Download - SM-Session 7-8
SM
Services MarketingServices Marketing2015 - 162015 - 16
SM
• Describe the challenges inherent in service innovation and design.
• Present the stages and unique elements of the service innovation and development process.
• Demonstrate the value of service blueprinting and how to develop and read service blueprints.
• Present lessons learned in choosing and implementing high-performance service innovations.
Sessions 7 and 8Sessions 7 and 8
SM
ALIGNING SERVICE DESIGN AND STANDARDS
SM Provider Gap 2Provider Gap 2
SMKey Factors Leading to Key Factors Leading to
Provider Gap 2Provider Gap 2
SM Service Innovation and DesignService Innovation and Design
• Challenges of Service Innovation and Design• New Service Development Processes• Types of Service Innovations• Stages in Service Innovation and Development• Service Blueprinting• High-Performance Service Innovations
SM Risks of Relying on Words Alone to Risks of Relying on Words Alone to Describe ServicesDescribe Services
• Oversimplification
• Incompleteness
• Subjectivity
• Biased Interpretation
SMTypes of Service Types of Service
InnovationsInnovations• major or radical innovations: new services for markets undefined yet; it creates new
marketse.g. digital tv, online markets, mobile apps
• start-up businesses: new services for currently served marketse.g. play pen in a retail shop, internet on flights
• service line extensions: augmentations to existing service linee.g. Adding new menu, new channels, new routes, new courses
• service improvements: restaurant redesign, menu change, new service processes to make delivery more efficiente.g. new technology - self-service technology etc
• style changes: most modest innovation, highly visible, significant effect on consumer emotions, perceptions, attitudes
SMNew Service Development New Service Development
ProcessProcess
SMNew Service Strategy Matrix for New Service Strategy Matrix for
Identifying Growth OpportunitiesIdentifying Growth Opportunities
SM Service BlueprintingService Blueprinting
• A picture or map depicting the service process, the points of customer contact, and the evidence of service or the customer’s experience
• Very useful at design stage of service development• Displays service delivery process, customer touch points,
roles of customers and employees and visible elements of the service
SMService Blueprint Service Blueprint
ComponentsComponentsCustomer Actions: steps, choices, activities, interactions in purchasing, experiencing and evaluating the service
line of interaction
On stage / Visible Contact Employee Actions
line of visibility
Back stage / Invisible Contact Employee Actions
line of internal interaction
Support Processes: internal services, steps, interactions in delivering the service and supporting the contact employees
SMService Blueprint Service Blueprint
ComponentsComponents
SMBlueprint for Express Mail Blueprint for Express Mail
Delivery ServiceDelivery Service
SMBlueprint for Overnight Hotel Blueprint for Overnight Hotel
Stay ServiceStay Service
SMBuilding a Service Building a Service
BlueprintBlueprint
SMApplication of Service Application of Service
BlueprintsBlueprints
• New Service Development– concept development– market testing
• Supporting a “Zero Defects” Culture– managing reliability– identifying empowerment issues
• Service Recovery Strategies– identifying service problems– conducting root cause analysis– modifying processes
SMBlueprints Can Be Used Blueprints Can Be Used
By:By:• Service Marketers
– creating realistic customer expectations:
• service system design• promotion
• Operations Management– rendering the service as
promised:• managing fail points• training systems• quality control
• Human Resources Management– empowering the human
element:• job descriptions• selection criteria• appraisal systems
• System Technology– providing necessary tools:
• system specifications• personal preference databases
SMBenefits of Service Benefits of Service
BlueprintingBlueprinting• Recognizes roles and interdependencies among functions,
people, and organizations.• Facilitates both strategic and tactical innovations.• Transfers and stores innovation and service knowledge.• Designs moments of truth from the customer’s point of view.• Suggests critical points for measurement and feedback in the
service process.• Clarifies competitive positioning.• Provides understanding of the ideal customer experience.• Provides a platform for innovation.
SMCommon Issues in Common Issues in
BlueprintingBlueprinting• Clearly defining the process to be blueprinted• Clearly defining the customer or customer segment that
is the focus of the blueprint• Who should “draw” the blueprint?• Should the actual or desired service process be
blueprinted?• Should exceptions/recovery processes be incorporated?• What is the appropriate level of detail?• Symbology• Whether to include time on the blueprint
SMSU
PPO
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PRO
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CO
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(Invi
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)(V
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ParkingExterior BuildingWaiting AreaOutdoor Seating
Interior DesignHostess StandAppearance of Staff
Drink StationAppearance of Bar and Bartenders
Cleanliness of TableSilverwareNapkinsSaucesCenterpiece
Menu
PlatesGlassesPresentationFoodDrinks
“Buzz”Customer
Arrive atRestaurant
ApproachHostessStand
Wait/OrderDrinksat Bar
ConsumeDrinks
Be Seatedat Table
OrderDrinks/Appetizers
Specify“Spiciness”of Sauce
ReceiveDrinks/Appetizers
DeliverDrinks/Appetizers
Greet andGive Buzzer
Greet andTakeDrink Order
DeliverDrinks
PrepareSauceat Table
ProcessSeatingRequests
Take Drink/AppetizerOrder
ComputerizedSeatingSystem
PrepareDrinks/Appetizers
PHY
SIC
AL
EVID
ENC
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PrepareDrinks
Escortto Table
Input Orderat Bar/Kitchen
ReceiveOrder
OrderEntree Next
Slide
CheckAccuracyof Order
Menu
SMSU
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PRO
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PER
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(Invi
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)(V
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RefillDrinks,Extra Sauce
OrderEntree
ReceiveEntree
EatFood
ConsumeRefills,Extra Sauce
FinishMeal
Ask forDoggieBag
OrderDessert
EnterDessert OrderInto Computer
TakeOrder
DeliverOrder
OfferRefills,Extra Sauce
ShowDessertMenu
BringBoxes toCustomer
PrepareFood
PHY
SIC
AL
EVID
ENC
E
Pick-upEmptyPlates/Clean offTable
Take Platesto Kitchen
Pack upFood
TakeEntreeOrder
Menu
Enter OrderintoComputer
ReceiveFood Order
PlatesFoodPresentation
Receive Order/PrepareDessert
DeliverDessert
EatDessert
Ask forBill
Total BillatComputer
PrintBill
DeliverBill andFortuneCookies
PayBill
Doggie Bags Menu
New SilverwarePlatesFoodPresentation
Portfolio with Check EnclosedFortune Cookies
DeliverDrinks,Extra Sauce
WashDishes
SMTangible Cues or Tangible Cues or
Indicators of QualityIndicators of Quality
• Exterior and Interior Design• Presentation of Food/Drinks• Appearance of Staff• Cleanliness of Tables, Utensils• Cleanliness of Restrooms• Location of Restaurant• Appearance of Surrounding Customers
SMPossibility of Possibility of
StandardizationStandardization
• Hostess Greeting• Pre-Prepared Sauces (Mild, Medium and Hot)• Time Standards• Food and Drink Quality Standards• Bill Standards
SMPotential Fail Points and Potential Fail Points and
FixabilityFixability
• Bar– train to make drinks; create ample seating space for wait area overflow
• Food– revise food presentation; create quality control checks to ensure order is correct
before delivering to customer• Staff
– training; set number of times to check-in on customers; behavioral and attitude guidelines; dress code
• Billing– standards for when to bring bill, how to deliver, when to pick-up, how quickly to
process transaction; ensure one fortune cookie per customer• Cleanliness
– standards for amount of time it takes to clear and clean tables; regular restroom checks