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Buying into service design
   combining the money & the magic



                           erik roscam abbing
                             zilver innovation
                           26 september 2012
Todayā€™s journey:
           Me
   Service design?
3 pillars for Selling SD
Service design?
image courtesy of Gate 7 TU delft
not an easy thing to sell...

               forward looking
                 user centred
                  design led
                 explorative
                  long term
                   uncertain
                   strategic
                  across silos
I NEED SERVICE DESIGN. NOW!!!




               photo ļ¬‚ickr bruce charles
We need to understand the


  value
    of service design
the world view paradox


    businesses think     service designers think
          in terms of    in terms of
value to the business    value to the customer
the world view paradox

                     A   B

businesses look at           service designers look at
the world through            the world through a
   a business lens           customer lens
the world view paradox


too often, business insights too often, customer insights
donā€™t lead to customer value donā€™t lead to business value
the world view paradox
 Thatā€™s why itā€™s vital that you match the two world views




  The value of Service design is that it does just that!
service design sells

         when it marries      when it focusses
         value to the         on those parts of
         business with          the experience
         value to the            where it really
         customer                      matters



                   when it sets clear
                      goals and
                    measures the
                       eļ¬€ects
1.
Service design sells when it marries
customer value with business value
you can do the math:

a happy customer is worth 4x as
 much as an unhappy customer
what makes customers really happy
throughout their interactions with an
       insurance company?
2.
Service design sells when it focusses
  on those parts of the experience
       where it really matters
net promotor score analysis
Combining customer insights and business metrics into
  a customer journey map, that clearly shows where
           design eļ¬€ort is required most.




Donā€™t redesign the journey, redesign those parts of the
     experience that lead to unhappy customers.
So internal service design teams can go to work in a focused
                      and eļ¬€ective way.
3.
  Service design sells when it sets
clear goals and measures the eļ¬€ects
Virginā€™s question to us:
ā€œhow do we lift our customer satisfaction
score from 7.XX to 8.X by Sept 2012, whilst
delivering a diļ¬€erentiated experience that
  our targeted customers rave about?ā€
10% increase in our customer satisfaction
    score in the ļ¬rst 7 months of the
              programme!
service design sells

         when it marries      when it focusses
         value to the         on those parts of
         business with          the experience
         value to the            where it really
         customer                      matters



                   when it sets clear
                      goals and
                    measures the
                       eļ¬€ects
the eļ¬€ects of service design

   happier     more eļ¬ƒcient   more aligned
   customers    processes     organisations




   1            2              3
1. happier customers
promote your service to others
buy more from you and stay longer
are easier to serve

                                     net promotor score
                                    customer eļ¬€ort score
                                       brand preference
                                            brand loyalty
                                       cross-sell / up-sell
                                                    churn
                                               # contacts
2. more eļ¬ƒcient processes
are quick, pleasant and eļ¬ƒcient
have low costs
keep current customers and gain new customers
lead to few complaints                             ļ¬rst call resolution
leave room for personal care                               case times
                                                employee satisfaction
                                                cost per process step
                                                      market growth
                                                                churn
                                                        # complaints
3. more aligned organisations
have high internal brand awareness
show close cooperation between departments
are creative and eļ¬ƒcient in solving issues
show initiative in coming up with new solutions    internal brand preference
work better with partners and suppliers      # cross-departmental initiatives
                                                           ļ¬rst call resolution
                                                                # complaints
                                                                # innovations
                                                    time spent on innovation
                                             partner and supplier satisfaction
so yes,
it can all be measured
but that doesnā€™t mean
service design is a rational,
linear, predictable process
does that imply we need to get back in the box? that

back in the box?                   design should ļ¬t in, no more wild ideas?
                      no, look at sean parker investing in spotify. He didnā€™t
                        loose his creativity, heā€™s just gotten much better at
                         combining it with a clever and sustainable (legal)
                   business model that make artists and consumers happy.




