The Demand for Service Innovation & Service Design

I sourced this from the University of Cambridge paper titled Succeeding through service innovation published in April 2008. It is just a section from the beginning but i thought it was compelling. More so because it explains that although Services are not new in any way, the level of complexity attached to them has risen significantly, it is is this which is now challenging many organisations as they seek to compete with their competitors that have not only embraced the complexity, but also delivered it in a consistent  manner.
Growth in service

The growth of service activity across industries is now widely recognised. However, is it really anything new? Service is as old as the division of labour and has been provided in various forms since record keeping began. Indeed writing records was a form of service! What has changed, however, is the scale and complexity of service systems –configurations of resources that create and deliver value to stakeholders through service activities.
Service systems are growing rapidly and have become an ever greater part of value creation in modern economies. We are paying proportionally more for services in the form of experience, advice, information, assurance, infrastructure and leasing, and proportionally less on growing, building and owning physical goods. And more than ever before, we are constrained by natural resources and have to achieve the triple targets of effectiveness, efficiency and sustainability. The rise in complexity is partly due to the expansion of our values in social, ecological and political dimensions.

The full report can be accessed.here

or visit Proto Partners here

My Service Design dominated Wordle map

I have resisted the urge up to now, but at the end of long day visually mapping the methodology that we use at Proto Partners, I needed some slight escape. Here is my wordle map which does a good job of demonstrating our focus here at Proto Partners –  using  Service Design to help companies create services that deliver great experiences that improve company profitability.

ppwordle

The original in case someone would like it, is available here

or visit Proto Partners here

Service Design customers are delighted by

I know Obama fever has settled down somewhat, however standing for a positive change for not only America and the way it engaged with the rest of the world was long overdue and very welcome.

Even here in in Australia, there are millions of fans of Obama and his administration. As a business pioneering Service Design in Australia, I draw encouragement from his “YES WE CAN” cry, in fact, I have recreated it on my homepage of my Mac.

I was looking at the “CHANGE WE CAN BELIEVE IN” poster the other day and decided to reformulate it for Service Design,  creating a “SERVICE CUSTOMERS ARE DELIGHTED BY” poster. I am not sure where I will use it and I don’t have any Service Design rallies that I am attending in the near future, but what the hell. The sentiment is right, we are all trying to delight our customers by providing world class and flawless service at every customer touchpoint. We are trying to delight them, thereby increasing their loyalty and their individual and collective profitability.

SERVICE WE ARE DELIGHTED BY

And the Original

the Pres

Let me know what you think?

or visit Proto Partners here

Use the ‘Customer Loyalty Formula’ to keep customers coming back

I found this article by Kevin Stirtz which I thought was a pretty good insight into the increasing demands of customers in a tighter economic environment. It is a reminder that although we may have a set of loyal customers, keeping them is not a static equation, it is constantly evolving  and challenging process that requires a new toolset and skillset to solve these service challenges. It is not by using old creativity tools developed for and used by manufacturing organisations.

That’s why using Service Design is so important  in helping Service based organisations that represent 70%+  of First World economies GDP. Over to Kevin…

According to a recent study, many big consumer brands are losing their loyal customers. It revealed that 52% of highly loyal consumers either reduced their loyalty or defected completely from the brands in the study. Further, only 4 out 10 brands in the study retained 50% or more of their highly loyal customers from year to year.

A big reason for this, according to the study is the recession. The economic downturn has caused customers to re-evaluate what they’re getting for their money. Our priorities have changed so what we look for in products has changed too. Many customers are looking for more value in the products they buy. And if the big brands have not changed, at least in the eyes of their customers, then customers will defect. They’ll try other brands that appear offer more value.

A way to look at this is by using what I call the Customer Loyalty Formula. Here’s how it works:

Customer Loyalty = Connection * Value  * Experience

(Or CL=C*V*E for short.)

In this formula, Connection means, as a customer, how connected you are with the brand? Can you easily and conveniently communicate with people who represent the brand?  Value means your perception of what the brand offers you in the context of what you want and expect. Are you getting what you want or more? Do you feel the brand offers you the best combination of features and benefits for the price?

Finally, Experience here means how have you experienced this brand? Have you been treated well by the people involved? Do you have a positive emotional feeling associated with the brand?

This formula tells us where many big brands have failed in this recession.  They have failed to redefine their value. For a brand to keep our loyalty it has to change with us. It needs to show us it offers more value than before.

If you would like to see the whole article, please click here