Aaron has worked in the financial industry for 14 years and has Accounting & Economics degree and masters in Business Administration. He is an accredited wealth manager.
In this lesson, you will learn what a service business is and begin to recognize the importance of great customer service to their success. You will also find out why service businesses are so popular and explore ways in which they play an important part in your life.
Overview of a Service Business
Think about all the times you paid for someone to do something for you. Maybe you paid someone to paint your house, change the oil in your car or even prepare your meal at a restaurant? You likely paid someone to do these things for you because you didn't have the time or skills to do them yourself. Or maybe you just didn't feel like doing it on your own, and it was worth it to you to pay someone else to do it instead.
Restaurants, car service shops, and the like are all service-based businesses. Collectively, they are relied upon to satisfy the needs and desires of thousands of consumers each day. As long as we have limited time, limited knowledge, and simply don't enjoy doing everything ourselves, service businesses will thrive!
Definition of a Service Business
A service business is an enterprise composed of a professional or team of experts that deliver work or aid in completing a task for the benefit of its customers. The product a service business delivers isn't like a product you buy at the store, such as a television, piece of clothing, or food item. A service business delivers a product that is primarily composed of personal labor and expertise to deliver the desired work. For example, you may use a real estate agent to buy your first house because you want to take advantage of their expertise, negotiating skills, and knowledge of the required contracts.
A big part of whether you are happy with a service business is based on your customer service experience. Your customer service experience is all the things the business does to ensure your satisfaction. This is a key part of the success of these businesses and how they try to differentiate themselves from the competition. This includes the quality of work they perform, how friendly they are, the timeliness of completing their job, and their ability to answer questions or address any problems that may arise. Take a minute and think about a business you like to use or are very loyal to. They probably deliver a great customer service experience.
Examples of a Service Business
The following are some examples of service businesses many probably use or are familiar with.
Millions of tax returns are filed every year between January and April 15th. Taxes can be confusing, intimidating, stressful, and overwhelming! What starts out as something simple one year ends up becoming more difficult in the future when you buy a home, have a child, or change jobs. For this reason, the tax industry has grown and serves millions of people every year in completing this task that few truly enjoy.
Over 79,000 lessons in all major subjects
Get access risk-free for 30 days,
just create an account.
I bet you know someone who uses a maid service. This is a classic example of a service that thrives because it meets a need for people who either don't have time or simply don't enjoy cleaning. Perform a simple search online or review of the monthly advertisements and you will find several service businesses ready to help you. There are even cleaning businesses that specialize in certain areas. If your basement flooded or you need those stains on your carpet removed, you can find specialists to help you.
It is hard to learn everything you need on your own! Where would you even begin? Whether it is a public high school or for-profit college, educational institutions specialize in providing a valuable service. They educate individuals on specialized topics that will form a strong background and framework for their success in the future.
Health and Wellness
Have you ever thought of using a personal trainer or getting a massage? Ever needed a chiropractor or dentist? These are all businesses that are service-based. We seek the unique education and skills of the professional. Try giving yourself a massage or performing your own root canal. It probably won't turn out too well!
A service business is an enterprise composed of a professional or team of experts that deliver work or aid in completing a task for the benefit of its customers. Landscaping, dental work, and getting your taxes done are all service-based businesses. A large part of the success of these businesses is based on the customer service experience they deliver. This includes the quality of work that is performed, how friendly they were, the timeliness of completing their job, and their ability to answer questions or address any problems that may arise.
Vocabulary & Definitions
Service business: The service business is an enterprise composed of a professional or team of experts that deliver work or aid in completing a task for the benefit of its customers.
Customer service experience: The customer service experience involves all the things the business does to ensure your satisfaction.
Study as much as necessary to ensure that you can do the following afterwards:
Give a description of a service business
List the components of the customer service experience
Provide examples of service businesses within different fields
Did you know… We have over 200 college
courses that prepare you to earn
credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the
first two years of college and save thousands off your degree. Anyone can earn
credit-by-exam regardless of age or education level.