It’s a good idea for service-based businesses to consider scaling through productizing services, but deciding where to start can be overwhelming. Should you productize your largest service or focus on smaller offerings? 

The good news is that not all services must be productized simultaneously. Smaller, simpler services are easier to standardize and sell, and they can provide a valuable revenue stream with less risk.

Even small, repeatable services can provide significant benefits when standardized and packaged.

You don’t need to productize everything at once

Productization doesn’t require a complete overhaul of your business. Instead, you can start with a single service, test the process, and gradually expand. 

For example, suppose you run a marketing agency offering services such as social media management and web design. In that case, it’s often more effective to choose one service, perhaps your most requested or easily repeatable service and productize it first. 

Starting small allows you to:

  • Test the waters and see how well the productized service is received.
  • Minimize risks while optimizing the process.
  • Refine the service before scaling it or expanding the model to other services.

How to choose the right service for productization

When choosing which service to productize first, it’s crucial to assess your offerings and pick the ones that make the most sense for your business model. Here’s a step-by-step guide to help you make the best choice:

1. Focus on Repeatable Services

Start by identifying the services that follow similar processes for multiple clients. These services are typically easier to standardize because you already have a working formula. Look for services that:

  • Have clear, repeatable steps.
  • Deliver consistent outcomes for most clients.
  • Don’t require heavy customization for each engagement.

For instance, a consulting firm may provide a standardized business evaluation to each new client. This service can be easily turned into a package containing specific deliverables, timelines, and pricing.

2. Target High-Demand Services

Next, consider which services are in high demand. If clients frequently ask for a specific service, that’s a good sign that it’s a candidate for productization. 

High-demand services also indicate a market need, making selling the service as a packaged solution easier.

For example, if your IT company regularly performs cybersecurity audits, this service can become a productized offering that meets a common client need.

3. Evaluate the Complexity of the Service

Some services are more complex and may not be suitable for productization. Services that require constant client collaboration, deep customization, or unpredictable deliverables are harder to standardize. Focus on services that are:

  • Easier to define and explain to clients.
  • Simple enough to offer as a repeatable solution.
  • Not heavily reliant on back-and-forth client communication.

A marketing agency may find that content strategy services, which require in-depth client meetings and custom solutions, are more challenging to productize than a simpler offering like keyword research or SEO audits.

4. Look for Opportunities to Automate

Automation is key to scaling productized services. As you evaluate your services, consider which ones can benefit from automation. 

This could include anything from automating parts of the client onboarding process to using software to streamline service delivery. Automation not only saves time but also makes it easier to deliver consistent results.

For example, 69% of decision-makers find online research more useful than meeting with a sales representative, according to Gartner, emphasizing the importance of transparent, accessible information in the decision-making process—exactly what productized services provide.