The ability to package your services is a key step in helping clients to be clear about what you offer. It is not sufficient to just have a list of services on your website, this can at times be too confusing and they may not know where to start. What is needed is a clear outline which can meet the needs of different client groups. Effective packaging improves profitability, because you can bundle your services which over time will cost less to deliver, and you can meet your customers’ varying needs and budgets. You will sell more and develop relationships that have a greater life-time value.
In this article, I will outline a step by step process on how to package your services, which will not only improve sales, but add value to your customer. It’s a great idea to sit down with your team or individually and go through this as best as you can. It will take some thinking and planning. Substitute your own services as appropriate. Make a list of all the services that you currently provide, for example, if your run a Business Support business and Virtual Admin is one of the services you offer, list everything associated with it, for example:-
- copy typing,
- diary management
- List them all.
|OPENING OFFER Engage their interest: Webinar /newsletter||UPSELLSComplimentary services outside of what you may be providing.|
|YOUR SUITE OF PACKAGES|
|Service 1: Entry level – diary management|
|Service 2: As above plus newsletter creation|
|Service 3: As above plus event management and invoicing|
Looking at the box above, on the top left is the opening offer. Think of the different ways in which you can give a client a sample of your services. For example, staying in the theme of business support, you could offer a complimentary 14 day telephone answering and messaging service. If you are a trainer, you could offer a free 2hr training session; or if you are in health and nutrition, you could offer a special free report on “Obesity and its effect on young people. There are many things you can offer, newsletters, free reports, white papers. This opening offer would allow them to experience how your services can help them, without any risk, as they do not know what they will get from you until they experience the service. The risk is all on you.
Service 1: You can call this whatever you like – sliver/bronze/gold – be creative, and could be your level entry-level package. Look at your list of services and think which of these could you deliver inexpensively? For instance, could it be diary management, a ½ day training session for 3 hours; or telephone/Skype only service. In this situation, the cost to deliver the service should be minimal, while still providing great value.
Service 2: This would include all of the elements of service 1, but an additional value added service. For example, face to face meetings instead of exclusively on the phone, newsletter preparation or the research and preparation of a PowerPoint presentation. A familiar example would be the airlines, there is Economy, Premium Economy, Business and First Class.
A colleague of mine recounted that when he arrived at the airport, he was informed that it was too early to check in, however, when the hostess realised that he was travelling Club Class, he was immediately checked in. He also noted that there are different lounges for Business Class travellers as opposed to First Class. Airlines and publishers, like the Economist magazine and the Times newspapers are great examples of effective packaging.
Service box 3: This can be your premier offer, and would include all of the above services, plus additional components you may want to add (24hr access and response, exclusive face to face meetings etc.
Upselling: The box at the top right hand corner could be a list of complimentary services that may be affiliated with you and could include expert offerings from one of your partners in HR/ Technology or Accounting for example. In its simplest form, whenever you visit McDonalds, if you have ordered small fries they will always ask if you would like a bigger meal or a large fries. Upselling in McDonalds is automatic. In the services sector, that is not so common.
Getting some help: Creating a suite of packages needs a little focus and commitment to think through the services you would like to offer and how you would present them. If you believe your firm requires some help in packaging your services, I would welcome having an initial – no obligation – conversation about the challenges you face and how your profitability could be improved. The investment of time and energy, once done can serve you for a long time and make a huge difference to your business. To arrange, click here to email.
CLIENT RESULTS: Morton works hard to understand what is important to his clients and deliver true results-focusing on value pricing issues with practical solutions. Click here to read client results stories.