How to overcome the 4 key challenges of service marketing (2023)

The services sector in India is growing at a rapid clip. Even many businesses that sell products are introducing services for consistent revenue. While the global economy thrived on manufacturing and products in the last century, it is now dependent on services. In this article we shall explain the concept of service marketing.

Marketing a service to consumers or other businesses is completely different from marketing a product.

4 hurdles to promoting your service business

Any business that sells a service — IT, entertainment, education, healthcare, tourism — faces four challenges in promoting itself.

  1. Services are intangible.

  2. The provider is the product.

  3. They’re perishable.

  4. Quality can vary from day to day

According to Statistics Times, service is the largest sector in India. India’s services sector contributed almost 54 percent of India’s total GVA (gross value added) in 2020-2021.

Some of the service-led industries in India are:

  • Information technology (IT).
  • Telecom, travel and tourism.
  • Media and entertainment.
  • Education.
  • Healthcare.

As more businesses turn towards services, they face new challenges on the marketing front. Learn from highly successful service businesses how to conquer each of them.

What makes service marketing different

The challenges of marketing services are different from the challenges of marketing products. By understanding the differences, service businesses can more effectively promote themselves.

1. Services are intangible

It is easier to sell a product than a service because a product is tangible or physical.

When customers can see a product and examine its shape, colour, features, size and the quality of materials used, they can immediately make a purchase decision. Indian consumers like to ‘feel’ the product before they buy — especially if it is clothing.

How to overcome the 4 key challenges of service marketing (1)

How does one sell something that cannot be shown to or owned by customers?

However, a service is intangible. Consumers cannot feel or own it like a product. So it takes longer to convince them.

Take tourism for instance. That industry sells experiences. The only way a customer can preview the “product” is by seeing photographs, reading reviews onlineor by listening to other people who have travelled to those destinations.

Education is also a service. The various utilities you consume — electricity, gas, telecom, internet — are all services as well. Apart from pricing, customers choose a service provider based on quality of service.

Recommendation:

There are special approaches to overcome the challenge of selling a service. One is customer testimonials. You can take written testimonials from your existing customers and put these, along with each customer’s photo, on your business website, in your shop and in your brochures.

Customer reviews on established websites such as Yelp, Google and TripAdvisor also work well. Also enable social media ratingson networks that attract followers who are your potential customers.

2. The provider is the product

A product can be bought from different channels: online, in a mall, in a convenience store, etc.

But a service has one point of purchase. The buyer deals directly with the service provider or his distributor. And they go to that same point every time they need that service.

For example, when you need a haircut, it’s highly likely that you go to the same salon every month. You may go a step further and demand that the same person does your hair (because he/she knows your preferred style). Hence the relationship between the service and the service provider is inseparable.

How can one service provider offer customised service for thousands of customers?

When you are dealing with a few customers, it is possible to get to know them well. You will know their preferences and their level of satisfaction with your services. But that may not be possible when there are dozens — or hundreds or thousands — of customers.

Recommendation

The answer is systems and processes. The Marriott Group of hotels, for instance, records customers’ preferences in a master database that is accessible to any hotel in the Marriott chain, anywhere in the world. So when you make a reservation, they already know you, and set your room up accordingly! And their customers love that.

By using a customer relationship management system, you can keep track of the preferences of each customer. This will allow you to deliver highly customized service every time. Just don’t overdo it, as companies that know too muchcan spook customers.

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3. They’re perishable

Like some products — food items for instance — services are perishable. There’s only so much time in a work day. The service provider needs to sell maximum capacity in order to be profitable. Unfortunately, there won’t ever be a steady queue of customers waiting to be served one after another.

How can service providers create a steady demand for their services?

Let’s take the example of an airline. If a flight is going half empty, the revenue collected from ticket prices will not suffice to cover the operational costs. So airlines use different strategies to fill their airplanes. They might club flights for a particular route or use code-sharing arrangements with partner airlines or join an airline alliance like Star Alliance.

