Part - 4 ALIGNING STRATEGY, SERVICE DESIGN AND STANDARDS

Services Marketing by P Sivarajadhanavel Part 4 ALIGNING STRATEGY, SERVICE DESIGN AND STANDARDS Chapter - 9 – Service Development and Design Chapter – 10 – Customer-Defined Service Standards Chapter – 11 – Physical Evidence and the Servicescape

Provider GAP 2 CUSTOMER COMPANY GAP 2 Service Designs and standards Customer-Driven Service Designs and Standards COMPANY GAP 2 Company Perceptions of Consumer Expectations

Provider Gap – 1 Provider Gap -2 Difference between customer expectations of service and company understanding of those expectations Provider Gap -2 Difference between company understanding of customer expectations and development of customer driven designs and standards

Chapter 8 Service Development and Design

Objectives Describe the challenges inherent in service design Present steps in the new-service development process Show the value of service blueprinting and read service blueprints Present lessons learned in choosing and implementing high-performance service innovations

Challenges of Service Design Risks of Relying on Words Alone to Describe Services Oversimplification Incompleteness Subjectivity Biased Interpretation

New Service Development Characteristics It must be objective, not subjective It must be precise, not vague It must be fact driven, not opinion driven It must be methodological, not philosophical

Types of New Services Major or radical innovations Start-up businesses New Services for the currently served market Services line extensions Service improvements Style Changes

Stages in New Service Development Process Front-End Planning Business Strategy Development or review Prospectors, Defenders, Analyzers and Reactors New Service Strategy Development Idea Generation Service Concept Development and Evaluation Business Analysis Implementation Service Development and Testing Market Testing Commercialization Post Introduction Evaluation

New Service Development Process Business strategy development or review New Service Strategy Development Front End Planning Idea Generation 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 Implementation Market Testing Test service and other marketing-mix elements Commercialization Postintroduction Evaluation Source: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.

Idea Generation New Service Strategy Matrix for Identifying Growth Opportunities Markets Offerings Current Customers New Customers Existing Services SHARE BUILDING MARKET DEVELOPMENT SERVICE DEVELOPMENT New Services DIVERSIFICATION

Service Blueprinting A picture or map that accurately portrays the service system Point of contact for different people involved in the service Useful at the design and redesign stages of service development Visually displays the service by simultaneously depicting the process of service delivery, the point of customer contact, the roles of customers and employees, and the visible elements of the service

Service Blueprinting Service Mapping 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. Process Service Mapping Points of Contact Evidence

Service Blueprint Components Physical evidence CUSTOMER ACTIONS line of interaction “ONSTAGE” CONTACT EMPLOYEE ACTIONS line of visibility “BACKSTAGE” CONTACT EMPLOYEE ACTIONS line of internal interaction SUPPORT PROCESSES

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

Blueprint for Overnight Hotel Stay Service PHYSICAL EVIDENCE Hotel Exterior Parking Cart for Bags Desk Registration Papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath Menu Delivery Tray Food Appearance Food Bill, Desk Lobby Hotel Exterior Parking CUSTOMER Arrive at Hotel Give Bags to Bellperson Call Room Service Check out and Leave Go to Room Receive Bags Sleep Shower Receive Food Check in Eat Greet and Take Bags (On Stage) Process Registration Deliver Bags Deliver Food Process Check Out CONTACT PERSON (Back Stage) Take Food Order Take Bags to Room Registration System Prepare Food Registration System SUPPORT PROCESS

Building a Blueprint Identify the service process to be Blueprinted Identify the customer or customer segment Experiencing the Service. Map the process from the customer’s point of view. Map contact employee actions, onstage and back-stage, and Technology Actions. Link customer and contact person activities to needed support functions. Add evidence of service at each customer action step

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. Step 5 Link customer and contact person activities to needed support functions. Step 6 Add evidence of service at each customer action step.

Application of Service Blueprints New Service Development concept development market testing Supporting a “Zero Defects” Culture managing reliability identifying empowerment issues Service Recovery Strategies identifying service problems conducting root cause analysis modifying processes

Blueprints Can Be Used By Service Marketers creating realistic customer expectations service system design promotion Operations Management rendering the service as promised training systems quality control

Blueprints Can Be Used By Human Resources empowering the human element job descriptions selection criteria appraisal systems System Technology providing necessary tools: system specifications personal preference databases

Quality Function Deployment A system for translating customer requirements into appropriate company requirements at every stage, from research through production design and development to manufacture; distribution, installation and marketing, sales and services Elements of Service Quality Customer expectations Importance of expectations Controllable elements of service Relationship among elements of service Association between expectations and service elements Overall importance of service elements for meeting customer expectations Difficulty rankings Competitive assessment

High Performance Service Innovations Choose the right projects Integrate new services Multiple measures of success Learn from Major Successes Market Synergy Market driven new product process Effective Marketing communications Customer service Managerial and functional synergy Launch preparation Product responsiveness Product advantage Innovative Technology Maintain Flexibility

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