Marketing Techniques for Service Industry

The main advantage of service industry is that, the product they sell is the TIME, ENERGY, and their TALENT. for example, in a Saloon, when they do a hair cut, they are not actually selling a physical product, rather they charge the time they spend on a hair cut, the tools they used etc.

"TIME" is a major and important factor deciding the income in service industry. Say in a saloon, how many hair cuts you can do in a day, or in a Car service station, how many cars can be serviced in a day. Before doing the marketing, we need to do the capacity of the outlet. How many people are working, and what is the total capacity of the outlet and what is the present income they are making.

Service industry can attract customers in 3 ways, (may be more..)

1: Percentage Discount: 

2: Subscription Basis:

3: Combo Offer:

Before we get to know these methods, another important factor is to know your customers. And their behaviour or frequency in buying. So lets take the case of a saloon to know the customers and their details. 

For example: In a saloon in a day, there are 3 barbers, and they cut 15 customers per day. Their actual capacity is 30 customers per day, that is 10 customers per barber. so they are operating only on half of their capacity. Now take the case of the customers, Some customers cut their hair every month, some twice a month, and some one is 2 months. Same case is with trimming the beard, some do it weekly, some monthly, and so on. Other items like facial, massages, etc may be once a month.  Imagine the same case with a Laundry shop, it all depends on the time they take to iron or wash a cloth.

Percentage Discount: : To give a good percentage of discounts on the regular price and attract more customers and utilise the maximum capacity. In this method, Imagine we give 25% discount to customers, and by this we plan to get 50 to 75% more business alone with that, attract new customers and to beat the competitions. 

Subscription Offers: For a Certain amount per month, we can offer 2 hair cuts, 2 beard settings, 1 facial, 1 massage etc. imagine if a person has to pay for these normal would be 500rs, but we give it for 375rs per month. The best part of this is, we can fixing the number of customers per month for an outlet, beating the competition, utilising the maximum capacity of the outlet, Liquid cash flow, Retaining our customers plus adding new and more customers. 

Combo Offers: Buy this get that free.. for example: If you pay for a Hair cut and beard settings, get a facial massage free. as I mentioned, facial massage cost is calculated by the time the barber spends on the customer. So if we have amble time, we can offer that as a service, but for the customer, he thinks he is getting a product as free, which he is not paying. Combo offers, buy 1 get 1 free etc would really work well in service industries.

There are many more methods, which i will add as and when it pops up my head :)

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