So it is a matter of balancing demand with supply. If you can do that, then you minimise your business losses and increase your profitability. There are periods of demand (like the holiday season) and then there are periods when sales dip due to low demand.

Recommendation

There are a couple of marketing strategies to counter periods where there is less demand:

  • Aggressive promotion, including online and offline advertising.
  • Discounts and salesduring low-demand periods.
  • Loyalty programswith points.

Savvy marketers can create a sense of false urgency and false demand, causing people to rush out to buy services. They do this by offering discounted pricing for a limited period.

4. Quality can vary from day to day

A product might have little variability, because every unit of that particular model is built to an exact specification or design created by a manufacturer.

How can a service be standardised so that the customer gets the same quality, every time?

But with a service, there is a lot of variability. There will be variations depending on who offers the service, and at what location, how busy that day’s service schedule is and other factors.

How to overcome the 4 key challenges of service marketing (2)

Recommendation

This can be achieved through standard processes and frequent audits. By training yourself and your employees to adhere to the same process every time, you can achieve a higher overall level of service.

Use customer surveys and feedback to find out where/when/under what circumstances the greatest variation in service quality occurs. Frequent improvements, in response to customer feedback, can lead to increased customer satisfaction.

The secret sauce: emotion

The most successful service marketing creates an ‘emotional bond’ with customers.

The Incredible India campaignis a great example of service marketing using emotion. The government of India initiated this campaign in 2002 to promote tourism in India.

The campaign, which continues today, portrays India as an attractive tourist destination by showcasing different aspects of Indian culture and history like cuisine, yoga, spirituality, etc. The campaign is conducted globally and receives appreciation from tourism industry observers and travellers alike.

Effective service marketing strategies

As we mentioned before, service marketing differs from traditional marketing, which promotes tangible products. Marketers need to use specific strategies for service marketing. Before that, they need to understand the Service Marketing Triangle.

The service marketing triangle describes the relationship the company (or service provider), the employee (who delivers the service), and the customer (consumer of the service).

How to overcome the 4 key challenges of service marketing (3)

The company defines and enables the promise of service to the employee. It trains the employee to deliver the service to the customer. In doing so, the company delivers the promised service to the customer.

This involves three types of marketing strategies:

Internal marketing

A company must motivate its employees to deliver high-quality services to customers. This is done through internal marketing within the organization. It includes training, incentives, offsites, employee recognition, and even parties and gifts for employees.

When an employee understands the service and is motivated to sell it, the company achieves its objective of delivering quality and reliable services to its customers.

External marketing

This is about promoting your services to the consumer and helping them choose a service based on their requirements. External marketing involves sales promotion through advertisements and activities, personal selling, direct sales, offers, and direct marketing.

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Interactive marketing

This is the kind of marketing that takes place when the employees of a company interact with its customers. These are regarded as “front-line” staff – they have defined roles and require customer relationship training.

Front-line staff includes salespersons, relationship managers, bank tellers, attendants, stewards, hosts, and professionals or practitioners.

The front-line staff represent the company – and they must promote the company’s services. They are also influencers, as they help the customer or buyer to make purchasing decisions – by recommending their services. They need to understand customer requirements and provide information about services.

What good service marketing requires

It’s important to note that service marketing strategies must include:

Referrals

Word of mouth publicity is one of the best forms of service marketing. Happy customers would rave about their experiences with friends, family, and office colleagues. So, they become influencers.

It’s likely that their social circle will want to experience the same services.

Referral schemes are common today. If you refer a friend to a service, the company is likely to offer you a discount or a free service for every new subscription. This is one proven way of promoting your services.

Related: How to start a customer loyalty program

Educating customers

Another way to create demand for services is to educate prospective customers. Customer education will often generate more leads. Providing more information will increase conversions and sales.

This education can be done in several ways.

