www.truth.ms
Measuring the
value of service
design
Erick Mohr
Service Design Conference
Berlin | 2010
www.truth.ms
WHAT IS TRUTH?
www.truth.ms
A MULTIDISCIPLINARY TEAM
ETHNOGRAPHERS, SEMIOTICIANS, DESIGNERS AND QUANTITATIVE RESEARCHERS
www.truth.ms
A MULTIDISCIPLINARY TEAM
ETHNOGRAPHERS, SEMIOTICIANS, DESIGNERS AND QUANTITATIVE RESEARCHERS
www.truth.ms
[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS
TO DELIVER VALUE TO US...
www.truth.ms
[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS
TO DELIVER VALUE TO US...
www.truth.ms
[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS
TO DELIVER VALUE TO US...
www.truth.ms
[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS
TO DELIVER VALUE TO US...
ROi absent from yet another
service design meeting
www.truth.ms
[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ...
www.truth.ms
TO DEFINE THE MONETARY VALUE OF SERVICE
DESIGN, YOU NEED TO FIND THE ANSWER TO
THREE QUESTIONS:
1. WHO ARE YO...
www.truth.ms
BUT HOW TO FIND THE ANSWER THEN?
A COMBINATION OF QUANTITATIVE AND
QUALITATIVE METHODOLOGIES
Quantitative
» lots of users
» objective
» breadth
» few users
» subjective
» depth
Qualitative
www.truth.ms
Quantitative
» lots of users
» objective
» breadth
» few users
» subjective
» depth
Qualitative
discover define develop de...
Quantitative
Qualitative
www.truth.ms
WHAT ABOUT RUNNING QUANT AND
QUAL IN PARALLEL?
1. Understand
who your
users are
2. Define
what they
want
3. Determine how
much they want
to pay for it
Quantitative
Quali...
www.truth.ms
CASE STUDIES
1. UNDERSTAND WHO YOUR CUSTOMERS ARE:
DEVELOPING A SEGMENTATION MODEL FOR A BANK
2. DEFINE WHAT ...
www.truth.ms
1. UNDERSTAND WHO YOUR USERS ARE
DEVELOPING A SEGMENTATION MODEL FOR A BANK
www.truth.ms
USING INTERNAL DATA (SUCH AS RECORDS OF BANK TRANSACTIONS) TO
IDENTIFY GROUPS OF PEOPLE WHO SHARE SAME BEHAVI...
www.truth.ms
CLUSTERING GROUPS OF CUSTOMERS AND EVALUATING
THEIR BEHAVIOURS TOWARDS MONEY
www.truth.ms
ETHNOGRAPHIC RESEARCH TO DEFINE CUSTOMER’S ATTITUDES TOWARDS
MONEY: UNDERSTANDING WHY THEY DO WHAT THEY DO AN...
www.truth.ms
QUANTITATIVE RESEARCH TO VALIDATE AND MEASURE KEY
ATTITUDE DIMENSIONS
www.truth.ms
THE RESULT:
ROBUST AND CLEAR SEGMENTATION, WHERE CLUSTERS
OF CUSTOMERS ARE:
1. DISTINCT IN ATTITUDE
(SO WE KN...
www.truth.ms
2. DEFINE WHAT THEY WANT
IDENTIFYING AND PRIORITISING PROPOSITIONS FOR A
MOBILE PHONE VENDOR
ETHNOGRAPHIC AND CO-CREATION APPROACHES TO
GENERATE IDEAS ACROSS SEVEN MARKETS
www.truth.ms
USING STORYTELLING TO BRING CONCEPTS TO LIFE FOR QUANTITATIVE
TESTING: IT’S LIKE PROTOTYPING, BUT IN LARGE SCALE
www.truth...
Needs:
Line graph.
Brazil, South
Africa most
concerned by
safety.
China, US,
UK emphasise
connection.
Russia, Saudi
emphas...
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0
5
10
15
20
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LOWER MAXIMUM REACH
HIGH MAXIMUM REACH
ALMOST
DAILY
DEFINING THE MOST APPEALING IDEAS:
FREQUENCY OF USE VS REACH
www.truth...
