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Buying into service design

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a presentation Erik Roscam Abbing did for 'the web and beyond' on how service design should combine design and business thinking, insights and metrics, money and magic.

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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. Today’s journey: Me Service design?3 pillars for Selling SD
  3. Service design?
  4. image courtesy of Gate 7 TU delft
  5. not an easy thing to sell... forward looking user centred design led explorative long term uncertain strategic across silos
  6. I NEED SERVICE DESIGN. NOW!!! photo flickr bruce charles
  7. We need to understand the value of service design
  8. the world view paradox businesses think service designers think in terms of in terms ofvalue to the business value to the customer
  9. the world view paradox A Bbusinesses look at service designers look atthe world through the world through a a business lens customer lens
  10. the world view paradoxtoo often, business insights too often, customer insightsdon’t lead to customer value don’t lead to business value
  11. the world view paradox That’s why it’s vital that you match the two world views The value of Service design is that it does just that!
  12. 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 effects
  13. 1.Service design sells when it marriescustomer value with business value
  14. you can do the math:a happy customer is worth 4x as much as an unhappy customer
  15. what makes customers really happythroughout their interactions with an insurance company?
  16. 2.Service design sells when it focusses on those parts of the experience where it really matters
  17. net promotor score analysis
  18. Combining customer insights and business metrics into a customer journey map, that clearly shows where design effort is required most.Don’t redesign the journey, redesign those parts of the experience that lead to unhappy customers.
  19. So internal service design teams can go to work in a focused and effective way.
  20. 3. Service design sells when it setsclear goals and measures the effects
  21. Virgin’s question to us:“how do we lift our customer satisfactionscore from 7.XX to 8.X by Sept 2012, whilstdelivering a differentiated experience that our targeted customers rave about?”
  22. 10% increase in our customer satisfaction score in the first 7 months of the programme!
  23. 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 effects
  24. the effects of service design happier more efficient more aligned customers processes organisations 1 2 3
  25. 1. happier customerspromote your service to othersbuy more from you and stay longerare easier to serve net promotor score customer effort score brand preference brand loyalty cross-sell / up-sell churn # contacts
  26. 2. more efficient processesare quick, pleasant and efficienthave low costskeep current customers and gain new customerslead to few complaints first call resolutionleave room for personal care case times employee satisfaction cost per process step market growth churn # complaints
  27. 3. more aligned organisationshave high internal brand awarenessshow close cooperation between departmentsare creative and efficient in solving issuesshow initiative in coming up with new solutions internal brand preferencework better with partners and suppliers # cross-departmental initiatives first call resolution # complaints # innovations time spent on innovation partner and supplier satisfaction
  28. so yes,it can all be measured
  29. but that doesn’t meanservice design is a rational,linear, predictable process
  30. does that imply we need to get back in the box? thatback in the box? design should fit in, no more wild ideas? no, 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. sean parker isn’t....
  31. does it imply we need to fit in? start behaving likeloose 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 you’ll get a lot done. photo flickr cedim news photo flickr jean baptiste paris jon kolko doesn’t.....
  32. does it imply we need to stop caring for theonly think €€€ ??? customer so much? that we need to think money first, happy customers later? No, happy customers means €€€ if you really know what you’re doing. Don’t randomly redesign the journey, do it with focus and clear goals. tony hsieh doesn’t.....
  33. design thinking! &
  34. out of the box & in the box &
  35. users & businesses &
  36. madness & methods &
  37. the money & the magic &
  38. thanks! www.zilverinnovation.comwww.designthenewbusiness.com @roscamabbing erik@zilverinnovation.com

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