Product vs. Service Businesses
And the books I read come to you via the blog once again...
Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers by Geoffrey A. Moore
My rating: 4 of 5 stars
I began this book exploring a product to launch and finished it working in the business services industry. This juxtaposition helped me make sense of Moore's analysis and see its limitations.
For high-tech, or most new products, Moore is spot on. There is an adoption curve and the key challenge for success in these kinds of ventures is moving from early adopters to the mainstream. His strategy (summed as 'focus') is the way to conquer this challenge.
For services, I'm not as sure. My business is defined as singular events: consultation meetings, coaching sessions, and drafting language for others to deliver. While his advice (narrow focus leads to strong results) does not yet resonate with me. I'm still at the stage of figuring out what I do best and what customers need most. Frankly, most small service businesses (singular self-employed ventures) stay in this stage. Here we tinker, bring others in to solve tough problems. We never reach a 'mainstream.' And we shouldn't: when you can mass-produce professional services, you lose the real value created.
All that said, Moore was an entertaining and refreshing read: high-tech (and new product) folks must take him in.