www.truth.ms
THE RESULT:
A CLEAR UNDERSTANDING OF WHAT’S RELEVANT
FOR CONSUMERS
www.truth.ms
3. DETERMINE HOW MUCH THEY WANT
TO PAY FOR IT
DEFINING OPTIMUM PRICE LEVELS FOR A
MOBILE PHONE VENDOR
USING VIDEO TO COMMUNICATE INTANGIBLE
ASPECTS OF PROPOSITIONS
www.truth.ms
PRICE SENSITIVITY ANALYSIS: EXPLORING PEOPLE’S WILLINGNESS
TO PAY FOR SOMETHING
www.truth.ms
DETERMINING ACCEPTABLE PRICES FOR DIFFERENT OPTIONS
www.truth.ms
www.truth.ms
THE RESULT:
‘THE SIMULATOR’
www.truth.ms
BRINGING EVERYTHING TOGETHER
1. YOU KNOW WHO YOUR USERS ARE
YOU CAN TARGET THE RIGHT PEOPLE
2. YOU KNOW WHAT ...
A CLEAR ROADMAP TO GUIDE SERVICE DEVELOPMENT AND DELIVERY
www.truth.ms
www.truth.ms
Erick Mohr
erick.mohr@truth.ms
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Measuring the value of service design by Erick Mohr, Truth Consulting

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How to find out the economic value of service design? A three step approachh presented at the Service Design Network Conference 2010 in Berlin by Erick Mohr, from Truth Consulting.

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Measuring the value of service design by Erick Mohr, Truth Consulting

  1. 1. www.truth.ms Measuring the value of service design Erick Mohr Service Design Conference Berlin | 2010
  2. 2. www.truth.ms WHAT IS TRUTH?
  3. 3. www.truth.ms A MULTIDISCIPLINARY TEAM ETHNOGRAPHERS, SEMIOTICIANS, DESIGNERS AND QUANTITATIVE RESEARCHERS
  4. 4. www.truth.ms A MULTIDISCIPLINARY TEAM ETHNOGRAPHERS, SEMIOTICIANS, DESIGNERS AND QUANTITATIVE RESEARCHERS
  5. 5. www.truth.ms [SERVICE DESIGN] ORCHESTRATING GREAT CUSTOMER EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS TO DELIVER VALUE TO USERS AND PROVIDERS
  6. 6. www.truth.ms [SERVICE DESIGN] ORCHESTRATING GREAT CUSTOMER EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS TO DELIVER VALUE TO USERS AND PROVIDERS
  7. 7. www.truth.ms [SERVICE DESIGN] ORCHESTRATING GREAT CUSTOMER EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS TO DELIVER VALUE TO USERS AND PROVIDERS
  8. 8. www.truth.ms [SERVICE DESIGN] ORCHESTRATING GREAT CUSTOMER EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS TO DELIVER VALUE TO USERS AND PROVIDERS
  9. 9. ROi absent from yet another service design meeting www.truth.ms [SERVICE DESIGN] ORCHESTRATING GREAT CUSTOMER EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS TO DELIVER VALUE TO USERS AND PROVIDERS
  10. 10. www.truth.ms TO DEFINE THE MONETARY VALUE OF SERVICE DESIGN, YOU NEED TO FIND THE ANSWER TO THREE QUESTIONS: 1. WHO ARE YOUR USERS? 2. WHAT DO THEY WANT? 3. HOW MUCH WOULD THEY PAY FOR IT?
  11. 11. www.truth.ms BUT HOW TO FIND THE ANSWER THEN? A COMBINATION OF QUANTITATIVE AND QUALITATIVE METHODOLOGIES
  12. 12. Quantitative » lots of users » objective » breadth » few users » subjective » depth Qualitative www.truth.ms
  13. 13. Quantitative » lots of users » objective » breadth » few users » subjective » depth Qualitative discover define develop deliver www.truth.ms TRADITIONALLY, QUANT AND QUAL ARE SEEN AS INCONGRUENT
  14. 14. Quantitative Qualitative www.truth.ms WHAT ABOUT RUNNING QUANT AND QUAL IN PARALLEL?
