Design Thinking For Customer Excellence (Ajay Aggarwal)

DESIGN THINKING FOR
CUSTOMER
EXCELLENCE
AJAY AGGARWAL
Design Thinking For Customer Excellence
Table of Contents
Introduction ................................................................................................................................ 2
• About Humane Design & Innovation.................................................................................. 2
Understanding Design Thinking ........................................................................................ 4
• What is Design Thinking? ......................................................................................................... 4
• Unique Aspect of HDI's Design Thinking Approach ................................................. 7
Improving Customer Lifetime Value (CLV) ......................................................................8
• Understanding CLV....................................................................................................................... 8
• Importance of CLV ......................................................................................................................... 8
• How to Calculate CLV ...................................................................................................................9
• Steps to Measure CLV ...................................................................................................................9
• The Relationship Between Design Thinking and CLV ........................................... 10
• Boost Customer Lifetime Value Through Design Thinking: 5 Proven
Strategies............................................................................................................................................. 11
Customer Journey Mapping: A Vital Tool for Delighting Customers ................... 14
• The Customer Journey: A Visual Storyline ..................................................................... 14
• Different Stages of the Customer Journey ................................................................... 14
• Understanding Customer Needs at Each Stage ....................................................... 15
• Creating a Customer Journey Map .................................................................................... 15
• Using Customer Journey Maps to Improve the Customer Experience ...... 16
• Enhancing Customer Journey Mapping with Design Thinking ...................... 16
• Conclusion ......................................................................................................................................... 17
Customer Service Improvement Strategies .................................................................. 18
• 5 Strategies To Improve Customer Service ................................................................... 18
• Case Study: Apple's Genius Bar ........................................................................................... 22
• Conclusion ........................................................................................................................................ 23
Real Case Study - Improving Customer Service and Experience in the Indian
Hotel Industry .......................................................................................................................... 24
• Current Challenges Faced by Hotels in India ............................................................. 24
• How Design Thinking Can Transform Customer Service and Experience
.................................................................................................................................................................. 25
• Ways to Improve Hotel Customer Service and Experience Using Design
Thinking.............................................................................................................................................. 25
• Case Study: Taj Hotels ................................................................................................................ 27
This Ebook has been published by Humane Design And Innovation Consulting LLP. All Right Reserved 0
Navigating Challenges and Taking the Next Steps with Design Thinking ....... 28
• Challenges Faced ......................................................................................................................... 28
• Ajay Aggarwal’s Design Thinking Masterclass ........................................................... 28
• Masterclass Agenda .................................................................................................................... 29
• Unlocking Your Team's Potential ....................................................................................... 29
Introduction
Welcome to "Design Thinking for Customer Excellence" In this eBook, we

will delve into the transformative power of design thinking in achieving
customer excellence. Design thinking is a human-centered approach to
problem-solving that has proven to be a game-changer in various
industries. By focusing on understanding and meeting the needs of
customers, design thinking can lead to innovative solutions that drive
customer satisfaction and loyalty.
About Humane Design & Innovation
Humane Design is a design and innovation consulting firm specializing in

the space of design thinking, innovation, business design, digital design,
product and packaging design. We bring our designs to life by adding the
right flavour of technology to it. We use our bespoke design and innovation
methodology to help deliver solutions that add emotional and commercial
value to our customers.
Humane Design is a dream seen by a diverse group of business and design

professionals who are passionate about bringing a positive change in the
life of customers and their businesses.
Our team comprises of people from leading business and design schools
and have experience of working with start-ups, SMBs and leading brands
including the Big 4 of consulting world.
We strive to be the preferred choice for our customers in the space of design
and innovation.
Before delving into the application of Design Thinking for achieving

customer excellence, it's crucial to grasp the essence of Design Thinking
itself, along with HDI's proprietary framework for its effective
implementation.
Understanding Design Thinking
Design Thinking is not just a methodology; it's a mindset, a way of

approaching problems that emphasizes empathy, creativity, and
collaboration. At its core, it's about understanding and addressing human
needs to create meaningful and effective solutions. The HDI framework,
Explore-Ideate-Create-Evolve, provides a structured approach to
embracing Design Thinking and harnessing its transformative potential.
What is Design Thinking?
Design Thinking is a human-centered approach to problem-solving, a

methodology that puts people at the heart of the process. It encourages
empathy, creativity, and innovation to address complex challenges
effectively. At its essence, Design Thinking is about truly understanding the
needs and experiences of the people for whom we are designing solutions.
In the context of the HDI framework, let's delve into the four vital steps that
make up the foundation of Design Thinking:
Explore: Unveiling The Invisible
The first step in any creative process is exploration. In Design Thinking, this
translates to understanding the problem deeply. It's about empathizing
with the users and stakeholders, immersing yourself in their world to gain
insights that might not be immediately visible. This is where you'll identify
and comprehend the core issues and opportunities.
In the Explore phase, you:

