Business services are activities that help maintain a company despite not providing a tangible product. They are a subset of economic services, and they make up a large portion of the global economy. These activities are important for businesses of all sizes because they help the firm with everything from production to cost and marketing.
For example, a car manufacturing company may perform B2B transactions with wholesaler companies to buy rubber hoses and tires. These materials are then used to manufacture a car. This type of transaction is known as a business service because it does not involve direct interaction with consumers.
Other examples of business services include training services, office supplies, IT support, and accounting. These services are necessary for a company to function and thrive, and they are often outsourced to external companies.
Insurance services are also considered a business service because they are necessary for the protection of a company’s assets and practices. It is important to have the right insurance coverage because it can save the company money in the long run. Similarly, a company may use cleaning or landscaping services because they are a part of the overall maintenance of the building.
The success of a service business depends on how well it can meet the needs and desires of a desirable group of customers. In order to do so, managers must undergo an important shift in perspective. Rather than focusing on the characteristics that buyers will value, they should focus on designing the experience that customers want to have.