I recently caught up with Jyothsna Diaz, founder of #Runway Digital Media, and our conversation hit on a critical question leaders often miss: “How much” productization of my services is the right amount?

Jyothsna’s team built valuable IP—accelerators for campaign planning, events, etc. Her initial thought was full productization: package the pre-built checklists, plans, and tools into a self-service, zero-cost-to-serve product.

The math looked good: high margin, infinite scale, no scheduling constraints. A “no-brainer,” right?

Wrong.

As we dug in, complete productization became a clear revenue risk. By eliminating the high-touch consulting services channel, she would have:

1. Cut off the Upsell/Resell Engine: The IP was the perfect way to get a foot in the door. However, a fully self-service model eliminates critical customer connection points, suffocating the high-value consulting revenue that accompanies and follows.
2. Compromised Retention: Low-touch solutions often translate to low stickiness. Renewing that revenue stream becomes extremely difficult, dramatically increasing the long-term cost of customer acquisition and conversion.

The Strategic Pivot You Can’t Skip:

I’m a strong proponent of productizing professional services, but it’s a spectrum, not an all-or-nothing switch. You must map out your Productization Strategy before you over-invest in the wrong model.

Don’t just think about the IP. Think about the Business Model.

• Customer Relationship: How does a shift to low-touch or self-service impact your ability to advise and influence your client?
• Commercial Model: Can your organization price, sell, and support a product (and a renewal stream) versus a traditional high-touch service?
• End-Customer Experience: Does a fully automated tool truly deliver the necessary outcome, or is the human element the actual value driver?

Productization should drive scale, consistency, and higher lifetime customer value, not compromise it.

Have you discovered a sweet spot on the productization spectrum? Where are you placing your bets: High-Touch IP-Enabled Service, or Low-Touch Self-Service Product? Share your view!

P.S.  If you need some help with your creative and marketing outreach, don’t hesitate to reach out to Jyothsna at jyothsna@thelitrunway.com.