Unlike product businesses, whose fate depends on whether they can improve productivity, service companies are judged by the quality of their offerings. That means that they must master four distinct areas of service design: cost, convenience, value, and speed.
A third of the global economy is made up of Business services, which includes consulting, management, and IT solutions, along with logistics, shipping, and administration services. All of these activities are aimed at improving efficiency and competitiveness for businesses.
The success of a Business services firm often depends on how well its employees understand the needs of customers. This is because service environments can involve customers in operational processes to a degree that product businesses don’t. A customer who dithers at the counter of a fast-food restaurant can make service slow for everyone behind him. Similarly, an architectural firm’s client may influence the project’s scope by explaining its purpose poorly.
In addition to traditional B2B financial services like commercial loans and lines of credit, many b-to-b firms offer warehousing, order fulfillment, inventory management, and transportation services. For example, a third-party logistics company might take care of all the logistical responsibilities involved in eCommerce fulfillment, such as receiving goods from manufacturers, picking and packing orders, and processing invoices.
Other services can include translation, training, and technology support. For instance, a language service company can help a business reach more customers in different languages and reduce the need for its employees to travel abroad. Technology services can also cover in-house IT issues, such as troubleshooting and fixing computers and networks.