Home Depot service design

ID 598: Service Design as a Model for Business Design Fall 2005 Team Members Clinton Barth Brandon Ward Phillip LaFargue II You can do it. We can help. The Advice Continuum Appendix of Process

Customer Journey A General Flow Zeroing in Approach Parking Entry on the Zone web services dining / refreshments installation classes / home project workshops consultation clubs equipment rental Home delivery Zeroing in phone services Loading Check-Out on the Product ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 2

Customer Journey Home _ The Home Depot website, geared at families _ Basic web-shopping is clearly an option _ Markekting campaigns target speciﬁc customers _ The website details services offered _ The web experience is personalizable _ Personal design consulting is offered by request _ A new site focuses speciﬁcally on contractors _ Contractors have a whole different list of services ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 3

Customer Journey Approach _ Orange colors and familiar large logo make the sign _ Driveway and entrance is easily found and accessed through stand-out in the retail clutter dedicated stop light and service drive off the main road ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 4

Customer Journey Parking _ Crowded lot includes many cars and pedestrians _ Some cart corrals are provided, but they do not accommodate dollies _ Dollies are parked against curbs in the parking lot, creating clutter _ Parking is complicated by shopping carts and heavy metal dollies ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 5

Customer Journey Entry _ Entrance is clearly marked and easily found _ Return zone is easily found but inadequately staffed causing long lines and wait times _ Merchandise such as grills and landscaping clutter _ Sounds of voices, merchandise scanners, machinery and intercom create audible clutter outer entrance area _ Area crowded by many services located around the entrance including a hot dog stand, coffee cart, security and return zone ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 6

Customer Journey Zeroing in on the Zone _ Immediate intimidation factor due to overwhelming size and scale of store _ Personal service is sometimes needed; although, “Can I find the things I need in such a huge place?” many customer prefer to be self sufficient, somewhat prideful at this stage _ Large signage posted at the entrance of aisles and hanging from the ceiling aids in way-finding and orientation “I’ll try to find this myself and avoid asking a dumb _ Begin the process of narrowing down to specific items by recognizing macro zones in the store such as doors question to a busy employee.” and windows, outdoor / garden, bath, light fixtures, tools, wood, etc. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 7

Customer Journey Zeroing in on the Product _ Once in correct zone, begin to locate specific items _ Service is not initiated by staff who often appear _ Portability and toteability of merchandise is _ Workspace inadequate causing customers manage among one or two key aisles busy with inventory or other tasks difficult causing many aisle jams and lists and calculations by writing on whatever is “This person is busy … should I even bother to ask damaged merchandise available _ Store shelves are cluttered with many items stacked for their help?” from floor to ceiling _ Trust factor happens upon interaction, as not all staff _ Some pricing is aligned with correct merchandise, is knowledgeable some not “Is this person just helping me to get rid of me or _ Large tools and saws also introduce physical do they really know what they’re talking about?” barriers to movement and loud noises that make concentration difficult ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 8

Customer Journey Check-Out _ Long lines form due to minimal stafﬁng at check- _ Self-service check-out is convenient for smaller _ Coffee cart, hot dog stand and vending machines out counters purchases or standard items; not available with await spare change on departure forms for special orders _ Large carts and dollies plus bulky merchandise _ Security reviews receipts of customers and marks cause exaggerated lines to back into main horizontal _ Self-service machines are erratic and require with a highlighter aisle of store impeding shopper trafﬁc constant staff attention ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 9

Customer Journey Loading _ Limited service or organization surrounding the loading process _ Designated loading area for contractors only _ Tools such as this large bin for twine are not clearly labeled and appear to be an afterthought _ Loading large items like wood or landscaping items seems to be done wherever _ Contractor pick-up garage door is obstructed by convenient for the customer often blocking entrance and/or merchandise several palettes stacked with merchandise _ “We Deliver” sign is hidden _ Carts and dollies scattered throughout lot with little help from staff ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 10

