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Services MarketingServices Marketing2015 - 162015 - 16

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• Describe the challenges inherent in service innovation and design.

• Present the stages and unique elements of the service innovation and development process.

• Demonstrate the value of service blueprinting and how to develop and read service blueprints.

• Present lessons learned in choosing and implementing high-performance service innovations.

Sessions 7 and 8Sessions 7 and 8

SM

ALIGNING SERVICE DESIGN AND STANDARDS

SM Provider Gap 2Provider Gap 2

SMKey Factors Leading to Key Factors Leading to

Provider Gap 2Provider Gap 2

SM Service Innovation and DesignService Innovation and Design

• Challenges of Service Innovation and Design• New Service Development Processes• Types of Service Innovations• Stages in Service Innovation and Development• Service Blueprinting• High-Performance Service Innovations

SM Risks of Relying on Words Alone to Risks of Relying on Words Alone to Describe ServicesDescribe Services

• Oversimplification

• Incompleteness

• Subjectivity

• Biased Interpretation

SMTypes of Service Types of Service

InnovationsInnovations• major or radical innovations: new services for markets undefined yet; it creates new

marketse.g. digital tv, online markets, mobile apps

• start-up businesses: new services for currently served marketse.g. play pen in a retail shop, internet on flights

• service line extensions: augmentations to existing service linee.g. Adding new menu, new channels, new routes, new courses

• service improvements: restaurant redesign, menu change, new service processes to make delivery more efficiente.g. new technology - self-service technology etc

• style changes: most modest innovation, highly visible, significant effect on consumer emotions, perceptions, attitudes

SMNew Service Development New Service Development

ProcessProcess

SMNew Service Strategy Matrix for New Service Strategy Matrix for

Identifying Growth OpportunitiesIdentifying Growth Opportunities

SM Service BlueprintingService Blueprinting

• A picture or map depicting the service process, the points of customer contact, and the evidence of service or the customer’s experience

• Very useful at design stage of service development• Displays service delivery process, customer touch points,

roles of customers and employees and visible elements of the service

SMService Blueprint Service Blueprint

ComponentsComponentsCustomer Actions: steps, choices, activities, interactions in purchasing, experiencing and evaluating the service

line of interaction

On stage / Visible Contact Employee Actions

line of visibility

Back stage / Invisible Contact Employee Actions

line of internal interaction

Support Processes: internal services, steps, interactions in delivering the service and supporting the contact employees

SMService Blueprint Service Blueprint

ComponentsComponents

SMBlueprint for Express Mail Blueprint for Express Mail

Delivery ServiceDelivery Service

SMBlueprint for Overnight Hotel Blueprint for Overnight Hotel

Stay ServiceStay Service

SMBuilding a Service Building a Service

BlueprintBlueprint

SMApplication of Service Application of Service

BlueprintsBlueprints

• 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

SMBlueprints Can Be Used Blueprints Can Be Used

By: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 Management– empowering the human

element:• job descriptions• selection criteria• appraisal systems

• System Technology– providing necessary tools:

• system specifications• personal preference databases

SMBenefits of Service Benefits of Service

BlueprintingBlueprinting• Recognizes roles and interdependencies among functions,

people, and organizations.• Facilitates both strategic and tactical innovations.• Transfers and stores innovation and service knowledge.• Designs moments of truth from the customer’s point of view.• Suggests critical points for measurement and feedback in the

service process.• Clarifies competitive positioning.• Provides understanding of the ideal customer experience.• Provides a platform for innovation.

SMCommon Issues in Common Issues in

BlueprintingBlueprinting• Clearly defining the process to be blueprinted• Clearly defining the customer or customer segment that

is the focus of the blueprint• Who should “draw” the blueprint?• Should the actual or desired service process be

blueprinted?• Should exceptions/recovery processes be incorporated?• What is the appropriate level of detail?• Symbology• Whether to include time on the blueprint

SMSU

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PRO

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(Invi

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ParkingExterior BuildingWaiting AreaOutdoor Seating

Interior DesignHostess StandAppearance of Staff

Drink StationAppearance of Bar and Bartenders

Cleanliness of TableSilverwareNapkinsSaucesCenterpiece

Menu

PlatesGlassesPresentationFoodDrinks

“Buzz”Customer

Arrive atRestaurant

ApproachHostessStand

Wait/OrderDrinksat Bar

ConsumeDrinks

Be Seatedat Table

OrderDrinks/Appetizers

Specify“Spiciness”of Sauce

ReceiveDrinks/Appetizers

DeliverDrinks/Appetizers

Greet andGive Buzzer

Greet andTakeDrink Order

DeliverDrinks

PrepareSauceat Table

ProcessSeatingRequests

Take Drink/AppetizerOrder

ComputerizedSeatingSystem

PrepareDrinks/Appetizers

PHY

SIC

AL

EVID

ENC

E

PrepareDrinks

Escortto Table

Input Orderat Bar/Kitchen

ReceiveOrder

OrderEntree Next

Slide

CheckAccuracyof Order

Menu

SMSU

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PRO

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S

CO

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PER

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(Invi

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)(V

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OM

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RefillDrinks,Extra Sauce

OrderEntree

ReceiveEntree

EatFood

ConsumeRefills,Extra Sauce

FinishMeal

Ask forDoggieBag

OrderDessert

EnterDessert OrderInto Computer

TakeOrder

DeliverOrder

OfferRefills,Extra Sauce

ShowDessertMenu

BringBoxes toCustomer

PrepareFood

PHY

SIC

AL

EVID

ENC

E

Pick-upEmptyPlates/Clean offTable

Take Platesto Kitchen

Pack upFood

TakeEntreeOrder

Menu

Enter OrderintoComputer

ReceiveFood Order

PlatesFoodPresentation

Receive Order/PrepareDessert

DeliverDessert

EatDessert

Ask forBill

Total BillatComputer

PrintBill

DeliverBill andFortuneCookies

PayBill

Doggie Bags Menu

New SilverwarePlatesFoodPresentation

Portfolio with Check EnclosedFortune Cookies

DeliverDrinks,Extra Sauce

WashDishes

SMTangible Cues or Tangible Cues or

Indicators of QualityIndicators of Quality

• Exterior and Interior Design• Presentation of Food/Drinks• Appearance of Staff• Cleanliness of Tables, Utensils• Cleanliness of Restrooms• Location of Restaurant• Appearance of Surrounding Customers

SMPossibility of Possibility of

StandardizationStandardization

• Hostess Greeting• Pre-Prepared Sauces (Mild, Medium and Hot)• Time Standards• Food and Drink Quality Standards• Bill Standards

SMPotential Fail Points and Potential Fail Points and

FixabilityFixability

• Bar– train to make drinks; create ample seating space for wait area overflow

• Food– revise food presentation; create quality control checks to ensure order is correct

before delivering to customer• Staff

– training; set number of times to check-in on customers; behavioral and attitude guidelines; dress code

• Billing– standards for when to bring bill, how to deliver, when to pick-up, how quickly to

process transaction; ensure one fortune cookie per customer• Cleanliness

– standards for amount of time it takes to clear and clean tables; regular restroom checks