- Engage with stakeholders to comprehend their perspectives.
- Immerse yourself in the users' experiences.
- Identify and define the real problem.
- Discover latent needs and aspirations.
By gaining a comprehensive understanding of the problem through

exploration, you set the stage for effective ideation and solution creation.
Ideate: Collaborative Creativity
Ideation is where creativity takes the spotlight. It's about brainstorming,

collaborating, and generating a myriad of ideas without any judgment. The
goal is to encourage wild thinking and a plethora of concepts, irrespective
of how practical or achievable they seem at this stage.
In the Ideate phase, you:

- Encourage divergent thinking and creativity.
- Generate a wide array of ideas, no matter how unconventional.
- Combine and build upon each other's ideas.
- Prioritize and shortlist ideas that are Desirable, Feasible and Viable.
Ideation sparks creativity and helps you think beyond the obvious. It's about
fostering a culture where every idea has a chance to be heard and explored.
Create: Bringing Ideas to Life
Creation is the phase where ideas are transformed into tangible solutions.
Prototypes are developed, and concepts are tested with real users to gather
valuable feedback. This iterative process allows for refinement and
improvement.
In the Create phase, you:

- Build prototypes to visualize your ideas.
- Test these prototypes with real users to gather insights.
- Analyze feedback to identify strengths and weaknesses.
- Refine and iterate based on the feedback received.
Creating is about getting hands-on and making ideas tangible. It's about
ensuring that what's envisioned in the ideation phase is practical and
aligned with users' needs.
Evolve: Ensuring Viability
The final phase, Evolve, is about ensuring that the solution is not only
innovative but also economically viable. It's about assessing the potential
impact of the solution in the real world, understanding its economic
viability, and aligning it with the overall business goals and strategies.
In the Evolve phase, you:

- Assess the economic viability of the solution.
- Validate the solution against business objectives.
- Pitch the solution effectively to stakeholders to ensure adequate backing
- Plan for the solution's implementation and scaling.
Evolve ensures that the brilliant ideas generated and prototyped are
sustainable, viable, and aligned with the organization's broader goals.
Unique Aspect of HDI's Design Thinking Approach
What sets HDI's approach to Design Thinking apart is the integration of not
only innovation tools but also a business viability check. It's about ensuring
that the creative and innovative solutions generated are not just concepts
but practical, implementable, and aligned with the organization's
objectives. HDI's framework equips you not only to innovate but to innovate
with a purpose.
Use this framework when you aim to:

- Identify hidden problems with the potential for disruptive solutions.
- Untangle complex, 'wicked' problems by co-creating solutions with your
customers.
- Infuse a new approach to ideation and spark creativity within your team.
- Cultivate a culture of innovation and nurture self-creativity.
The Explore-Ideate-Create-Evolve framework is your compass through the

intricate landscape of Design Thinking. It equips you with the tools and
methodology needed to design unique, human-centered solutions.
Now that we've explored Design Thinking, let's delve into the concepts of
Customer Lifetime Value and Customer Journey, and how employing
Design Thinking can pave the way for achieving Customer Excellence.
Improving Customer Lifetime Value (CLV)
Understanding CLV
Before we dive deep into how design thinking can enhance customer
experiences, it's crucial to understand the concept of Customer Lifetime
Value (CLV). CLV is the metric that measures the total value a customer
brings to your organization throughout their entire relationship with your
business. It goes beyond individual transactions and looks at the long-term
relationship.
Imagine a customer who purchases your products or services regularly for

years. The cumulative value they bring over time is significantly more than
a one-time buyer. By increasing CLV, you're not only increasing revenue but
also building a loyal customer base.
Importance of CLV
1. Cost-Effective: Acquiring new customers can be expensive, involving

marketing, advertising, and sales efforts. In contrast, retaining existing
customers typically costs less.
2. Predictable Revenue: Higher CLV means a more predictable revenue

stream. You can estimate future revenue more accurately when you know
how much your existing customers are worth over time.
3. Cross-Selling and Upselling: Satisfied customers are more likely to buy

additional products or services from your business. By focusing on CLV, you
can capitalize on these opportunities.
4. Word-of-Mouth Marketing: Happy customers often become brand

advocates. They refer your business to others, helping you acquire new
customers through word-of-mouth marketing.
5. Profit Margins: Repeat customers tend to spend more with your business,
increasing your profit margins. They're also less price-sensitive than new
customers.
How to Calculate CLV
Calculating CLV can be straightforward or complex, depending on your

business model. For simple scenarios, you can use this formula:
CLV = Average Purchase Value x Purchase Frequency x Customer Lifespan
Where:
- Average Purchase Value is the average amount a customer spends per
transaction.
- Purchase Frequency is how often a customer makes a purchase in a given
period.
- Customer Lifespan is the average number of years a customer continues
to buy from your business.
For example, if a customer spends $50 per purchase, buys from you four
times a year, and remains a customer for five years, their CLV would be $50
x 4 x 5 = $1,000.
However, in more complex scenarios with various customer segments, you