Opportunity Deﬁnition Understanding the Target Occasions of Use Factors in Choosing to Shop at the Home Depot Purpose _ Basic/Speciﬁc Products Important Determinant _ Instructional Project _ Quality _ Selection _ General Project Advising _ Availability (In Stock) _ Price _ Big Contractor Materials _ Brands _ Expertise _ Customer Service Decision Maker _ Do It Yourself _ One-Stop-Shop _ Contractor _ Service Extensions (Loop) _ Designer _ Transportation of Goods _ Convenience / Time Timing _ Professional / Everyday _ Scale of Project _ Weekend Warriors _ Disounts / Loyalty Programs Alone or Group _ Alone _ Couples/Friends/Partners _ Classes Opportunities for a More Intimate Group Content _ Few Children Shopping Experience _ No Project is Too Small To Receive Great Service _ Service and Selection Designed for Your Personal One-Stop-Shop _ Premium Service and Personal Attention at Discount Price _ Small Store Within A Big Store _ Small Design Centers ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 11

Opportunity Deﬁnition Opportunity Spaces Premium Large Store Sears Great Expo IKEA Expo Indoors Wal-Mart Lowes Sears Great Private Indoors Target Ace Small Store within a Involved / Lengthy Big Store Short / Simple High-Level of Low-Level of Interaction Interaction Lowes Store Scale Price Ace True Value IKEA True Value Target Premium Services at Private Boutique Design a Discount Price Center Wal-Mart Discount Small Store Level of Customer / Employee Interaction Duration of Shopping Experience ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 12

Opportunity Deﬁnition Opportunity Spaces (cont.) Large Large Selection Expo Lowes Wal-Mart Lowes Sears Great Sears Great Indoors Expo IKEA Indoors Your Personal IKEA Target One-Stop Shop Extended Services Discreet Service Scale of Projects Personalized Anonymous Selection Ace Ace Private No Poject is True Value Wal-Mart too Small to True Value Receive Great Target Service Private Small Small Selection Service Integration Degree of Personalization ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 13

Ideation Service Concepts “No project is too small to receive great service.” Home Experience Improve Service Level of the In-Store Experience _ Home Depot Geek Squad _ Shopping experience planner upon entry / Online or over-the-phone guidance for installations / Staff (or potentially electronic kiosk) directs you to key store zones or / Actual team of people to visit you and your projects specific product locations / Indicates manager or key contacts for each zone _ Subscription Service / Pages consultant to guide you to the zone or help you make selections / Pay monthly fee to tap into network of Home Depot service technicians _ Large color coded zone map at entry / Also include printed maps for taking / Include maps on shopping cart Better Integrating Online & In-Store Experience _ Electronic shopping guide/cart _ Online list management tool helps you keep track of the little things you need / Touch screen map of zones and specific item / Store an ongoing list to print before you go to the store / Price scanning tool _ Personal shopper / Indicates daily specials or sales / Find a map of the store in your area and online help with product finding _ Loading Zone / Identify a list of key staff experts at each store on a particular day / Central place staffed with general assistance with loading or securing _ Access to online account from store / Includes specific tools and equipment for loading or securing (maybe / Kiosk at entry allow you to zero-in before you shop more sales) / Announces the zone or specific items as you pass an aisle ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 14

Ideation Value Proposition 1 To casual home improvers Who are passionate about convenience and time management We deliver a more efficient shopping experience With a set of online and offline tools That helps you find products and manage tasks easier ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 15

Ideation Value Proposition 2 To casual home improvers Who value assistance locating products and who may be apprehensive about approaching busy staff We deliver a more transparent and consultative shopping experience With an in-store information system That offers easily accessible guidance for your shopping experience ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 16

Ideation Value Proposition 3 To casual home improvers Who need physical accommodations during the shopping process We deliver a more convenient, less physically taxing shopping experience With a set of in-store tools That allow for better portability and greater space for interaction with products ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 17

Ideation Value Proposition 4 To casual home improvers Who are facing the complicated task of loading, transporting and installing bulky or awkward items We deliver a more complete shopping experience With a set of in-store tools and amenities That provide a central resource for getting their products out of the store and into the home ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 18

