How to shift from product sales to service sales

For the current market, profit from the product is not as simple as the past, the service industry is the future of the global economy, and the current service industry has accounted for 75% of the global economy, to seize the opportunity of the service industry, enterprises should start the process of services.

According to foreign media reports, Solen Kaplan (Soren Kaplan) is the author of the best-selling book "Leapfrogging" on corporate innovation and the founder of the Leapfrogging Alliance, a strategic advisory body that not only advises start-ups, but also provides consulting services to companies such as Cisco.

Kaplan believes that the service industry is the future of the global economy, and the current services sector has accounted for 75% of the global economy, in order to seize the opportunity of the service industry, enterprises should follow some principles, such as the launch of the service process, expand the scope of services, and to achieve digital services.

The following are the main elements of Kaplan's post:

Making profits from products is not as easy as it used to be. Benefiting from the Internet and global development, consumers can have a variety of options. This is good news for consumers, but not for product sales companies.

Some companies know that the outlook for products is limited to this, and that services represent the future. In fact, services already account for 75% of the global economy. The most innovative companies know that even if they sell products, they actually sell the product. But knowing this is one thing, it's another to transform into a real service based business model.

So, how to transform the foundation of a company from a product into a service? You can use the following three principles to escape the commodity market and transfer all business to a valuable service sector.

1. Start Service

Setting the billing model for what you're doing can push your company into a whole new market area. The goal is simple: redefine your existing product and make the charging model move away from product sales to service sales. Ask yourself: What is the problem I really want to solve? What is the deeper demand I want to meet?

Provide channels: The charging mode from merchandise sales to on-demand sales channels.

-rent the runway offers high-end fashion, which does not sell 5000 of dollars of clothing, but offers a weekend rental service. Instead of selling clothes, they offer a luxury fashion experience that not only satisfies users, but also fascinates friends.

Seize the time: shift the charging model from merchandise sales to "time" sales, including running time, saving time, fast delivery, or any activity that helps to unearth time value, creating a new and compelling experience for customers.

-Rolls-Royce sells not only cars but also aircraft engines. Their airline customers were shocked when they began to adjust their sales patterns and collect service time based on "uptime" (the actual flight time of the aircraft's engines). Instead of buying an engine ahead of time, airlines want to pay as much cash as they charge passengers or freight carriers. Rolls-Royce is actually selling "the heat from behind the engine", not the engine itself.

2. Expanding the scope of services

Usually customers buy and use products in a broader context, in order to solve complex problems or to meet broader needs. The goal is simple: Create a new service that complements the successes that have been achieved, which helps lengthen your value chain. Ask yourself: What can I do to improve my current sales? What can I do to help my customers do, learn or experience what I'm doing now?

Enhance experience: increase education or other interactive experiences, enhance core business, and meet customer needs.

Not only that,-cafeotheque is the number one café in 35,000 cafes and bars in Paris, it also offers unique activities such as coffee tasting (like wine tasting) and "coffee learning" courses, where people who are passionate about it make world-class cappuccino and start their own company.

To meet the greater demand: according to the needs and wishes of customers, a more comprehensive perspective of their products and services, including how the service pricing, how to profit and so on.

-solar City offers a "one-stop service" that allows homeowners to fully use solar energy to meet household electricity without upfront spending. Instead of selling solar panels, it promotes a comprehensive service that integrates and covers all charges, discounts, installations and existing power management.

3. Start Digital

Most companies have adopted digital methods in their marketing, but this remains a blank in terms of service innovation. The aim is to transfer to mobile or internet-based services the manual operations, physical products or traditional services that are deemed to be well-deserved. Ask yourself: How do I digitize products and operations to support existing businesses, or create new services?

Monitoring and acquisition: the use of mobile devices to collect and analyze data to provide knowledge, information and services.

T-medical uses digital tools to monitor life signs and other data during the period of the patient's presence, and if danger signs occur, the family members receive warnings and medical help, while data collected can be sold to companies conducting clinical trials.

The use of network: the use of network effects to achieve business process automation, so that customers enjoy new services at the same time, life more convenient.

Coca-Cola recently launched a new restaurant self-service vending machine, with more than 100 different flavors, all connected to the company's central office. Different tastes of beverages, monthly rental fees are also different, if the machine indicates that the amount of drink is too small, will be supplemented. To do this, each time a customer chooses a beverage, the information is transmitted back to the Coca-Cola Market Research department to help with their next major project.

A growing number of start-ups and large companies view services as the key to improving profitability and to stand out. Creating competitive differentiation companies is not about what you sell, but what you meet the needs of your customers, how you meet them, and how you charge. This is the beginning of the service innovation economy.