When you purchase a product from a supermarket. Let's say, a can of soft drink. As a consumer, it is very easy to understand what the product is and gauge the different aspects of the transaction. The product has a fixed price with a clear outcome. The scope and details of the product is easily understood with important information found on the label. The timeline of delivery is obvious to both parties involved in the transaction. And importantly, there is no opportunity to alter the product or the different aspects of the transaction.
If only more complex services could be as simple and straight forward as this example. But perhaps it could be...
Transform your service
You may or may not have noticed, but there's a new trend in business that's rapidly becoming the new norm for those who provide a service. We are of course talking about productized services. Take a moment to think of the variety of different services that are sold as "packages" or "monthly subscriptions".
What we are seeing is that everyday merchants, small business owners and freelancers have the potential to productize their service. Whether it's web development, content creation, SEO marketing, data analysis or advisory services, we are seeing all types of services realise the benefits of productizing.
Benefits of productizing your service
It's hard to list and quantify all the potential benefits of the productized model. So for now, we've compiled a list that we will expand upon further as we discover real-life examples of companies who do this. These are all noticeable benefits that are positive for both the front-end and back-end sides of a business.
Benefits of a productized service:
- Fixed price
- Calculable Monthly Recurring Revenue (MRR)
- Defined scope
- Clear add-ons or expansions
- Fixed deliverable
- Fixed timeline
- Easier to advertise
- Easier to market service
- Greater freedom to say yes and no to clients
A productized service doesn't happen overnight. But the path to productizing isn't as difficult as one would imagine. Scroll down to see a few real-life examples of business that have embraced this model.
Example 1: Social Media Content & Lead Generation by 100 Pound Social
Content is a broken industry in a lot of ways. There can be so many variances which slow down the process of negotiating (word counts, scope of project, tone of voice). However, savvy companies have started to tackle these problems.
Let's consider what 100 Pound Social have achieved. It's a UK based company that has forged links with 150 companies across the UK and world-wide. Starting from £100 per month, they offer social media content, lead generation, and blog writing plans.
The company has built a reputation for creating impactful content for clients which can be applied across a variety of niches within this package format. Content is a results business and they are clearly confident their service will bring results for their clients via their package deals.
Example 2: Maintenance, support and development for Shopify by Shopiflat
One of the most popular examples of productized services is maintenance, support and development for websites. The team behind Shopiflat have chosen to productize their service with a particular focus upon the Shopify platform. The package model being utilised is a great way to ensure the company's Monthly Recurring Revenue (MRR) is secured and easily calculable. The MRR is the sum of all business subscriptions and upgrades, minus downgrades and cancelled subscriptions.
A fixed-price package deal with potential add-ons or expansions is the way forward if a company wants to truly enhance their productized service. These type of extras limit back-and-forth tender processes and proposals which can elongate sale cycles. With these package deals, it is clear what is offered and how much it is. In turn, this creates a fixed outcome which the client will receive if they subscribe to the package.
Example 3: Discord server and specialised marketplace by PokeMRKT Service
Prices for Pokémon cards are reaching insane levels, with some individual cards selling for hundreds of thousands of dollars. For those who want to buy a rare Pokémon cards on the online platforms such as eBay, Facebook Marketplace, Craigslist or Gumtree, it is a real-life battle. Finding a rare Pokémon card online is hard enough, let alone attempting to win one at auction.
More and more companies are turning to recurring revenue models as a way to boost their revenue and profits. PokeMRKT Service are a specialised service with an exclusive list of monthly subscribers (and a massive waiting list to boast). What is their service exactly? Access to a discord server hosted by those with powerful tools in which users gain access to a greater reach and knowledge of when cards are up for sale. There is also a deeper base of potential buyers that are eager and trusted.
Start productizing your service using the best tools
One of the key features outlined in the post was the recurring payments via packaged deals with add ons. Ideally, you want to opt for a recurring payment gateway that, as a minimum, is simple to get started with, is secure, offers unlimited customizable subscription plans, has good customer service, and won’t break your budget. TillyPay is all these things and more. Get started with TillyPay today.