Adding Value Deeper Exploration of Value Propositions 1, 2, and 4 New names for Value Propositions 1,2, and 4 1. Task Management 2. Product Purchasing 4. Exit ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 19

Adding Value Attributes of Task Management Process Props _ List Creation _ Pen / Written list _ Post-It Pads / Running list conceived over time or project list all at once _ Computer / No way to create list on the website, so the experience is not connected to _ Shopping Cart the brand _ Using the website Staff / Used the website after making the list to get a better understanding of what to look for _ Trying to develop an independence from staffers / Looking at products increased awareness of the kind of spec’s needed to shop for products Technology / Unable to ﬁnd the products needed, ceramic tiles were not available on website, _ website (search function) decided it was better to search faucets in person _ Managing the list in the store / No work surfaces or writing utensils / No tools for planning shopping trip / list and task management is a completely independent experience, separated from the Home Depot brand / Some customers were carrying brochures around to help identify the products they were looking for ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 20

Adding Value “As Is” Task Management Journey Journey Managing List Using the the List in Creation Website the Store Customer Needs Store Knowledge Store Knowledge Store Knowledge Product Knowledge Product Knowledge Transporting Service Installation Guidance Transporting Guidance Process Details Transporting Guidance Process Details Courtesy Process Details Courtesy Courtesy Reassurance Conﬁdence ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 21

Adding Value Emotions and the Task Management Journey List Creation Using the Website Managing the List in the Store Does the store have a good selection of this Is there a logical order to my shopping in relation to Store item? Does it even have this item? the physical layout of the store? Knowledge What are the dimensions and standards of Does the store carry this specific product? Is it Where can I find this specific product? Product the product I need? How can I learn them? in stock? Specs What are the best brands and values for What are the best brands and values for Product my money? my money? Expertise Is there a good way to connect my web How far along am I in my list? Am I missing Process experience to my in=store experience? anything? Details Am I looking in the right place? Do I really Did I make the right selection? Confidence know what to look for? Will someone be at the store to help me? Can I trust that I will get continued support for the Reassurance products I’ve purchased? Will I be remembered? ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 22

Adding Value New Offerings for the Task Management Journey Journey Managing List Using the the List in Creation Website the Store Elements of Enter items into a queue Take a minute to do some Printers will provide you New Experience on your personal Home research on the products with a hardcopy of your list Depot web account, receive and offerings related to including promotions and suggestions and advice your personal shopping suggestions. Use writing dynamically as you build list, browse through a list surfaces and utensils on your list. of products automatically buggies and shelves to generated using your list check off items on your items as search terms. list. Run the list under a scanner to receive advice. New Offerings Online List Manager Task Oriented Environment ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 23

Adding Value Evaluating the New Task Management Service Concepts Description Fits with Customer Competitive Viability Ease of Brand Promise Relevance Advantage Implementation Use an online Home Depot web account Online List to manage lists and receive automated Manager 10 9 10 10 8 advice and suggestions, along with store speciﬁc information Task Tools in the store encourage the use of your Oriented personalized shopping list through low- 10 10 10 9 tech environmental changes and high-tech 7 Environment communication list readers. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 24

Adding Value The Product Purchasing Journey Process Props _ Identification of Need _ Home Computer / Do-it-yourselfer decides they need to go to the hardware store for a specific _ Aisle Markers product, repair kit, project phase, etc. _ Services Desk / The project is not big enough to warrant paying for a personal designer or consultant, but the undertaking is still significant to the customer Staff / Customer does not fully understand their need, just has goals _ Trip Planning _ Staff at service desk / Customer makes a list based on the needs they think the have for their project _ “consultants” / Builds a cognitive model for materials, costs, products needed _ Roaming store employees / Searches for employees with store knowledge to direct their shopping experience based on their gpals, might feel stupid for asking Technology _ Shopping / Shopper investigates product prices, quality, and functions to identify _ Web Services best solutions _ Inventory Database / Might seek detailed advice / affirmation for purchase / Makes a decision to purchase ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 25

