1. Part - 4
ALIGNING STRATEGY,
SERVICE DESIGN AND STANDARDS

2. Services Marketing by P Sivarajadhanavel
Part 4
ALIGNING STRATEGY, SERVICE DESIGN AND STANDARDS
Chapter - 9 – Service Development and Design
Chapter – 10 – Customer-Defined Service Standards
Chapter – 11 – Physical Evidence and the Servicescape

3. Provider GAP 2 CUSTOMER COMPANY GAP 2 Service Designs and standards
Customer-Driven
Service Designs and Standards
COMPANY
GAP 2
Company Perceptions of Consumer Expectations

4. Provider Gap – 1 Provider Gap -2
Difference between customer expectations of service and company understanding of those expectations
Provider Gap -2
Difference between company understanding of customer expectations and development of customer driven designs and standards

5. Chapter 8
Service Development and Design

6. Objectives Describe the challenges inherent in service design
Present steps in the new-service development process
Show the value of service blueprinting and read service blueprints
Present lessons learned in choosing and implementing high-performance service innovations

7. Challenges of Service Design
Risks of Relying on Words Alone to Describe Services
Oversimplification
Incompleteness
Subjectivity
Biased Interpretation

8. New Service Development
Characteristics
It must be objective, not subjective
It must be precise, not vague
It must be fact driven, not opinion driven
It must be methodological, not philosophical

9. Types of New Services Major or radical innovations Start-up businesses
New Services for the currently served market
Services line extensions
Service improvements
Style Changes

10. Stages in New Service Development Process
Front-End Planning
Business Strategy Development or review
Prospectors, Defenders, Analyzers and Reactors
New Service Strategy Development
Idea Generation
Service Concept Development and Evaluation
Business Analysis
Implementation
Service Development and Testing
Market Testing
Commercialization
Post Introduction Evaluation

11. New Service Development Process
Business strategy development or review
New Service Strategy Development
Front End Planning
Idea Generation
Screen ideas against new service strategy
Concept Development and Evaluation
Test concept with customers and employees
Business Analysis
Test for profitability and feasibility
Service Development and Testing
Conduct service prototype test
Implementation
Market Testing
Test service and other marketing-mix elements
Commercialization
Postintroduction Evaluation
Source: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.

12. Idea Generation New Service Strategy Matrix for Identifying Growth Opportunities
Markets
Offerings
Current Customers
New Customers
Existing
Services
SHARE BUILDING
MARKET DEVELOPMENT
SERVICE DEVELOPMENT
New
Services
DIVERSIFICATION

13. Service Blueprinting
A picture or map that accurately portrays the service system
Point of contact for different people involved in the service
Useful at the design and redesign stages of service development
Visually displays the service by simultaneously depicting the process of service delivery, the point of customer contact, the roles of customers and employees, and the visible elements of the service

14. Service Blueprinting Service Mapping
A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view.
Process
Service
Mapping
Points of Contact
Evidence

15. Service Blueprint Components
Physical evidence
CUSTOMER ACTIONS
line of interaction
“ONSTAGE” CONTACT EMPLOYEE ACTIONS
line of visibility
“BACKSTAGE” CONTACT EMPLOYEE ACTIONS
line of internal interaction
SUPPORT PROCESSES

16. Service Blueprint of Express Mail Delivery Service
Truck, Packaging, Forms
Hand-held Computer, Uniform
PHYSICAL
EVIDENCE
Customer
Calls
Customer
Gives
Package
Receive
Package
CUSTOMER
Driver
Picks
Up Pkg.
(On Stage)
Deliver
Package
CONTACT PERSON
(Back Stage)
Customer
Service
Order
SUPPORT PROCESS
Airport
Receives
& Loads
Fly to
Sort
Center
Dispatch
Driver
Unload
&
Sort
Fly to
Destination
Load On
Truck
Load on
Airplane
Sort
Packages

17. Blueprint for Overnight Hotel Stay Service
PHYSICAL
EVIDENCE
Hotel
Exterior
Parking
Cart for
Bags
Desk
Registration
Papers
Lobby
Key
Elevators
Hallways
Room
Cart for
Bags
Room
Amenities
Bath
Menu
Delivery
Tray
Food
Appearance
Food
Bill, Desk
Lobby
Hotel
Exterior
Parking
CUSTOMER
Arrive at
Hotel
Give Bags to
Bellperson
Call
Room
Service
Check out
and
Leave
Go to
Room
Receive
Bags
Sleep
Shower
Receive
Food
Check in
Eat
Greet and
Take
Bags
(On Stage)
Process
Registration
Deliver
Bags
Deliver
Food
Process
Check Out
CONTACT PERSON
(Back Stage)
Take
Food
Order
Take Bags
to Room
Registration
System
Prepare
Food
Registration
System
SUPPORT PROCESS

18. Building a Blueprint Identify the service process to be Blueprinted
Identify the customer or customer segment Experiencing the Service.
Map the process from the customer’s point of view.
Map contact employee actions, onstage and back-stage, and Technology Actions.
Link customer and contact person activities to needed support functions.
Add evidence of service at each customer action step

19. Building a Service Blueprint
Step 1
Identify the process to be blue-printed.
Step 2
Identify the customer or customer segment.
Step 3
Map the process from the customer’s point of view.
Step 4
Map contact employee actions, onstage and back-stage.
Step 5
Link customer
and contact person activities to needed support functions.
Step 6
Add evidence of service at each customer action step.

20. Application of Service Blueprints
New Service Development
concept development
market testing
Supporting a “Zero Defects” Culture
managing reliability
identifying empowerment issues
Service Recovery Strategies
identifying service problems
conducting root cause analysis
modifying processes

21. Blueprints Can Be Used By
Service Marketers
creating realistic customer expectations
service system design
promotion
Operations Management
rendering the service as promised
training systems
quality control

22. Blueprints Can Be Used By
Human Resources
empowering the human element
job descriptions
selection criteria
appraisal systems
System Technology
providing necessary tools:
system specifications
personal preference databases

23. Quality Function Deployment
A system for translating customer requirements into appropriate company requirements at every stage, from research through production design and development to manufacture; distribution, installation and marketing, sales and services
Elements of Service Quality
Customer expectations
Importance of expectations
Controllable elements of service
Relationship among elements of service
Association between expectations and service elements
Overall importance of service elements for meeting customer expectations
Difficulty rankings
Competitive assessment

24. High Performance Service Innovations
Choose the right projects
Integrate new services
Multiple measures of success
Learn from Major Successes
Market Synergy
Market driven new product process
Effective Marketing communications
Customer service
Managerial and functional synergy
Launch preparation
Product responsiveness
Product advantage
Innovative Technology
Maintain Flexibility

25. END