  • Blogging is a good way to start. Write and publish articles of interest to potential customers.
  • Perhaps you can get a journalist to interview the founder of your company and write an article about your unique services. This article may appear in the local newspaper or in magazines.
  • Booths at malls and other public spots are another way of providing customer education.

Some businesses organize seminars, webinars or meet-ups and invite like-minded people to discuss their challenges. They also provide solutions through their services.

At this stage, you should talk about the benefits and utility of your service – not about the price or subscription plans. Speak about the uniqueness of your service and how it is different from what’s available in the market.

Focus on how your services solve customer challenges.

It is more of a thought leadership and trends discussion.

For instance, if you are selling a wellness stay at a resort, talk about the importance of slowing down in life and taking a break to rejuvenate. People want to know how they can live happier and more fulfilling lives – to live longer. Speak about the benefits of:

  • Meditation
  • Decluttering
  • Gratitude
  • Diet and exercise
  • Minimalistic lifestyle

Then talk about the package at your resort and the unique features and services offered.

Social media activity

The number of people using social media increased phenomenally in the last two years. Analysis from Kepios shows that 58.7 percent of the total global population use social media. In fact, nine out of every 10 internet users visit social media every month. So, marketers cannot afford to ignore social media channels.

Use popular social media channels like Facebook, Instagram and LinkedIn to market your services.

Facebook offers a variety of formats for presenting marketing collateral. And they also offer precise targeting based on the demographics you define. You can also make a business page for your company on Facebook.

Social media is interactive media. That means, customers can interact with your brand by posting comments, clicking on links, sharing, liking, etc. These activities are called “engagements.”

You can even draw visitors to your company website by posting ads with links on social media. Offer coupons codes and discounts – and watch the enquiries come in.

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Related: How to start a social media marketing strategy

Demonstration

Another good way to promote your services is to offer free demonstrations. Let prospective customers experience your services for free.

For instance, if you are providing dental services, you can offer a free dental check-up. Another example is a free eye check-up. If you are selling Yoga classes, offer the first class free.

Visit residential complexes, university campuses, and offices and offer this on-site if possible.

Make service marketing work for you

We have seen that the challenges presented by service marketing are quite different from product marketing. Unlike products, services are intangible, there’s no difference between the provider and the product, they’re perishable and the quality can vary from day to day.

It is more difficult to sell something one can’t own or see.

The key to solving these four challenges starts with good systems and processes that allow you to standardize your service and record customer preferences. Pay attention to customer feedback, online reviews and conversations on social media. And act quickly to remedy and shortcomings.

The main thing for you, as a service marketer, is customer satisfaction, and then profitability.
If the customers are happy, they will tell others about your service.

And the profits will come!

Frequently asked questions

What is meant by services marketing?

The industrial revolution produced products that depended on traditional marketing practices to make sales. But with the advent of the internet, the world moved to a services economy. More organizations, start-ups, and entrepreneurs began selling services.

Unlike products, services are intangible commodities.

Service marketers are promoting something that customers cannot see. They are driving customer value by promoting something that cannot be held or used. The benefits cannot be seen upfront. The services cannot be examined, touched or felt. Services are largely experiential and emotional. 

So a different approach is required for marketing services. Read the section above entitled “Effective service marketing strategies” for details.

Examples of service marketing campaigns

Here are some notable examples of how brands use effective communication methods to market their services:

Incredible !ndia

The government of India launched the Incredible India campaign in 2002, to promote tourism in India.

The campaign targets both international and domestic travellers. The ‘I’ in India is replaced by an exclamation mark to emphasize the word ‘incredible’ – suggesting unique and diverse experiences.

The campaign positions India as an attractive tourist destination and showcases its diverse culture, history, cuisine, historical monuments, spirituality, yoga, etc.

Uber

Mobility company Uber does not own any cabs. It connects drivers with customers via mobile apps. Uber is offering convenient services to its customers as they can avail of personal transportation at any time of the day.

