Service Development
Provider Gap 2
CUSTOMER
COMPANY
Customer-Driven
Service Designs and
Standards
Service Design and
Standards Gap
Company Perceptions of
Consumer Expectations
Part 4 Opener
Types of New Services
• major or radical innovations
• start-up businesses
• new services for the currently served market
• service line extensions
• service improvements
• style changes
New Service Development Process
 Business strategy development or review
 New service strategy development
Front-end
Planning
 Idea generation
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
Implementation
Sources: Booz-Allen & Hamilton, 1982; Bowers,
1985; Cooper, 1993; Khurana & Rosenthal 1997.
 Market testing
Test service and other marketing-mix elements
 Commercialization
 Postintroduction evaluation
New Service Strategy Matrix for Identifying
Growth Opportunities
Markets
Offerings
Current Customers
New Customers
Existing
Services
Share building
Or
Market Penetration
Market
development
New
Services
Service
development
Diversification
The Service Encounter…
• ……is the “moment of truth”
– occurs any time the customer interacts with the
firm
– can potentially be critical in determining customer
satisfaction and loyalty
• …..is an opportunity to:
– build trust
– reinforce quality
– build brand identity
– increase loyalty
Service Scripts
• Service scripts consist of a set of ordered
actions, actors, and objects that, through
repeated involvement define what the
customer expects.
-
A sequence of behavior to be followed by
employees and customers during service delivery
– Some scripts (i.e. teeth cleaning) are highly
routinized, others are flexible.
– Technology change may require a revised script
– Should re-examine existing scripts to find ways to
improve delivery, increase productivity, enhance
experiences
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.
Process
Service
Mapping
Points of Contact
Evidence
Building a Service Blueprint
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Identify the
process to
be blueprinted
Identify the
customer or
customer
segment
Map the
process
from the
customer’s
point of
view
Map contact
employee
actions,
onstage and
back-stage,
and/or
technology
actions
Link contact
activities to
needed
support
functions
Add
evidence of
service at
each
customer
action step
Service Blueprinting: Key Components
1. Define standards for frontstage activities
2. Specify physical evidence
3. Identify principal customer actions
4. ------line of interaction (customers and frontstage personnel)----5. Frontstage actions by customer-contact personnel
6. ------line of visibility (between front stage and backstage)--------7. Backstage actions by customer contact personnel
8. Support processes involving other service personnel
9. Support processes involving IT
Service Blueprint Components
Blueprint for Express Mail Delivery Service
CUSTOMER
PHYSICAL
EVIDENCE
Truck
Packaging
Forms
Hand-held Computer
Uniform
Customer
Calls
Truck
Packaging
Forms
Hand-held Computer
Uniform
Customer
Gives
Package
Receive
Package
CONTACT PERSON
(On Stage)
(Back Stage)
Line of interaction
Driver
Picks Up
Package
Deliver
Package
Line of visibility
Customer
Service
Order
SUPPORT PROCESS
Line of internal interaction
Dispatch
Driver
Airport
Receives
& Loads
Fly to
Sort
Center
Fly to
Destination
Load on
Airplane
Sort
Packages
Unload
&
Sort
Load
On
Truck
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
– system specifications
– personal preference
databases