Service Design
Service Design
Service Design
Offerings Markets
3. Idea Generation
The ideas generated at this phase can be passed through the new service strategies
screen described in the preceding step.
Ideas are generated from employees and customers and learning about
competitors offerings are most common approach.
The sources of new idea is inside (internal) & outside (External) organization.
There should exist some formal mechanism for ensuring new service possibilities.
This mechanism include the responsibility of generating new ideas through
suggestion box for employees & customer, new development teams that meet
regular, surveys & focus group with customer and employees, and formal
competitive analysis to identify new services.
New service ideas may arise outside the formal mechanism total dependence on
luck is not a good strategy.
5. Business Analysis
In this stage is to determine its feasibility & potential profit implications.
Demand analysis, revenue projections cost analysis and operational feasibility are
assessed at this stage.
This stage will involve preliminary assumptions about the cost of hiring and
training personnel, delivery system & other cost.
The organization will pass the result of the business analysis through its
profitability and feasibility screen to determine whether the new service idea
meets the minimum requirements.
6. Service Development & Testing
In this stage involves construction of product prototypes & testing for consumer
acceptance.
In this stage, service development should involve all who have a stake in the new
service, contact employees, functional representatives from marketing, operations,
and human resources.
During this phase the concept is refined to the point where the detailed service
blueprint representing the implementation plan for the service can be produced.
Eg: when a large state hospital was planning a new computer based information
service for doctor thought out its state, it involve many groups in the service
development and eveluation stage, including medical researchers, computer
programmers & operators, telecommunications experts.
7. Market Testing
In this stage the product is tested in a limited areas to determine the service mix.
Pilot survey is conducted.
8. Commercialization
At this stage in the process, the service goes live and is introduced to the
marketplace.
This stage has 2 primary objectives.
First, to build and maintain acceptance of the new service among large number of
service delivery personnel who will be responsible day to day for service quality.
Second, to monitor all aspects of the service during introduction & through the
complete service cycle.
Every detail of the service should be assessed i.e transactions, billing, complaints,
& delivery process.
9. Post-introduction Evaluation
Service Recovery
Service recovery refers to the actions taken by an organization in response to a
service failure.
Service Failures
System failures: failures in core service offering. Examples are spoiled food,
warm beer, unannounced change in flight schedules, cold food, dirty plane.
Service delivery failure: employee response to unreasonably slow service, and
other core service failures.
Service Recovery
Recovery Paradox
Ex: Think of a hotel customer who arrives to check in and finds there is no room
available for him.
In an effort to recovery, the hotel front desk person immediately upgrades this
guest to a better room at the same original price.
The customer is so thrilled with this compensation that he is extremely satisfied
with this experience, even more impressed with the hotel than he was before and
vows to be a loyal in future.
Conclusion is that companies should plan to disappoint customer so they can
recovery and gain even greater loyalty from them as a result this idea is know as
RECOVERY PARADOX
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Types of Complain
Research suggests that people can be grouped into categories based on how they
respond to failures.
Passives Complainers:-
They are unlikely to say anything to the provider and also to the third party.
Voicers Complainers:-
They are less likely to spread negative word of mouth to third party.
Irates Complainers:-
These customer are more likely to engage in negative word of mouth to friends and
relatives.
Activists Complainers:-
Service problems are voiced less often because complainers do not think it will
help or know what to do.
Due to intangibility and inseparability 2500 shoppers said courtesy, knowledge,
and friendliness are most important components of customer service.
The service recovery experts, Steve Brown and Steve Tax have specified 3 types of fair
treatment they are:-
Outcome Fairness:-
The compensation can take the form of actual monetary compensation, an apology,
future free services, reduce charges, repairs, and replacements.
They expect equity in the exchange ie they want to feel that the company has “paid” for
his mistakes in manner at least equal to what customer has suffered.
for eg:- hotel guest could be offered the choice of a refund or a free upgrade to a better
room in compensation for his room not being available on arrival.
Procedural Fairness:-
In addition to fair compensation, customers expect fairness in terms of polices, rules, and
timeliness of the complaint process.
They want easy access to the complaint process, and they want the things handled
quickly, preferably by the first person they contact.
interaction Fairness:-
Above and beyond their expectations of fair compensation and quick procedure,
customer expect to be treated politely, with care and honest.
This form of fairness can dominate the others if the customer feel the company and its
employees have uncaring attitudes and have done little try to resolve the problem.
Welcome and
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ly
Learn Fail
from lost safe the
customer service
Fail Safe Your Service:-
The first rule of service quality is to do it right the first time.