It markets its services by allowing customers to rate drivers after a ride. Apart from a star rating, customers can also give critical feedback (for lower ratings) and driver compliments (for five star ratings). Compliments appear on the driver’s profile page and are visible to other customers.

Additionally, drivers are also rated on parameters such as: professionalism, driving, cleanliness, conversation, pickup, driver navigation, Uber app experience, and car quality.

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This approach to service marketing offers customers transparency and flexibility. They can share their trip experiences with others and also view the profile of the driver before getting into the cab.

If they do not like the driver profile, they may cancel the trip. This also provides a service assurance to customers.

City of Las Vegas

The city of Las Vegas, Nevada, launched a successful service marketing campaign to attract tourists from across the U.S.

The marketing phrase was: “What happens in Vegas, stays in Vegas,” and the purpose was to offer maximum freedom to tourists. This catch phrase is often recited by happy visitors returning from Las Vegas, albeit with tongue-in-cheek humour and a wink.

Which industries use service marketing?

An example of a service is when a family arrives at a restaurant and avails of its services (dining).

Yes, the product is food and drinks, but the delivery and presentation are its services.

The restaurant will focus on the quality of service in terms of quick delivery, hospitality, cleanliness, quality and variety of cuisine; the dining experience, and the ambience. And it will promote all this in its service marketing efforts.

Sectors like hospitality, tourism, financial services and professional services (like consultancy) use service marketing. 

Healthcare industry

In this industry, the service providers are doctors, nurses, surgeons, paramedics, and other hospital staff. They provide health services by meeting and looking after their patients. And they market their services by delivering value through care, attention, response, expertise, and quality healthcare services and treatments.

Hospitality industry

Hotels, restaurants, clubs, air travel, and cruise liners fall into the hospitality industry. They offer dining, rooms, wellness, entertainment, massage, grooming, and other services.

Professional services industry

This industry includes skills-based professionals such as:

  • Accountants
  • Lawyers
  • Teachers
  • Writers
  • Masons
  • Carpenters
  • Chefs
  • Electricians
  • Plumbers

These professionals offer multiple services to their clients, which vary from profession to profession.

Transportation and personal mobility

Mass rapid transport and personal mobility solutions are very popular in cities. These transportation services use unique approaches to market their service.

A fine example is Uber. Even air and rail travel focus on service marketing, and talk about the facilities and passenger experiences.

E-commerce and retail industry

Today, retail services are provided to customers worldwide via e-commerce channels. Such services include payment and delivery.

What are the 3 Rs of service quality?

Customers will always value the quality of a service. If you can deliver quality, they will keep coming back for more, and word about your services will spread virally.

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Here are 3 R’s that can ensure quality of service.

  • Reliability: The foundation for building a strong service business is reliability and dependability. When availing a service or interacting with a brand, customers want to be sure of the reliability of the service. A service-based brand will survive only on the basis of its reliable offerings. Ensure reliable services through quality processes, standards, measurement, and certifications.
  • Responsiveness: In a service-based business, responsiveness is a key customer expectation. For instance, in a restaurant, customers expect quick delivery of meals regardless of how many diners are present. And the service levels should be consistent. If a service brand does not meet this expectation, customers will doubt the reliability of the service and may go to the competition for similar services.
  • Respect: After addressing reliability and responsiveness, the brand must focus on respecting its customers. A customer that feels respected will be more loyal to the brand.

Image by:Fancycrave on Unsplash

FAQs

How do you manage marketing challenges? ›

These are some methods for mitigating this issue:
  1. Monitor new developments in marketing.
  2. Incorporate new tactics into your marketing strategy.
  3. Compare your products to those of your competitors.
  4. Take steps to find out what content appeals to your potential customers.
8 Oct 2021

What are the possible solutions to perishability problems? ›

Possible Solutions to Challenges Created by Perishability (cont'd)
  • Utilize part-time employees.
  • Share capacity.
  • Prepare in advance for expansion.

