Service Development and Design Chapter 9

Provider Gap 2 Customer-Driven Service Designs and Standards COMPANY Customer-Driven Service Designs and Standards Service Design and Standards Gap Company Perceptions of Consumer Expectations

Provider Gap 2 Not selecting the right service designs and standards. Poor service design Absence of customer-driven standards

Discussion Question – page 243, Question 1

New Service Development Process Figure 9.2 Business strategy development or review New service strategy development Idea generation Front-end Planning Screen ideas against new service strategy Concept development and evaluation Test concept with customers and employees Business analysis Test for profitability and feasibility Service development and testing Conduct service prototype test Market testing Implementation Test service and other marketing-mix elements Commercialization Postintroduction evaluation Sources: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.

Types of New Services Major or radical innovations New services for markets not yet defined Start-up businesses (for existing markets) e.g., door to door airport shuttle New services for the currently served market Service line extensions e.g., a new university course, mobile on-line banking Service improvements Enhanced hours of operation Style changes Improved or new logos to enhance a brand

Service Blueprinting Service Blueprint Figure 9.3 A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view. Service Blueprint Process Points of contact Evidence

Exercise 1 – Page 519-520

Service Blueprint What is it? A picture, guide or map that accurately portrays the service system. A service blueprint allows all parties in the service experience to accurately understand and deal with service situations

Building a Service Blueprint Figure 9.9 Building a Service Blueprint Step 1 Identify the process to be blue-printed Step 2 Identify the customer or customer segment Step 3 Map the process from the customer’s point of view Step 4 Map contact employee actions, onstage and back-stage, and/or technology actions Step 5 Link contact activities to needed support functions Step 6 Add evidence of service at each customer action step

Benefits of Service Blueprinting Identifies fail points in the delivery of a service Facilitates a top down, bottom up approach Facilitates internal communication between departments and SBUs Helps to define customer and employee roles

Service Blueprint Components Figure 9.4

Service Blueprints Components Customer Actions Steps, choices, activities, or interactions in consuming and evaluation the service. On-stage Contact Employee actions that are visible to the customer. Backstage Contact Actions not visible to the customer. Actions and interactions that support on-stage activities that customers see. Support Processes Steps and activities that support the contact employee. Physical evidence

Points of Interaction Line of interaction – direct interaction between the customer and the organization. Crossing of horizontal and vertical lines indicated and interaction. Line of visibility – separates what is visible to the customer from what is not. Line of internal interaction – separates contact employee activities from those of other service support activities and people.

Blueprint for Express Mail Delivery Service Driver Picks Up Package Dispatch Airport Receives & Loads Sort Packages Load on Airplane Fly to Destination Unload & Load On Truck SUPPORT PROCESS CONTACT PERSON (Back Stage) (On Stage) CUSTOMER PHYSICAL EVIDENCE Customer Calls Gives Package Packaging Forms Hand-held Computer Uniform Receive Deliver Service Order Center Line of interaction Line of visibility Line of internal interaction Figure 9.5

Discussion Question 4 – page 243