Service Development and Design

Chapter 9

CUSTOMER

COMPANY

Service Design and Standards Gap

Customer-Driven Service Designs and

Standards

Company Perceptions of Consumer Expectations

Provider Gap 2

Provider Gap 2

Not selecting the right service designs and standards.

Poor service design Absence of customer-driven standards

Discussion Question – page 243, Question 1

New Service Development Process

Sources: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.

Business strategy development or review

New service strategy development

Idea generation

Concept development and evaluation

Business analysis

Service development and testing

Postintroduction evaluation

Commercialization

Market testing

Screen ideas against new service strategy

Test concept with customers and employees

Test for profitability and feasibility

Conduct service prototype test

Test service and other marketing-mix elements

Front-end Planning

Implementation

Figure 9.2

Types of New Services

Major or radical innovations New services for markets not yet defined

Start-up businesses (for existing markets) e.g., door to door airport shuttle

New services for the currently served market Service line extensions

e.g., a new university course, mobile on-line banking

Service improvements Enhanced hours of operation

Style changes Improved or new logos to enhance a brand

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.

ServiceBlueprint

Process

Points of contact

Evidence

Figure 9.3

Exercise 1 – Page 519-520

Service Blueprint

What is it? A picture, guide or map that accurately

portrays the service system. A service blueprint allows all parties in the

service experience to accurately understand and deal with service situations

Step 1

Identify the process to be blue-printed

Step 1

Identify the process to be blue-printed

Step 2

Identify the customer or customer segment

Step 2

Identify the customer or customer segment

Step 3

Map the process from the customer’s point of view

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 4

Map contact employee actions, onstage and back-stage, and/or technology actions

Step 5

Link contact activities to needed support functions

Step 5

Link contact activities to needed support functions

Step 6

Add evidence of service at each customer action step

Step 6

Add evidence of service at each customer action step

Building a Service BlueprintFigure 9.9

Benefits of Service Blueprinting Identifies fail points in the delivery of a

service Facilitates a top down, bottom up approach Facilitates internal communication between

departments and SBUs Helps to define customer and employee roles

Service Blueprint ComponentsFigure 9.4

Service Blueprints Components1. Customer Actions

Steps, choices, activities, or interactions in consuming and evaluation the service.

2. On-stage Contact Employee actions that are visible to the customer.

3. Backstage Contact Actions not visible to the customer. Actions and interactions

that support on-stage activities that customers see.

4. Support Processes Steps and activities that support the contact employee.

5. Physical evidence

Points of Interaction

Line of interaction – direct interaction between the customer and the organization. Crossing of horizontal and vertical lines indicated and interaction.

Line of visibility – separates what is visible to the customer from what is not.

Line of internal interaction – separates contact employee activities from those of other service support activities and people.

Blueprint for Express Mail Delivery Service

DriverPicks Up Package

DispatchDriver

AirportReceives& Loads

SortPackages

Load onAirplane

Fly toDestination

Unload&

Sort

LoadOn

Truck

SU

PP

OR

T P

RO

CE

SS

CO

NT

AC

T P

ER

SO

N(B

ack

Sta

ge)

(On

Sta

ge)

CU

ST

OM

ER

PH

YS

ICA

LE

VID

EN

CE

CustomerCalls

CustomerGives

Package

TruckPackagingFormsHand-held ComputerUniform

ReceivePackage

TruckPackagingFormsHand-held ComputerUniform

DeliverPackage

CustomerServiceOrder

Fly toSort

Center

Line of interaction

Line of visibility

Line of internal interaction

Figure 9.5

Discussion Question 4 – page 243