ALIGNING STRATEGY,

SERVICE DESIGN,
AND STANDARDS
 Provider GAP 2
CUSTOMER

COMPANY Customer-Driven
Service Designs and
Standards

GAP 2

Company
Perceptions of
Consumer
Expectations
Closing Gap 2
 Service Development and Design

 Customer-defined service
standards

 Physical Evidence and

Servicescape
Service Development
and Design
 Challenges of Service Design
 New Service Development
 Types of New Services
 Service Redesign
 Stages in New Service Development
 Service Blueprinting
 Quality Function Deployment
 High-Performance Service
Challenges in service
design
 Characteristics of services
 Difficult to describe and
communicate
 Risk in using words alone to
describe services
Risks of Relying on Words Alone
to
Describe Services

•Over simplification

•Incompleteness

•Subjectivity

•Biased Interpretation
New service development
 NSD system should have
 Must be objective not subjective
 Must be precise not vague
 Must be fact driven not opinion driven
 Must be methodological not
philosophical
Types of new services
 Major innovations
 Start-up businesses
 New services for the currently
served market
 Service line extensions
 Service improvements
 Style changes
Service Redesign
 Viable approach to service development
and growth
 Len Berry & Sandra Lampo
 Self-service
 Direct service
 Pre service
 Bundled service
 Physical service
New Service Development
Process
 Business Strategy Development or Review

 New Service Strategy Development

Front End
 Idea Generation
Planning
Screen ideas against new service strategy
 Concept Development and Evaluation
Test concept with customers and employees
 Business Analysis

Test for profitability and feasibility

 Service Development and Testing

Conduct service prototype test

 Market Testing
Implementation
Test service and other marketing-mix elements
 Commercialization

 Postintroduction Evaluation

Source: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.
New Service Strategy Matrix
for Identifying Growth
Opportunities
Markets
Offerings Current Customers New Customers

Existing SHARE MARKET

Services BUILDING DEVELOPMENT

New SERVICE DIVERSIFICATION

Services DEVELOPMENT
Service
Mapping/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.
Proces
s
Service
Mappin Points of
Contact
g Evidenc
e
 Service Blueprint
Components
PHYSICAL EVIDENCE

CUSTOMER ACTIONS
line of interaction

“ONSTAGE” CONTACT EMPLOYEE ACTIONS

line of visibility

“BACKSTAGE” CONTACT EMPLOYEE ACTIONS

line of internal interaction

SUPPORT PROCESSES
Service Blueprint
Components
 Overnight Hotel Stay
Bill
(Back Stage)(On Stage) CUSTOMER EVIDENCE
PHYSICAL

Desk
Hotel Cart for Desk Elevators Cart for Room Menu Delivery Food Lobby
Exterior Bags RegistrationHallways Bags Amenities Tray Hotel
Parking Papers Room Bath Food Exterior
Lobby Appearance Parking
Key
Arrive Give Bags Call Check out
Go to Receive Sleep Receive
at to Check in Room Eat and
Room Bags Shower Food
Hotel Bellperson Service Leave
CONTACT PERSON

Greet and
Process Deliver Deliver Process
Take
Registration Bags Food Check Out
Bags

Take
Take Bags Food
to Room Order
SUPPORT PROCESS

Registration Prepare Registration

System Food System
 Express Mail Delivery Service
Truck Truck
Packaging Packaging
EVIDENCE
CONTACT PERSON CUSTOMER PHYSICAL

Forms Forms
Hand-held Hand-held
Computer Computer
Uniform Uniform

Customer Customer Receive

Calls Gives Package
Package
(Back Stage) (On Stage)

Driver
Picks Deliver
Up Pkg. Package

Customer
Service
Order

Airport Fly to
Dispatch Unload Load
Driver
Receives Sort Fly to
& Loads Center & On
Destinati Sort Truck
PROCESS
SUPPORT

Load on
Airplane
on

Sort
Packages
READING AND USING
SERVICE BLUEPRINT
 Left & right – tracking the customer’s view of the
process/ customer action area
 Horizontally - Contact employees roles, roles above
visibility and roles below visibility
 Complexity of the process can be understood
 Vertically – what tasks and which employees are
essential in the delivery of service to the customer.
 Educating employees about the process
 Building a Service
Blueprint
Step
Step11 Step
Step22 Step
Step33 Step
Step44 Step
Step55 Step
Step66
Map Map
Mapcontact Add
Identify
Identifythe
the Identify
Identifythe
the Mapthe
the contact Link
Linkcustomer
customer Add
process employee evidence
evidenceofof
process to
process to customer
customeroror processfromfrom employee and contact
and contact
be the actions, service
serviceatat
beblue-
blue- customer
customer the actions, person
person
printed. segment. customer’s onstage
onstageand activities each
printed. segment. customer’s and activitiestoto each
point back-stage. customer
pointofofview.
view. back-stage. needed
needed customer
support action
actionstep.
step.
support
functions.
functions.
Application of Service
Blueprints
 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
Blueprints Can Be Used
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
 empowering the human
element
 job descriptions
 selection criteria
 appraisal systems
 System Technology
 providing necessary
tools:
 system specifications
 personal preference
databases
Quality Function
Deployment
 Can be used to develop service
architecture
 A system for translating customer
requirements into appropriate company
requirements at every stage, from
research through production design and
development to manufacture,
distribution, installation and marketing ,
sales and services
High performance service
innovations
 Choose the right projects
 Integrating new services
 Consider multiple measures of success
 Learn from major successes
 Market synergy, market-driven new-product process,
effective marketing communications, customer
service, managerial & financial synergy, launch
preparation, product representatives, product
advantage, innovative technology
 Maintain some flexibility