Service companies are characterized by offering a high degree of specialization within the activities they carry out. Companies that provide gas, electricity or water are a good example. But there are also those that combine services with tangible products.
Among entrepreneurs there is a great debate, are service companies better or those through which products are sold? Which of them is more profitable or easier to manage?
The answers to this and other questions will always depend on the type of market you want to focus on, as well as the type of goals or expectations you have in mind for your business.
To help you make a decision, we are going to share with you what service companies do, the most important characteristics behind them, and the types you will be able to choose from.
What are service companies?
As its name indicates, a service company is one that provides intangible elements (services) that cover specific needs of the final consumer.
The water service is a good example to accompany the definition of service companies. You pay for a monthly service that allows you to receive water to bathe, wash clothes, drink it, cook, etc.
However, in order for a company to focus on providing a service, it must ensure that it has a high level of specialization to meet the needs of its customers. Can you provide multiple services? If required? Not really.
However, through this you can enjoy a list of benefits, for example: short times to carry out certain tasks, the possibility of customizing costs depending on the market or the moment and, of course, creating direct interactions and transactions with customers. customers.
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Characteristics of service companies
Service companies in Argentina, and around the world, have different services to which we invite you to pay special attention:
- They become inseparable
- They are intangible
- There is a great variety of them.
- They expire under different guidelines
- They encourage co-creation
Let’s see in detail what each of these features is about:
1. They become inseparable
This means that services are created and consumed at the same time, in one place and under the same process:
- Its quality cannot be measured prior to delivery or completion.
- The fluctuation of the can not be taken care of with an inventory.
- In most cases the services are offered on site.
2. They are intangible
In other words, you pay for something that can be used, but many times you cannot touch it since it is more focused on the experience or the benefit that is experienced through the service itself.
- They are activities or concepts that are added to one or more processes.
- There is no need to have a means of transportation to .
- A client measures its quality based on the reputation of the provider of the service.
If it is about reputation, we share this post about what the brands of our work say:
Article
3. There is a great diversity of them
The same service can change or combine several elements:
- They are modified based on the specifications or requirements of the client.
- The quality that is perceived is different from one client to another.
- There will always be some variation in service.
4. They expire under different guidelines
All services are offered with a list of specifications:
- If a service is paid for and not used, it expires.
- The company misses opportunities by not being able to store the service.
- If the service is not demanded, losses occur.
5. They encourage co-creation
Customers can be part of the creation of one or more of the services that a company offers.
- Empathy is fundamental, which allows us to understand the client.
- A client has the possibility to modify a service according to his needs.
- Having an excellent service makes a big difference in the interaction with the customers themselves.
💻 Do you have a virtual store or are you thinking of creating one? We recommend you read this customer service guide to provide quality support online.
Types of service companies
Knowing the types of service companies will help you create a sustainable business over time. Take note to locate yours in the sector that fits your project:
of uniform activities
They are those that make their services available in specific sectors on an ongoing basis. Sometimes, they even offer discounts or promotions to their most committed customers. For example:
- Cleaning
- Maintenance
- Repair
- Water
- Electricity
- Gas
- Telephony
- Banks
Specific activities or project management
Customers maintain occasional contact with these companies, that is, they turn to them when they want to cover a specific need. For example:
- Web programming
- Staff pick
- Event organization
- specialized consultancy
- Computer Services
of combined services
These types of companies are identified because they combine the offer of a service with the sale of tangible products. For example:
- funeral homes
- Restaurants
- Sale and repair of household appliances
- cinemas
- Advertising agencies specializing in the installation of advertisements
Service companies and outsourcing, are they the same?
Although both terms focus on providing a service, it is important to identify how they differ from each other.
Service companies focus on developing activities with a high degree of specialization at a . The concept of outsourcing refers to a company that hires another to outsource its internal processes.
Now, can a company focus its services specifically on outsourcing issues? Yes, but not all service companies focus on this modality.
What is needed to create a service company?
Service provider companies need 4 basic pillars on which to grow:
- Strategies
- Equipment
- Methods
- Customers
Next, we explain what each one is about.
1. Strategies
To sell it is necessary to have a plan. Currently, the best known are the , through which consumers are reached who browse the different available platforms, such as social networks, search engines or emails.
💡 If you want to have your own service company, it is important that you are aware of the legal and administrative issues, for this reason, we leave you the following article about the .
2. Teams
Although there are entrepreneurs who have their own company and do not depend on a team to carry out their strategies or provide a good service, it is often necessary to collaborate with other professionals to ensure that said service reaches the final consumer.
3. Methods
As you are going to read later, it is important that you have a . And you need to consider the processes through which it will be possible to develop and sell your service.
4. Clients
It is the person for whom you take into account all the elements mentioned above. The client is the one who is interested in your proposal and, to a large extent, on whom he depends if your business grows.
Steps to create a service company
To create a service company, it is important that you take into account 5 crucial steps, which will guide you until you close your business:
- Identify a specific market or need
- Research industry or sector conditions
- Add value to the service you have chosen
- Choose a business model
- Register the company to operate legally
- start and measure
- Identify a specific market or need
Is there a problem to which you can offer a solution? Asking yourself this first question gives you the opportunity to select what type of service you are going to offer. Look around you and analyze what you need and what you can contribute based on your knowledge and experience.
1. Research industry or sector conditions
Here it is important that you get the answers to questions such as:
- ?
- Is the market that offers this service saturated or not?
- What are the prices that are currently handled?
- What are my investment costs going to be?
- What are the current trends?
- What is the customer’s buying engine? Not only locally or nationally, but also internationally.
2. Add value to the service you have chosen
What makes you different? How can you inject this authenticity into the service or services you are going to offer? Looking for a differentiator will always help you stand out from your competition, especially in a world where most only seek to replicate what others are doing.
Remember that what works for your competition may not work for you because the objectives, personality and your business may be different.
3. Choose your business model
Do you want your brand to be purely digital? Do you want to have a website? Do you want to have a to talk about the news behind your services? How are you going to charge for these services and ?
Think carefully about what can really work for your company and take into account that you can help yourself with multiple tools to achieve it. Therefore, we bring you our guide with the best tips to sell online today:
4. Register the company to operate legally
After having the type of service, the name of the company and its business model, the next step is to register. In addition, if you are going to sell your services online, we bring you this article so that you know which are the ones to do it.
5. Start and measure
When putting your plan into action, it is important that you take some time to evaluate what you are doing and be able to answer the following questions:
- Are you managing to connect with your audience or with your ideal client?
- Do you need to focus efforts on prospecting clients?
- Do you need a striking image?
- Do you know the ?
Without a doubt, they will be your best ally to improve and make the necessary changes in your services.
💡 Tip: We recommend you review this article where we detail and the procedures that you have to consider.
Examples of service companies
If you are looking for examples and inspiration, the time has come! Here you are going to read 5 excellent successful service companies in Argentina:
- Digital marketing services companies
- Tourist service companies
- Home service companies
- Cleaning service companies
- Financial services companies
Here is a summary of each item:
1. Digital marketing service companies
Argentina has a significant presence in the digital marketing market. Today, companies in this field offer services from digital strategy, web positioning and planning to e-commerce development.
🛒 is the leading e-commerce platform in Latin America and trusted by more than 100 thousand brands. If you want to digitize your business and be part of…
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