Services mktg Chap 4

service design and development process

encompass the strategic and systematic approach to creating, refining, and implementing services to meet the needs and expectations of customers

service design and development process

This multifaceted process involves various stages from ideation to delivery, ensuring that services are not only effective and efficient but also aligned with customer preferences and organizational goals.

Service blueprinting and prototyping

play a crucial role in visualizing and refining the service.

Service blueprinting

maps the entire service process, detailing customer interactions, employee activities, and support systems.

Prototyping

allows organizations to test and refine service design concepts before full-scale implementation, identifying potential challenges and improvements.

Process design

is a pivotal stage where operational workflows and resource requirements are established.

Process design

This includes defining the technological infrastructure needed to support the service and integrating digital platforms for customer interactions.

Employee training and development

ensure that staff members are equipped with the necessary skills and a customer-centric mindset to deliver the service effectively.

Identify Customer Needs

Idea Generation

Concept Development

Service Blueprinting

Service Design

Service Development

Testing and Prototyping

Implementation

Monitoring and Evaluation

Service Launch and Promotion

10 Key steps involved in the service design and development process:

Identify Customer Needs:

The process begins by understanding the needs, preferences, and pain points of the target customers.

Idea Generation

Generate ideas for new services or improvements based on the identified customer needs. Encourage creativity. brainstorm with cross-functional teams, and explore different possibilities to address customer pain points or create innovative solutions

Concept Development

Develop and refine service concepts based on the generated ideas. Define the value proposition, target customer segments, and key features of the service. Create service prototypes or mock-ups to visualize and communicate the concept.

Service Blueprinting

Create a service blueprint that outlines the end- to-end customer journey and the various touchpoints, interactions, and processes involved in delivering the service. Identify potential bottlenecks, pain points, and opportunities for improvement in the service delivery process.

Service Design

Design the service elements, including the physical and digital components, customer interfaces, service processes, and service delivery systems. Pay attention to factors such as service quality, reliability, responsiveness, and personalization to create a seamless and satisfying customer experience.

Service Development

Develop the service infrastructure, including the necessary technology, resources, and capabilities to deliver the service. This may involve developing or acquiring the required technology platforms, training employees, and establishing service delivery processes.

Testing and Prototyping:

Test the service concept and prototype with a small group of customers or in a controlled environment. Gather feedback, evaluate the feasibility, and make necessary adjustments to refine the service design and ensure its effectiveness.

Implementation

Roll out the service in the market or within the organization. Implement the necessary operational processes, train employees, and establish the required support systems to deliver the service to customers.

Monitoring and Evaluation:

Continuously monitor and evaluate the performance of the service. Collect customer feedback, measure key performance indicators, and assess customer satisfaction to identify areas for improvement and make necessary adjustments to enhance the service.

Service Launch and Promotion

Launch the service in the market and promote it to the target customers. Develop marketing and communication strategies to create awareness, generate interest, and drive customer adoption of the service.

iterative and customer-centric

this approach helps ensure that the final service meets customer needs, delivers value, and creates a positive and differentiated customer experience.

service blueprinting and service mapping

These methodologies provide a comprehensive overview of how a service is delivered, encompassing customer interactions, employee activities, and support systems.

service blueprinting and service mapping

are strategic tools used in service design and development to visualize and understand the end-to-end service delivery process.

service blueprinting

is a systematic and visual technique that allows organizations to map and analyze the entire service delivery process.

service blueprinting

It provides a detailed representation of the various components involved, including customer touchpoints, employee actions, physical evidence, and support processes.

service blueprinting

typically involves horizontal and vertical lines that distinguish between customer actions, frontstage employee actions, backstage support processes, and physical evidence.

service mapping

is a broader term that encompasses various visualization techniques used to depict the elements and interactions within a service ecosystem.

service blueprinting

is a specific type of service mapping, service mapping, in a general sense, may also include other visual representations like customer journey maps, experience maps, and process maps.

customer journey maps, experience maps, and process maps

These maps aim to capture the customer's perspective and the sequence of touchpoints they encounter throughout their service journey.

Service mapping

is a valuable tool for aligning internal processes with customer expectations, fostering a customer-centric approach, and identifying opportunities for innovation and enhancement.

Customer Journey

Customer Touch points

Channels and Interactions

3 Service Mapping Key Components

Customer Journey

This component represents the step-by-step journey of the customer as they interact with the service. It includes the different stages, touchpoints, and channels the customer engages with, from initial contact to post-service follow-up.

Customer Touch Points

are the specific points of interaction between the customer and the service provider. These can include physical locations, websites, call centers, mobile apps, or any other channels through which customers engage with the service. 