Adding Value “As Is” Product Purchasing Journey Journey Identification Trip Planning Shopping of Need Customer Needs Confidence Confidence Confidence Reassurance Reassurance Reassurance Courtesy Store Knowledge Store Knowledge Store Knowledge Product Location Product Expertise Product Knowledge ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 26

Adding Value Emotions and the Product Purchasing Journey Identification of Need Trip Planning Shopping Does Home Depot have what I need? Where can I find what I need? Who can I ask? How are the products organized? Store Is everything in stock? Knowledge Where is my product located? Product Location What are the products out there that can help What are my parameters? What kinds of What is the difference between these products? Product me acheive my goals? products / supplies do I need? What information How can I compare them to make the best choice? Knowledge do I need? What is my price range? Are there warranties, returns, or repairs available? How do I address my goals? What are the featuresr of this specific product? Product Does it fit my needs? Is this a reliable brand? Expertise Do I know what I’m talking about? Do I Am I getting everything I need? Will I have the Am I able to pick the right one? Will it help me Confidence understand my needs? right tools and knowledge to install my new acheive my goals? products? Am I barking up the wrong tree? Will the employees be honest and helpful? Can Can somebody give me some advice? Will they be Courtesy they help me me plan my trip? honest and have my best interest in mind? ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 27

Adding Value New Elements of the Product Purchasing Journey Journey Identiﬁcation Trip Planning Shopping of Need Elements of Enter your goals into a tool With your information from Once you wrap up a plan New Experience on the website that will ask the website, you travel to in the lounge, you have you questions and provide the store and have a seat in the option of continuing information and advice on the Consultation Lounge. on your own or getting what kinds of solutions and Complete with staff guidance additional assistance products might apply to and computer services, the from experts in speciﬁc your situation. lounge provides you with departments. They can an environment to plan your help you to make the right project and get it right. decisions for your needs. New Offerings Online Goals Manager Consultation Lounge Expert Services ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 28

Adding Value Evaluating the New Product Purchasing Service Concepts Description Fits with Customer Competitive Viability Ease of Brand Promise Relevance Advantage Implementation An online tool helps you make a list and Online Goals start to understand the products you need to Manager 10 5 7 8 8 purchase. Consultation A welcoming work environment complete Lounge with employee guidance and computing 10 7 10 7 4 services gives you a place to plan your trip and project. Expert Department speciﬁc experts help you to Services make smart decisions about the products 10 10 5 9 7 you need, and assist you by putting together product packages. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 29

Adding Value The Exit Journey Process Props _ Purchase / In-store purchase of 2 custom size solid pine doors _ Large dolly / Received service at a counter near the door/window area at the rear of the store _ Doors / Courteous and knowledgeable staff gave suggestions on most cost-effective _ Small SUV options and answered installation questions _ Receipt / Database information was sourced at a computer terminal at the service desk _ First Phone Contact Staff / Two weeks later, received phone message that order had arrived, must give 2 hours notice before pick-up _ Service staff at door/window zone of store / Did not indicate store hours, store contact , area for pick-up or supplies needed _ Pick-Up staff via phone message _ Second Phone Contact _ Pick-Up staff at service counter / Once again, no instructions provided regarding logistics of pick-up _ In-Store Receipt Technology / Arrived at store and asked at Returns zone where to go for pick-up _ Database containing client information / Directed to clearly marked Service Desk near exit areas of store / Noticed large dolly with my doors stacked on top laying out in the main aisle of _ Scanning code on receipt the store _ Computer terminal at service desk / Provided order form to service staff who appeared from behind partition / Staff proceed to look for items on computer / I pointed out the actual doors near the service desk _ Hand-Off/Loading / Signed form as proof of pick-up and acceptance of items / Proceed to push doors out of store / Blocked by other patrons taking ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 30