might need to consider customer acquisition costs, churn rates, and
discount rates.
Steps to Measure CLV
Measuring CLV involves several steps, and it's essential to have a systematic
approach to gather accurate data. Here are the key steps to measure CLV
effectively:
1. Identify Touchpoints: The first step is to identify the touchpoints where

customers create value for your business. This involves collecting data on
when and how much customers have purchased since the beginning of
their association with your organization.
2. Integrate Data: Next, integrate all relevant customer data to recreate the
entire customer journey. This step ensures that you have a holistic view of
customer interactions.
3. Measure Revenue at Each Touchpoint: At each touchpoint, measure the

revenue generated by the customer. This can include both the initial
purchase and subsequent transactions over their lifetime.
4. Add Revenues: Finally, add together the revenues generated by the

customer over their entire lifetime. This total represents the customer's CLV.
The Relationship Between Design Thinking and CLV
In a study conducted by McKinsey, it was found that design-led companies

achieved 32% more revenue and 56% more total returns to shareholders.
Before delving deeply into how design thinking can enhance Customer
Lifetime Value (CLV), let's revisit the concept of design thinking once more.
Design Thinking is a human-centered problem-solving approach that

emphasizes empathy, creativity, and innovation. In the context of the HDI
framework, it involves four essential steps:
Explore: Understand the problem deeply by empathizing with users and

stakeholders to uncover core issues and opportunities.
Ideate: Generate a wide range of ideas without judgment, fostering

creativity and brainstorming.
Create: Turn ideas into tangible solutions through prototypes and user
testing, allowing for refinement.
Evolve: Ensure the solution is both innovative and economically viable,

aligning it with business goals.
Here's how design thinking enhances CLV:
1. Understanding Customer Needs: Design thinking begins with empathy,

helping businesses gain a deeper understanding of customer needs and
pain points. This knowledge drives CLV improvements.
2. Identifying Key Touchpoints: By defining problems and using design

thinking, you can pinpoint the key touchpoints in the customer journey
where improvements will have the most significant impact.
3. User-Centered Solutions: Design thinking encourages the creation of

user-centered solutions. Prototyping and testing ensure that the solutions
are effective and meet customer needs.
4. Building Emotional Connections: Design thinking helps build strong

emotional connections between customers and brands. This trust and
loyalty lead to higher CLV.
Boost Customer Lifetime Value Through Design Thinking: 5

Proven Strategies
1. Focus on brand experience over ads

Branding is the most powerful tool to have recurring customers, because
branding is the bridge between your product and customers. The products
or services of your competitors might be better than those of yours or they
may have features that are directly or indirectly copied from yours. But your
brand will remain yours.
If you are able to create a strong emotional connection with your customers
through your branding, which is easier with design thinking, your
customers will take note of who copied your product features, and they will
have reasons to distrust the copycats.
Here are two suggestions on how you can focus more on branding.
a. Lower your marketing expenses and invest in customer problem-

solving.
Turn your organization into the resource your customers are searching
for to solve their problems. This can be easily done through storytelling,
about which we will write in an upcoming blog. So, instead of spending
lakhs on marketing ads, make direct connections with your existing
customers and become their partner in solving their problems. Your
customers will recognize you as a trustworthy source too soon.
b. Optimize your branding expenditure.

Strike a balance between larger one-time branding expenditures and
smaller recurring ones. One-time branding expenditures will include
creating a brand strategy, listing brand guidelines, designing brand
systems, and refurbishing your website and/or logo. Recurring
expenditure might include training junior and intermediate design
thinkers to follow the brand guidelines and design systems already
created.
2. Measure the impact of your design-thinking-based actions

You need to track your design performance the same way you do with your
costs and revenues. Below, let us see how we can measure the impact of
our design-thinking-based actions. To keep it simple, we are citing
examples from an online subscription-based business.
a. Track your conversion rate and online views

Check your analytics regularly to find out basic trends like whether the
views are increasing or decreasing. A conversion rate is considered lower
if it is 1% or less and higher if it is more than 10% or more.
b. Look for how many people sign up before canceling

A higher number of cancellations can indicate that customers are not
satisfied with your product or service. It can also be due to the fact that
the customers after signing up did not understand the next steps. Doing
a round of feedback or test iteration can help you solve this.
c. Mind the page load speeds on every device

If a page on your website or mobile app takes more than 3 seconds to
load, your website or mobile app will be usually considered slow. And this
might drive away a lot of potential customers and frustrate existing ones.
d. Make feedback submission easier for your customers

Redesign your website or mobile app to make it easier for customers to
submit feedback every time they use it. First-hand feedback collected at
the very moment of transactions is one of the most optimum uses of
design thinking to increase customer lifetime value. Also, read customer
comments carefully and help them solve their problems.
e. Observe the other less-prominent aspects of analytics

Check the time taken to complete certain tasks on the mobile app or
website, and use the data to redesign your processes.
3. Give autonomy to design-thinking problem-solvers