What are some challenges in service communication and how can they be overcome? ›

Top Customer Service Challenges
  • Understanding Customer Expectations.
  • Exceeding Customer Expectations.
  • A Customer Demands Something You Cannot Do.
  • Handling Angry Customers.
  • Choosing the Right Channels and Tools.
  • Dealing With Service Outage Crisis.
  • Hiring and Training Service Professionals.
4 Feb 2019

How can we improve service quality? ›

7 Tips for Improving Service Quality Management
  1. Encourage agent feedback. ...
  2. Have agents listen to their calls. ...
  3. Send post-contact surveys after every interaction. ...
  4. Establish clear KPIs. ...
  5. Evaluate regularly. ...
  6. Give all agents clear and consistent standards. ...
  7. Take a team approach to eliminate bias.

What are the five major challenges facing marketing today? ›

In this article, we consider what challenges are being faced by today's marketer, and how CIM can help you to recognise and overcome them.
  • 1) Demonstrating marketing's value. ...
  • 2) Lack of fundamental marketing knowledge. ...
  • 3) Understanding customer behaviour. ...
  • 4) Making digital strategic. ...
  • 5) Creating growth on a budget.
14 Jan 2019

Which of the following is a way for a company to overcome the intangibility issue? ›

Which of the following is a way for a company to overcome the intangibility issue? They can provide samples of their service.

How can you use them to improve services provided by your organization? ›

There are several methods to improve quality service at your business, from having clearly defined and measured service goals and motivating your employees, to using customer feedback and updating your service tools to better serve your clients.

What is the marketing challenges due to intangibility of services explain with example? ›

Intangibility Challenges

It requires faith on the customers' part that they will get the desired results for their money. For example, if you own a cleaning service, you have to convince your customers to trust you that their homes will be cleaned to their satisfaction.

Why is it important to improve customer experience? ›

A remarkable customer experience is critical to the sustained growth of any business. A positive customer experience promotes loyalty, helps you retain customers, and encourages brand advocacy. Today, customers have the power, not the sellers.

What is the importance of service marketing? ›

While companies that provide tangible products rely on product marketing, intangible products use service marketing to attract customers. This form of marketing showcases and promotes non-physical products to customers, giving businesses the ability to access a wider and potentially global market.

What are the opportunities in service marketing? ›

Apart from these top-notch job profiles, here are some other positions that you can choose from to build your career in service marketing:
  • Public Relations Manager.
  • Advertising Manager.
  • Media Buyer.
  • Brand Manager.
  • Chief Marketing Officer.
  • Event Planner.
  • Promotions Manager.
  • Digital Marketing Manager.
11 Jan 2020

How do you solve customer service problems? ›

7 Steps to Fixing Customer Service Issues
  1. Listen to the customer and show genuine empathy. ...
  2. Assess the situation. ...
  3. Ask for the customer's needs and preferences. ...
  4. Offer a solution and give options whenever possible. ...
  5. Deliver the solution. ...
  6. Follow up with the customer. ...
  7. Address the issue within the company.

How do you overcome challenges in a call center? ›

How To Overcome the 7 Most Common Contact Center Challenges
  1. Solution: Recognize and Reward. ...
  2. Solution: Competitive Pay and Benefits. ...
  3. Solution: Control and Training. ...
  4. Solution: Gamification. ...
  5. Solution: Provide IVR. ...
  6. Solution: Customer Surveys. ...
  7. Solution: Reassess your KPIs. ...
  8. Solution: Focus on Non-Traditional Metrics.
19 Nov 2021

How can you avoid service failures and problems? ›

Below are some tips for managing customer service failures better.
  1. Identify and acknowledge the issue. ...
  2. Apologize to the customer. ...
  3. Fix the issue. ...
  4. Keep the customer updated and informed. ...
  5. Follow up or reach out to customers. ...
  6. Analyze the problem and establish some learning points.
22 Nov 2019