In this way recovery is unnecessary, customer get what they expect the service and
compensating for errors can be avoided.
Act quickly:-
The company should be prepared to act quickly to the customer problem. By these ways:
Customers want the person who hears their complaints to solve their problems whether a
complaint is registered in person, over the phone or viva the internet.
Empower Employees
It is critical to treat each customer fairly in terms of the outcome they receive.
The process by which the service recovery takes place and in terms of interpersonal
treatment they receive.
“Problem – resolution situations are more than just opportunities to fix flawed services
and strengthen ties with customer.
This strategy is to learn from the customers who defect or decide to leave.
This is to prevent the same mistakes and losing more customers in future.
Full All service Lands End Guarantee – “If you are not
satisfacti aspects completely satisfied with any item you buy
on covered from us, at any time during your use of it,
Guarante with no return it and we will refund your full purchase
e exceptions. price.
Service Blueprint
Introduction
“A picture or map that accurately portrays the service system so that the
different people involved in providing it can understand and deal with it
objectively regardless of their roles or their individual points of view”
– roles of customers
Those contact employees actions that occur behind the scenes to support
the onstage activities are the backstage contact employee actions.
Support processes
Service Blueprint
Line of visibility separates all service activities that are visible to the
customer from those that are not visible.
CASE STUDY
Virgin Trains is a brand that has had the major challenge of bringing the
UK rail industry into the twentieth century. The company is responsible for
linking towns and cities across the length and breadth of the country with over
35 million passenger journeys each year. It has therefore undertaken a significant
level of marketing research to identify what people expect from train travel.
Source: adapted from Knight, T. and Deas, S., ‘Across the tracks’,
Research (February 2006)
Meaning
OR
Illustration
Let us imagine that you are planning to go to a restaurant Suppose you went
into the restaurant for which you held the minimum tolerable expectation, paid
very little money and were served immediately with good food Next suppose that
you went to the restaurant for which you had the highest (ideal) expectations, paid a
lot of money and were served good (but not fantastic)food. Which restaurant
experience would you judge to be best?
The answer is likely to depend a great deal on the reference point that you
brought to the experience. Because the idea of customer expectations is so
critical to evaluation of service, we see about the different levels of
expectations.
we focus on two types. The highest can be termed desired service: the
level of service the customer hopes to receive – the ‘wished for’ level of
performance.
Desired service is a blend of what the customer believes ‘can be’ and
‘should be’.
for eg: consumer who sign up for matrimonial service expect to find
compatible, attractive, intersting people to marry. The expectation reflects
the hopes and wishes and belief that they may be fulfilled, they would
probably not purchase the service.
for eg: you will engage the services of college placement office when you are
ready to graduate. What are your expectations for the service? In all likelihood
you want the office to find you a job- the right job in the right geography for the
right salary because that is what you hope and wish for.
We probably see that the economy may constrain the availability of ideal
job openings in companies.
For such reason they hold another lower level expectation for the
threshold of acceptable service.
If service performance is higher than the zone of tolerance at the top end
– where performance exceeds desired service – customers will be very pleased
and probably quite surprised as well.
Zone of
Tolerance Desirables
Personal Needs
Personal needs can fall into many categories, including physical, social,
psychological and functional.
A fan who regularly goes to baseball games right from work, and is therefore
thirsty and hungry, hopes and desires that the food and drink Vendors will
pass by his section frequently,
Where as a fan that regularly has dinner elsewhere has a low or zero level of
desired service from the vendors.
Enduring service intensifier
These are individual, stable factors that lead the customer to a heightened
sensitivity to service. One of the most important of these factors can be called
derived service expectations, which occur when customer expectations are
driven by another person or group of people.
Perceived service alternatives are other providers from whom the customer can
obtain service.
If customers have multiple service providers to choose from, or if they can
provide the service for themselves, their levels of adequate service are higher
than those of customers who believe it is not possible to get better service
elsewhere.
Customers’ expectations are partly shaped by how well they believe they
are performing their own roles in service delivery.
A customer who is very clear with a waiter about how rare he or she
wants his or her meat cooked in a restaurant will probably be more
dissatisfied if the meat comes to the table overcooked than a customer
who does not clearly state the degree of cooking expected.
Situational factors
Customers who recognize that situational factors are not the fault of
the service company may accept lower levels of adequate service given the
context.
Predicated Service
The level of service that customers believe they are likely to get. This type of
service expectation can be viewed as predictions made by customers about
what is likely to happen during an impending transaction or exchange.