Adding Value “As Is” Exit Journey Journey Home In-Store Hand Off / Purchase Contact Receipt Loading Customer Needs Store Knowledge Store Knowledge Store Knowledge Store Knowledge Product Knowledge Product Knowledge Transporting Service Transporting Guidance Installation Guidance Transporting Guidance Process Details Courtesy Transporting Guidance Process Details Courtesy Process Details Courtesy Courtesy Reassurance Conﬁdence ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 31

Adding Value Emotions and the Exit Journey Purchase Home Contact In-Store Contact Hand-Off/Loading Where can I find this item? Am I in the right Where do I go for pick-up? Where do I bring my car for loading? Where do I go for pick-up? Store zone? Knowledge Is this the right product for my needs? Does it Can you confirm that my order Can you confirm that my order Can you confirm that my order Product represent the size and features I need? is correct? is correct? is correct? Expertise Do I need to purchase other items to get it Installation installed? Do you help? Guidance Can it fit in my car? How do I load it in and What type of supplies do I need? Will you Is there someone helping me? Where do I get the Wil you load and secure this properly? Can Transporting out of my car and into my house? help me load the item? supplies I need? Will you help me load the item? you load this without messing up my car? Guidance How long will my order take? Do I pay now Do I need proof of purchase or anything else? Is there any return policy for damaged or incorrect Process or later? Can it be returned? Is any payment necessary? items? Details Are you valuing me as the customer? Are you valuing me as Are you valuing me as the customer? Are you valuing me as the customer? Courtesy the customer? Confidence Are you truly knowledgeable about these products? Reassurance Have I made the right purchase decision? Would you purchase this item? ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 32

Adding Value New Elements of the Exit Journey Journey Home In-Store Hand Off / Purchase Contact Receipt Loading Elements of Given a personalized URL Self-directed access to Dedicated Loading Zone Supple Central area contains New Experience linked to homedepot.com URL eliminates need for area with registers and self-service tools such as for ongoing updates to phone contact. Can also doors for customers with tape, twine and rope. Other your order, information on opt for periodic emails with large bulky orders. Service service items available for pick-up area and supplies status of order and pick-up desk kiosks available for purchase such as bungee needed, printable bar-code information automated pick-up by chords or moving blankets. for automated pick-up, etc scanning printed bar-code. Delivery also available. Dedicated loading staff available with tools. New Offerings Online Order Tracker Loading Zone Supply Central ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 33

Adding Value Evaluating the New Exit Service Concepts Description Fits with Customer Competitive Viability Ease of Brand Promise Relevance Advantage Implementation Place an in-store order and receive a Online Order personal URL with order info, tracking, pick- Tracker 10 10 10 7 7 up and loading location, etc. Loading Dedicated exit non-contractor customers with Zone large, bulky items. Service staff helps with 10 10 10 9 loading and securing these items. 5 Supply Central area near exit or parking area that Central offers all equipment and supplies needed for 10 10 10 9 6 loading and securing large or bulky items. Some for purchase, some free. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 34

The Improved Experience Scenarios for the Do-It-Yourselfers ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 35

The Improved Experience Johnny Baxter Techno Saavy Johnny Baxter is a college student and ﬁrst time renter. He is looking to ﬁx up his bathroom a bit, and wants to do it on his own rather then waiting for his 1 2 3 4 5 landlord to get around to it. Because the apartment is Home Improvement Experience only temporary he is looking to do things cheap, easy and fast. 1 2 3 4 5 Johnny has some home improvement experience, Level of Commitment mostly from helping his dad with projects around the family house. However, he is not terribly committed 1 2 3 4 5 to doing a great job, mostly because the apartment is temporary. He is extremely techno savvy and often turns to the internet as a source of information. Johnny’s Shopping Criteria _ a quick and convenient solution _ basic product information _ some detailed installation instructions ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 36

