Ag Marke ng
NEWS UPDATE ‐ AUGUST 1, 2011
Ginger S. Myers
Marke ng Specialist
University of Maryland
Extension
Director, Maryland
Rural Enterprise
Development Center
gsmyers@umd.edu
301‐432‐2767 x338
www.mredc.umd.edu
www.agmarke ng.umd
Selling A Service
Services and jobs in the service sectors
are booming in the United States.
According to United States Department
of Labor statistics, the long-term shift
from goods-producing to service-providing
employment is expected to continue with
projected growth in education, health,
professional and business services
exceeding 30% annually through 2012.
customers because it usually costs less to
pay them for their services than to learn
how and then spend the actual time to
do it ourselves. The sale of a service is
basically the sale of specialized time.
Someone with a specific knowledge or
ability sell hours which deliver solutions
required by the client. Consumers buying
this time can’t kick the tires first.
So selling a service should be easy, right?
Wrong! Consumers buy services differently than products. When you sell a jar of
salsa, consumers can see, smell and taste
your product. When you sell a handmade
wool blanket, the buyer can hold and feel
it. But, when you sell a service, you’re
selling something that doesn’t exist yet.
When you visit the lawyer, accountant or
barber, you can’t try their services before
you buy them.
Overcoming intangibility is a unique
challenge in marketing a service verses
a product. There are several actions you
can take to help market your services by
helping customers better understand and
value your offerings. To reduce intangibility, buyers look for assurances of service
quality. They need to be reassured that
they are not making a mistake.
Other services such as home repairs and
website design and maintenance attract
Offering a money-back guarantee reflects
a promise to the customer that they can
buy your product with confidence. This is
University of Maryland Extension programs are open to all ciƟzens without regard to race, color, gender, disability, religion, age, sexual orientaƟon, marital or parental status, or naƟonal origin.
Selling a Service con nued from page 1 ...
especially important when
marketing services on-line
where customers might
perceive internet sales as
risky. Companies that
guarantee to do a job right
the first time or do it over
with no questions asked,
help customers buy with
confidence.
It’s smart to include a deadline with your guarantee
though. Otherwise, some
folks can abuse it months
after the service was rendered. If you’re a new business owner, you may have
to practice some generosity
to get customers to try your
service. Whether you’re operating a custom spraying
business or offering hay
rides, giving a free “trial”
may recruit new customers.
If satisfied with the service,
these folks can also provide
word of mouth advertising
for you. Offering the “free
trial” can be targeted to
first-time buyers or can be
used as part of a seasonal
promotional campaign, such
as a free hayride when you
first visit the farm to pickyour-own strawberries.
Service professionals, such
as graphic artists, use portfolios of their work as evidence of service quality.
Show potential customers
photos of any completed
projects, marketing brochures, ads and testimonials
from satisfied customers to
help reduce anxiety in the
decision making process.
These materials also work
well for both face-to-face
sales calls and in your web
marketing plan. Any company whose services results
in a physical product can
add tangibility this way.
Not all services produce a
physical product that can be
showcased. Mediators can’t
show clients a resolved
case. Service-based professionals can often add tangibility to their work by letting
clients know what their credentials are. For example,
doctors and lawyers almost
always display their diplomas in their offices. Testing
laboratories list their accreditations. If someone is a
certified organic inspector,
that information helps assure producers that the recommendations offered meet
the National Organic Produc-
tion Standards. As in all
marketing, you need to
differentiate your services
from the rest of the pack.
You can add tangibility to
your service by providing a
physical product with your
service. Dentists often give
patients a toothbrush after a
checkup. Service companies give customers cups,
caps or key chains; all embossed with their company’s
name and often with their
address and phone number.
add tangibility to a service is
with a letter. Services can
send a thank you note detailing the service provided
and thanking the customer.
This note can also help differentiate your company
from others in the customers mind. When insurance
agents or real estate agents
send you a calendar, they
are providing a reminder of
the services they provide.
Because services are intangible, people may not always know what went into
the service or when they
may need to use it. When
Jiffy Lube puts a reminder
sticker in your window, it
not only tells you when your
next oil change is due, but
adds perceived professionalism to their services.
One of the great things
about selling the intangible
is it has the ability to
change and grow on the
spot. Your service can
change and improve overnight. Most niche marketing
involves staying ahead of
the curve when it comes to
what customers want. In a
service business you can
ask your customers, “What
am I doing right?” and
“What needs to be
improved?” Then you can
put those changes into
effect immediately.
If you religiously collect
input from your customers,
your service will constantly
improve and you’ll garner a
wealth of ideas on how to
make the invisible more
tangible.
A very economical way to
University of Maryland Extension programs are open to all ciƟzens without regard to race, color, gender, disability, religion, age, sexual orientaƟon, marital or parental status, or naƟonal origin.