Channels and Interactions

represent the different communication channels and modes of interaction available to customers. This can include face-to-face interactions, phone calls, emails, chatbots, social media, or any other means of communication.

service mapping

helps visualize the customer journey and identify the key touchpoints where organizations can deliver value and enhance the customer experience. It provides insights into the customer's perspective and helps align service delivery to meet customer needs and expectations.

Customer Actions

Frontstage

Backstage

Support Processes

Physical Evidence

5 Service Blueprinting Key Components

customer actions

This component represents the actions and steps taken by the customer as they engage with the service. It includes activities such as making inquiries, placing orders, or seeking assistance.

Frontstage

it represents the visible and interactive elements of the service that the customer directly experiences. It includes customer touchpoints, such as physical or digital interfaces. customer interactions with employees, and self-service options.

Backstage

component represents the behind-the- scenes processes, systems, and activities that support the delivery of the service. It includes employee actions, service processes, technology infrastructure, and other operational elements.

Support Processes

include the activities and systems that enable the frontline employees to deliver the service effectively. This can include training, information systems, quality control, and other support functions.

Physical Evidence

refers to the tangible elements that customers encounter during the service experience. It includes the physical environment, facilities, equipment, signage, and other visual cues.

Service blueprinting

helps identify potential pain points, areas for improvement, and opportunities to enhance the customer experience. It enables organizations to understand the end-to-end service delivery process and make informed decisions to optimize service quality and efficiency.

Service Innovation

refers to the introduction of new or significantly improved services that offer unique value propositions, differentiate the organization from competitors, and address emerging customer demands.

Identifying Opportunities

Generating Ideas

Evaluating and Selecting Ideas

Designing Customer-Centric Solutions

Testing and Refinement

Implementation and Launch

6 Aspects of service innovation include:

Identifying Opportunities

Identify market trends, customer insights, and emerging needs to uncover opportunities for new service offerings. This can involve market research, customer feedback, competitive analysis, and staying updated on industry developments. 

Generating Ideas

Foster a culture of creativity and innovation within the organization to generate ideas for new services. Encourage brainstorming sessions, cross-functional collaboration, and engagement with customers to generate a diverse range of innovative concepts.

Evaluating and Selecting Ideas

Evaluate and prioritize the generated ideas based on their feasibility, market potential, alignment with organizational goals, and customer value. Conduct feasibility studies, market analysis, and concept testing to select the most promising ideas.

Designing Customer-Centric Solutions

Develop customer-centric service concepts by understanding customer needs, pain points, and preferences. Utilize techniques such as design thinking, customer. journey mapping, and prototyping to create innovative and user- friendly service solutions.

Testing and Refinement

Test the new service concept with a small group of customers or in a controlled environment to gather feedback, identify areas for improvement, and refine the service offering. Iterate and make necessary adjustments based on customer insights and market feedback resource.

Implementation and Launch

Develop a detailed implementation allocation, training, technology plan, including requirements, and operational processes. Execute the plan and launch the new service, ensuring a smooth transition and effective communication to customers and stakeholders.

New service development

 is the strategic and systematic process by which organizations conceive, design, and introduce innovative services to meet emerging market needs, stay competitive, and drive business growth.

Idea Generation

Concept Development

Feasibility Analysis

Business Planning

Service Design and Development

Testing and Launch

Monitoring and Evaluation

7 Steps involved in new service development include:

Idea Generation

Generate ideas for new services through various methods such as market research, customer feedback, competitive analysis, and internal brainstorming sessions. Encourage input from employees, customers, and other stakeholders. 

Concept Development

Develop and refine service concepts based on the generated ideas. Define the value proposition, target customer segments, and key features of the new service. Consider factors such as market potential, profitability, and organizational capabilities

Feasibility Analysis

Conduct a _________ to assess the technical, financial, and operational viability of the new service. Evaluate factors such as resource requirements, market demand, regulatory compliance, and potential risks.

Business Planning

Develop a comprehensive business plan for the new service, including market analysis, competitive positioning. pricing strategy, marketing and sales plans, and financial projections. Align the business plan with the overall organizational strategy.

Service Design and Development

Design the service elements. including customer interfaces, service processes, technology infrastructure, and operational systems. Develop prototypes or minimum viable products (MVPs) to test and validate the service concept.

Testing and Launch

Test the new service in a controlled environment or with a select group of customers to gather feedback and maké necessary refinements. Develop a marketing and launch plan to create awareness, generate interest, and drive customer adoption.

Monitoring and Evaluation

Continuously monitor the performance of the new service by tracking key performance indicators (KPIs), customer feedback, and market response. Evaluate the success of the new service against predefined goals and make adjustments as needed.