How do you ensure quality service delivery? ›

Achieving total service quality (i.e., service excellence) entails:
  1. Understanding customer's expectations by identifying his/ her key service quality attributes.
  2. Defining high internal standards of service quality and improving processes to meet/ exceed customer expectation along the identified attributes.
15 Mar 2021

How do you overcome social media problems? ›

Their best answers are below.
  1. Avoid canned responses. It's good to have a basic messaging strategy for negative comments or a crisis on social media channels. ...
  2. Be empathetic. ...
  3. Acknowledge the issue. ...
  4. Offer a solution. ...
  5. Make them feel heard. ...
  6. Take it offline. ...
  7. Research the problem. ...
  8. Offer a point of contact.
27 Apr 2015

What are the challenges and opportunities for digital marketing? ›

10 Major Challenges for Digital Marketers in 2023
  • Learning About Your Customers. ...
  • Generating Qualified Leads. ...
  • Managing Cash Flow. ...
  • Creating Engaging Content. ...
  • Complying With Privacy and Data-Sharing Regulations. ...
  • Making Websites Accessible. ...
  • Strategizing Mobile-First. ...
  • Establishing an Omnichannel Marketing Strategy.
19 Sept 2022

What are some challenges a company might have when using social media marketing? ›

5 of the Biggest Social Media Marketing Challenges:
  • Challenge #1: Lack of Connection Across Departments.
  • Challenge #2: Identifying the Right Platform.
  • Challenge #3: Understanding the Target Audience.
  • Challenge #4: Declining Organic Engagement.
  • Challenge #5: Meeting Consumer Expectations.
29 Jul 2022

How do you solve a lack of marketing plan? ›

The 5 Ways to Improve Your Marketing Plan
  1. Build The Target Audience. The first and possibly most important step of any successful marketing plan is knowing exactly who your audience is? ...
  2. Use Social Media. ...
  3. Focus on Top Customers. ...
  4. Stay in the Loop. ...
  5. Don't Stop Believing.

How do you manage a marketing strategy? ›

Five killer marketing management team strategies that you should implement
  1. 1: Prioritise a content strategy. If you want to promote your company or products, it's essential to prioritize online content. ...
  2. 2: Employ the right staff. ...
  3. 3: Launch a social media campaign. ...
  4. 5: Always budget for marketing.
16 Aug 2018

What are the key 3 challenges facing most businesses? ›

When asked about the three biggest challenges facing small businesses today, the survey results were growing revenue, hiring employees and increasing profit.
...
We will focus on the top three.
  • Growing revenue. How do businesses expect to grow their revenue? ...
  • Hiring practices. ...
  • Increasing profit.
12 Jun 2015

What are the major challenges of marketing in 21st century? ›

Top 9 International Marketing Challenges in the 21st Century
  • Increased competition. ...
  • Inefficient Campaign segmentation. ...
  • Lack of resources. ...
  • Brand awareness. ...
  • Difference in performance data. ...
  • Engagement differs across markets. ...
  • Language barriers. ...
  • Compliance & GDPR issues.
24 Mar 2020

What is the meaning of marketing challenges? ›

Definition: A market challenger is a company which tries to expand its market share by aggressively flooding the market with its products at competitive prices. A market challenger is a firm or a company which is usually at the No. 2 or No. 3 position.

What are characteristics of service marketing? ›

Top 5 Characteristics of Service Marketing – Intangibility, Inseparability, Variability, Perishability and Simultaneity.

What is the services marketing triangle? ›

Service Marketing triangle shows three interlinked groups (customer, provider and the company) that work together to develop, promote and deliver service to the satisfaction of the customer.