The Improved Experience Johnny Baxter Johnny and his roommate take a look at the bathroom They decide to use the internet to research the steps They enter the Home Depot and head more the to decide what it is exactly they want to do. They involved in their projects. The go to homedepot.com consultation lounge. They tell the attendant that they decide on some simple improvements including a new and are able to ﬁnd detailed instructions for performing are looking for some more instruction for switching out showerhead, shower curtain, toilet seat and to replace the jobs as well as a list of needed materials. They are the light. The attendant gives them the name of the the light above the sink. also able to shop for materials, check what is in stock lighting expert, and tells them where to ﬁnd him. As at their local store, and print out a shopping checklist. Johnny heads towards the electrical section, she . Johhny and his roommate decide that they aren’t quite sure they will be able to switch out the light. They decide to ask for some more instruction at the store. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 37

The Improved Experience Johnny Baxter Because the store is not very busy, Johnny is able to speak to the expert right away. He explains to Johnny exactly what is required, and helps him pick out the materials required. Johnny thanks him, uses his checklist to gather the rest of his supplies, and leaves the store conﬁdent that he will be able to ﬁx up his bathroom. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 38

The Improved Experience Jack and Diane Techno Saavy Jack and Diane bought their first house on their first anniversary. They are very enthusiastic about fixing up their new home as both and investment and 1 2 3 4 5 because they see potential for their house to become Home Improvement Experience a very cozy and beautiful place. They don’t have much experience with home improvement aside from fixing up a few odds and ends at apartments past, 1 2 3 4 5 but they enjoy watching home design and renovation Level of Commitment shows such as “Trading Spaces” and “While You Were Out.”. 1 2 3 4 5 At this point they need quality advice on how to gut and improve the basic components of their house such as floors, windows, walls, and fixtures. Jack and Diane’s Shopping Criteria _ Project planning guidance _ Products that will enhance their investment _ Customized renovation instruction _ Control over aesthetics ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 39

The Improved Experience Jack and Diane Jack and Diane work together for a couple of weeks Jack and Diane make a trip to the Home Depot. Once Now with more confidence in their knowlege of what drawing up plans and ideas for improving their house. in the Store, they notice the new Consultation Lounge, they need to purchase, they are able to plan their trip They understand their goals – to replace windows, and decide to try it out before they venture out into the using an interactive map of the store. They print this refinish old wood foors, repair and paint walls, and to store vast and intimidating inventory. The store is very out as well. replace a couple of light fixtures – but they don’t know busy, and the lounge is full of weekend warriors with much about brands and methods for accomplishing a thirst for knowledge about their own projects. While these tasks. waiting for a consultant, they search on the web to get some ideas and come across the Home Depot website Know-How section. On the site they create an account and start to research processes and instructions for performing a range of tasks, from installing lighting to replacing sheetrock. Based on this information, they create a preliminary shopping list and gain an understanding of what kind of dimensions and specs they need to note before they shop at the store. They print this list to use as a guide when they finally make it to the store. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 40

The Improved Experience Jack and Diane When a consultant becomes available, she sits down Jack and Diane get help from an expert in the window Back at home, and properly equipped with the right with the couple and helps them tie up lose ends and department who recognizes their binder. He has supplies, tools, and installation assistance, Jack and build a gameplan customized to their needs and already been informed of their presence through Diane get to work. Although they spent just a bit more tastes. She helps them to spec out attractive interior electronic messaging and has thought through the money than expected at the home depot, they find they paints and recommends accessories such as light- products he would like to show them. Jack and Diane are well within budget and better off because they are switch covers, outlet covers, and some shelving. Her learn what kind of windows will provide them the better prepared. The up front investment in the best renovation and design knowledge is very useful in all best value for their budget. They also learn about proper materials will save them money on utilities and areas, though a couple of elements, including window delivery and installation services and sign up to have make them money down the road when they sell the selection and light fixture electronics, she leaves up the windows put in by people who know what they house. They are confident in there abilities to get the to the department specific experts. Jack and Diane are doing. They get similar high quality help from the job done thanks to the expert advice they received receive a project workbook, which includes all of lighting, flooring, and tools departments. from the Home Depot. their new information bound in an orange Home Depot Binder. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 41