Design thinking encourages creative problem-solving for your customers to
improve CLV. In order to get the best out of design thinking, you as a
business leader must give autonomy to the designers. One of the best ways
to do this is to put designers into decision-making roles.
Designers can translate creativity and design thinking into quantitative

business results. This can improve business outcomes and deliver long-term
strategic goals.
While thinking of investing in new marketing strategies, it will be a great

idea to consult your design thinkers and ask them to revisit the already-
created customer touchpoints.
4. Prioritize your customers and their experience

The deep understanding of customers and the practice of putting the needs
of your customers first to solve their problems through empathy and
iterations help you to build not only the best products and services but also
the most engaging and delightful experiences for your end-users.
a. Synergise design-thinking strategies at each customer touchpoint

Consider your brand, your products, and services, the customer support
team, and every other touchpoint in your organization an entire
experience on its own for your customers. It makes sense to synergize
design thinking strategies at each customer touchpoint.
b. Create a mechanism to constantly learn from customer feedback

Take frequent short surveys from your customers, and set a system in
place that constantly learns from these surveys. Acting on customer
feedback is how you can create the experience your customers want and
expect from you.
c. Set a strategy to test new features

Testing new features on a smaller set of your customers can help you
launch market-ready products and services faster. However, you need to
employ a strategy to select your audience for testing. To test new
features, it is better to use a mix of those customers who know you (40%
users) and those who do not know you (60% users).
5. Lower new customer acquisition cost

While investing in existing customers is one of the best policies, new
customers are essential for growth and expansion. In order to increase CLV,
you as a corporate leader can use strategies to keep new customer
acquisition costs at the minimum. These may include embracing user
testing early, using Squarespace or Webflow for website development,
creating a strong community, and using social media to your advantage.
Customer Journey Mapping: A Vital Tool for

Delighting Customers
Customer journey mapping is a pivotal tool for understanding and

enhancing the customer experience. It involves visualizing the steps
customers take as they interact with your business, from initial awareness
to becoming a repeat customer. Let's delve deeper into the significance of
customer journey mapping and how design thinking can enhance this
process:
The Customer Journey: A Visual Storyline
The customer journey is essentially the path a customer follows through

your business, from their first encounter with your brand to becoming a
loyal customer. It serves as a visual representation of their interactions with
your company, offering insights into their expectations at each stage.
Different Stages of the Customer Journey
The customer journey can be broken down into several stages, including:
1. Awareness: The customer becomes aware of your brand through various

channels such as advertising, referrals, or online research.
2. Consideration: At this stage, the customer evaluates your product or

service, comparing it to alternatives and seeking reviews.
3. Purchase: The customer decides to buy your product or service.
4. Post-Purchase: After purchasing, the customer engages with your

product or service and provides feedback.
Understanding Customer Needs at Each Stage
Each stage of the customer journey presents unique needs and

expectations. For example, during the awareness stage, customers want to
learn more about your brand, while at the purchase stage, they seek a
smooth and efficient buying process.
Creating a Customer Journey Map
To improve the customer experience, you must first create a customer

journey map. Here are the key steps involved:
1. Define Customer Personas: Understand your ideal customers, their needs,

pain points, and motivations.
2. Identify Key Touchpoints: Determine the various interactions customers

have with your business, such as visiting your website or contacting
customer support.
3. Gather Data: Collect data on the customer journey through surveys,

interviews, and observations.
4. Map the Customer Journey: Create a visual representation of the

customer journey, highlighting touchpoints and emotional experiences.
5. Identify Friction and Delight: Recognize moments of difficulty (friction)

and positivity (delight) in the customer journey.
6. Prioritize Improvements: Focus on addressing the most impactful points

of friction to enhance the overall experience.
7. Implement Improvements: Make necessary changes to your product,

service, or marketing based on your findings.
Using Customer Journey Maps to Improve the Customer

Experience
Once you've created a customer journey map, you can leverage it to

enhance the customer experience in several ways:
1. Customer Touchpoint Analysis: Identify key interactions between

customers and your business to optimize those touchpoints.
2. Tracking Effectiveness: Monitor the impact of changes you've

implemented through customer surveys, interviews, and A/B testing.
3. Sharing Insights: Share the customer journey map with your team to
ensure everyone understands and contributes to improving the customer
experience.
Before delving deeply into how design thinking can enhance Customer
Journey Mapping, let's revisit the concept of design thinking once more.
Design Thinking is a human-centered problem-solving approach that

emphasizes empathy, creativity, and innovation. In the context of the HDI
framework, it involves four essential steps:
Explore: Understand the problem deeply by empathizing with users and

stakeholders to uncover core issues and opportunities.
Ideate: Generate a wide range of ideas without judgment, fostering

creativity and brainstorming.
Create: Turn ideas into tangible solutions through prototypes and user
testing, allowing for refinement.
Evolve: Ensure the solution is both innovative and economically viable,