  15. 15. 1. Understand who your users are 2. Define what they want 3. Determine how much they want to pay for it Quantitative Qualitative www.truth.ms A THREE STEP APPROACH TO PROVIDE ANSWERS TO OUR QUESTIONS
  16. 16. www.truth.ms CASE STUDIES 1. UNDERSTAND WHO YOUR CUSTOMERS ARE: DEVELOPING A SEGMENTATION MODEL FOR A BANK 2. DEFINE WHAT THEY WANT: IDENTIFYING AND PRIORITISING IDEAS FOR A MOBILE PHONE VENDOR 3. DETERMINE HOW MUCH THEY WANT TO PAY FOR IT: DEFINING OPTIMUM PRICE LEVELS FOR A MOBILE PHONE VENDOR
  17. 17. www.truth.ms 1. UNDERSTAND WHO YOUR USERS ARE DEVELOPING A SEGMENTATION MODEL FOR A BANK
  18. 18. www.truth.ms USING INTERNAL DATA (SUCH AS RECORDS OF BANK TRANSACTIONS) TO IDENTIFY GROUPS OF PEOPLE WHO SHARE SAME BEHAVIOURAL PATTERNS
  19. 19. www.truth.ms CLUSTERING GROUPS OF CUSTOMERS AND EVALUATING THEIR BEHAVIOURS TOWARDS MONEY
  20. 20. www.truth.ms ETHNOGRAPHIC RESEARCH TO DEFINE CUSTOMER’S ATTITUDES TOWARDS MONEY: UNDERSTANDING WHY THEY DO WHAT THEY DO AND EXPLORING WHAT THEY MIGHT NEED FROM THE BANK
  21. 21. www.truth.ms QUANTITATIVE RESEARCH TO VALIDATE AND MEASURE KEY ATTITUDE DIMENSIONS
  22. 22. www.truth.ms THE RESULT: ROBUST AND CLEAR SEGMENTATION, WHERE CLUSTERS OF CUSTOMERS ARE: 1. DISTINCT IN ATTITUDE (SO WE KNOW WHAT PRODUCTS AND SERVICES EACH SEGMENT MIGHT NEED) 2. IDENTIFIABLE IN BEHAVIOURAL TERMS (SO WE CAN EASILY SPOT THESE CUSTOMERS AND TARGET THEM ACCORDINGLY)
  23. 23. www.truth.ms 2. DEFINE WHAT THEY WANT IDENTIFYING AND PRIORITISING PROPOSITIONS FOR A MOBILE PHONE VENDOR
  24. 24. ETHNOGRAPHIC AND CO-CREATION APPROACHES TO GENERATE IDEAS ACROSS SEVEN MARKETS www.truth.ms
  25. 25. USING STORYTELLING TO BRING CONCEPTS TO LIFE FOR QUANTITATIVE TESTING: IT’S LIKE PROTOTYPING, BUT IN LARGE SCALE www.truth.ms
  26. 26. Needs: Line graph. Brazil, South Africa most concerned by safety. China, US, UK emphasise connection. Russia, Saudi emphasise knowledge. Enrichment an issue in Saudi. Time is a key need in every location. MEETING THE NEEDS OF DIFFERENT MARKETS: SERVICES WHICH TAP INTO FUNDAMENTAL NEEDS WILL BE MORE READILY EMBRACED www.truth.ms
  27. 27. 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 The services sound exciting & cool. I really like the idea of these services. to use them. I predict I will use these services when they are available. KEY: DETERMINING THE LEVEL OF ENTHUSIASM AND SHORT TERM TAKE UP ACROSS DIFFERENT MARKETS www.truth.ms
  28. 28. LOWER MAXIMUM REACH HIGH MAXIMUM REACH ALMOST DAILY DEFINING THE MOST APPEALING IDEAS: FREQUENCY OF USE VS REACH www.truth.ms
  29. 29. www.truth.ms THE RESULT: A CLEAR UNDERSTANDING OF WHAT’S RELEVANT FOR CONSUMERS
  30. 30. www.truth.ms 3. DETERMINE HOW MUCH THEY WANT TO PAY FOR IT DEFINING OPTIMUM PRICE LEVELS FOR A MOBILE PHONE VENDOR
  31. 31. USING VIDEO TO COMMUNICATE INTANGIBLE ASPECTS OF PROPOSITIONS www.truth.ms
  32. 32. PRICE SENSITIVITY ANALYSIS: EXPLORING PEOPLE’S WILLINGNESS TO PAY FOR SOMETHING www.truth.ms
  33. 33. DETERMINING ACCEPTABLE PRICES FOR DIFFERENT OPTIONS www.truth.ms
  34. 34. www.truth.ms THE RESULT: ‘THE SIMULATOR’
  35. 35. www.truth.ms BRINGING EVERYTHING TOGETHER 1. YOU KNOW WHO YOUR USERS ARE YOU CAN TARGET THE RIGHT PEOPLE 2. YOU KNOW WHAT THEY WANT YOU CAN DESIGN SERVICES THAT APPEAL TO THEM 3. YOU KNOW HOW MUCH THEY WANT TO PAY FOR IT YOU CAN HELP THE BIG GUYS DECIDE WHETHER THEY WANT TO INVEST
  36. 36. A CLEAR ROADMAP TO GUIDE SERVICE DEVELOPMENT AND DELIVERY www.truth.ms
  37. 37. www.truth.ms Erick Mohr erick.mohr@truth.ms

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