Business services are activities that help companies in a way that doesn’t necessarily result in a tangible product. They don’t have any physical form, but they can help organizations with production, cost and marketing. They are often used by large firms that rely on them for everything from their daily operations to their future growth.
The services industry is an important part of the commercial world, covering a significant portion of the global economy. Most trades rely on them for some of their work, and they cover an extensive range of aspects that goods or products can’t.
Service-oriented businesses usually target one of two market segments: individual consumers and other businesses/organizations. These clients may be based in the same region or different ones.
Some service-oriented companies have the potential to serve both categories of customers, but most choose one or the other. For example, a carpet cleaning company will target individual consumers with its advertising, and a security guard service will focus on commercial establishments.
Traditionally, services have been slanted toward meeting the needs of one client segment or the other; this is changing. For example, TV repair professionals can now come to a customer’s home instead of delivering a television, or an architectural firm can provide service at an office or other building rather than in the field.
In some cases, however, a service has to be delivered in person. This is especially true for many professional services, including accounting and legal services.
Another aspect of services that must be analyzed closely is their interaction with their customers. The customer’s input can influence a service’s efficiency and quality, as well as that of its employees.
For example, a customer who doesn’t explain the purpose of a new facility to an architectural firm can lead to a delay or even a miscommunication between the design team and the client. This can negatively impact the quality of the final product and the costs of the project.
In addition, a service’s reputation can be affected by how the customer interacts with it. For instance, a restaurant customer who dithers at the counter can make it less easy for the waitstaff to serve him quickly and efficiently.