aligning it with business goals.
Enhancing Customer Journey Mapping with Design Thinking
Design thinking can elevate your customer journey mapping efforts in

several ways:
1. Understanding Customer Needs: By empathizing with customers, you

gain a deeper understanding of their needs and wants, which informs your
customer journey map.
2. Identifying Key Touchpoints: The design thinking process helps define the
problem and identify critical touchpoints in the customer journey that need
improvement.
3. User-Centered Solutions: Prototyping and testing solutions with

customers ensure that your improvements align with their needs and
deliver a positive customer experience.
Conclusion
In conclusion, customer journey mapping is a powerful tool for improving

the customer experience by visualizing their interactions with your
business. When combined with design thinking, this process becomes even
more effective, as it helps you better understand customer needs, identify
critical touchpoints, and create user-centered solutions. Utilize these tools
to build stronger customer relationships, enhance brand reputation, and
drive business growth.
Customer Service Improvement Strategies
In today's competitive business landscape, customers have more choices

than ever before. To thrive, businesses must prioritize customer satisfaction
and continuously improve their services. One powerful approach to achieve
this is by integrating design thinking principles into customer service
improvement strategies. Design thinking focuses on empathy, creativity,
and user-centered problem-solving.
5 Strategies To Improve Customer Service
Here are 5 game-changing strategies that leverage design thinking to

enhance the customer service experience:
1. Find the “right” problem
Our default setting makes us race towards finding answers to problems in

life and business. Here’s where we may go wrong sometimes. Design
Thinking practitioners have discovered many a times that the problem was
never really as what one initially understood. It was, in fact, very different.
Hence, the first major tip for customer improvement strategies is to re-look
at the way you have understood and defined the problem.
The Design Thinking approach first helps you find the right problem to
solve. Only then does it recommend moving on to solve it. In fact, Design
Thinking helps you to live in the problem space for some time so that you
understand the problem from an outside-in perspective and then move it

to solutions space.
Take, for example, a situation wherein a fashion brand which began facing
a reduction in their customer satisfaction ratings. The brand’s managers,
using their default setting, assumed that the problem was reduced product
quality and began looking for better fabric. Whereas, when advised to do a
little research and “live with the problem”, it was unearthed that the real
reason was customers didn’t find enough variety in the products as they did
before!
In layman’s language, what this simply means is that businesses need to

better understand the needs of the customer. Knowing what is right and
understanding what is right are two different things. Let go of outdated and
obsolete ways of doing business. Effective customer service improvement
strategies begin with understanding the customers’ needs. This may not
necessarily match with what you think the customer needs.
Design thinking targets the real-needs of the customer and accordingly

creates solutions. And accordingly, modify your business strategies to align
with the needs of your customer. Focus on what works – not just for you, but
also for your customer. If it is time to let go of age-old ideologies, just let it
go. Keep up with the changing demands of the customers. Keep creating
solutions. Even, and especially, in areas you think you don’t need one. Sell
what the customer needs, not what you want the customer to need.
Customer service improvement strategies begin with finding the right

problem
2. Be customer centric
Customer is King. He/she is also always dissatisfied and looking for a better
way. Keeping this mantra in mind helps. In a customer service industry,
where customer satisfaction is of utmost importance, treating the customer
like a King is indeed the logical way to go. Higher the customer satisfaction,
greater your profitability. Customers like coming back to businesses where
they feel valued. A returning customer is indeed the sign of a flourishing and
profitable business. Hence, strategies that are customer centric aim at
building customer relationship whilst achieving the goal of the business.
Designing a great customer experience involves dealing with uncertainty

and ambiguity. The team working on the design needs to experiment with
nimble solutions for every problem they encounter. Embrace customer
feedback, whether positive or critical. Build on the positive feedback and
learn from the criticism. Do not retaliate or dismiss a customer’s feedback,
even if it doesn’t make sense to you. Use the data from customer feedback
to improve and improvise. Design thinking induces businesses to become

customer centric and thus add more value to the customer experience. And
if the King is happy, the kingdom will flourish. Keep improving, keep
improvising. In an ever-changing and dynamic business environment,
improvement and improvising never ends. Customer comes first, if you
want your customer to last.
3. Embrace innovation – one of the most creative customer service

improvement strategies
The more creative you get with your customer service improvement
strategies, the more efficiently you can run your business. Invest in
Innovation. Keep up with the changing times and let go of outdated
strategies that no longer work. Embrace change with open arms. Change is
the only constant that will keep you going. If you don’t adapt your business
to the changing needs of the customer, you will lose out your customers to
your competition. Customers are drawn towards brands that provide them
value for money. Innovation based customer service improvement
strategies will help you achieve that goal.
A classic design thinking approach would include, for example, replacing a

generic customer service contact with a personalised one for your
customers. Make the customer feel special. It is not only your product or
service that matters, but how efficiently you can provide after sales services
is what counts too. Do not end your customer satisfaction journey once the
sale is made, come up with personalised techniques to provide the much
required after sales service. It is only when you stand out in terms of what
you have to offer, will the customer be drawn to you. An endless line of
happy customers means more business for you.
4. Continuously reimagining the customer value proposition – one of the

most practical customer service improvement strategies
Customers always welcome additions to the value proposition of a brand.

