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The field of service based business models develops rapidly. All industries have new entrants not selling a product, but offering it as part of a service model. Companies like Swapfiets are paving the way to show their customers the benefits, and becomes an example for other industries to follow.
The alternative to owning a product needs to be obviously more awesome than owning. The added benefits need to be unique, and result in a better outcome or experience for your customers. Why design and make the best coffee machine in the world, and let your customers use it with the wrong beans? Going beyond 'just' selling your product, and being part of all the steps your customer goes through to use it, is the future.
Customers will only use your product when using it as a service is obviously more awesome than buying & owning it.
Your product is only part of the equation
People use your product within a particular context, and to get a certain job done. People don't buy a coffee machine for the sake of buying the coffee machine. They have a desired outcome in mind up front. Getting the right beans, making sure the machine is cleaned. These are all jobs that a customer has to complete in the process, and companies can play a big role in it.
Are they buying for a household? Does variety even matter? Or do they seek all the cappuccino and macchiato extravaganza? Maybe they are looking to just make the best espresso in the world? All of this matters, and is the source of understanding what opportunities you have to help your customers get to the best outcome. These opportunities are easiest source for your next revenue growth.
Product + the right service(s) = a happier customer
Pair your product with the right services, and you'll end up with happier long-term customers.
A great example is Swapfiets, simply taking the hassle of owning a bike away. Their core promise is always having a working bike. Never drag your bike to the repairshop again. Repairs are done on location, if the repair takes too long your bike is swapped. Customers are willing to pay for this convenience, allowing Swapfiets to run a sustainable service business that happens to provide a physical bike as part of their offering.
Loyalty built-in: lasting & recurring customer relationships
People use services on a daily basis. On average more products are already consumed through service based business models. With 'as-a-Service' subscription models, recurring customer relationships are built-in. Deliver on your promises, anticipate new customer wishes actively and you'll be retaining customers and grow revenue predictably.
A massive opportunity across professional fields
Disciplines like Service Design, Branding, Customer Success & Care are getting a new impulse as big brands move towards new ways of offering products. The interactions, requirements and execution of these offerings have to be carefully designed. Experts in these fields are entering the golden age where their services are much needed to lead the transformation across industries.
We are always looking to team up with Service Designers, Design Agencies and other type of companies that are involved in setting up new services and business models. Contact us if you want to explore a partnership!