Explore key insights from Winning in Service Markets by Jochen Wirtz. Learn proven strategies to grow and scale in service-based industries.
In 2008, Airbnb was on the verge of shutting down. Hardly any bookings. Money running out. Things weren’t looking good. Then, the founders spotted something odd—most listings had terrible, low-quality photos. Instead of pouring money into ads or cutting prices, they did something unexpected. They flew to New York, rented a camera, and personally took high-quality photos of hosts' homes. The result? Bookings doubled almost overnight.
This wasn’t just a marketing move. It was a lesson in service marketing. It proved that in service-based businesses, success isn’t just about selling—it’s about the full experience.
That’s exactly what Jochen Wirtz explores in his book 📕, Winning in Service Markets. He breaks down how businesses can dominate service-driven industries by focusing on five key areas:
1. Understanding Service Markets
Services aren’t products. You can’t hold them, store them, or return them. This means businesses need a different playbook. Wirtz talks about using market research, customer insights, and trends to position services effectively. He also breaks down the unique challenges of service marketing, like inseparability and variability.
2. Applying the 4Ps of Marketing (with a Twist)
You’ve heard of the 4Ps: ✓Product ✓Place ✓Price ✓Promotion. But in service businesses, these play out differently. The book 📕 dives into how to design service experiences using the "Flower of Service" framework, ensuring every interaction adds value. Pricing? There’s a section on yield management. Distribution? Optimizing service delivery. Promotion? How to communicate value effectively.
3. Managing Customer Interactions
Every touchpoint matters—chatbots, phone calls, checkouts—all shape customer perception. Wirtz explores strategies to refine service processes, balance demand, and enhance experiences. He introduces tools like service blueprints and flowcharts to design seamless, fail-proof operations.
4. Building Customer Relationships
Loyal customers don’t just come back—they spend more, refer others, and become brand advocates. The book talks about making emotional connections, using CRM systems, and handling service failures effectively. Wirtz also introduces the Wheel of Loyalty framework, a step-by-step guide to turning one-time buyers into lifelong fans.
5. Achieving Service Excellence
The best service businesses don’t just meet expectations—they blow them away. Wirtz presents ways to measure service quality, improve efficiency, and build top-tier service organizations. He categorizes businesses into four levels—Service Losers, Service Non-Entities, Service Professionals, and Service Leaders—to help companies assess where they stand and how to improve.
Why This Matters
If you run a SaaS company 🏢, a consulting firm, or even an e-commerce brand with a service component, this stuff is crucial.
Next time engagement drops, ask: Selling something or creating an experience?
/w=1080,quality=90,fit=scale-down)
/w=1080,quality=90,fit=scale-down)
/w=1080,quality=90,fit=scale-down)