Trust, high quality and good relationships are paramount for businesses providing services rather than selling products. This kind of business faces unique challenges and gets exceptional opportunities and growth chances. Similar to companies selling products, the ones selling services also need to maintain a good brand image and make sure their digital presence is proper. This is where digital marketing joins the game and helps service-based businesses thrive. In this blog let’s explore actionable tips, tricks and insights on how to improve the static growth of your service-based business.
Understanding the Nature of a Service-Based Business
A service-based business is similar to a creative workshop, where your knowledge and skills are the products you offer. Your services, in contrast to tangible things, are consumed as soon as they are provided. Since clients are the lifeblood of your business, developing good relationships with them is essential. Some examples of service-based businesses are:
- Professional Services: Lawyers, accountants, consultants, and architects
- Personal Services: Hairdressers, massage therapists, and personal trainers
- Creative Services: Graphic designers, web developers, and writers
- Business Services: Marketing agencies, public relations firms, and customer support
Product-Based vs. Service-Based Growth: Key Differences
Because product and service-based businesses have completely different operation mechanisms the marketing and growth strategies are different significantly too. The main goal of product marketing is to display real goods that consumers can handle, feel, and view. Like when you wrap a gift with exquisite paper and a gorgeous ribbon, the goal is to present the goods in the best possible light.
At Digilite we work with numerous service-based businesses from around the world operating in various sectors from real estate to mortgages and PR. We know exactly how to market a service-based business, especially by using the best-working marketing techniques.
Marketing for services is a little different. It’s comparable to pitching an encounter or a fix for an issue. You draw attention to the advantages and how the product will improve the customer’s life rather than the product itself. Now that you know what a service-based business is, let’s discover why the differences are important.
Why These Differences Matter
- Tangibility: Products are physical, making it easier for customers to assess them before purchase. Services, being intangible, require marketers to build trust and highlight the experience or result.
- Customer Decision-Making: Product decisions often hinge on features and price comparisons, while service decisions are based on trust, reputation, and perceived value.
- Marketing Channels: Product marketing relies on visual media to showcase features, while service marketing uses content and social proof to build credibility.
8 Tips for Growing Your Service-Based Business
Now let’s understand how to grow a service-based business and on what to focus first. Moreover, let’s uncover how to promote a service-based business with the help of marketing.
1. Focus on Customer Experience
Maintaining a client base and promoting word-of-mouth referrals need exceptional customer care. This is one of the top ways of how to scale a service-based business.
For the goal of improving customer experience, you need to make sure the services you provide are customized for each client. For instance, a digital marketing company like Digilite can send clients personalized reports that highlight the exact metrics that matter most for their goals. As a service-based company, we pick metrics and set specific goals with each client, as for each company the final desirable result is different. Moreover, establishing a customer feedback loop through surveys or follow-up conversations helps identify issue areas and implement the necessary fixes. At Digilite we schedule weekly, bi-weekly or monthly calls to discuss the results and gather feedback. These little but crucial actions can boost client retention and loyalty, which will support long-term success.
2. Leverage Technology and Automation
By using technology and automation, you may drastically minimize human labour and optimize your processes, giving you more time to concentrate on growing your business. For instance, by automating follow-ups and recording customer contacts, CRM software like HubSpot or Salesforce enables you to manage client relationships more successfully.
Additionally, you may expand without hiring more staff members by using platforms like Zapier to automate monotonous operations like email marketing and invoicing. Businesses that completely utilize automation may save up to 30% on costs, according to a McKinsey report. Without sacrificing quality, you may service more customers and work more productively by incorporating technology into your workflow.
3. Invest in Marketing and Branding
To stand out in a competitive market and draw in your target audience, you must invest in marketing and branding. Let’s discuss how digital marketing helps to grow your business. When paired with focused marketing initiatives, a strong brand identity may establish your company as a leader in the field. For instance, a consulting or other service-oriented company might engage in content marketing by producing informative whitepapers and blog articles that tackle typical customer problems. Using social media sites like Instagram and LinkedIn to promote a company may also increase lead generation and engagement rates.
