The service industry does not make money? Don’t blame the industry, you are too inefficient

Why do some marketing methods go to the hairdressing industry as if they are malfunctioning and cannot be used?

A few days ago, a group of friends asked me questions. His general idea is this: “I am doing hairdressing industry, and I have read many articles, but you have many marketing strategies, such as occupying a market segment and cost. Revenue analysis, analogy of known information, etc., does not seem to apply to me. What is going on?”

Why do some marketing methods go to the hairdressing industry as if they are malfunctioning and cannot be used?

The hairdressing industry is different from other industries.

Here, we must first understand the essential difference between the hairdressing industry and other industries.

Marginal delivery time

Hairdressing is an industry with a high marginal delivery time (marginal delivery time: every additional guest, you need to pay more for it). Every barber’s time is rigid. Even if his skills are first-class in the country, he can only serve a limited number of customers a day, and other customers can only give it to competitors.

Such industries with relatively high marginal delivery times are collectively referred to as the service industry. Similarly, there are industries such as catering, consulting, repair, and offline training.

When it comes to services, it naturally leads to products. One of the main features of the product is the opposite of the service: the marginal delivery time is shorter. For example, in the beverage industry, due to the scale effect, every time a bottle of beverage is sold, the factory does not have to spend time separately to produce – the factory produces enough beverages at one time, and the total production time has been apportioned. Even some products are extremely standardized and virtualized, making the marginal delivery time approach zero.

For example, for Didi, for every additional passenger, the company itself pays more time for zero—from the private car drivers who bear the time cost of picking up passengers and carrying passengers.

For example, if you get the virtual knowledge in the APP, the author will not have to pay for it every time, and the marginal delivery time will approach zero. On the contrary, if it is an offline education institution, the same course, every student needs the teacher to repeat it, and the marginal delivery time becomes very high.

2. Market concentration

The so-called market concentration is in an industry where “a few companies are sitting on massive users and earning high profits, the rest of the company is struggling to survive” or “the gap between the best and the worst companies”. Not big, most companies earn an average profit.”

The former, we call it a centralized market (such as the US-based group, hungry for the take-out platform); the latter, called the decentralized market (the number of restaurants in the country is numerous).

The key factor in determining whether an industry is in a centralized or decentralized market is the marginal delivery time we mentioned earlier.

Products with short marginal delivery times can often be quickly replicated to create a wider range of uses or perceptions (such as the sale of Coca-Cola to the world, to the national drip car); and the long-term delivery of services to the The ability to radiate outside is often very limited (for example, a restaurant near your home, a city, maybe no one knows).

Based on the above logic, you may already understand why some methods are not applicable to traditional service industries at all—because many marketing strategies are designed to solve the problem of product promotion that can quickly establish broad awareness, rather than service.

Traditional service industries often need more specific methods such as sales, push, channel, pricing adjustment, eye-catching or consumer development, rather than more marketing strategies.

Well, some people should ask – I am really doing business in the service industry. As you said, you can only earn average profits. Is there any way to be better in the industry?

Of course there are. If the marginal delivery time of the service can be greatly reduced under the premise of ensuring the quality of the product, the transaction efficiency can be improved and the profit can be obtained.

So the question is back – how to reduce the marginal delivery time of the service? It is very simple to improve the standardization of services.

How to reduce the marginal delivery time of the service?

1. Modularity of service

Modularize the service itself to reduce marginal delivery time and increase efficiency.

For example, the grandmother’s 3 yuan “Ma Po Tofu” is to disassemble the product production process into modules (such as tofu cuts, dips, cooking, etc.) and then optimize them on each module. In the end, the quality of Mapo tofu was no longer dependent on the chef, but the tools and processes, which ultimately increased the speed of serving.

