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What is the Difference Between Digital Product and Digital Service?

When considering whether to create a digital product or a service, there are many important factors to consider. Some of these factors include user experience, cost, and marketing. But what is the best option for your company? Read on to learn more about both. Let’s begin. What are the key differences between a digital product and a service? And how do you tell the difference between them? The answer to this question may surprise you.


In the digital age, it is possible to have multiple competing companies in a market and compete with them to produce the same product at lower cost. This creates a problem, as the costs of making copies of a digital product tend to go down with scale, and there is little room for profit. But as digitization takes hold, more products are being made available for sale online. The cost of creating a digital product or service can be as low as free.

One of the advantages of creating digital products is the relatively low variable costs. Most digital products have zero or very low variable costs. Software for example has no packaging or distribution costs, so there is virtually no overhead to be incurred. A digital product’s price may be close to its marginal cost because of competition, as the price is often set by its competitors. Revenue over margin helps recoup sunk costs and contributes to profit.

While physical products can be priced by considering development and delivery costs, a digital product’s price should reflect its value to the buyer. Pricing a digital product requires research and customer analysis. Remember to include a Customer Support fee. While most people think that selling digital items ends when a customer completes a transaction, there’s still work involved. Digital plugin and theme providers have to spend extra time and effort providing support for their products after the sale is complete.

User experience

The customer experience (CX) is often a crucial aspect of the success of a business. Digital experiences are crucial because they can improve loyalty and drive long-term customer relationships. Successful companies build their products with the customer in mind, and focus on improving the CX to keep their customers happy. For more information on digital experience design, visit the User Experience Community. DigitalGov Communities have an editorial theme on customer experience.

Usability and experience go hand-in-hand. Usability looks at the surface level, while user experience digs deep into the needs of a single page. It’s about how the brand speaks to customers, and how well it delivers its message. Providing value is key to improving the user experience, as 82% of people report that they like reading a relevant company blog. While we should not ignore the importance of usability, we should never confuse it with unique or innovative.

Whether a user interface is important or not depends on the type of business and the industry. The UX of a digital product or service must be usable and easy to navigate. This is why accessibility is important for the digital experience. If people cannot read, use a different language or have a disability, make sure they can read and understand the content. By ensuring the user experience is easy to read and navigate, users are more likely to buy the product or service.

The fundamentals of UX design are derived from the ancient Chinese philosophy of Feng Shui, which focuses on arranging the environment in a harmonious and optimal way. Early Greek civilizations also designed tools based on ergonomic principles. Moreover, they used these principles to create tools that would be useful to people without prior coding knowledge. This practice of designing digital products is not new, and it has been around since the early 1980s.

User experience of digital product and digital service begins with the integration of non-physical and digital touchpoints. As digital products are constantly updated and redesigned, the CX should remain innovative and user-centric. It should be at the same level as users are thinking when using the digital product or service. Moreover, the UX should be as intuitive as possible. With the right design, users will not have to worry about using a digital interface if they know how to use it.

The fundamental principles of UX design include minimizing risk and validating key performance indicators against the needs of the users. The most famous method of communicating research findings is by developing personas. Personas are archetypes of people. By conducting user research, UX designers are able to identify the needs, wants, and behaviours of the users. After all, a good UX design should improve the conversion rates of the digital product or service.


There are two primary types of digital products: services and products. A service is a product that is provided online and creates value for the consumer. Examples of services include software, eBooks, and games. Depending on the type of digital product, the sales process is different. Service is ongoing, while a product requires a one-time cost. A service may be scalable and reusable. Both types of products can be marketed effectively.

What is the Difference Between Digital Product and Digital Service?

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