                                  sean parker isnā€™t....
does it imply we need to ļ¬t in? start behaving like


loose our attitude?                           business men? adapt to our client and no longer
                                                          adopt the role of creative conscience?
                                           You can still be the creative conscience in the room,
                                            you can still show businesses the other option. But
                                                           do it smartly and youā€™ll get a lot done.




                                                                 photo ļ¬‚ickr cedim news
         photo ļ¬‚ickr jean baptiste paris




                                                     jon kolko doesnā€™t.....
does it imply we need to stop caring for the


only think ā‚¬ā‚¬ā‚¬ ???    customer so much? that we need to think money
                                           ļ¬rst, happy customers later?
                     No, happy customers means ā‚¬ā‚¬ā‚¬ if you really know
                       what youā€™re doing. Donā€™t randomly redesign the
                               journey, do it with focus and clear goals.




                            tony hsieh doesnā€™t.....
design thinking!




           &
out of the box & in the box




           &
users & businesses




           &
madness & methods




         &
the money & the magic




          &
thanks!
  www.zilverinnovation.com
www.designthenewbusiness.com
       @roscamabbing
  erik@zilverinnovation.com

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Buying into service design

  • 1. Buying into service design combining the money & the magic erik roscam abbing zilver innovation 26 september 2012
  • 2. Todayā€™s journey: Me Service design? 3 pillars for Selling SD
  • 3.
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  • 6. image courtesy of Gate 7 TU delft
  • 7. not an easy thing to sell... forward looking user centred design led explorative long term uncertain strategic across silos
  • 8. I NEED SERVICE DESIGN. NOW!!! photo ļ¬‚ickr bruce charles
  • 9. We need to understand the value of service design
  • 10. the world view paradox businesses think service designers think in terms of in terms of value to the business value to the customer
  • 11. the world view paradox A B businesses look at service designers look at the world through the world through a a business lens customer lens
  • 12. the world view paradox too often, business insights too often, customer insights donā€™t lead to customer value donā€™t lead to business value
  • 13. the world view paradox Thatā€™s why itā€™s vital that you match the two world views The value of Service design is that it does just that!
  • 14. service design sells when it marries when it focusses value to the on those parts of business with the experience value to the where it really customer matters when it sets clear goals and measures the eļ¬€ects
  • 15. 1. Service design sells when it marries customer value with business value
  • 16. you can do the math: a happy customer is worth 4x as much as an unhappy customer
  • 17. what makes customers really happy throughout their interactions with an insurance company?
  • 18.
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  • 24. 2. Service design sells when it focusses on those parts of the experience where it really matters
  • 25. net promotor score analysis
  • 26. Combining customer insights and business metrics into a customer journey map, that clearly shows where design eļ¬€ort is required most. Donā€™t redesign the journey, redesign those parts of the experience that lead to unhappy customers.
  • 27. So internal service design teams can go to work in a focused and eļ¬€ective way.
  • 28. 3. Service design sells when it sets clear goals and measures the eļ¬€ects
  • 29. Virginā€™s question to us: ā€œhow do we lift our customer satisfaction score from 7.XX to 8.X by Sept 2012, whilst delivering a diļ¬€erentiated experience that our targeted customers rave about?ā€
  • 30. 10% increase in our customer satisfaction score in the ļ¬rst 7 months of the programme!
  • 31. service design sells when it marries when it focusses value to the on those parts of business with the experience value to the where it really customer matters when it sets clear goals and measures the eļ¬€ects
  • 32. the eļ¬€ects of service design happier more eļ¬ƒcient more aligned customers processes organisations 1 2 3
  • 33. 1. happier customers promote your service to others buy more from you and stay longer are easier to serve net promotor score customer eļ¬€ort score brand preference brand loyalty cross-sell / up-sell churn # contacts
  • 34. 2. more eļ¬ƒcient processes are quick, pleasant and eļ¬ƒcient have low costs keep current customers and gain new customers lead to few complaints ļ¬rst call resolution leave room for personal care case times employee satisfaction cost per process step market growth churn # complaints
  • 35. 3. more aligned organisations have high internal brand awareness show close cooperation between departments are creative and eļ¬ƒcient in solving issues show initiative in coming up with new solutions internal brand preference work better with partners and suppliers # cross-departmental initiatives ļ¬rst call resolution # complaints # innovations time spent on innovation partner and supplier satisfaction
  • 36. so yes, it can all be measured
  • 37. but that doesnā€™t mean service design is a rational, linear, predictable process
  • 38. does that imply we need to get back in the box? that back in the box? design should ļ¬t in, no more wild ideas? no, look at sean parker investing in spotify. He didnā€™t loose his creativity, heā€™s just gotten much better at combining it with a clever and sustainable (legal) business model that make artists and consumers happy. sean parker isnā€™t....
  • 39. does it imply we need to ļ¬t in? start behaving like loose our attitude? business men? adapt to our client and no longer adopt the role of creative conscience? You can still be the creative conscience in the room, you can still show businesses the other option. But do it smartly and youā€™ll get a lot done. photo ļ¬‚ickr cedim news photo ļ¬‚ickr jean baptiste paris jon kolko doesnā€™t.....
  • 40. does it imply we need to stop caring for the only think ā‚¬ā‚¬ā‚¬ ??? customer so much? that we need to think money ļ¬rst, happy customers later? No, happy customers means ā‚¬ā‚¬ā‚¬ if you really know what youā€™re doing. Donā€™t randomly redesign the journey, do it with focus and clear goals. tony hsieh doesnā€™t.....
  • 42. out of the box & in the box &
  • 45. the money & the magic &
  • 46. thanks! www.zilverinnovation.com www.designthenewbusiness.com @roscamabbing erik@zilverinnovation.com

