The Five Key Characteristics of Business Services

Business services are the activities that support a company but do not provide tangible goods. These are generally invisible to the customer but they are essential for the company’s operation and success. They can include anything from IT to warehousing. The services can be provided internally by the company or externally by third-party providers. These are a large and important sector of the economy and they are often the backbone of the manufacturing industry. They are also known as “service-based economies” and they play a significant role in European competitiveness.

The professional and business services supersector includes a number of very diverse industries. These range from information technology, telecommunications, and marketing to legal services, employment services, and facility management. The sectors within this supersector account for 11% of the EU’s GDP. It is one of the fastest-growing sectors in Europe, with significant growth potential. The sector offers a huge range of opportunities for new products and service combinations and it is a vital component of European manufacturing and the global economy.

There are five key characteristics of Business services. They are intangible, non-spatial, inelastic, inseparable, and requiring customer involvement. Intangible: Because a service is an experience, it does not have a physical presence. This means that a service cannot be stored and it has to be practiced each time. This is why a good service is so important in a business – it provides customers with a favourable experience and this makes them more likely to return.

Non-spatial: A service does not have a fixed place and can be delivered anywhere. This is why it can be more convenient to use than a product. It is also why a good service can make a huge difference to a company’s reputation. A company that provides a good service can attract more clients and increase its profits.

Inelastic: A service cannot be stored for future use, as with a good. It has to be produced when it is needed and then consumed immediately. This is why it is so important to deliver a good service each and every time. It is also why a good service must be tailored to the needs and expectations of each individual customer.

This is why it’s important for a business to create and implement service management processes, which ensure that the service is delivered according to the expectations of each customer. This also helps to reduce cost and increase customer satisfaction.

Unlike product companies, service businesses must focus on creating attractive offerings that appeal to a group of attractive customers. This requires a shift in thinking, from thinking about what features buyers will value to considering what kinds of experiences customers want to have. This approach is known as service design. It is a way for service companies to develop strategies that can create attractive offerings and differentiate them from competitors’ offerings. For example, they can focus on offering convenience, friendly interaction, or greater scope.