Design Thinking practitioners encourage teams to be continually
dissatisfied with the status quo, even if the customers are happy. Keep
imagining the next delightful experience for the customer is the mantra to
be followed.
For example, cost effectiveness goes a long way. Not only in helping your
business, but also in passing on the benefit of it to your customers.
Something of good value and quality at a reasonable price will always make
the customer happy. A happy customer means more business, higher
profitability, and better reputation. Design thinking helps businesses to
think out of the box. While a strategy like cost effectiveness may not be new
to the business per se, applying it from a customer service perspective is
what makes it stand out. Think about how you can pass on the benefits of
your cost effectiveness to the customers. Simply keep one goal in mind –
How do I make the customer happy? This simple strategy itself will prove to
be more beneficial than any other customer service improvement
strategies out there. It is easy to meet the customers demand. To exceed
expectations, is a whole new ballgame.
5. Fail more to succeed faster
Be ready to fail multiple times while designing new customer experiences.

Put yourself in the customer’s shoes. Think, feel and relate to how a
customer would feel about your business. Whether you have a product to
offer or a service to provide, how happy would ‘You’ as a customer feel. The
experience design team can use a Design Thinking strategy of rapid
prototyping – prototyping and testing in real time to fail more and often
with nimble experiments so that the team can ultimately succeed in
designing the new delightful experience
Design thinking basically allows you to think like a customer towards your
own business. And make changes, that are not working out for you – as a
customer. Don’t just focus on making money, focus on making the
customer happy. Once you turn yourself into a customer, you will be able to
see what is and what is not working out for your customer and thus your
business. Don’t be afraid of failed customer service improvement
experiments, and profits will follow soon enough as you find new winning
formulas. Remember, your competition is watching you. The moment you
lose sight, you lose your customer to your competition.
Case Study: Apple's Genius Bar
Apple's Genius Bar is a prime example of design thinking in customer

service. Apple reimagined the traditional tech support experience by
creating a physical space (the Genius Bar) where customers could interact
with knowledgeable staff in a relaxed, no-pressure environment.
The Genius Bar embodies design thinking principles:
1. Empathy: Apple recognized that tech support could be intimidating for

customers. The Genius Bar provides a welcoming, user-friendly space where
customers feel comfortable asking questions.
2. Human-Centered Design: The physical layout of the Genius Bar, with its
communal tables and friendly staff, puts customers' needs at the forefront.
3. Iterative Problem-Solving: Apple continuously refines its support

processes based on customer feedback and changing technology.
4. Personalization: Apple staff takes the time to understand each customer's

unique issue and provides tailored solutions.
The Genius Bar isn't just a support center; it's a place where customers form
positive associations with the brand. It's a testament to how design thinking
can elevate customer service into a memorable experience.
Conclusion
Incorporating design thinking into customer service improvement

strategies offers a comprehensive approach to enhancing the customer
experience. By focusing on employee empowerment, co-creation with
customers, agile feedback loops, user-friendly digital interfaces,
personalization, issue resolution, a customer-centric culture, emotional
intelligence, and data-driven measurement, businesses can create a
competitive edge and build lasting customer relationships. In today's
customer-centric world, design thinking is a powerful tool for achieving
service excellence.
Real Case Study - Improving Customer Service and

Experience in the Indian Hotel Industry
In this chapter, we'll delve into a real-world case study focused on using
design thinking (DT) to enhance customer service and experience in the
hotel industry in India. We'll explore the current challenges faced by hotels
in India and how they can employ design thinking principles to address
these issues and elevate their guests' overall experience.
Current Challenges Faced by Hotels in India
The Indian hotel industry encounters several significant challenges that

affect its ability to provide exceptional customer service and elevate the
guest experience. Understanding these challenges is the first step towards
implementing effective solutions. Here are the key challenges:
1. Rising Labor Costs: The hospitality industry is highly labor-intensive, and

hotels in India grapple with escalating labor costs. Factors contributing to
this challenge include an increasing minimum wage, a shortage of skilled
workers, and competition for talent from other industries.
2. Increasing Competition: The Indian hotel industry is witnessing a surge in

competition, with new hotels continually entering the market. This
intensifies the need for hotels to differentiate themselves from rivals and
offer unique value propositions to their guests.
3. Changing Guest Expectations: The expectations of hotel guests are

evolving rapidly. Guests now demand a higher level of service and
amenities. They are also inclined to use technology for booking and
enhancing their stay's convenience.
4. Technology Disruption: Technology is disrupting the hotel industry on

multiple fronts. Online travel agents make it easier for guests to book their
travels, and mobile apps empower guests to control their in-room
experience. Hotels must embrace technology to stay competitive.
5. Sustainability Concerns: Guests are increasingly concerned about

sustainability, prompting hotels to adopt eco-friendly practices such as
energy and water conservation.
These challenges collectively create hurdles for hotels in India to improve

their customer service and enhance guest experiences.
How Design Thinking Can Transform Customer Service and

