How 'Productizing' Your Coaching Services Leads to Greater Client Satisfaction and Increased Revenue How product thinking enhances coaching businesses — and best practices for productizing your services.

By Alina Trigubenko

Opinions expressed by Entrepreneur contributors are their own.

In the evolving global economy, coaching businesses play a crucial role. A significant trend in the coaching market is tool consolidation, driven by the need for smoother business operations and improved client experience.

However, coaching businesses often struggle to scale due to outdated tools. This has led to a shift towards product thinking and software innovations, which can enhance client service and scalability.

Related: How to 'Productize' Your Service Business Offerings

Product thinking in coaching services

Product thinking is about creating and delivering customer value by focusing on the user experience, needs and pain points. It involves a deep understanding of the target audience and applying this knowledge to design, develop and improve products, services and client experience.

For coaching services firms, adopting a product-thinking mindset can increase client satisfaction, engagement and retention, ultimately driving business growth.

Key aspects of product thinking include:

  • Understanding the client's needs: Coaching services firms need to empathize with their clients to identify their requirements, challenges and aspirations. A study by McKinsey found that companies that prioritize customer experience (CX) have the potential to increase their revenue by 5-10% and reduce costs by 15-25% within 2-3 years.

  • Personalization and customization: Product thinking encourages coaching vendors to offer tailored solutions to clients, which is highly valued in the coaching industry. Research by McKinsey revealed that 80% of consumers are more likely to do business with a company if it offers personalized experiences.

  • Scalability and growth: By treating coaching services as products, firms can develop scalable and repeatable processes. This mindset enables them to grow efficiently, just like successful SaaS companies.

  • Metrics-driven approach: Product thinking emphasizes the importance of measuring success through key performance indicators (KPIs). Using data-driven insights, coaching services firms can optimize their offerings and make informed decisions. A study by PwC revealed that data-driven organizations are three times more likely to report significant improvements in business performance.

Related: How Service-Led Firms Can 'Productize' Knowledge & Boost Revenue

Modern consumer habits and coaching services

Modern consumer habits have significantly influenced the delivery of coaching services.

Traditional marketing avenues are losing their effectiveness, and the cost of acquiring new customers is on the rise.

  1. Declining social media reach: A decade ago, the average Facebook page enjoyed a 16% organic reach. Today, it's down to approximately 8.5%. Even Instagram, which performs better, sees its rates dropping annually.

  2. Search engines losing traction: In 2020, 65% of Google searches ended without a click. The rise of zero-click searches and advertising has shifted search behavior. AI technologies like ChatGPT are expected to accelerate this trend.

  3. Attribution software limitations: If you're using attribution software, you're likely seeing Google pop up more often than it actually contributes as a lead source. Asking "How did you hear about us" upon conversion can provide a clearer picture of your lead sources.

  4. Overlooked data sources: Social media platforms, podcasts, online communities, word-of-mouth referrals, blogs or events often provide valuable insights into your network effects and demand generation opportunities.

  5. Email becoming cluttered: 33% of marketers surveyed by Hubspot identified low open rates as a major hurdle. Email response rates fell by about 40% last year. Our user research revealed an 88% dissatisfaction rate among clients when their coach communicates via email due to a disjointed engagement experience and overwhelming clutter.

With this decline in organic reach across social media, search engines and email, it's time for businesses to reevaluate their GTM strategies and align with contemporary buyers' preferences.

Our findings at Profi emphasize the principle of Value > Volume, with 83% of professionals believing that producing higher-quality content and engagements less frequently is more effective.

In today's digital age, customers, whether in the SaaS or professional services markets, have come to expect the opportunity to familiarize themselves with products or services before making a commitment.

This shift in consumer behavior has led to the rise of a product-led model, which has demonstrated remarkable success in the SaaS industry and holds significant potential for professional services as well. This model prioritizes delivering value upfront, allowing potential clients to experience the benefits of your services before they decide to invest.

By adopting this approach, you can align with your clients' preferences, build trust and improve your business metrics. In fact, companies with product-led growth (PLG) motions outperform peers on Customer Acquisition Cost (CAC) payback:

"Companies that see discoverability and a robust free product as core to their strategy return CAC costs four months faster than their peers."

Related: 3 Insider Tips for Creating a 'Productized' Business (Even if You Offer Services)

The role of productization in coaching services

Productization refers to turning services into scalable, standardized product experiences. It's essential for effectively scaling and maintaining consistent quality for professional coaching services firms.

By incorporating best practices and lessons from the SaaS industry, coaching services can achieve greater client satisfaction, increased revenue and reduced operational costs.

Best practices for productizing coaching services

  • Hyper-personalized service packages: Design service packages that resonate with your Ideal Customer Persona (ICP) on an emotional level, based on the Jobs To Be Done (JTBD) theory.

  • Standardized service delivery: Develop standardized processes for consistent coaching services. Regularly monitor your clients' perception of your brand and services through surveys and Net Promoter Score (NPS).

  • Pricing strategy: Establish transparent, tiered pricing models that align with the value provided by each service package. Regularly review your pricing strategy to ensure it reflects the value you provide, the market rate and your business goals.

  • Performance tracking: Use key performance indicators (KPIs) to measure the effectiveness of your coaching services. Use these insights to optimize and refine your offerings.

  • Technology adoption: Use technology and digital platforms to streamline service delivery, manage client relationships and track performance metrics.

Alina Trigubenko

Entrepreneur Leadership Network Contributor

Founder & CEO of Profi

Alina Trigubenko is the founder and CEO of Profi and loves enabling changemakers to scale and maximize their impact with the help of our all-in-one operating platform for professional service providers (coaches, trainers, therapists, consultants).

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