There are key differences between B2B product (e.g. software) vs. B2B service (e.g. consultancy) businesses:

• In a product business, the product comes before everything. In a service business, human capital comes first.
• Product businesses tend to be transactional. Service businesses tend to be relational.
• In a product business, customers care about features, design, and social signaling before anything else. In a service business, they care about expertise, trust, and results first.
• In a product business, customers can feel the brand’s values. In a service business, they can also see and hear it.
• Product businesses have a set of options for all. Service businesses can customize on request.
• Product purchases can be impulsive. Service purchases require thorough consideration.
• In a product business, customers might not feel the impact if you outsource. In a service business, they immediately do.
• In a product business, the sales process is usually straightforward. In a service business, it’s usually complex.
• A product business needs to give meaning to a tangible product. A service business needs to make the service meaningful by making it tangible.
• Processes of a product business are usually behind the scenes. For a service business, processes are visible to customers.
• Product businesses have clear competitors. Service companies can compete with different companies depending on the client.
• Every product business eventually needs a service component. Every service business eventually has to productize to continue growing.

All these differences impact how to position the brand, what messages to convey to the market, and how to attract potential customers.

Obviously, some other factors affect these differences.

Like the price point of the offer.

But the moral of the story is this.

Market your brand by considering the nature of your business.

Pay attention to the rules of the game you play.

So among all the competitors who leave things to chance when it comes to marketing, you can easily stand out — and win.

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Thank you for reading this edition of How Brands Win.

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Have a great day.

Ozan
Founder - Frontera​

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