The Improved Experience Larry A. Lone Meet Larry A. Lone. He’s a semi-retired baby boomer Techno Saavy who has owned several homes over his lifetime. He’s planning to be in his current house for the long 1 2 3 4 5 haul, so he’s committed to shaping it exactly to his Home Improvement Experience liking. He pays attention to details when renovating his home and he takes pride in doing what he can on his own. He likes to use his computer to ﬁnd the 1 2 3 4 5 best deals before he goes to the store. Once there, Level of Commitment he likes to take his time and ask questions so he can come home with the knowledge and the materials to 1 2 3 4 5 get the job done right. Larry has been considering adding a deck to his home for many years. Now that he has some time on his hands, he’s ready to make it happen Larry’s Shopping Criteria _ Personal level of service and interaction _ Knowledgeable staff with product expertise _ Thorough, detailed shopping environment _ Project planning and execution assistance _ Online pricing tool ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 42

The Improved Experience Larry A. Lone Larry decides that it’s finally time to build that deck He visits Homedepot.com to get a sense of prices for Larry visits his local Home Depot to get the materials he’s been talking about for years. Plus, with the cold materials before he goes to the store. Once there, he needs and to start building. Near the entrance he Chicago winters, why not a hot tub and gazebo to he sees a project planning tool and he searches until notices the Consultation Lounge. He enters to find out warm things up? he finds a topic area for “Decks.” The tool gives him what type of help he can get with planning, installation, general info such as helpful tips, key steps in the etc. He’s introduced to a consultant and he’s invited to process, materials to purchase and a timeframe for sit down at a workstation to map out the project in more completing the project. The planning tool encourages detail. Before long, Larry has a step-by-step diagram Larry to bring measurements of the back of his home of the project customized to his home and a detailed and his lot to the Consultation Lounge where he can list of materials packaged in a nice orange binder. get more detailed, customized help on his project What’s more, a materials expert from the lumber area walks over to the Consultation Lounge to help guide Larry through the next step in the process. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 43

The Improved Experience Larry A. Lone The consultant from the lumber section helps Larry The lumber consultant guides Larry over to the check- Larry leaves the store knowing that Home Depot and select the best pieces of lumber. He also helps him out counter where he makes his payment from the bar their helpful employees equipped him with everything determine the best sizes to avoid excess cuts and code on his orange binder (rather than scanning all that he needs to begin his project...except a heating pad to waste. He also cuts the larger pieces so Larry has wood and materials). He also makes arrangements to help with his aching back. less of job once he gets the wood home. From there, have everything delivered to his house later that day. they continue to shop so they can cross off the proper nails, wood screws and brackets from Larry’s list. The lumber consultant also gives Larry his business card in case he needs help with installation. ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 44

The Improved Experience Process Map Receives initial Prints out Receives area Customer identifies Researches need on advice in consultation Makes purchase Heads to store instructions and specific expert advise need website lounge materials list Front Stage Back Stage Consultant advises Expert provides customer and updates instruction and helps database decision making. Consultant downloads Expert receives customer’s documents documents from and assesses needs consultant Consultant is assigned Expert is assigned new customer new customer Instructions Project Database & material list Product Database saved in database ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 45

The Improved Experience Covering New Costs How We Could Pay For It Pros Cons Co-branding oppurtunities Sharing the expense Logistics, weakens Home Depot brand, too much focus on single brand Sponsorships Shared cost, advertising oppurtunity Logistics, risk of being sales speciﬁc for other brands, regionally speciﬁc Commission Lowers wage expense Makes the experience about sales Juggle salaries Improved allocation of money, rather Logistical overhaul, restructuring of than increased spending hiring, training Percentage of sales (high limit) Decreases risk for customer Lowers margins Flat rate Guaranteed return Can discourage customers Hourly fee Customizable, guaranteed return on Logistics, might discourage customer per time basis Rewards/loyalty programs Helps with retention Maintenance costs, logistics Promotions/coupons Help acquisition / retention Advertising costs Time incentives Reduce slow sales times Convenience for customers ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 46