According to Forbes, companies who engage in consistent branding across all channels enjoy an average 23% gain in income. You may create a recognizable and reliable brand that promotes customer acquisition by carefully allocating resources to marketing and branding. This is especially true if you are working in a sector requiring a lot of trust like mortgage or real estate.
Digi Tip: Some mediums, channels and strategies work specifically well for service-based marketing. Try to collect high-quality leads with low CPL using Meta ads.
4. Build a Strong Online Presence
A robust online presence is crucial in today’s digital age, where potential clients are likely to research your business online before making contact. Ensure your website is not only visually appealing but also user-friendly and optimized for search engines (SEO). For instance, a home service business can create a blog offering DIY tips or industry insights, which can improve search engine rankings and attract organic traffic. Additionally, maintaining active and engaging social media profiles helps build credibility and allows you to connect with a broader audience.
According to research by BrightLocal, 91% of consumers read online reviews before purchasing a service, making it vital to actively manage your online reputation. A strong online presence ensures that your business is easily discoverable and appealing to potential clients.
5. Network and Build Partnerships
Extending your reach and generating chances for cooperation, networking and forming partnerships may lead to new prospects especially for local business development. To give clients full financial and legal assistance, for instance, a legal service provider can collaborate with accounting companies, resulting in a more comprehensive service offering.
Meeting possible partners and developing ties may be accomplished by engaging in local business events, attending industry conferences, and joining professional groups. Joint ventures and recommendations from strategic alliances can fuel company expansion.
6. Utilize Data-Driven Decision Making
Making decisions based on data-driven insights enables you to take well-informed actions that improve results and propel your company forward. Key performance indicators (KPIs), consumer behaviour, and market trends analysis may help you pinpoint growth opportunities and modify your approach appropriately. For example, a fitness centre may employ data analytics technologies to monitor customer attendance and determine the most well-liked programs. Decisions about marketing, pricing, and scheduling can all be influenced by this data.
Decision-making improvements are three times more likely to occur in data-driven firms, per a PwC report. You can boost consumer happiness, streamline processes, and eventually spur development by utilizing data.
7. Learn from Your Competitors
Recognizing the advantages and disadvantages of your rivals might help you keep one step ahead of them in the market. Analyze your competitors to find out what services they provide, how they promote themselves, and what areas they lack. If a rival in the IT services sector, for instance, is drawing in customers with webinars, think about adopting a similar tactic with a different twist, such as concentrating on a specialized subject that hasn’t been addressed.
You may watch your competitors’ online activity, such as keyword rankings and backlinks, with the use of tools like SEMrush or Ahrefs. This can provide you with valuable insights on how to enhance your own strategy. By observing and modifying the actions of your rivals, you may enhance your company strategy and seize chances that they might have overlooked.
8. Try Scaling With Your Existing Clients
It’s usually less expensive to scale with your current clientele than to get new ones. Building stronger ties with your present clientele can help you upsell and cross-sell more services, which will boost your income.
For instance, clients who initially signed up for social media management can now receive extra services from a digital marketing firm, such as SEO or content production. Frequent check-ins and tailored recommendations can assist in determining how clients’ requirements are changing and provide chances for new services. Bain & Company research indicates that a just 5% increase in client retention rates can result in a 25% to 95% increase in earnings. You may attain sustained expansion with low acquisition expenses by concentrating on expanding with your current clientele.
Surviving in the world of service-based enterprises necessitates a strategic approach since connections, trust, and quality are paramount. You can realize the full potential of your service-based business by putting the customer experience first, utilizing technology, investing in marketing and branding, creating a strong online presence, networking successfully, using data-driven decision-making, learning from competitors, and growing with current clients. Recall that building enduring connections that spur development and bolster your place in the market is just as important to success as providing a service.
