Everyone is getting into consulting lately, but it isn't the easiest way to make living. Finding a tight niche and creating packages that customers can easily understand and purchase not only helps you sell, but it makes it a lot easier to deliver and get paid. This presentation explains why packaging is essential and 3 ways to approach the packaging of business services.
3. Services are Different
Intangible
Can’t see, touch or try
Local customer base (typically)
High involvement: complex,
costly, purchased infrequently
Perishable
Customer is often “present”
5. Why?
avoid selling hours
saves time writing proposals
consistent delivery
reduces scope creep
easier to explain
easy to sell
capture position in customers +
referrers minds
efficiency = bigger margins
easier to train lower cost people
“tangible” attributes
+ benefits
People like neat and tidy solutions:
kits, systems, turnkey
greater perceived value
everyone on same page
easy to buy; simpler decision
6. When the product is right, you don’t have to
be a great marketer
Lee Iacocca
promoter
7. Position Package Promote Profit
STAKE YOUR CLAIM
ON A SIMPLE IDEA OR POSITION
IN THE MIND OF YOUR CUSTOMER
8. Core Competency
What are your best skills, strengths, business
approach? Secret sauce?
How you do what you do.
Competitive Position
How are you perceived?
What are you known for?
Cognitive Brand
Brand promise, values, personality,
emotional connection
Creative Risks Express yourself, be memorable
Substance
9. Direct Substitutes Differentiation
Similar services
What prospects might do
or purchase instead
Why you?
Competition: Where do you fit?
Seattle Wedding
Photographers
No pictures at all
Have a family member act
as photographer
Ask guests to take pictures
Likely or Unlikely?
Why?
Awareness
Specialty
Portfolio/Website
Credibility: Experience,
Education,Awards, Press
Referral (live/social)
Packages & Price
AddedValue Services
More exclusive = fewer competitors
10. Ways to Differentiate
Photo: vectorportal.com
Market Niche Competitive Opportunities
Guarantee
(so strong that no one else in
your industry would dream
of doing it. Scary!)
Resolve Fear, Universal Belief
(painless dentistry, neatest
remodeling contractor)
Package an Outcome
Unique or Trendy
(sustainable?)
Messaging
Do the Unexpected
(financial planner details your
car when during annual
review)
An Offer They Can’t Refuse
(tax prep clients get fee back
with referrals)
“100% refund tax guys”
12. Packaging Principles
1. Focus on outcomes, results,
deliverables.
2. Document the value proposition.
3. Use flat or fixed prices for the
primary package; use “accessories”
or “add-ons” to manage variables.
4. Constrain the timeline. Be crystal
clear which activities occur during
the engagement. Identify key
milestones with deliverables.
5. Specify what you expect from the
customer; who will participate,
types of activities, time required.
6. Build supporting documentation:
checklists, delivery guides, sample
reports. Helps customer see that
you have real intellectual property
baked into the offering.
13. Fill the Shelf
No frills
Serve several people at once
(i.e., classes)
Virtual product: digital,
downloadable
Low Point of the Arrow:
Accessible entry point for
new business
Super-premium
Increasing quality
Personalize
“Customization”
What happens next?
High
Upsell
Your Offer Need
17. Productize
Turn an idea, process, prototype
or expertise into a marketable
and salable product
Limited customization
Volume sale
Isn’t as easy as it sounds; you’ll
need an audience first
22. How to Reorganize
1. What are market trends
important to your industry,
market or customers?
2. What research do you need to
do? Where will you find it?
3. What opportunities have
arisen? New problems/needs.
4. Map capabilities to solving
those new problems or
addressing those new needs.
Political
Economic
Regulatory
Technological
Social
Industry
25. Ideas & Development
Brainstorm the different ways you
provide services (mind map)
Look for patterns on how you spend
your time and share your expertise
What questions do you get asked
over and over again?
What do you want to be known for?
What do you enjoy?
Look for trends in past 18 months
of business
Break it down into 3-5 categories
Develop use cases and case studies
for each category
What materials or assets have you
already created that can be
repurposed?
Research current clients and
engagements: solicit stories, ask
what’s working, challenges
encountered, gather anecdotes, etc.
26. Assess Potential
Which ideas hold the most potential
for productization?
Determine which of your services
are repeatable, predictable and
scalable
Financial review of services so any
trends or possible groupings can be
developed.
Develop preliminary productization
matrix with the most promising
products identified.
What can given to less skilled /
costly personnel?
Partners?
27. Outline Steps
to Delivery
Think about how you naturally deliver
the service
Write the steps in a logical sequence
Look for redundancies;
find efficiencies
What can be automated? Technology?
28. Example Outlines
Life Coach
Business
Strategist
Financial Planner
Self Discover
Action Planning
Try It Out
Internalize
Ongoing Support
SWOT
Resource and Risk
Threshold
Action Plan
Current Position
Future Goals
Risk Assessment
Recommendations
Portfolio Creation
Tracking
29. Box It Up
Create levels or packages within categories
Develop flat-fee pricing for each
Give packages names: descriptive, benefit-
oriented, branded
Collateralize: presentation, tools,
spreadsheet, ebook, guidelines, checklists,
workbook, video/audio presentation.
What is easy to deliver and easy to
maintain?
What do customers want to use?
30. Go to Market
Get early feedback from existing clients
Track responses/adjust offerings
Write new case studies; messaging
Develop website and marketing
materials
Do post mortems at the end of each
project to capture lessons learned
Continually improve by gathering
feedback
