Delivering good products and services has long been thought to create loyal, repurchasing customers. Adding a loyalty program or two and customers should be even more satisfied, right? Wrong. Products and services are merely the basis of commercial exchange. For organisations to build valuable, long lasting relationships with their customers they should enable two-way, mutual interactions. Livework has collaborated with the Delft University of Technology and SiR – a research partner on service integrated relationships – to develop a framework and tooling to design for relationships. Find the slides of ServDes 2018 presentation here.
2. 2
Livework Insight, SiR and Delft University of Technology
Research team
STUD
IO
KnowledgePractice
LEARNING
INTELLIGENCE
3. 3
What is the current practice for
customer relationships?
The problem we're facing
4. 4
The status quo that underpins organisational behaviour
The problem we're facing
Products
& services
The basis of
commercial
exchange
Satisfaction
"If you like what we
sell you must be
satisfied!"
Repurchasing
behaviour
Customer loyalty,
Loyal followers
Rewards
9. 9
So how can we
overcome this?
A proposed solution to design for relationships
10. 10
This is not to say marketing's theory was wrong...
A proposed solution
Relationships
Talking with each
other about the
experience
Products
& services
Customer
contribution
Facilitating
engagement of the
customer
Satisfaction
Engagement
Behaviour
Reciprocal loyalty,
Value partners
Repurchasing
behaviour
Customer loyalty,
Loyal followers
Rewards
12. 12
In-home sales
Vorwerk lets their sales people demo
their products at people’s homes, and
customers let them come in to do so.
A proposed solution
14. 14
Customers performing
sales and support
By buying the product for
others, training them and
generating videos, manuals
and more.
A proposed solution
15. 15
So let's combine the best of both...
A proposed solution
Theory
Practice
Practice
Theory
(Customer) relationship
marketing/management
Service
design
Design for
relationships
Theory
+ =
Practice
Strong theory but
failed to deliver on
its promise
Strong practice, but
lacking relational
theory
Best of both worlds,
generating
scientifically valid,
actionable insights.
16. 16
Products
& services
Satisfaction
Repurchasing
behaviour
Customer loyalty,
Loyal followers
By designing for relationships
A proposed solution
Relationships
Talking with each
other about the
experience
Customer
contribution
Facilitating
engagement of the
customer
Engagement
Behaviour
Reciprocal loyalty,
Value partners
Rewards
17. 17
A toolkit to design
for relationships
How can we integrate relationship marketing's
thinking and service design's practice?
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We build on a customer journey
Tooling to design for relationships
Touchpoints
Acceptance1
Attribution1
Confirmation1
1. Cipolla, C. (2012). Solutions for relational services. Service design with Theory, 37-44.
EXERCISE 1:
RELATIONSHIP PREREQUISITES
20. 20
By identifying relational touchpoints
Tooling to design for relationships
Touchpoints
Acceptance1
Attribution1
Confirmation1
1. Cipolla, C. (2012). Solutions for relational services. Service design with Theory, 37-44.
EXERCISE 1:
RELATIONSHIP PREREQUISITES
21. 21
By identifying relational touchpoints
Tooling to design for relationships
Encounters
EXERCISE 2:
RELATIONSHIP FOSTERING
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And tailoring them to desired relationship quality
Tooling to design for relationships
EXERCISE 2:
RELATIONSHIP FOSTERING
Familiarity
I know you…
Identification
I recognise
myself in
you…
Reciprocity
We do things
for each
other…
Communality
We’re friends…
Continuity
We go through
good and bad
together…
23. 23
In each touchpoint
Tooling to design for relationships
Encounters
EXERCISE 2:
RELATIONSHIP FOSTERING
Reciprocity
Identification
Familiarity
Communality
Continuity
24. 24
How can you use it
in a project
When, where, and how to use it
25. 25
Design for relationships in three steps
Design for can be used for both relational insights, as well as co-development of new services.
Asking the right questions to establish
a reciprocal relationship.
Project use
Framing Understand Ideate
Identification of touchpoints with the
most relational influence.
Creation of service elements that
differentiate services for different
levels of relationships.