In this post, I’d like to discuss the concept of offering productized services, which are traditionally personalized, for sectors such as legal, accounting, marketing, but this concept can be applied to any service as well.
This approach, largely popularized by SAAS organizations, has enabled them to achieve more predictable and scalable results.
Across the globe, millions of service-based businesses like accountants, marketers, and attorneys offer highly personalized services, which is fantastic for delivering custom solutions tailored to each client’s unique needs.
However, this approach has a significant drawback: it’s time-consuming. Each client becomes a separate, custom project, quickly filling up your schedule and limiting growth potential.
So, what’s the solution to breaking out of this cycle and scaling effectively?
The answer might just be in productizing your services.
Understanding Productization
- The Essence of Productization: Productizing means transforming a service into a standardized, scalable product. It’s about taking what you uniquely offer and packaging it in a way that allows you to sell more without proportionally increasing your workload or resources.
- The Scalability Factor: Productization is the key to scalability in service-based businesses. It allows you to serve more clients without a linear increase in time and effort, breaking the traditional trade-off between time and income.
The Steps to Productizing Your Service
- Define Your Niche: Start by focusing on a specific skill or service area where you excel and that’s in demand. This makes your offering clear and targeted.
- Define Plan Scope: Clearly outline what’s included in your service and, importantly, what’s not. This helps manage client expectations and streamlines your operations.
- Set a Price: Develop a pricing strategy for your productized service. Consider a flat rate or a subscription model to encourage ongoing engagement.
- Automate and Delegate: Use tools and delegate tasks to optimize business processes. This step is crucial for handling increased volume without sacrificing quality.
- Get Feedback: Continuously collect and incorporate customer feedback to refine your offerings and ensure they meet market needs.
- Scale: With a successful productized service, consider expanding your portfolio with additional, complementary offerings.
Example: Productizing a Business Consulting Service
Imagine a New York business coach specializing in helping entrepreneurs start their businesses. Instead of offering one-on-one sessions only, they could create a productized service by offering recorded training modules that clients can purchase and complete at their own pace.
Applying the Steps:
- Niche Defined: Entrepreneurship start-up coaching.
- Plan Scope: Prerecorded training covering start-up guides, legal, marketing, and financial planning. Monthly webinar.
- Set Price: A fixed price for the entire module series or a subscription for ongoing support (example $9.99/mo)
- Automate: Use an online based coaching platform for hosting and selling the training.
- Feedback: Offer a feedback form at the end of each module to gather insights and improve.
Scale: Once established, introduce advanced modules or personalized coaching upsells.
Real-Time Examples of Successful Productization
As we explore the concept of productizing services for scalable business growth, it’s helpful to look at real-world examples.
Dollar Shave Club: The Dollar Shave Club is a prime example of productizing a basic service – shaving. Instead of selling razors as just products, Dollar Shave Club offered them as part of a subscription service.
Prepaid legal services: Prepaid legal services have productized the traditionally complex world of legal aid. Instead of charging per hour or service, firms offer legal service packages on a subscription basis. Here’s how this approach has changed the legal industry.
eHopper Website: Another example of productization in the service industry is eHopper’s approach to website services. Traditionally, businesses seeking web design and hosting faced two distinct processes: paying for the website design as a one-time project and then separately for hosting and maintenance. eHopper productized this model by offering a simplified, self-serve, all-inclusive package for a monthly fee.
A Balance Between Customization and Scalability
Personalized and custom solutions have their place and can significantly impact individual clients.
However, for businesses looking to grow and scale, productizing services offers a compelling path.
It’s about finding the right balance that allows you to maintain quality and personal touch while expanding your reach and impact.
As you contemplate this shift, consider the potential benefits: more clients served, increased revenue, and perhaps most importantly, more time to focus on what you do best.
I’d love to hear your thoughts and experiences with productization.
Are you ready to transform your business model for scalability?
Best,
Vladimir