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Notes on Understanding the Services Revolution

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(From an June 2014 interview with McKinsey’s Travis Fagan on their website, link here.)

In developed nations, services represent 70-75% of the GDP

Economic growth now largely comes through services

If you visited a clothing store in 1963 and 2003, not much would have changed

But the last decade has radically changed the buying dynamic

Customers research online before purchasing, maybe knowing more than your salespeople by the time they are ready to purchase

How does the role of a salesperson change in light of this?

It’s all about offer, presentation and pricing

Service innovation now keeps pace (or even beats) product innovation. Some giant new businesses are centered on services and not products, think of:

  • Uber
  • Airbnb

When customers become used to a high standard of service in one experience, they are going to expect that standard in all services

People want to fastest possible service these days–this can be a real differentiator

 



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