Experience
Design thinking offers a structured approach to resolving complex

challenges. In the context of the hotel industry, it can be a powerful tool for
improving customer service and experience. Here's how design thinking
can be applied:
1. Understanding Guest Needs: Design thinking starts with empathizing

with guests. Hotels can use this approach to gain a deep understanding of
their guests' needs, enabling them to identify areas for service
improvement.
2. Creative Problem Solving: Design thinking encourages creative solutions

to guest problems. By fostering innovation, hotels can provide a superior
experience for their guests.
3. Testing New Ideas: Before implementing changes, hotels can use design
thinking to prototype and test new ideas. This minimizes the risk of costly
mistakes and ensures that any modifications align with guest preferences.
4. Enhanced Communication: Design thinking can improve

communication with guests, helping build stronger relationships and faster
problem resolution.
Ways to Improve Hotel Customer Service and Experience

Using Design Thinking
Now, let's delve into specific strategies for using design thinking to enhance
customer service and experience in the hotel industry.
1. Empathize with Your Guests
Empathy is the cornerstone of exceptional customer service. It involves

understanding and sharing the feelings of guests. In the hotel industry,
empathy means putting yourself in the guest's shoes, comprehending their
needs, wants, and concerns, and acknowledging their emotions. Here's how
to employ empathy effectively:
- Active Listening: When a guest communicates, listen attentively and

without judgment.
- Open-Ended Questions: Ask open-ended questions to gain deeper
insights into the guest's experience.
- Body Language: Pay attention to the guest's body language to understand
their emotions.
- Use Active Listening: Repeating back what the guest has said
demonstrates your attentiveness.
Empathizing with guests enables you to provide anticipatory service,

address their concerns, and make them feel valued. It fosters a positive
relationship and encourages repeat visits.
2. Generate Innovative Ideas
Once you comprehend your guests and empathize with their needs, you
can begin generating innovative ideas for enhancing customer service.
Consider these approaches:
- Brainstorming: Collaborate with your team to brainstorm fresh ideas.

- Guest Surveys: Solicit guest feedback to uncover opportunities for
improvement.
- Competitor Analysis: Study your competitors to identify best practices.
- Industry Research: Stay informed about the latest customer service trends.
When generating ideas, embrace creativity and think beyond traditional

solutions. Differentiate your offerings from competitors to stand out in the
market.
3. Prototype and Test Improvements
After generating ideas, the next step is to prototype and test them. This
involves creating a physical or digital representation of your idea and
gathering guest feedback. Follow these guidelines for effective prototyping
and testing:
- Simplicity: Keep prototypes simple for easy guest understanding and

feedback.
- Goal Alignment: Ensure that your prototype aligns with your goals for
improvement.
- Diverse Feedback: Collect input from various guests, representing different
demographics.
- Adaptability: Be prepared to make adjustments based on guest feedback.
Testing with actual guests allows you to refine your ideas, maximize their
effectiveness, and minimize the risk of implementing changes that don't
resonate with your audience.
Case Study: Taj Hotels
To illustrate the application of design thinking, let's explore how Taj Hotels,
a prominent Indian hospitality brand, improved its customer experience. Taj
Hotels achieved this by prioritizing values in recruitment, extensive
employee training, and effective recognition strategies. The company
sourced its frontline employees from small Indian towns, valuing traditional
Indian values such as respect, humility, discipline, and honesty. The STARS
(Special Thanks and Recognition System) program was introduced to link
customer delight to employee rewards, motivating employees to deliver
exceptional service.
Through these measures, Taj Hotels successfully improved customer

experience by aligning employee values with guest expectations.
By prototyping and testing innovative ideas, hotels can significantly

enhance their customer service and experience.
Navigating Challenges and Taking the Next Steps

with Design Thinking
Challenges Faced
In this chapter, we will delve into the challenges that organizations

commonly face when implementing Design Thinking methodologies.
These challenges can range from resistance to change to difficulties in
aligning teams and resources effectively. However, we believe that
overcoming these challenges is essential to unlocking the full potential of
Design Thinking for your organization.
To address these challenges and empower your team to embrace Design
Thinking, consider our comprehensive 2 Hour masterclass led by the author
Mr. Ajay Aggarwal. This virtual course is designed to equip your team with
the skills and knowledge needed to navigate these hurdles successfully.
Ajay Aggarwal’s Design Thinking Masterclass
- Duration: 2 hours
- Facilitator: Ajay Aggarwal

- Medium: Virtual Interactive Course
Masterclass Agenda
During the masterclass, participants will have the opportunity to:

