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John (00:03): That’s right. It’s just me. I got a topic I want to talk about. This is a topic that maybe I haven’t talked so directly about, but in a lot of ways it’s been a big part of my work. It’s something that I’ve talked about for years, but I want to hit it head on today. And that’s if you are a service provider. I want to talk about the idea of productizing your service. So what do I mean by that? What I mean is creating service offerings that you can describe, explain price deliver almost as though they were a product I have for years delivered something we call Strategy First, and it is essentially our approach to developing strategy. So it is a service that we offer to business owners and we have dialed that in so thoroughly. Frankly, it was actually the genesis of Duct Tape Marketing of me creating the approach to Duct Tape Marketing was that I was a little frustrated going out and essentially delivering my marketing services in not a one-off fashion, but in a custom fashion almost whatever somebody needed.

(01:15): That’s what we designed a proposal around. That’s what we delivered. That’s how I priced it. And a lot of agencies do that. You can build a nice business doing that. But I was frustrated because I just felt like I was working more and making less as I grew that. So I created this productized approach. I called a marketing system, and we all the way down to exactly what happens when a client signs on to all the way through the way they’re onboarded. Everything we deliver in the final is really packaged up in a way that I can call it a product. That’s why we gave it a brand name. So that’s the idea behind a productized service. Now, I used an example of marketing, frankly. Accounting can have productized services, legal services can be productized, any kind of consulting can and in my view should be productized.

(02:07): There are some, I think some glaring benefits to why you might want to do this. The first one I started talking about is scalability. It is very difficult to scale an offering that is made up every time that is new for every customer. That is, and here’s my favorite word, bespoke. It’s very difficult to scale that because in a lot of ways it takes the enormous experience and let’s call it brainpower of the person who can be that nimble and deliver every single time. Now, there’s probably a place out there in the world for completely customized versions of service delivery, and in fact, we do it in the right circumstances. But for the most part, if you want to scale a service business, you have to create something that is very easy to message, that is very easy to explain. And frankly, when it comes to scale is easy to actually delegate and hire people and to train people how to deliver that package.

(03:13): And that’s much harder to do if essentially everybody’s making it up every single time they go out and work with a new client. So to me, that scalability is probably the leading benefit of doing this. I already mentioned this a little bit, but the sales process gets so much simpler Instead of, okay, what do you need? Okay, we’ll put together a proposal. Okay, we’ll refine their proposal. We’ll make it fit to the budget that you have. When you’re able to walk in and say, here’s what I’m going to do, here’s what you’re going to do. Here are the results we hope to get from this approach. And by the way, here’s what it costs. Shortens the sales cycle, which to me is a great thing. You get a yes or a no, but it also makes it very easy for you to explain exactly what somebody’s getting.

(04:01): I mean, that’s one of the most valuable things you can have in a sailing situation is something that’s very simple to explain. Somebody can get it. They can see on one sheet of paper, here’s what we’re going to do. It also will lead to much higher profit margins. And one of the reasons for that is that when you’re constantly having to figure out how to serve a client, have to write proposals, how to create whatever the deliverable calls for based on the scope of their proposal, there’s a lot of learning that goes into that. And if you can create a repeatable process, you will get better at delivering value because you’ve done it before. You will get faster at delivering value because you’ve done it many times now. And consequently, those two things alone will lead to much higher profitability. But the final piece that I think a lot of people underestimate is when you’ve got something that you can actually show somebody, here’s a proven process to get you results, it is very simple to explain to them exactly what they’re going to get.

(05:15): You can also charge a premium. So you’ve got really that profitability working two ways for you. You can generally charge more for a name branded service offering that you can now deliver very affordably or much quicker, or you can delegate to work to people that are at a much less experienced than you. It just leads to a much more profitable, and here’s the final reason to do it. And frankly, if all those other reasons weren’t enough, the final benefit or reason for doing this is that it’s a better customer experience. I know that everybody, I mean, everybody we talk to, it’s like, no, I want want something that’s tailored just to my needs. Well, on the surface, that sounds really great, but you rather have something that I’ve actually worked on for years and refined and evolved and seeing what works and seeing what doesn’t work.

(06:12): I can deliver. You can deliver much greater value by having a proven process. Now it takes time to prove that, to refine it. I mean, we’ve been doing this for 25 years and it’s evolved every single year for us as well. So to me, the product itself, because we have focused on here’s what you get, here’s what it costs, has gotten much, much better. Now, are there challenges in productizing? Some of what you’ll run up against is just what I mentioned. People want a custom approach. They don’t want cookie cutter. They feel like if it’s not created just for them that there’s something less. And so it really becomes important for you to not only create that productized approach, but be able to communicate very effectively the value, what’s in it for them. I think when people start to realize that by creating a repeatable system, you give people not only the option of getting a better end service, but you also get far better at delivering it.

(07:18): There’s just so much more value in it for them. So I think that the messaging really has to be about that is a lot of times people focus on, well, we can deliver this better, or we just get, we’ve got this down so that we have a very fulfillment engine that is very productized. It’s very systemized. But the key of course, is helping that buyer, that customer, that client understand why that is so much more valuable to them. So how do you get started doing something like this? Because one of the challenges I think a lot of people have in productizing, if you will, is that they’re serving such a diverse market. It’s very hard to actually create one or two or three things, packages, products, if you will, for all of the services that they might be able to offer. So it does help if you can narrow your focus first off.

(08:10): So I’m not necessarily saying a niche, maybe it is for you, but at the very least, who are the top 20% of your customers? What do they need today? What are the problems that you’re solving for them? Could you actually create or think in terms of creating a package just for them? You’ve got to standardize the offering. It’s not enough to just say, oh, this is this and it costs this. You’ve got to work on even the promotional materials need to standardize. Here’s what you get. Here are the benefits of this. Here’s why this approach works. So j