Editor's Notes

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  8. let’s start by defining what we mean when we talk about service design\n
  9. let’s start by defining what we mean when we talk about service design\n
  10. let’s start by defining what we mean when we talk about service design\n
  11. let’s start by defining what we mean when we talk about service design\n
  12. let’s start by defining what we mean when we talk about service design\n
  13. let’s start by defining what we mean when we talk about service design\n
  14. let’s start by defining what we mean when we talk about service design\n
  15. let’s start by defining what we mean when we talk about service design\n
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  18. Who in the audience was ever called out of bed by his boss or a client saying : I need service design now, or else my company is in danger. Who?\n\n\n
  19. Who in the audience was ever called out of bed by his boss or a client saying : I need service design now, or else my company is in danger. Who?\n\n\n
  20. so you need to really understand what the value is.\n
  21. so you need to really understand what the value is.\n
  22. so you need to really understand what the value is.\n
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  26. they have a different way of looking at the world. And the two world views don’t match.\nWhere businesses see value a certain way (A), customers often see value a completely different way (B)\n
  27. they have a different way of looking at the world. And the two world views don’t match.\nWhere businesses see value a certain way (A), customers often see value a completely different way (B)\n
  28. they have a different way of looking at the world. And the two world views don’t match.\nWhere businesses see value a certain way (A), customers often see value a completely different way (B)\n
  29. they have a different way of looking at the world. And the two world views don’t match.\nWhere businesses see value a certain way (A), customers often see value a completely different way (B)\n
  30. they have a different way of looking at the world. And the two world views don’t match.\nWhere businesses see value a certain way (A), customers often see value a completely different way (B)\n
  31. they have a different way of looking at the world. And the two world views don’t match.\nWhere businesses see value a certain way (A), customers often see value a completely different way (B)\n
  32. they have a different way of looking at the world. And the two world views don’t match.\nWhere businesses see value a certain way (A), customers often see value a completely different way (B)\n
  33. they have a different way of looking at the world. And the two world views don’t match.\nWhere businesses see value a certain way (A), customers often see value a completely different way (B)\n
  34. the worldview paradox: business insights don’t lead to customer value and customer insights don’t lead to business value.\n
  35. the worldview paradox: business insights don’t lead to customer value and customer insights don’t lead to business value.\n
  36. the worldview paradox: business insights don’t lead to customer value and customer insights don’t lead to business value.\n
  37. the value of service design is to come up with great ideas to redesign the customer’s experience..... For those parts of the experience where it really matters, and do this in a way that the business can predictably and sustainably deliver this experience and make money on it.\nThe value of good service desig nis to integrate the two worldviews!\n
  38. the value of service design is to come up with great ideas to redesign the customer’s experience..... For those parts of the experience where it really matters, and do this in a way that the business can predictably and sustainably deliver this experience and make money on it.\nThe value of good service desig nis to integrate the two worldviews!\n
