Benefits of ESM (Enterprise Service Management) platform for service industries

In business, selling a service is not quite the same as selling a product. That's why the service industry is plagued by inherent problems that require innovative solutions. One of the likely solutions that mitigate these challenges is adopting an Enterprise Service Management (ESM) platform

In this blog, we discuss the service industry's unique challenges and how excelling in ESM capabilities can help solve them. 

What is a service industry?

A Service industry is any business where the primary output is not tangible goods, but intangible services. Unlike selling a product like a pen or a car, the service industry caters to selling solutions to problems, as a service. Some industry examples include

  • Banking and Finance (e.g., insurance)

  • Education

  • Health Care

  • Information Technology

  • Legal Services

  • Entertainment

  • Consulting

What challenges do service businesses face?

Selling a service is a tricky business. The major challenge is that, unlike physical products, there are no tangible assets to sell. This means that you have to sell your value proposition in terms of how it can solve your customer's problems or fulfil their needs. It also means that you need to be able to demonstrate the benefits of using your solution over other options available. 

This type of selling is associated with some unique problems. Some of them include the following: 

It’s hard to assess the value of service

The biggest challenge with selling services is that it’s hard to measure the value of a service. The customer cannot see the service upfront and so doesn't know what they are getting until after they have received the service. This makes it difficult to determine whether you are going to provide enough value or not, and it also makes it difficult to price your service. 

There’s no standard way of delivering service

Another challenge is that there is often no standard way to deliver a service. For example, when a customer buys a car from a dealership, they get exactly what was promised. However, when they buy a service from a service provider, the customer may not always get the same kind of service experience. 

The service cannot be returned, unlike products

When a customer purchases a product, they can return it if they aren't satisfied. They can even exchange it for something else. But when the customer purchases a service, they cannot return it. If he or she is unhappy with your service, you can't undo what you have done. The best you can do is either make a refund or offer to carry out a better service second time round. 

The difficulty of measuring quality

Quality is another issue. When a customer buys a product, they can see whether it meets certain standards. For example, they can check the quality of a car by looking at its features and comparing it to other cars on the market.

With services, however, it's much more difficult to gauge the quality of service because it depends on many factors, such as the level of experience of the person has who is providing the service.


How can ESM platforms benefit service industries?

Here are just a few ways that ESM platforms can help service industries overcome their unique challenges:

Standardising the delivery of services

An ESM platform gives you a standardised way to deliver services. By creating a set of rules and guidelines, you can ensure that everyone involved understands what they agree to and what they will be receiving.

Tracking progress and managing change

ESM tools give you an efficient way to track progress and manage change while delivering a service. You can easily communicate to clients any updates or changes, so they stay informed about how things are progressing.

Improving communication between stakeholders

Communication is key in any business relationship. An ESM platform enables you to send messages to multiple people at once and keep them up to date without having to repeat yourself.

Reducing risk and improving efficiency

ESM platforms reduce the risk associated with working with new partners and clients. Because you have defined the scope of work upfront, you know exactly what you'll be delivering and what you won't be delivering. This reduces the possibility of misunderstandings and delays.

ESM platforms also help increase efficiency by allowing you to automate repetitive tasks. Instead of manually entering the information onto spreadsheets or databases, you can use an ESM platform to create automated processes that save time and money.

Reducing Cost

The cost of running a business is one of the biggest expenses most companies face. With an ESM platform, you can cut costs by automating manual processes and eliminating redundant steps.

Increasing customer satisfaction

Customer satisfaction is important in every industry. An ESM platform helps you provide better customer service by giving you a centralised location where you can access all the information you need to resolve issues quickly and efficiently.

How to get started with ESM in your service business?

When it comes to adopting ESM, there is no “one-size-fits-all” approach. Every service business is unique and may need specific solutions tailored to solve its problems. Hiring an ESM consultant can help you determine which solution best suits your needs.

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