service marketing 2 - (service development)

8/9/2019 Service Marketing 2 - (Service Development)

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SERVICE DEVELOPMENT AND DESIGN


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A L I G N I N GS T R A T E G Y ,S E R V I C ED E S IG N , A N DD E V E L O P M E N T


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CompanyPerceptions of

ConsumerExpectations

ExpectedService

CUSTOMER

COMPANY

GAP 1

Provider GAP


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CUSTOMER

COMPANY

GAP 2

Customer-DrivenService Designs and

Standards

CompanyPerceptions of

ConsumerExpectations

Provider GAP 2


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Service

Development

and Design

Challenges of Service Design

New Service Development Types of New Services

Service Redesign

Stages in New Service Development

Service Blueprinting Quality Function Deployment

High-Performance Service


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Business Strategy Development or Review

New Service Strategy Development

Idea Generation

Concept Development and Evaluation

Business Analysis

Service Development and Testing

Post-introduction 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

New Service Development Process


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Service Mapping/Blueprinting

A tool for simultaneously depicting the serviceprocess, the points of customer contact, and

the evidence of service from the customers

point of view.

Service

Mapping

Proces

s

Points of

Contact

Evidenc

e


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Service Blueprint Components

CUSTOMER ACTIONS

line of interaction

ONSTAGE CONTACT EMPLOYEE ACTIONS

line of visibility

BACKSTAGE CONTACT EMPLOYEE ACTIONS

line of internal interaction

SUPPORT PROCESSES


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Service Blueprint Components


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DriverPicks

Up Pkg.

Dispatch

Driver

Airport

Receives

& Loads

Sort

Packages

Load on

Airplane

Fly toDestinati

on

Unload

&

Sort

Load

OnTruck

Express Mail Delivery Service

SUPPORT

PROCESS

CONTACT

PERSO

N

(BackStage)

(OnStage

)CUSTOME

R

PHYSIC

AL

EVIDEN

CE

Customer

CallsCustomer

Gives

Package

TruckPackagingForms

Hand-heldComputerUniform

Receive

Package

TruckPackagingFormsHand-heldComputerUniform

DeliverPackage

Customer

Service

Order

Fly to

Sort

Center


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Overnight Hotel Stay

SUP

PORTPROCES

SCON

TACT

PERSON

(Back

Stage)(OnStage)C

US

TOM

ER

HotelExteriorParking

Cart forBags

DeskRegistrationPapersLobbyKey

ElevatorsHallwaysRoom

Cart forBags

RoomAmenitiesBath

Menu DeliveryTrayFoodAppearance

Food

BillDeskLobbyHotelExteriorParking

Arrive

at

Hotel

Give Bags

to

Bellperson

Check inGo to

Room

Receive

Bags

Sleep

Shower

Call

Room

Service

Receive

Food

EatCheck out

and

Leave

Greet and

Take

Bags

Process

Registration

Deliver

Bags

Deliver

FoodProcess

Check Out

Take Bagsto Room

Take

Food

Order

Registration

SystemPrepare

Food

Registration

System

PHYSICA L

EVIDENC E


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Step 1

Identify the

process to

be blue-printed.

Step 1

Identify the

process to

be blue-printed.

Step 2

Identify the

customer or

customersegment.

Step 2

Identify the

customer or

customersegment.

Step 3

Map the

process from

thecustomers

point of

view.

Step 3

Map the

process from

thecustomers

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 customer

and contact

personactivities to

needed

support

functions.

Step 5

Link customer

and contact

personactivities to

needed

support

functions.

Step 6

Add

evidence of

service ateach

customer

action step.

Step 6

Add

evidence of

service ateach

customer

action step.

Building a Service Blueprint


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Example of Service Blueprinting

Brush

shoes

Apply

polish

Fail

point

BuffCollect

payment

Clean

shoes Materials

(e.g., polish, cloth)

Select and

purchase

supplies

Standard

execution time

2 minutes

Total acceptable

execution time5 minutes

30

secs

30

secs

45

secs

15

secs

Wrong

color wax

Seen by

customer 45

secs

Line of

visibility

Not seen by

customer but

necessary to

performance


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Blueprints Can Be Used By:

Service Marketers creating realistic customer

expectations service system design promotion

Operations Management rendering the service as

promised managing fail points training systems quality control

Human Resources empowering the human

element

job descriptions selection criteria

appraisal systems

System Technology providing necessary tools:

system specifications personal preference

databases


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EXTRA CREDIT EXERCISE

Develop a Service Blueprint for one of the

following:

a. Shoe Store

b. Pizza Delivery

c. A class at Anderson Schools of

Management

d. Watch Repair Facility


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Customer-Defined

Service Standards


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Customer-Defined

Service Standards

Factors Necessary For Appropriate

Service Standards

Customer-Defined Service StandardsProcess for Developing Customer-defined

Standards

Service Performance Indices


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Customer-defined Service Standards

Company-defined vs. customer-defined servicestandards.

One-time service fixes and hard and softcustomer-defined standards.

Translating customer expectations intobehaviours and actions that are definable,repeatable, and actionable.

Explaining the process of developing customer-

defined service standards to employees.Emphasizing the importance of service

performance indexes in implementing strategy forservice delivery.


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1. Identify Existing or Desired Service Encounter Sequence

2. Translate Customer Expectations Into Behaviors/Actions2. Translate Customer Expectations Into Behaviors/Actions

4. Set Hard or Soft Standards

5. Develop Feedback

Mechanisms

5. Develop Feedback

Mechanisms

7. Track Measures Against Standards

Measure by

Audits or

Operating Data

Hard Soft

Measure by

Transaction-

Based Surveys

3. Select Behaviors/Actions for Standards 3. Select Behaviors/Actions for Standards

6. Establish Measures and Target Levels 6. Establish Measures and Target Levels

8. Update Target Levels and Measures 8. Update Target Levels and Measures

Process for Setting

Customer-Defined Standards


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Examples of Hard



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Examples of Soft



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AT&Ts Process Map for Measurements

Reliability (40%)

Easy To Use (20%)

Features / Functions (40%)

Knowledge (30%)

Responsive (25%)Follow-Up (10%)

Delivery Interval Meets Needs (30%)

Does Not Break (25%)

Installed When Promised (10%)

No Repeat Trouble (30%)Fixed Fast (25%)

Kept Informed (10%)

Accuracy, No Surprise (45%)

Resolve On First Call (35%)

Easy To Understand (10%)

Business Process Customer Need Internal Metric

30% Product

30% Sales

10% Installation

15% Repair

15% Billing

% Repair Call

% Calls for Help

Functional Performance Test

Supervisor Observations

% Proposal Made on Time% Follow Up Made

Average Order Interval

% Repair Reports

% Installed On Due Date

% Repeat ReportsAverage Speed Of Repair

% Customers Informed

% Billing Inquiries

% Resolved First Call

% Billing Inquiries

Total

Quality

Source: AT&T General Business Systems


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QuestionsQuestions

service marketing 2 - (service development)

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