How to manage growth & increase profits in the service sector ?
The service sector is growing. There are many businesses like trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction.
The services sector is the key driver of India’s economic growth. The sector contributed around 66.1% of its Gross Value Added growth in 2015-16, thereby becoming an important net foreign exchange earner & the most attractive sector for FDI (Foreign Direct Investment) inflows.! As per the first advance estimates of the Central Statistics Office (CSO), the services sector is expected to grow at 8.8% in 2016-17. (Source: ibef.org)
Being in service sector can be both very motivating and also frustrating. Starting a service-oriented business might not require huge investment as compared to other businesses but that's the reason why it has got lots of competition and high level of customers expectations which is pushing companies to provide more for less.
There are ways which can help any service organization to capture the market with good profitability and greater client satisfaction. It's all in the process of promotion, positioning, delivery and handling the brand & its services to the clients.
Entrepreneurs often mistake in understanding the market needs and how to position themselves in the market. Understanding the market dynamics will help them in creating the right product and service with the right pricing.
Many organization fails to capture the demand by designing the wrong product/service and exhausting their money on promotion while getting equal to no response.
To gamble the money in marketing and promotions, few are the utmost important points to be considered:
a. Plan things in detail
b. Understand competition
c. What are the trends and drivers of the service
d. What new you are putting into it (helps in marketing)
e. What is your core strategy to enter market
f. Never underestimate the importance of branding - Marketing with right branding goes hand in hand
g. Focus on providing quality rather than quantity - As quantity will not let you differentiate, there will be much more like that
h. Client handling is the major task in a service industry, keeping clients happy can be challenging in service sector due to one on one interactions.
i. Fight for your point but let the client win in the end. It will help in managing relations and future business.
j. After sales support is the key to the current growth of any business
k. Don't forget to be online
l. Get your organization digital - helps in reducing time, effort and money
m. Patience and passion is the key element to keep going towards success while improving on the way.
n. Get your business model right - Maybe it might take you time to get it right, not everyone gets it right in first time
IN BRIEF, Service sector can help entrepreneurs in making their dreams come true but by being little more focused and proper understanding of the market, the goal can be achieved in no time. Getting things right is a task and right team/partners can help in it.
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