Exporters in the services sector are trying to sell something
invisible to the buyer; in fact, they are selling a promise. It is
much easier to market products because they can be inspected and
tried out. Services are usually not delivered on the spot and the
buyer does not see an immediate benefit.
Doreen Conrad, Chief of ITC's Trade in Services Section,
explains: "When a service provider has credibility, it encourages
buyers to cross that imaginary line and take a chance that they
will deliver what was promised."
Build and manage reputation
Because service exporters are trying to convince someone to buy
something they cannot see to test, it is essential that they appear
to be as credible as possible. Credibility can be established
through strategically building and managing your company's
reputation.
- Recommendations from past clients.
Most people use recommendations and referrals when selecting a
service provider unless the service is low risk and inexpensive.
One of the reasons why people use word-of-mouth referrals is to
manage risk. If someone they trust is satisfied with a particular
service, it reduces the perceived risk.
In addition, searching for and evaluating potential service
providers is time-consuming. For these reasons, exporters need to
get as many people as possible to give them recommendations and
referrals. Written testimonials from satisfied customers are also
highly effective credibility-building tools.
- Objective evidence of ability.
Recommendations, referrals and testimonials are just one way to
build credibility. Buyers also look for "objective verification" of
a service provider's capabil-ities, that is, validation that comes
from - or appears to come from - an external objective source. This
is a cornerstone of public relations, or reputation
management.
For example, if an exporter is invited to give a presentation, it
implies a stamp of credibility because it appears to the public
that the sponsor believes them to be competent. Showcasing awards
in industry newsletters or in mainstream media through press
releases is more effective messaging than paid advertising.
Successful exporters seek many other ways of presenting their
services in public, such as hosting an information seminar,
speaking at conferences and writing articles for trade or business
media. This can establish exporters as "experts" in their
field.
- Benchmarking against international
standards. Another way is to become certified to an
international quality standard such as ISO 9001. (ISO 9001 is a set
of standards for quality management systems that is accepted around
the world.) Such certification could make the difference for a firm
being taken seriously in a bidding process.
- Credibility by association.
Partnering with a larger, well-known international firm for a small
part of a large project or contract brings instant credibility.
Membership in industry associations brings with it implicit
guarantees of approved credentials and standards of ethical
behaviour.
Boost national profile
On a broader scale, governments and trade support providers can
help raise their countries' image as a supplier of quality
services. Trade support institutions such as trade promotion
organizations, service sector associations, chambers and other
public or private sector agencies often have links with potential
business partners abroad.
To help boost service exporters' visibility, they can analyse their
competitive strengths and promote them to foreign trade partners.
Governments can also help to fill gaps in information by sponsoring
research into exports of services, such as the size and dynamism of
the sector and its contribution to foreign exchange earnings.
A "face to the world"
Making a good impression on potential customers is paramount. A
web presence is increasingly important. This "face to the world" is
the linchpin of a presentation image. Potential clients will also
review promotion materials with an eye to cultural issues.
The two-minute test
A "benefits message" is equally important. Service providers
must bclear about what benefit is on offer and why it should matter
to the customer. What is known in the public relations world as the
"elevator test" challenges exporters to state their added value
succinctly when meeting a potential client in an elevator or at a
reception. In two minutes or less, exporters should be able to
complete the following three sentences:
- We provide . . . (services/capabilities).
- What differentiates us from other firms is . . .
- Think of us when you need. . . (the benefit provided).
"Building credibility should be a key consideration in designing
strategies to increase exports of services," says Ms Conrad.
"Exporters should try to earn as much credibility as possible, but
should also remember that losing credibility is easy. Earning it
back is nearly impossible."
Winning awards gains customers
There are many ways to build credibility, a first step into the
global marketplace for service exporters.
Finding ways to compete for awards, then promoting your award on
your web site and in printed materials can win client confidence
and minimize their perceived risk.
Existing and potential clients of Totalserve Management Ltd have
increased confidence in the Cyprus-based financial ser-vices
company since it won a fourth Export of Services Award in December
2004.
"Existing clients are proud and prospective clients are
impressed by our achievements," says company chair Peter G.
Economides. Mr Economides notes that professional intermediaries
prefer to work with award-winning, reliable service providers and
that suppliers have more confidence in the company. The award is an
annual event by the Ministry of Trade, Commerce and Tourism and the
Cyprus Chamber of Commerce.
Credibility and quality go hand-in-hand. For Totalserve,
ensuring service quality involves setting out the operations in
writing, as provided for under ISO 9001 (an internationally
recognized quality standard), and continually monitoring and
improving these procedures by a responsible quality manager.
Totalserve started its operation in London in 1972. Since then,
the company has earned a solid reputation in the international tax
and trust world and has offices in London, Athens, Thessaloniki,
Bucharest, Moscow, Tortola and Warsaw.
For more information, seehttp://www.totalservecy.com
Credibility checklist
Offer personal guarantees of competence
through:
- Referrals and recommendations from well-known contacts.
- Testimonials from satisfied customers.
- Membership in professional associations.
Provide objective proof of competence
through:
Provide a positive presentation image by:
Sources: ITC Training Modules on "Successful Services
Exporting", which are based on research carried out for ITC by
Dorothy Riddle. Writer: Dianna Rienstra. Contributions: Doreen
Conrad, Prema de Sousa, Natalie Domeisen