1. Explore the Significance of Design and Design Thinking: We will illustrate
this with compelling case studies.
2. Deepen Empathy for Users and Solve Real Problems: Learn how to
understand users' needs on a profound level and apply this insight to real-
world problem-solving.
3. Master the Art of Ideation: Cultivate innovative thinking to generate
creative solutions.
4. Prototype and Validate Ideas: Gain hands-on experience in creating
prototypes and validating their effectiveness.
5. Craft Compelling, Business-Viable Solutions: Develop the ability to create
practical and persuasive solutions and effectively communicate them.
6. Embrace the Design Thinker's Mindset: Explore the distinction between a
fixed mindset and a designer's mindset.
7. Test your knowledge and get Certificate Of Completion
Unlocking Your Team's Potential
By participating in this masterclass, your team will not only gain invaluable
knowledge but also receive a range of valuable resources to support their
Design Thinking journey, including:
- Personalised Mindset Gauge Report
- HDI's Exclusive FACE Template
- HDI's Proprietary DT Template
- OEI Template
- 'What If' Tool
- Prototyping Approaches
- Storytelling Framework
Join us on this transformative journey towards embracing Design Thinking

and overcoming the challenges that stand in the way of achieving
innovation and customer-centric excellence.
Learn more about the masterclass at: https://bit.ly/dtonlinecourse
ABOUT
AJAY AGGARWAL
Ajay is the Founding Partner at Humane

Design and Innovation Consulting,
boasting over 19 years of professional
experience across diverse domains. His
expertise encompasses roles in Advisory,
Product & Service Design, Process
Automation, Sales & Business
Development, and Training.
As a pioneer, he established and steered

the Design Thinking and Innovation
practice at KPMG, elevating it to a highly
prominent and profitable venture. Ajay
is a prolific writer, contributing thought
leadership pieces and articles on the
subject. Additionally, he is a sought-
after speaker at conferences, focusing
on Design Thinking and customer
experience. Ajay's impact extends to
coaching over 4000 individuals in
Design Thinking and mentoring more
than 100 innovation projects.
www.humaned.in

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DESIGN THINKING FOR

Welcome to "Design Thinking for Customer Excellence" In this eBook, we

About Humane Design & Innovation

Humane Design is a design and innovation consulting firm specializing in

Humane Design is a dream seen by a diverse group of business and design

Before delving into the application of Design Thinking for achieving

Understanding Design Thinking

Design Thinking is not just a methodology; it's a mindset, a way of

What is Design Thinking?

Design Thinking is a human-centered approach to problem-solving, a

Explore: Unveiling The Invisible

In the Explore phase, you:

By gaining a comprehensive understanding of the problem through

Ideate: Collaborative Creativity

Ideation is where creativity takes the spotlight. It's about brainstorming,

In the Ideate phase, you:

Create: Bringing Ideas to Life

In the Create phase, you:

Evolve: Ensuring Viability

In the Evolve phase, you:

Unique Aspect of HDI's Design Thinking Approach

Use this framework when you aim to:

The Explore-Ideate-Create-Evolve framework is your compass through the

Improving Customer Lifetime Value (CLV)

Imagine a customer who purchases your products or services regularly for

1. Cost-Effective: Acquiring new customers can be expensive, involving

2. Predictable Revenue: Higher CLV means a more predictable revenue

3. Cross-Selling and Upselling: Satisfied customers are more likely to buy

4. Word-of-Mouth Marketing: Happy customers often become brand

How to Calculate CLV

Calculating CLV can be straightforward or complex, depending on your

CLV = Average Purchase Value x Purchase Frequency x Customer Lifespan

However, in more complex scenarios with various customer segments, you

Steps to Measure CLV

1. Identify Touchpoints: The first step is to identify the touchpoints where

3. Measure Revenue at Each Touchpoint: At each touchpoint, measure the

4. Add Revenues: Finally, add together the revenues generated by the

The Relationship Between Design Thinking and CLV

In a study conducted by McKinsey, it was found that design-led companies

Design Thinking is a human-centered problem-solving approach that

Explore: Understand the problem deeply by empathizing with users and

Ideate: Generate a wide range of ideas without judgment, fostering

Evolve: Ensure the solution is both innovative and economically viable,

Here's how design thinking enhances CLV:

1. Understanding Customer Needs: Design thinking begins with empathy,

2. Identifying Key Touchpoints: By defining problems and using design

3. User-Centered Solutions: Design thinking encourages the creation of

4. Building Emotional Connections: Design thinking helps build strong

Boost Customer Lifetime Value Through Design Thinking: 5

1. Focus on brand experience over ads

a. Lower your marketing expenses and invest in customer problem-

b. Optimize your branding expenditure.

2. Measure the impact of your design-thinking-based actions

a. Track your conversion rate and online views

b. Look for how many people sign up before canceling

c. Mind the page load speeds on every device

d. Make feedback submission easier for your customers

e. Observe the other less-prominent aspects of analytics

3. Give autonomy to design-thinking problem-solvers