How can service intangibility be reduced? ›

How to sell intangible goods and services
  1. Focus on personalized selling. ...
  2. Show the tangible benefits of using the product or service. ...
  3. Offer comfort and advice to clients. ...
  4. Draw parallels between tangibles and intangibles. ...
  5. Demonstrate how your offering works. ...
  6. Act responsibly toward stakeholders and the environment.
22 Aug 2022

How do you ensure customer satisfaction? ›

For this reason, these 8 tips will help you improve customer satisfaction:
  1. Offer multi-channel support.
  2. Make collecting feedback a company process.
  3. Measure customer satisfaction regularly.
  4. Ask for feedback across all touchpoints.
  5. Actively ask customers for feedback.
  6. Share feedback across all your teams.
  7. Reply to all feedback.
29 Jul 2022

How do you promote customer satisfaction? ›

20 Ways to Increase Customer Satisfaction
  1. Understand your customers. ...
  2. Create a customer-centric culture. ...
  3. Put yourself in the customer's shoes. ...
  4. Lead with empathy, always. ...
  5. Always ask for feedback. ...
  6. Act on customer feedback. ...
  7. Give your support teams everything they need to succeed. ...
  8. Respond to customer reviews.
30 Mar 2022

What are the 4 characteristics of service marketing? ›

There are four characteristics of service: Intangibility, Inseparability, Variability, and Perishability (Kotler and Keller, 2007).

How can we manage the service productivity and differentiation? ›

Productivity improvements in the service sector are possible and a number of ways of improving service productivity are suggested.
  1. Improving Staff: ...
  2. Introducing Systems and Technology: ...
  3. Reducing Service Levels: ...
  4. Substituting Products for Services: ...
  5. Introducing New Services: ...
  6. Customer interaction:

Why is it more difficult and challenging to market services than consumer products? ›

Product marketing Products can be returned. Service marketing Services cannot be returned after they are rendered. Product marketing They are tangible, so the customer can see and touch it, before coming to the buying decision. Service marketing They are intangible, so it is difficult to promote services.

How do you create a positive customer experience? ›

10 tips for creating a positive customer experience
  1. Design the ideal customer experience. ...
  2. Know your customer. ...
  3. Create an emotional connection with your customer. ...
  4. Provide value to your customers. ...
  5. Be consistent in your service. ...
  6. Use technology to your advantage. ...
  7. Design a high-quality training program.
18 Oct 2021

How can you improve a dissatisfied customer experience? ›

Dealing With Unhappy Customers
  1. Step One: Adjust Your Mindset. ...
  2. Step Two: Listen Actively. ...
  3. Step Three: Repeat Their Concerns. ...
  4. Step Four: Be Empathic and Apologize. ...
  5. Step Five: Present a Solution. ...
  6. Step Six: Take Action and Follow Up. ...
  7. Step Seven: Use the Feedback.

What is service marketing strategies? ›

Services marketing strategy focuses on delivering processes, experiences, and intangibles to customers rather than physical goods and transactions. It involves integrating a focus on the customer throughout the firm and across all functions.

What are the opportunities and challenges in service sector? ›

Some key challenges that professional services organisations must consider include:
  • Consumer awareness. The consumer wants valuable services. ...
  • Financial challenges. Many professional services industries take financial decisions that make them fail way before their first anniversary. ...
  • Technology. ...
  • Winning new businesses. ...
  • Hiring.
8 Jan 2021

What are the different factors that affects the service marketing? ›

Four Factors That Distinguish Services Marketing
  • Intangibility. Services are not physical and cannot be "possessed." Because they can't be seen, touched, or made tangible in some way, assessing their quality and value is difficult. ...
  • Inseparability. ...
  • Variability. ...
  • Perishability.

Why do we analyze the opportunities for service marketing? ›

Market opportunity analysis helps identify the needs of the customers and accordingly plan, design, and deliver the products or services to derive customer satisfaction. 2. It helps the company to stay ahead of the competition due to the introduction of customer-oriented products. 3.

What is the marketing challenges due to intangibility of services explain with example? ›

Intangibility Challenges

It requires faith on the customers' part that they will get the desired results for their money. For example, if you own a cleaning service, you have to convince your customers to trust you that their homes will be cleaned to their satisfaction.

