part - 4 aligning strategy, service design and standards
TRANSCRIPT
Part - 4ALIGNING STRATEGY, SERVICE DESIGN AND STANDARDS
Services Marketingby P Sivarajadhanavel
Part 4ALIGNING STRATEGY, SERVICE DESIGN AND STANDARDS
Chapter - 9 – Service Development and DesignChapter – 10 – Customer-Defined Service StandardsChapter – 11 – Physical Evidence and the Servicescape
CUSTOMER
COMPANY
GAP 2
Customer-Driven Service Designs and
Standards
Company Perceptions of
Consumer Expectations
Provider GAP 2 Provider GAP 2 Service Designs and standardsService Designs and standards
Provider Gap – 1 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
ObjectivesObjectives• 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 Risks of Relying on Words Alone to Describe ServicesDescribe Services Oversimplification Incompleteness Subjectivity Biased Interpretation
New Service DevelopmentNew 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
Source: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997 .
New Service Strategy Development Idea Generation
Concept Development and Evaluation
Business Analysis
Service Development and Testing
Postintroduction Evaluation
Commercialization
Market Testing
Screen ideas against new service strategy
Test concept with customers and employees
Test for profitability and feasibility
Conduct service prototype test
Test service and other marketing-mix elements
Front End Planning
Implementation
Business strategy development or review
Idea GenerationIdea GenerationNew Service Strategy Matrix for New Service Strategy Matrix for Identifying Growth OpportunitiesIdentifying Growth Opportunities
Markets
Offerings
ExistingServices
NewServices
Current Customers New Customers
SHARE BUILDING
DIVERSIFICATION
MARKETDEVELOPMENT
SERVICEDEVELOPMENT
Service BlueprintingService 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
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.
ServiceMapping
Process
Points of Contact
Evidence
Service BlueprintingService Blueprinting
Service BlueprintService Blueprint ComponentsComponents
CUSTOMER ACTIONSline of interaction
“ONSTAGE” CONTACT EMPLOYEE ACTIONS
line of visibility
“BACKSTAGE” CONTACT EMPLOYEE ACTIONS
line of internal interaction
SUPPORT PROCESSES
Physical evidence
Service Blueprint of ExpressExpress Mail Mail Delivery ServiceDelivery Service
DriverPicksUp Pkg.
DispatchDriver
AirportReceives& Loads
SortPackages
Load onAirplane
Fly toDestinati
on
Unload&
Sort
LoadOn
Truck
SU
PPO
RT
PR
OC
ESS
CO
NTA
CT
PER
SO
N(B
ack
Sta
ge)
(On S
tage)C
USTO
MER
PH
YSIC
AL
EV
IDEN
CE
CustomerCalls
CustomerGives
Package
Truck, Packaging, FormsHand-held Computer, Uniform
ReceivePackage
DeliverPackage
CustomerServiceOrder
Fly toSort
Center
Blueprint for Overnight Hotel Stay Blueprint for Overnight Hotel Stay ServiceService
SU
PPO
RT P
RO
CESS
CO
NTA
CT P
ER
SO
N
(Back
Sta
ge)(
On S
tage)
CU
STO
MER
HotelExteriorParking
Cart for Bags
DeskRegistrationPapersLobbyKey
ElevatorsHallwaysRoom
Cart for Bags
RoomAmenitiesBath
Menu DeliveryTrayFoodAppearance
Food Bill, DeskLobbyHotelExteriorParking
Arriveat
Hotel
Give Bagsto
BellpersonCheck in Go to
RoomReceive
BagsSleep
Shower
CallRoom
Service
ReceiveFood
EatCheck out
andLeave
Greet andTakeBags
ProcessRegistration
DeliverBags
DeliverFood
ProcessCheck Out
Take Bagsto Room
TakeFoodOrder
RegistrationSystem
PrepareFood
RegistrationSystem
PH
YSIC
AL
EV
IDEN
CE
Building a BlueprintBuilding 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 BlueprintBuilding a Service Blueprint
Step 1
Identify the process to be blue-printed.
Step 1
Identify the process to be blue-printed.
Step 2
Identify the customer or customer segment.
Step 2
Identify the customer or customer segment.
Step 3
Map the process from the customer’s point of view.
Step 3
Map the process from the customer’s point of view.
Step 4
Map contact employee actions, onstage and back-stage.
Step 4
Map contact employee actions, onstage and back-stage.
Step 5
Link customerand contact person activities to needed support functions.
Step 5
Link customerand contact person activities to needed support functions.
Step 6
Add evidence of service at each customer action step.
Step 6
Add evidence of service at each customer action step.
Application of Service BlueprintsApplication 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 ByBlueprints 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 ByBlueprints 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
END