Service companies provide professional services to support customers in their operations. Selling a service differs from selling products. The main distinction is that while a product business sells physical objects, a service business provides value through skills, expertise, and time. Service distribution channels are usually shorter than product (goods and materials) distribution channels. Service providers sell to industrial customers mainly direct or rarely using only an agent.
In service distribution channels, agents are mostly part-time employees of the service provider company because they should be trained regularly on the provided services. Also, one-to-one contact is vital in this channel, so agents must sustain non-stop communication between customer and service provider. Since there is no product to stock, the dealer or industrial distributor companies usually are not operational in this channel.
Finding the right distribution channel
Before you can effectively market to your target audience in a service business, you must first comprehend the various platforms available for selling your services. This is referred to as service distribution, and perfecting this process might differ between success and failure. However, utilizing several service distribution channels can assist you in managing demand for your core service products.
Multiple distribution channels approach
You can target multiple market segments through various service distribution channels and design distinct pricing strategies based on the income of market segment members. Once you understand that distribution channels vary by product, You can examine distribution channel strategies used in sales and marketing to grow and expand while overcoming occasional demand declines.
Direct service distribution channels
The most common application of service distribution channels is direct sales (direct distribution). The direct distribution method enables a service provider to contact customers without an intermediary. This distribution model involves personal visits, traditional networking, and online interactions such as newsletters and email subscriptions. Additionally, the direct distribution channels provide service companies complete control over presenting their offers to their industrial customers.
Many services are sold directly to customers by the provider. Since service and provider are inextricably linked, direct selling is preferred. Direct distribution of professional services include those provided by physicians, dry cleaners, beauticians, personal care services, business consulting services, entertainment, and so on. There are hundreds of types of professional service provider companies. Their work requires direct contact with the customer. Therefore, customers prefer to buy any service directly from the service provider company.
Virtual service distribution
Offering virtual service is one of the most recent examples of service distribution channels. Nowadays, because of pandemic, this way of working is pretty popular. Professional sales experts provide services through a combination of phone, email, and video conferences using applications available on cloud platforms. Artists and authors who work on a freelance basis also take advantage of remote service delivery.