As an agency that focuses on delivering optimal customer experiences, we’ve noticed many companies over the years are transitioning from providing products to solutions. Instead of selling cars, electricity and mobile phones, these same companies are now specialising in personal mobility, creating comfortable homes and connecting friends and families. These solution-based offerings are putting customers first, and as a result, creating exceptional customer experiences along the way.
Whether your company is thinking about adopting a solution-based approach or curious to learn more about the subject, we’re sharing our experience and knowledge to help you embark on a path to success.
But first, it may be helpful to define what makes a company “solution-based.”
What’s a solution-based company?
Solution-based companies have four essential characteristics:
- Successful long-term relationships
These companies have their sights set on the future. Instead of a one-off contract with one product exchange, these companies use solutions to build long-term trust with their customers.
- Integration of goods, services and knowledge
Product-based companies offer their products separately, which means it's up to the customer to figure out which product is right for them. Solution-based companies already integrate their products and knowledge into one solution that’s hyper-relevant to a customers’ wishes.
- Adaptation to customers
Product-based companies begin with building an excellent product and then search for customers that need that product. Solution-based companies start with researching the needs of their target audience and then tailor the solution to them.
- Co-creation is a priority
The companies that offer the best solutions are often the ones that involve their customers in the creation process. Including customer insight in the early stages brings even more value to the final solution.
In the end, it’s a bit of a spectrum…
Most companies are not entirely product or solution-based but fall somewhere in-between. There’s a wide range of possibilities between a pure product or solution-based approach.
Some companies occasionally sell their products and services together while others choose to bundle their products and services and market them as one solution. Others create and offer a solution tailored to the needs of a specific client industry, while a few companies co-create an independent solution to meet different customer needs. In the end, every company has the option to select and develop an offering that works best for them.
The advantages of switching
How can your company gain by moving to a solution-based offering and how will it make a difference? From our experience, we believe there are 6 major benefits a company could gain on the short and long term.
- Switching barriers
Creating a solution tailored to customer needs decreases the likelihood that they'll switch to another company.
- Stronger customer relationships
Companies that co-create with their customers show that they want to know their customers inside and out — which goes a long way to building relationships and brand loyalty.
- Business opportunities with existing clients
Cross-selling and upselling become easier and more natural when a company can offer not one product, but several products and services in one solution.
- Stand out from the competition
Offering tailor-made solutions and a co-creation process with customers can set a company apart from its competitors.
- Attract new customers
Solution marketing can attract a whole new type of customer that's looking for not one product but a total solution.
- Future-proof company
Integrating different products and services into a single solution makes it easier for clients to buy established and brand-new products and secure future business opportunities.
Gain a competitive lead with Springbok
If your company is looking to learn more about solution-based offerings or ready to make the transformation, our experts are here to help. From building a solution pilot project to refining a value proposition to offering strategic advice — let us know how we can support you.