Servitisation

Servitisation is being used to turn products into services or to generate more services to sell to an installed customer base. Servitisation generates new ways of product and service innovation.

Service quality is about ‘fit’. Loyalty is about indispensability. If you can give your customers exactly what they need – not what the average need for their segment is – exactly when they need it, then your service becomes indispensible. They value it enormously so you do not have to bribe them so much with vouchers, deals and price reductions.

But producing a product or a service that fits depends on knowing exactly what a specific customer needs right then and there. And then doing it again for all other customers.

So there’s a tension within mass customisation. Its not an oxymoron, its a challenge that requires automation using PIGs or other ways of modelling specific customer’s needs throughout the customer relationship and beyond.

But whether you are trying to turn products into services using servitisation, or to just add to your firm’s offering with new services, then you need to:

  • know exactly what each customer requires at all stages of the service process
  • be able to vary your service to fit this
  • do it for each customer (or each staff member in B2B services)
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