Design for service part 1 of 2


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Design for service part 1 of 2

  1. 1. designfor servicefor both service and manufacturing businesses
  2. 2. designfor servicecontents01 Introduction02 Why it is beneficial to your company03 How you can apply this to your company04 Using design to improve services: examples05 References
  3. 3. 01IntroductionA new competitiveenvironmentCompanies are under increasing Everyone loves a great experience.pressure to provide personalised, Whether going to the grocer’s, orcustomer-focused services. We shopping on-line, people alwayslive in a world where products and appreciate when things are easy andservices are getting more and more make sense. This makes them happy,commoditised, and companies are and happy customers are worth morestruggling to compete solely on to every business.price. In order to stand out fromcompetitors, companies need to This guide is intended to give anrecognise themselves as service overview of how you can use serviceproviders and strive to make what design as a tool to win the hearts andthey do more useful, usable and minds of your customers by providingdesirable for their users. memorable experiences. 2
  4. 4. 01IntroductionLike products, servicescan also be designed!Put simply, businesses can use design provider. These are usually calledholistically to identify where, when ‘touch points’, and include the brand,and how a service can be improved customer-facing staff, environments,and made more valuable to those who sales and communications materialsprovide and receive it. and channels.Products and services differ in a For this reason, design for servicenumber of ways. The main implication is a very practical approach toof those differences is that services, implementing a wider, design-ledas opposed to products, rely on the business strategy. Small businessesinteractions between the users and can use design as a creative andproviders of the service. accessible form of business planning to align their strategy, brand andThe design of services must include communications around propositionsan analysis of all the points of contact that enhance customers’ experiences.between the user and the service 3
  5. 5. 02Why it is beneficial toyour companyWe are living in theservice centuryToday 89% of SMEs in Europe operate those beans are roasted and packagedin some form of service industry. the added value, potential price andTwenty million people in the UK work opportunity for differentiation isin service organisations. The service much greater. Several steps beyondeconomy now accounts for 72% of the this would be to offer a freshlyUK’s gross domestic product (1). The brewed cup of coffee, at which pointimportance of services to the economy the opportunities to add valuewill continue to grow, especially through service become even industrialised countries where Companies such as Starbucks takeservices account for the majority of this even further by employingGDP. For example, services comprise experienced baristas to serve a wide80% and 71% of the GDP (2) of the USA range of drinks (but still focused onand France, respectively. coffee) in a comfortable environment. They are no longer simply offeringIn this new economy, the added value a cup of coffee, but a consistentcreated by services is far greater experience to be shared with friendsthan that of products. As a simple that will encourage customer loyalty,example, when coffee beans are sold allow differentiation from theas an unprocessed commodity they competition and increase profit.have little value unless sold in bulk. Ifsource:(1) Office for National Statistics(2) WP Carey School of Business 4
  6. 6. 02Why it is beneficial toyour companyEveryone, like it or not, isa service providerThe inclusion of good customer the iPod and iTunes. IBM is also noservice is becoming a key longer positioning itself as a hardwaredifferentiator for any type of manufacturer, but rather as a servicecompany, be it product or service provider by offering full IT solutionsbased. In this new economy it is the for its clients.whole experience, before, during orafter the sale that really counts. Because every organisation, like it or not, is a service provider, staffCustomers are willing to pay a need to realise that they are servicepremium for products and services providers too. For example, thethat help make their lives easier, telecoms engineer who goes up themore enjoyable and exciting. mast to make sure that everything is working properly has an enormousIn the service century, even big influence on the service experienceproduct brands like Apple and IBM that customers have. Or a courier,are developing services for their whose manners and behaviour havecustomers, realising that their a significant impact on customer’sproducts act as gateways or enablers experience.of these services. The classic exampleis Apple and the integration between 5
