2. ALIGNING SERVICE DESIGN AND STANDARDS
Part 4
ALIGNING SERVICE DESIGN AND STANDARDS

3. Provider Gap 2 Customer-Driven Service Designs and Standards
COMPANY
Customer-Driven
Service Designs and Standards
Service Design and Standards Gap
Company Perceptions of Consumer Expectations
Part 4 Opener

4. Service Development and Design
Chapter
Service Development and Design 9
Challenges of Service Design
New Service Development
Types of New Services
Stages in New Service Development
Service Blueprinting
Quality Function Deployment
High-Performance Service Innovations

5. Objectives for Chapter 9: Service Development and Design
Describe the challenges inherent in service design.
Present the stages and unique elements of the new-service development process.
Demonstrate the value of service blueprinting and how to develop and read service blueprints.
Present lessons learned in choosing and implementing high-performance service innovations.

6. Figure 9.1 Risks of Relying on Words Alone to Describe Services
Oversimplification
Incompleteness
Subjectivity
Biased Interpretation

7. Types of New Services major or radical innovations start-up businesses
new services for the currently served market
service line extensions
service improvements
style changes

8. Figure 9.2 New Service Development Process
Business strategy development or review
New service strategy development
Idea generation
Front-end Planning
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
Market testing
Implementation
Test service and other marketing-mix elements
Commercialization
Sources: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.
Postintroduction evaluation

9. Markets Offerings Current Customers New Customers Existing Services
Figure 9.3 New Service Strategy Matrix for Identifying Growth Opportunities
Markets
Offerings
Current Customers
New Customers
Existing
Services
Share
building
Market
development
New
Services
Service
development
Diversification

10. Figure 9.5 Service Blueprinting
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
Blueprint
Points of contact
Evidence

11. Service Blueprint Components
Customer Actions
line of interaction
“Onstage” Contact Employee Actions
line of visibility
“Backstage” Contact Employee Actions
line of internal interaction
Support Processes

12. Figure 9.6 Service Blueprint Components

13. Figure 9.7 Blueprint for Express Mail Delivery Service
PHYSICAL
EVIDENCE
Truck
Packaging
Forms
Hand-held Computer
Uniform
Truck
Packaging
Forms
Hand-held Computer
Uniform
Customer
Calls
Customer
Gives
Package
Receive
Package
CUSTOMER
Line of interaction
(On Stage)
Driver
Picks Up Package
Deliver
Package
CONTACT PERSON
Line of visibility
(Back Stage)
Customer
Service
Order
Line of internal interaction
Airport
Receives
& Loads
Fly to
Sort
Center
Dispatch
Driver
Fly to
Destination
Unload
&
Sort
Load On
Truck
SUPPORT PROCESS
Load on
Airplane
Sort
Packages

14. Figure 9.8 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
Arrive at
Hotel
Give Bags to
Bellperson
Call
Room
Service
Check out
and
Leave
CUSTOMER
Go to
Room
Receive
Bags
Sleep
Shower
Check in
Receive
Food
Eat
Line of Interaction
Greet and
Take
Bags
(On Stage)
Process
Registration
Deliver
Bags
Deliver
Food
Process
Check Out
CONTACT PERSON
Line of Visibility
(Back Stage)
Take
Food
Order
Take Bags
to Room
Line of Internal Interaction
Registration
System
Registration
System
Prepare
Food
SUPPORT PROCESS

15. Figure 9.9 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, and/or technology actions
Step 5
Link contact activities to needed support functions
Step 6
Add evidence of service at each customer action step

16. 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

17. Blueprints Can Be Used By:
Service Marketers
creating realistic customer expectations:
service system design
promotion
Operations Management
rendering the service as promised:
managing fail points
training systems
quality control
Human Resources Management
empowering the human element:
job descriptions
selection criteria
appraisal systems
System Technology
providing necessary tools:
system specifications
personal preference databases

18. Figure 9.10 House of Service Quality for Village Volvo
Source: J. A. Fitzsimmons and M. J. Fitzsimmons, Service Management, 3rd ed. (New York: Irwin McGraw-Hill, 2000), p. 58.