Prototyping the New Service What We Need to Test The Individual Experience _ perceived as help? as a tool? / perceived as sales/advertising? / Is it convenient? The Individual / Is it revolutionary? Never want it any other way or is it just a nice Experience addition? “The way it should be.” Infrastructure _ How will it fit into physical space? _ How will it fit into Customer Journey? _ How will it work? Infrastructure / Physical space of center - Resources? Tech and physical tools? - Staff - customer contact model? (signals, waiting time, time) - How does it integrate into the shopping experience? / (takeaways, transfer of knowledge, customer hand-off) - How to invite them back? Brand impact _ increase sales? _ increase customer satisfaction measures? _ increase store traffic? / acquisition - attracting new customers / retention - does it serve core users Brand impact _ Is it a determinant? ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 47

Prototyping the New Service Testing the Individual Experience Expected Outcome How to Test Measures of Success Observation Methods _ Customer will appreciate when focus is _ Good customer reactions on help _ Customer gets involved/interested _ Video experience _ Customer will dislike when focus is sales _ Customers come back eplicitly for _ Qualitative interview _ Customer more likely to use service if it’s that service!!! _ Quantitative measure (do they use it?) approachable, not forced _ Customer would use service again Physical Components _ Consult/customer setting (people, staff, workspace, tech) _ Surveys _ Camera _ In-store Procedural Components _ First contact (greeting) _ Initial down/browse time _ Consult approach _ Interaction (vary level of sales pitches) _ Hands-off ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 48

Prototyping the New Service Testing the Infrastructure Expected Outcome How to Test Measures of Success Observation Methods _ Experience will be more successful if it is seamlessly _ Customer is guided through what is otherwise an overwhelming integrated into existing infrastructure, not considered as a shopping experience _ Interview customers to determine effectiveness of seperate experience. _ All Home Depot resources are pooled effectively to provide a various locations _ Customer will find experience convenient and informative. stronger experience (sum is greater than the parts) _ Interview store employees, managers to assess compatibility. _ Customer should not feel the Advising process is tedious or _ Customer displays increased confidence in ability of Home _ “Shadow” customers to determine continuity of the experience. detrimental to the regular shopping experience. Depot to assist them in their shopping _ Bottom line analysis to determine ifr store is maintaining profit _ Advising Center should feel like an additional service _ Advising Center generates revenue to offset the loss of floor margins (loss of SKUs, additional tech/personnel resources) provided by Home Depot, not the only way to shop i.e. they space by other products should not feel forced into using the service. _ Home Depot employee’s abilities are used more effectively Physical Components _ Location (square footage) _ Design (furniture, signage) _ Resources (personnel,computers) _ Communication tools (PA, phone, Walkie-talkie) Procedural Components _ Accessibility (signals, directional cues) _ Availability of personnel (waiting time) _ Access to (stock/products / procedural) information _ Customer hand-off between representatives and “store sections” _ Motivate return ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 49

Prototyping the New Service Testing the Brand Impact Expected Outcome How to Test Measures of Success Observation Methods _ More consultative shopping experience 1. Store sales are positively impacted by 2% or encourages customers to make more more _ Store traffic monitoring system purchases at Home Depot 2. Post-purchase customer survey indicates _ Register sales tracking program _ More pleasant and positive overall service was of value and improves overall _ Post purchase telephone customer satisfaction survey experience improves retention and customer shopping experience _ Customer satisfaction index loyalty measures 3. Store traffic is positively impacted over the _ Unique, proprietary service creates a new Physical Components determinant factor course of one year _ Store traffic counter system 4. Customer satisfaction index improves to the _ Staff and computerized register system linked to level of key competitors over the course of one consumer database year _ Software customized to track and segmenting purchases _ Staff to manage software and data _ Survey staff, administration site and tools (office space, phone system, computers) Procedural Components _ Customers enter store through store traffic counter _ Purchases at register linked to database of customer purchases _ Database software / staff output sales data at specified intervals _ Database notifies survey staff and survey administered within 24 hours of store purchase _ Survey software and staff outputs results at specified intervals ID 598: Service Design as a Model for Business Design | Clinton Barth, Brandon Ward, and Phillip LaFargue II | Fall 2005 50

Thank You.