Business services are a set of activities that benefit businesses without producing or selling physical goods. They include marketing, production, safety and cost management services that are essential for larger companies with high work demands.

These services are often offered on a business-to-business (B2B) basis or to the end consumer as a B2C service. They can be provided by many types of providers, including government agencies and non-profit organizations.

Product and service businesses both depend on their ability to attract and retain customers, but the key distinction is that a product business delivers goods to its buyers while a service business delivers an experience to its consumers. It is a difference in perspective that is critical to the success of both kinds of businesses, and it has important implications for management.

Service-focused managers need to think about design differently than those who run product companies, because the experience a customer has of a service company is much more influential in his or her perception of its value than is a product’s quality. The resulting experience must be attractive, and it must be consistent with the company’s brand image.

While many of the techniques used by product-oriented managers remain effective in service business settings, managers must be prepared to adopt new thinking. They will need to understand how to manage the experience of the customer and the experience of the employee, because both these roles are important in determining the overall health of a service offering.

The first step is to identify which aspects of the service experience are most valued by the customer and then focus on enhancing those characteristics. This includes making sure the service is convenient for the customer, offers friendly interaction and provides a high level of quality.

Another aspect of the experience is the quality of communication between the provider and the consumer. This can involve developing a system for communicating and collaborating between the service provider and the customer, which will help ensure that the service is meeting the expectations of both parties.

It is also important to consider how the experience is portrayed to other people who may be involved in evaluating the quality of a service offering, such as vendors and employees. For example, the company’s website might be a place where customer reviews are posted.

This will help the company understand how well its offering stands up to competitors. It can also help companies develop new offerings and improve their existing ones.

For instance, a company might create an online booking system for events or conferences that allows its guests to make reservations from the comfort of their homes or offices. This service could be especially useful for large companies that have a significant number of guests visiting regularly.

There are other types of services that a business might offer to its clients, but these are the most common. They include transportation services, food and beverage services, utility and waste management, and real estate services.