four Key Questions
Companies in the market for professional services typical ask four questions.

Will these services save us time?

Will these services save us money?

Will these services increase our productivity?

Do we need to outsource the service, or can we do it ourselves?
In conversations with your customers, uncover which of these questions is the highest priority to them, and focus on the matching business benefits your services can provide. For example, if your customer has identified increasing productivity as a key business initiative, you might highlight how your service offerings will allow them to increase productivity without requiring additional time away from their already hectic schedules. By presenting the case that using a third party service provider is the most efficient way to fill the need while increasing productivity, you demonstrate your ability to help them save money and time.

Three Success Keys
Services selling is based on three success keys:

Trust

Credibility

Solid Relationships
Both the sales cycle and service contract may take more time to close and execute than selling a product. You must be able to instill and maintain trust over the duration of that time. This can be done by delivering compelling value propositions that generate interest and bring immediate value to the customer. Credibility grows through sharing success stories, providing testimonials and referrals, and presenting the compelling business benefits and value of potential services. Customers will come back for services over and over when you establish a solid relationship and put yourself in the position of "trusted advisor".

Client Satisfaction = Referrals
For successful companies that sell desirable products, demand for their products will continue based on effective marketing and customer desires. It may not be this predictable for companies selling services. Service businesses depend on satisfied clients more than other businesses, both to maintain their credibility and continue to drive new business referrals. Services are more complex to price, to deliver and to evaluate than single products. In addition, measuring the quality of service varies from customer to customer.

Conduct regular "how are we doing?" conversations with customers. Use the information you gather to generate new opportunities and new leads. Customers who realize value in services provided are often eager to share their success with you through referrals and case study examples. All you need to do is ask.

By understanding the differences between service and product selling and executing a sales strategy incorporating these critical success factors, you'll instill trust, enhance credibility and form solid relationships while demonstrating value for your services to many potential customers. This value will translate into increased sales and new referrals for you.

Related Articles
  How to Modify the Path Variable in Linux/Unix
  LEADERS TRAVEL ON THE PATH OF MAKING PATH.
  LEADERS TRAVEL ON THE PATH TO BECOME THE PATH.
  Marketing and Selling
  The 'Being Efficient' Myth In Sales

Article Tags: business benefits, business initiative, business services, cable television, client relationships, conversations, credibility, critical success, distinction, hectic schedules, imperative, increasing productivity, instant gratification, key business, professional services, purchasing services, service offerings, subscription services, third party, warranties



Related Forum Posts
Re: Service Or Product? - I agree with starting a Service-based Business in the economy. Here is what I think is critical: 1. Researching that your Service business has a market. 2. Marketing the Service with as much leverage as possible. 3. Product-izing the Service (aka Package Expert Knowledge). This will only help elevate you as "the" expert in your niche and make you accessible to people in different price points.
Who Said Twitter Doesn't Work...? - Last month, the BBC World Service programme, The Strand, featured 21 year-old Icelandic pianist/composer Olafur Arnalds. Arnalds achieved extraordinary success through his internet-led project to compose 7 tunes in 7 days, post them on his website and then post links to it via TWITTER. As a result his website got thousands of visitors eager to listen to his music, catapulting him to fame and bringing his music to the attention of the BBC, who featured an interview with him on the World Service programme, The Strand! So who says Twitter doesn't work? (HINT: It does help if you have something uniquely your own that other people want to get hold of...)
Re: What Sells Online? - Its really true that gadgets, books and fashion wears are more in demand on the internet business.. But firstly, the assumption I am going to make is that you are looking to install an open source software. The one I recommend is Magento Commerce, which is an extremely powerful platform to use for any e-commerce business. Tyrone Shum Internet Business Path dot com --------------------------------------------------------------------------------------------- Need help with understanding ecommerce? Visit my blog and learn how to profit from ecommerce.
Re: Kevin's Case Study #10 - When to become an entrepreneur? - When the bug bite you. A lot of successful entrepreneurs started in their teens or at school. Selling sweets to fellow students or lemonade to firends in the neighbourhood.
Re: This is Marketing Warfare! - Hey GT, I guess this was from a while back, and it'll test your memory a bit but could you possibly elaborate on Unique Selling Proposition? Can you give us some examples of good USPs?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The Neglected Art of Receiving

Anger Solutions at Work: Why Customers Get Angry

10 Reasons Your SBA Loan May Be Declined

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.