What challenges are faced by a bank marketer on account of unique characteristics of services? ›

Here are five major marketing challenges in finance and advice for navigating around them:
  • Commoditization. The digital age has opened up the door for more players to enter the financial field. ...
  • Lack of Consumer Trust. ...
  • Marketing Automation. ...
  • Intangible Offerings. ...
  • Regulations.
12 Oct 2018

What are characteristics of service discuss briefly the challenges faced for each characteristics and probable solutions? ›

Services Characteristics: 6 Key Distinguishing Characteristics of Services
  • Intangibility: Services cannot generally be seen, tasted, felt, heard or smelt before being bought. ...
  • Inseparability: ...
  • Variability: ...
  • Perishability: ...
  • Heterogeneity: ...
  • Lack of ownership:

What are some challenges in service communications? ›

Let's have a look at the top ten internal communication challenges and see how they can be avoided.
  • A Lack of Feedback. ...
  • Email Overload ...
  • Overall Lack of Communication. ...
  • Device Chaos. ...
  • Onboarding New Employees. ...
  • Language Barriers. ...
  • Balancing Internal and External News. ...
  • An Overload of Irrelevance.

What are the 4 characteristics of service marketing? ›

There are four characteristics of service: Intangibility, Inseparability, Variability, and Perishability (Kotler and Keller, 2007).

How can you use them to improve services provided by your organization? ›

There are several methods to improve quality service at your business, from having clearly defined and measured service goals and motivating your employees, to using customer feedback and updating your service tools to better serve your clients.

What is the main reason for difficulty in services marketing? ›

The core challenges for service marketing are Intangibility, Inseparability, Perishability and Variability. It is difficult to sell something a consumer can't own or see. And there tends to be a lot of variability in a service.

Which of the following is a way for a company to overcome the intangibility issue? ›

Which of the following is a way for a company to overcome the intangibility issue? They can provide samples of their service.

Why is it important to improve customer experience? ›

A remarkable customer experience is critical to the sustained growth of any business. A positive customer experience promotes loyalty, helps you retain customers, and encourages brand advocacy. Today, customers have the power, not the sellers.

What is the importance of service marketing? ›

While companies that provide tangible products rely on product marketing, intangible products use service marketing to attract customers. This form of marketing showcases and promotes non-physical products to customers, giving businesses the ability to access a wider and potentially global market.

What are the five basic features of services explain with the help of suitable examples? ›

Answer: Features of Services – 4 Main Characteristics: Intangibility, Inseparability, Variability and Perishability. Services are unique and four characteristics separate them from goods, namely intangibility, variability, inseparability, and perishability.

How do you promote a service business? ›

The best ways to promote a new product or service
  1. Offer loyal customers an exclusive preview. ...
  2. Use a special introductory offer. ...
  3. Make use of Google My Business. ...
  4. Run a social media contest. ...
  5. Spread the word via email. ...
  6. Write a blog post. ...
  7. Host an event. ...
  8. Offer a complimentary upgrade.
29 Jul 2020

How do you overcome these challenges? ›

10 Ways to Overcome Challenges in Life
  1. Make A Plan. While you don't know what is going to happen in the future, you can always plan ahead. ...
  2. Know You're Not Alone. Every person in this world has their low points. ...
  3. Ask For Help. ...
  4. Feel Your Feelings. ...
  5. Accept Support. ...
  6. Help Others. ...
  7. Think Big. ...
  8. Positive Mindset.

How do you solve customer service problems? ›

7 Steps to Fixing Customer Service Issues
  1. Listen to the customer and show genuine empathy. ...
  2. Assess the situation. ...
  3. Ask for the customer's needs and preferences. ...
  4. Offer a solution and give options whenever possible. ...
  5. Deliver the solution. ...
  6. Follow up with the customer. ...
  7. Address the issue within the company.

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