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discussing problems faced by service sector

10 Critical Problems Faced by Services Sector with Definite Solution

by Prachi Satardekar |July 29, 2019 | Blogs, Educating customers

If you have a business of services or a plan to start your firm, there is no denying that problems are part and parcel of the outcome.

Often they are ignored or never worked upon. But in the true light, there is so much we can learn from the challenges. The problems faced by the service sector are not any different.

The service firms or business have to highly depend on the quality of the service because there is no PHYSICAL product to show, feel and touch.

To keep up with the quality and maintaining it, is a challenge in itself.  After all, new prospects will only come to the business if we can give them a GREATER EXPERIENCE.

With that being said it’s important to understand the problem and find a definite solution to keep the business up and running.

I’m going to share with you #10 critical problems faced by service businesses with a definite solution to work upon. These exercises will not overwhelm you when the business problems are knocking your door.

So let’s get started……….

Finding solution to problems faced by service sector
Finding a solution to problems

10 Critical problems faced by the Service Sector with definite solutions

#1 Inadequate Business Development Skills

Business Development is a very important skill, not only to expand the business but also bring in new customers.

Small businesses find it difficult to decide on expansion plans because they don’t know how to much to invest in expanding the business. They might be an expert in their field, but they may lack the knowledge to operate business as a whole.

Large businesses take up the business development module but fail to follow it timely.

The Solution to Fix

•    Hire a consultant, who can analyze the business and provide helpful insights. It’s a cost to the company which can bring millions if followed up correctly. I want you to look at this beyond EXPENDITURE. It’s about being at the right the time, at the right place. You don’t want to miss the opportunity-Right?

•    Educate employees with business development skills. The employees are the greatest asset of the company and so grooming them should be the utmost priority. You can enroll in online courses like Udemy, which provides study material for a lifetime.

#2 The Mark of Sales

Getting those lousy sales calls or meeting the salesman in person has always annoyed us. Why? Because at that time, we aren’t looking for them.

The emails flooding from the service companies for buying their service pushes away the brand, even if they are one of the best companies. They are surely not fun reading stuff either.

I am not saying this approach is wrong or outdated. If the approach has a plan, then you can reach the goal without being kicked.

The Solution to Fix

•    Develop a strategy for your business which will convey the information in a more strategic way rather than being salesy. Use social media like Facebook, Twitter, Instagram, LinkedIn, and YouTube to engage with the audience and offer quality service. This approach is more a subtle way to game up sales.

•    The existing customers can be a great wealth for providing referrals. Asking referral from the happy and satisfied client means you are promoting your service from their mouth. You can take the testimonials from the clients and use them in your website, sales emails or newsletter. Before moving forward, make sure you have valid permission from the customer to use the testimonial or any other information.

#3 Expert Advice

Having an expert in the team relieves a lot of pressure. The expertise of the individual can be used to broaden the possibilities and move forward in the challenges.

There are many business opportunities in the service sector. Understanding these winners and using them in the best practices is what experts do for business.

A Man standing with magnifying glass as he is an expert
Advise from Expert

So having an expert on board is not a GOOD TO HAVE but a MUST HAVE task.

The Solution to Fix

•    Find a coach or mentor who has experience in various industries that can look at the business with a new perspective. This brings newness to the approach and distinct angles which are not just limited to the knowledge of the industry.

•    Look out for the individual in the team, who has outperformed, provided great ideas and solution to the business. This person will be more trustworthy than a recruit. It also, in turn, encourages other team members to perform well.

#4 Friendly relations with Close Clients

Amongst our many clients, there are few which are very close or family to us.

It becomes difficult to separate ourselves from being a business operator.

Some become close, after a long period of providing service to them. Hence it is necessary to understand how to approach clients without breaking the good relation.

The Solution to Fix

•    Prepare guidelines and policies on how to maintain a relationship with the client. Implement them daily and keep a check for the records.

•    Be consistent with the services. Clear any amendments or changes in the structure of service or business.

#5 The Hourly Billing Structure

There are some service businesses which work and provide services on an hourly basis. This system has a major drawback.

The employees may take leverage to work for a longer time just to extend the billing cycle. This way they can charge more for their services.

The image shows how the money is charged hourly basis for service sector
Money and time

On the other side, the client doesn’t know how long the task takes to complete. They might feel deceived and would find your competitor for future engagements.

The Solution to Fix

•    There should a proper structure for the billing of the services. Every task should have a fix maximum period to complete.

•    Also, a flat fee payment can be implemented as an alternative.

#6 Proper Management Takeovers

Small businesses don’t have a proper plan in case the head of the company becomes incompetent, retires or dies.

This creates havoc in the company and all the business dives down.

It’s important to pass the knowledge and skill to a proper successor so that the business is saved in the rainy days.

The value is intact to the company’s name; hence every care should be taken to keep up the work.

The Solution to Fix

•    A strategic plan should be made to pass the business which will save the company and its people. This also takes away the burden of having only one person for carrying all the responsibility

•    Keep a documented (written) file on how to run the business. List all important tasks, contacts, procedure, information and any critical details of the business. This will help in the future for the next head to takeover.

#7 Marketing Layouts

The business focuses more on the current client to give them a positive experience. This is a great approach because every experience with the client counts and helps to bring new customers. It’s a good start, but having new clients on board is vital for the business to sustain.

The Solution to Fix

  • Create a strategic plan for marketing and lookout for opportunities to get involved.
  • Hire a marketing specialist if you don’t have a team to look after the promotion of your business.

#8 Listening Skills

Most often companies don’t listen to the customers and fail badly. Listen to your clients and audience. Ask the question and try to solve their problems.

You will learn more when you listen rather than talking.

Image showing how to effectively communicate
Listen more learn more

The preference will be given more to you in this competitive industry if you are a good listener.

The Solution to Fix

•    Dive deeper and find out what the real problem is of the prospect and save them from falling. This will show your detailing skill to any task. Often clients miss looking at small details which can be critical in the future.

•    If you are not on Social Media, sign up now. It’s never too late! You will come across many opportunities and information which can be helpful to the business. Send a personalized message and engage with the audience.

#9 Clear Business Goals

Having clear business goals will not only help the business to grow but also sustain in the long term.

If we are not clear with our goal, how can we expect our audience to understand the message that we are sharing? You should know what your destination is and learn on the journey.

The Solution to Fix

•    Don’t create your objectives by assuming and thinking it will work. Understand your client’s objective and offer your help to them. If your service is not fulfilling the need of the customer, they’re likely not interested in your service even if provide the best quality.

•    Refine and tailor your solution as per the consumer needs, so that they will build a long-lasting relationship with the company. Make them feel important and cared person.

#10 Participating in Business Community

Many small businesses don’t understand how much impact a business community can bring to the company. You get to meet great people and you will be shocked how much they want to collaborate with you.

People standing and connecting with each other to relationship in business
Building Relationship

Rise above the ordinary and create connections with people of similar interest. By taking this extra mile, you will stand as prestige in your industry.

The Solution to Fix

•    Actively join business associations and communities. Find out what the industry currently is working on. Get well informed of the changing patterns in the clients buying journey.

•    Volunteer for industry committees and network with high-value group. Don’t just attain the meetings but be VISIBLE.

Taking the Next Big Step

Any problem or challenge shouldn’t make you weak or go all crazy. By observing and understanding carefully, you can overcome them and be the WINNER.

Taking responsibility and the right step means you are closer to success.

Failure doesn’t mean you are nothing, it simply means you can be something ‘GREAT’.

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