Running a business is a task that requires you to face constant challenges. The market is ever-changing, and brands always run into fierce competition over the same niche. Even if your brand experiences a thriving business, it’s wise to reach for more. Sooner or later, you will realize that project-to-project revenue is not the most sustainable option in the long term. The answer is creating a productized offering.
So, is there a way to move towards more scalable and predictable growth? The answer is yes! You can create a predictable business where success and growth are guaranteed by productizing your services and offering them to similar customers. In this article, we will tell you how you can do that.
What Is A Productized Offering?
To put it simply, a productized offering is when your brand standardizes a particular service with clearly defined pricing and parameters. When you productized your service, you package the skills and know-how of your team into a standardized offer. This offer can then be recommended to your target customer groups.
Productized offerings thus pave the way for better recognition of your brand in the market. Businesses that productized their services appear more authentic and thus have a higher success in the market. Any kind of service can be converted into a product.
Productized offerings allow the whole process to be more systematic. Let’s say you are offering content writing services to your customers. Instead of offering your services on a case-by-case basis, offer certain packages with fixed parameters and pricing—for instance, $50 for 2000 words, $100 for 4000 words, etc.
Why Should You Create a Productized Offering?
As discussed above, productizing a particular service makes the brand look more authentic and allows for a more systematic approach. Here are some notable benefits of productizing your brand’s services.
1. Greater Revenue
The first and obvious benefit of productization is the fact that your brand will generate greater revenue. When you don’t have any standardized process, the customer has to go through a lengthy inquiry process, discouraging the customer from moving forward with your brand. With productized offerings, your customers can just check out your services page.
Time is money, customers don’t have much time on their hands, and they want immediate commitment. So rather than offering your services on a case-by-case basis, you can offer standardized services with appropriate pricing.
2. Edge Over Your Competitors
One of the most important things to do in a business is to gain an edge over your competitors in the market. There are thousands of other brands in the market that are working in the same niche as you. When you standardized your services, customers are more likely to prefer doing business with your brand.
This allows you to gain an edge in the competitive environment of your niche. Since standardization makes your brand look more authentic, more and more customers will be interested in doing business with you. This creates a feedback loop and paves the way for long-term growth and improvement.
3. Greater Scalability
Standardization and productized offerings help you develop a very scalable business model. Services that aren’t converted into a product don’t allow for room and growth as you are limited by time and resources. On the other hand, a productized offering allows for a lot of growth; you can sell as many productized offerings as you need.
As you sell more and more productized offerings, you can scale your team and hire experienced people. Since the model is predictable, you can make long-term plans and implement them without any difficulty. With a productized business model, the only way to go is up.
4. Allows for specialization
Specialization is extremely beneficial for brands. When you offer productized services to your customer, you can specialize in one niche and out-compete your rivals in that particular niche. But the benefits of specialization don’t end there. With specialization, you can create a better value proposition for your brand.
Specialization also reduces your learning curve. It’s very easy to get better at a service when you are specializing in that particular niche. Specialized brands receive more traction from prospects and have a higher success rate. If you want to exploit the benefits of specialization, aim for productization.
Key Takeaways on the Productized Offering:
Productizing your services is one of the best ways to ensure the success of your brand. If you want your brand to experience all the benefits that bigger brands receive, you must aim for standardization as it allows for a more systematic approach.
Productized offerings are a must if you are thinking long-term.