Service Productization Part - 4: Designing the Product: From Baseline to Tangible Offerings

Once we have identified the service which is a core service and has possibilities of being converted into a scalable product, we will now be looking at how we design the product—the nuts and bolts that define the product and offerings, and how to convert those services into a tangible product.

In this session, we will cover how to find the baseline service, create a package with add-on services, develop a product and brand, and, last but not least, establish a GTM strategy and product pitch to help your product sell.

Finding the Core Service

You must start by understanding the fundamental aspects of the service you want to productize:

• Core Features: Identify the key components that make your service valuable. Perform a simple test: you have two services, set a price for each service and a combination of the two services, and ask your customers which they would select. The service where customers attach more value is your core service.

• Customer Pain Points: The service must address a real pain point for the customers. The customer pain point needs to be genuine and require attention, with the product providing immediate relief.

• Service Delivery: Identifying the feature/problem is not good enough; the process of delivering the service and alleviating the pain points needs to be clearly outlined.

For example, if you’re productizing a digital marketing service, your core product baseline might include keyword research, content creation, and SEO optimization. A combination of three core services will form the product to be offered.

Converting Services into Products

Once the baseline service is identified, it needs to be transformed into a product with tangible benefits/outcomes. Here is a 3-step process to do the same:

1. Standardization: The service shall be standardized, with no customization for a customer. All changes shall apply to all customers. Get rid of the "mera wala green" approach and develop a product/service that is consistent in delivery. Define a clear process for delivering the service with a predictable, repeatable outcome.

2. Documentation: You should be able to convert your service into a detailed guide or manual that the team can follow. The team may deliver using personal touch or develop tech to deliver the service. Each step needs to be documented and measured well for input and output to ensure quality control and to allow for a checkback in case of any deviation.

3. Automation: Use tech to automate/streamline processes, both for delivery and for the team to follow the steps defined in point 2. All repetitive tasks should be automated as much as possible. Even if delivered by a person, standardized calling tools and scripts help in delivering the right service.

The process of converting service to product is continuous. One needs to keep listening to the customers/complaints as well as the team delivering the service, tweaking the flow to make it easier for the team while improving the outcome for the customer. Listen to your top 10% to improve how your bottom 25% are delivering.

Packaging Your Product

A product is only as good as how you present it to your customer. It can attain premium perception or be relegated to the sidelines based on how you present (product pitch) it to the customer. It is all about creating appeal for your product and looking serious about how you do so.

• Service Bundles: Combine related services into attractive packages. Packages are important. A service never sells as a single offering in a product. It needs to address the core issue, plus some other smaller services complementing the core service. For example: A digital marketing bundle that includes SEO (core service), social media management, and email marketing. Or: A digital marketing bundle that includes social media marketing (core service), SEO, and email marketing. The bundle depends on what the customer is looking for.

• Visual Design: You need to showcase your services/product to the customer. A lot of people make the mistake of offering just a trial without explicitly talking about what their product is going to deliver. Create visually appealing materials like brochures, infographics, and videos to showcase your product and set expectations. Invest in hiring a professional graphic designer to create these elements, along with videos explaining the product. Customer testimonials also come in handy to create appeal for your product.

• User Experience: Customers want tangibility with the service. Offer them a space where they can interact with the product. The interface could be in terms of a dashboard showcasing the results or progress made so far. A product that requires the customer to wait until the final outcome (no matter how good) will leave the customer feeling anxious and out of control. Ensure that your product is easy to use and navigate.

Branding Your Product

Branding/naming is crucial for distinguishing your product in the market. It also helps when you launch different variants of the product. People love to identify products by name.

• Brand Identity: Spend time on your brand. Name it well. It should resonate with what you have to offer and have meaning. Develop a strong brand identity with a memorable name, logo, and tagline. Branding should reflect your product’s values and benefits.

• Consistent Messaging: Consistent messaging across all materials and mediums is a must. The theme, logo, and message should not change from one medium to another. If you want to communicate a different value proposition to different sets of customers, create a different product with slight changes in deliverables. Highlight the unique value proposition of your product.

• Customer Testimonials: Customers never want to be the first to use your services. They need to know what others who have used the services think about them. Ratings/reviews and testimonials help build trust. Showcase case studies to highlight how customers who used your products have gained from them.

Many do not pay heed and just name their offerings Silver/Gold/Platinum plans. While these convey the level of the product and premium, they fail to connect the customer to the product. They are on a plan; they do not own a product.

Crafting Your Pitch

Spend time and effort perfecting the pitch for your product. A product placed on the shelf without any description is less likely to be picked up than one with a well-crafted description about what it does and how it will meet the customer’s needs:

• Value Proposition: Outline the value proposition for your product clearly. Specify the key pain point being resolved and the benefit your product brings to the customer. You may also want to focus on how you differ from others and how you have the experience to deliver a better outcome than your direct or indirect competition. For example, talking about how you have helped customers gain 10X traffic at no extra cost will help attract SEO clients.

• Target Audience: Create your pitch with your target audience and their behavior in mind. The language needs to be crafted for the target audience. For example, English vs. local language can make a difference in product uptake. The examples we use should be relevant to the market. I am less likely to succeed showcasing a Frenchman (delivering in French) while selling a product to an Englishman.

• Call to Action: A lot of marketers make the mistake of delivering the message without including a strong call to action. Encourage your customers to act immediately—call back, scan a QR code, send an email, etc. The call to action could be anything that hooks the customer and helps you identify potential customers for follow-up and purchase.

Turning Intangible Services into Tangible Products

Services by nature are intangible. But when a customer buys something, they expect to touch and feel something or know that they have something in their inbox confirming their ‘ownership’ of the product.

The goal is to make your intangible services feel tangible to customers:

• Physical Deliverables: Provide physical elements like printed reports, branded merchandise, or packaged software. These tangible items can enhance the perceived value of your product.

• Digital Deliverables: Offer downloadable resources such as eBooks, templates, or exclusive access to online portals. Ensure these deliverables are high-quality and relevant to your customers’ needs.

An example is that of an airline loyalty scheme. The entire program runs on tech without any need for physical deliverables, yet the airline will send its most loyal customers a well-crafted invitation box, with clear expectations, cards, brochures, etc., to enhance the ownership experience.

Endgame: 

Designing a service into a product involves following core steps:

• A well-defined product with clear features, benefits, and deliverables.

• Professional packaging and branding: attractive, consistent, and professional presentation.

• A compelling pitch: a persuasive and tailored message for your target audience.

Must Remember

Designing a product from services is the first and most crucial step in the journey. A standardized product with the right packaging, defined branding, and a pitch designed to appeal to the target audience will help you convert an intangible service into a tangible product that gets picked by your customers.