  7. 7. 03How you can apply thisto your companyFive fundamentals of goodserviceServices are delivered throughdynamic service systems of people,processes and things – and oftenother services. This means they canappear complicated to improve – butthey aren’t.In order to design better services,companies can look at the fivefundamentals of good service tounderstand where, when andhow things can be improved.These fundamentals can help youunderstand how different parts of aservice system relate to each otherand how each aspect of a service canaffect a customer’s experience. 6
  8. 8. The five fundamentalsof good serviceSystems Value Journeys People PropositionsServices are provided and Different services create and All services are experienced over Services always involve people Services are generally packaged as aexperienced through systems and measure value in different ways, but time. People also take different and rely on both the user and the ‘proposition’ for users to buy into. Arelationships. Most services are most services try to provide the best journeys to, through, and from producer working together. Some service proposition is a useful termproduced and consumed within, or value for both users and producers. a service. Good service design services are very product-centred, to describe competing service offersrely on other services. Good service Good service design is often about recognises these differences and but a service is never just a product, in a competitive marketplace. Gooddesign always looks holistically at the aligning the sometimes superficially examines what happens before, it is always about people. Good service design is about developingservice infrastructure. This involves different interests of producers and during and after the central service service design always puts people and designing valuable, innovativeunderstanding how the different users to create the best value for experience, for both producers and first and should involve users and propositions for users and producers,parts of a service interconnect and both. Service design can be about users. producers actively participating in and creating exciting visions to takehow the service relies on the support cutting costs, but it is normally more the design process. existing propositions forward.of other services. focused on adding value. To provide enjoyable experiences companies need to understand how Ultimately, frontline staff are the face This means that successfulThis means that to improve an Companies like FedEx create each point of contact between the of a company. In order to provide companies usually translateexperience you may look to change value and save money by helping user and provider affects the service enjoyable experiences, you might intangible service propositions intothings behind the scenes, such as customers help themselves. By delivery. need to ensure that your customer- tangible and desirable offerings. Forimplementing training programmes providing an on-line tracking system, facing staff are properly selected and example, Innocent, the fruit drinkto customer-facing staff. customers can check when their trained. maker, was founded on the desire to packages will be delivered. This helps make it easier for people to maintain to avoid using a busy call centre to their health. deal with customers’ enquires about deliveries. 7
  9. 9. 03How you can apply thisto your companySix elements ofservice designWe can learn a lot about how todeliver great service experiencesby looking at organisations who areexcellent at it. When you look at theseorganisations, they usually excelunder six headings:•Vision•Resources•Reliability•Responsiveness•Reassurance•CommunicationThe following guide can be used tostimulate discussions about how yourcompany can reveal areasfor improvement. 8
  10. 10. 03How you can apply thisto your companyElement 1: VisionExcellent service organisations •Who are your customers and howexhibit a clear vision about their goals can you identify which ones provideand strategies. most income? • Why do your customers do businessA vision for the future has to be based with you?on an understanding of where the • What are your customers’ needs (inbusiness is now, who you are serving addition to what you offer them)?and how you came to this point. • Who are – and how do you compare to – your competitors?Questions to ask should include: •Are there any legislative,• What does your business offer your technological, market or cultural customers? trends that will impact on your• How does it afford to operate? business?• How did the business start?• What were the important landmarks (difficulties and successes)?• What is your turnover and how profitable is your business?• What are your core capabilities and strengths? 9
  11. 11. 03How you can apply thisto your companyElement 2: ResourcesExcellent service organisations •What are your brand values?ensure that their appearance is •Can all employees articulate whatappropriate and aligned with the these values mean to theirservice proposition. individual jobs and responsibilities? •How do they want to develop theIn order to get the appearance right, brand going forward?companies need to think about how •How do staff request resourcesthe environments, staff, equipment needed to serve customers?and branding impact on the •How often is the equipment used tocustomers’ perceptions. serve customers re-evaluated? •How does the organisation measureQuestions to ask should include: its performance, and the•Does your organisation design the performance of individuals environments that staff work in and within it? customers are served in?•Have you made any changes as a result of customer and employee feedback?•Are there appropriate training programmes in place? 10
