What Are Business Services?
While economic services are widely recognised as a subset of business activities, business services are quite distinct. They share certain characteristics, like being consumed by businesses, as well as building their own service systems. So, what are business services? Let’s take a look at a few of them. These services can be divided into two general categories: intangible activities and tangible products. In each case, the main distinction lies in the nature of the service.
The value of intangible products and services is often difficult to quantify, especially if customers never see or touch them. Examples of intangible products and services are banking services, cleaning services, freight hauling, and energy management, maintenance services, telephones, and telephone systems. All of these products have an intangible value, but they are important because they are essential to the continuity of life. These goods and services require special attention to retain customers.
Intangible goods can be made into tangible products by changing their physical state. For example, a booking agent may provide an intangible service by converting a gas into a liquid. A book can become an e-book through digitization. For example, an exchange of liquefied ammonia will not be classified as a service because the exchange is physical, whereas a physical book cannot be stored.
Selling intangible products is difficult because the majority of their selling points only become apparent once the product is in use. A company may not feel comfortable paying for intangible goods without seeing tangible results. However, communicating the benefits of intangible products and services to customers is essential. There are many ways to market intangible products and services, but the process can be difficult. A good approach is to focus on tangible benefits and include data to back up your claims.
Intangible products are non-physical goods that are sold to customers but cannot be touched, seen, or smelled. Examples of intangible products include insurance, tax services, cell phone service, and some computer software. Intangibles are often valued higher than tangible products because they do not have a physical form to sell or transfer. Business services and products are also intangible, but some of them are more difficult to measure or value.
Intangible products are often more challenging to sell, as most of their selling points become apparent only after the customer has used it. Additionally, intangible products may not be easy to price because companies may not be comfortable paying for them until they actually see the effects for themselves. Hence, it is important to communicate the benefits of the intangible product or service to prospective customers and make them feel confident in purchasing it.
Similarly, intangible products are highly people-intensive. For example, an insurance company may send periodic notices to its customers, including a single sentence congratulating the customer on his/her purchase. Following this, it might include views on personal financial planning, tax rulings, and special protection packages for other types of insurance. These notices reinforce the presence of the seller in the minds of customers and remind them of the value of constant delivery.