Another example is the traditional suit customization company, which is similar to the workshop-style operation. Based on body data, several cutters are generally responsible for the entire process from fabric cutting to sewing. The delivery period of the suit is generally about one month. The large-scale reverse customization of the Red Collar Group achieved the miracle of completing the suit production within 7 days. This is because the red collar breaks down the production process of the suit into N modules (such as buttons, pockets, sleeves, shoulder width, swallowtail, etc.). Under each module, there is standardized control of professional equipment, which is produced in each module. After the optimization is completed, it is finally spliced ​​together. This model greatly increases the speed at which the suit is made – because it also shifts the quality of the suit from relying on workers to processes and tools.

If you also want to modularize the service, you need at least a positive answer to the following questions:

☆ Can the service I provide be disassembled into multiple modules?

☆ Can these modules be individually controlled for quality?

☆ Can all modules be spliced ​​into a complete service?

2. Service subtraction

In many cases, although you think you are providing better and better services, it may have exceeded the needs of most customers, that is, they are “oversatisfied”.

At this time, if you want to reduce delivery time and improve transaction efficiency, you must subtract the service.

In the past two years, a wave of “quick haircuts” (referred to as fast cuts) has emerged in first- and second-tier cities. The so-called fast cut is to not wash, not blow, not dye, not hot, do not sell, do not do cards, focus on providing hair cutting services, eliminate all inefficient links, get it within 10 minutes.

For example, traditional haircuts generally require a wash of the hair before and after the haircut, and the quick cut reconstructs these steps, becoming “wet the hair with a watering can before cutting, and use a shampoo to clean the hair after cutting.” Doesn’t it all mean consumption upgrades, why is the fast-cut mode of reducing the experience still sought after by the public?

Because it sees customers who “have only a single haircut requirement.” And the traditional barbershop offers a lot of services (such as high-grade decoration, comfortable seats, refreshing scent, high-end shampoo and conditioner and even the value of the hairdresser), for this group of people, It is dispensable.

Therefore, when these redundant services are eliminated, which saves time and money, the support of this group of people is supported.

Therefore, if you want to improve efficiency by going to service, you must ask yourself:

☆ Who is my mainstream customer base?

☆ What services do I offer that they don’t need much?

☆ Can I eliminate these services and improve efficiency?

3. Get rid of the service industry – platformization

If the first two methods are “providing a solution to the non-standard nature of the service industry itself”, then platformization is equivalent to getting rid of the service industry and indirectly solving the non-standard problem of the service industry by “doing platform-based products”. .

How to platform? That is to say, the non-standard link in the transaction process (the link with high marginal delivery cost) is removed, and only the standard link is retained.

The catering industry is essentially a service industry – everyone has different dining needs and is extremely dependent on the chef’s time. The transaction process of the restaurant is generally like this: ordering – making – payment. Here, ordering and paying are almost no waste of time and are very standardized. Only the time when the food production process relies on the chef is an inefficient link. Let’s imagine what would happen if we eliminated the non-standard part of food production in the trading process and only kept the standardization of ordering and payment. Is this the hungry for making a takeaway platform?

In the countryside, there are people who are happy and happy, because there are more guests, they will ask professional chefs to cook at home. Here, the transaction process is like this: find a chef (usually from the word-of-mouth recommendation of the same village) – production – payment. The inefficiency in this process is still food production, because the menus at each point are different. Therefore, there is a company that eliminates the production process and only keeps looking for chefs and transactions. This company is a love chef.

The travel industry is also part of the service industry – each person’s travel location is different and depends heavily on the driver’s time. Then, what happens if the driver pick-up is removed and given to others, only the car and the transaction are reserved? This is the drip travel.

In the lodging industry, everyone’s accommodation needs are different, some people need a budget hotel, and some people ask for a five-star hotel. Therefore, Ctrip only offered to find a room and make a reservation, instead of having even one suite.

So if you want to get rid of the service industry, do it directly. You have to ask yourself:

☆ What services do I offer, what is the transaction process?

☆ Which links are standardized throughout the process? What are non-standardized?

☆ Can I exclude non-standardized inefficiencies and retain only the standardization links to make platform products?

Of course, here, platformization is only a direction provided, and does not consider the difficulty.