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  58. the next step was to analyse those themes in terms of the value they brought to the customer and to ohra. Ease to the custmer means I can get on with my life. To the company it means they can help you quicker so there’s more room to get to know you and help you deeper.\n
  59. for each theme this led to a deep understanding of how each interaction in that theme could lead to real value to both parties involved. This understanding of the co-created value led to a the next step: thinking on how to deliver this value, how to make it happen. We specifically thought of both the company and the customer in this process of value delivery.\n
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  120. does that imply we need to get back in the box? that design should fit in, no more wild ideas?\nno, look at sean parker investing in spotify. He didn’t loose his creativity, he’s just gotten much better at combining it with a clever and sustainable (legal) business model that make artists and consumers happy.\n
  121. does that imply we need to get back in the box? that design should fit in, no more wild ideas?\nno, look at sean parker investing in spotify. He didn’t loose his creativity, he’s just gotten much better at combining it with a clever and sustainable (legal) business model that make artists and consumers happy.\n
  122. does that imply we need to get back in the box? that design should fit in, no more wild ideas?\nno, look at sean parker investing in spotify. He didn’t loose his creativity, he’s just gotten much better at combining it with a clever and sustainable (legal) business model that make artists and consumers happy.\n
  123. does that imply we need to get back in the box? that design should fit in, no more wild ideas?\nno, look at sean parker investing in spotify. He didn’t loose his creativity, he’s just gotten much better at combining it with a clever and sustainable (legal) business model that make artists and consumers happy.\n
  124. does it imply we need to fit in? start behaving like business men? adapt to our client and no longer adopt the role of creative conscience?\nYou can still be the creative conscience in the room, you can still show businesses the other option. But do it smartly and you’ll get a lot done.\n
  125. does it imply we need to fit in? start behaving like business men? adapt to our client and no longer adopt the role of creative conscience?\nYou can still be the creative conscience in the room, you can still show businesses the other option. But do it smartly and you’ll get a lot done.\n
  126. does it imply we need to fit in? start behaving like business men? adapt to our client and no longer adopt the role of creative conscience?\nYou can still be the creative conscience in the room, you can still show businesses the other option. But do it smartly and you’ll get a lot done.\n
  127. does it imply we need to stop caring for the customer so much? that we need to think money first, happy customers later?\nNo, happy customers means €€€ if you really know what you’re doing. Don’t randomly redesign the journey, do it with focus and clear goals.\n
  128. does it imply we need to stop caring for the customer so much? that we need to think money first, happy customers later?\nNo, happy customers means €€€ if you really know what you’re doing. Don’t randomly redesign the journey, do it with focus and clear goals.\n
  129. does it imply we need to stop caring for the customer so much? that we need to think money first, happy customers later?\nNo, happy customers means €€€ if you really know what you’re doing. Don’t randomly redesign the journey, do it with focus and clear goals.\n
  130. resolving paradoxes, not either A or B but A and B\nPvdA and VVD, the dutch socialist and liberal party that ar now forging a new coalition.\n
  131. resolving paradoxes, not either A or B but A and B\nPvdA and VVD, the dutch socialist and liberal party that ar now forging a new coalition.\n
  132. resolving paradoxes, not either A or B but A and B\nPvdA and VVD, the dutch socialist and liberal party that ar now forging a new coalition.\n
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