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ALIGNING STRATEGY, SERVICE DESIGN, AND STANDARDS
Part 3 ALIGNING STRATEGY, SERVICE DESIGN, AND STANDARDS
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Provider GAP 2 Customer-Driven Service Designs and Standards
COMPANY GAP 2 Company Perceptions of Consumer Expectations Part 3 Opener
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8 Service Development and Design Chapter Challenges of Service Design
New Service Development Types of New Services Service Redesign Stages in New Service Development Service Blueprinting Quality Function Deployment High-Performance Service
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Objectives for Chapter 8: Service Development and Design
Describe the challenges inherent in service design. Present steps in the new service development process. Show the value of service blueprinting and quality function deployment (QFD) in new service design and service improvement. Present lessons learned in choosing and implementing high-performance service innovations.
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Figure 8.1 Risks of Relying on Words Alone to Describe Services
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Figure 8.2 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.
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Figure 8.3 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
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Figure 8.5 Service Mapping/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 Mapping Points of Contact Evidence
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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
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Figure 8.6 Service Blueprint Components
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Express Mail Delivery Service
Truck Packaging Forms Hand-held Computer Uniform 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 Airport Receives & Loads Fly to Sort Center Dispatch Driver Unload & Sort Load On Truck Fly to Destination SUPPORT PROCESS Load on Airplane Sort Packages
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Figure 8.8 Overnight Hotel Stay
Bill Desk Lobby Hotel Exterior Parking 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 Arrive at Hotel Give Bags to Bellperson Call Room Service Check out and Leave CUSTOMER 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 Take Food Order (Back Stage) Take Bags to Room Registration System Prepare Food Registration System SUPPORT PROCESS
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Figure 8.9 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. Step 5 Link customer and contact person activities to needed support functions. Step 6 Add evidence of service at each customer action step.
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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
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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 empowering the human element job descriptions selection criteria appraisal systems System Technology providing necessary tools: system specifications personal preference databases
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Figure 8.10 House of Quality for Village Volvo
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