  12. 12. 03How you can apply thisto your companyElement 3: ReliabilityTo develop loyalty, customers and no facility for automated check-in.employees need to trust that theservice is reliable and consistent Questions to ask should include:– being the same or better each time •What does your organisationthey experience it. promise your customers through your marketing andBeing consistent also includes making communications channels?sure that you don’t over-promise and •Do you deliver on these promises?under-deliver by raising expectations •Are there any measures in place tothat can’t be met in all aspects of the ensure that your organisation doesbusiness. not over-promise? •Can you ensure that your servicesAll interactions with a customer are consistent over time and acrossduring a single transaction should different channels?also be consistent in terms of your •Does your organisation deliverbrand values and ease of use. services that are easy for customers to use?As an example, an airline that offers •How usable and clear is youreasy on-line booking is not being organisation’s website?consistent in offering convenience ifonce customers arrive at the airportthere is a shortage of check-in staff or 11
  13. 13. 03How you can apply thisto your companyElement 4: ResponsivenessBeing responsive means offering a •How does your organisation measureservice just when and where it is the speed and effectiveness of itsrequired by a particular customer. services? •Does your organisation recogniseBeing able to respond to the specific the needs of different customers?needs of a customer might be •How well does it respond and reactthe difference between offering a to these differences?mediocre or an enjoyable experience. •Do staff have the necessaryIn order to do so, employees might autonomy to deliver a personalisedrequire some level of autonomy and service?flexibility at the point of delivery. •What are the barriers to providingIf this is the case, staff will need to more autonomy?understand what their boundaries •How willing are staff to serveare and you will need to be aware of customers?possible process barriers that might •How willing are they to go out ofprevent a customer being happy. their way to ensure the customer is happy?Questions to ask should include: •How willing is the organisation to let•Does your organisation provide them do this? service when and where it is required? 12
  14. 14. 03How you can apply thisto your companyElement 5: ReassuranceEveryone in your business should •How does your organisationbe competent, credible, honest and encourage a courteous workingcourteous. environment? •How does it train staff to be polite?These capabilities and values will •How secure and well managedreassure your customers that they are your organisation’s sensitiveshould be doing business with you. documents and customer relationships?Getting this right will probably •How effective are staff at managingrequire a training and development customers’ expectations of theprogramme to ensure employees service?have up-to-date customer service and •How honest is your organisationtechnical skills. As well as offering a with its customers about what tocompetent and credible face to your expect, and how honest is it whenbusiness, appropriately trained staff things go wrong?are more likely to take pride in their •What training programmes are inwork, be more enthusiastic and stay place to ensure that your employeeswith you for longer. have the necessary, most up-to-date knowledge to satisfy customers’Questions to ask should include: requirements?•How courteous are your staff? 13
  15. 15. 03How you can apply thisto your companyElement 6: CommunicationIn order to build long-term progressing. This helps to keep staffrelationships with both internal and motivated and ensures that everyoneexternal audiences, companies need is clear about the company’sto be able to communicate efficiently. objectives.Communication is a two-way channel: Questions to ask include:companies need to advertise their •Do all people in your organisationofferings, but they also need to understand the needs of differentlisten. This means understanding the customers?fears, concerns and expectations of •How does your organisationcustomers from different segments. categorise its customers?For example, customer-facing •How do staff engage in dialoguestaff should be able to engage in with customers?dialogue with customers and pass •What happens to the output of thison any potential concerns to the dialogue?management team. •Does your organisation build long-term relationships with itsCompanies also need to focus on customers?internal communication. Successful •Does your organisation regularlycompanies have a participatory meet as a team to discuss progress?culture in place, where staff can shareideas and discuss how the company is 14
  16. 16. service design design by engine service design