Service Design

Slide 1:The customer experience

Understanding services consumer behaviour Module 2: chapters 2 & 3 Ch Reading 1,3; Selected R 2.1,.2.2,.2.3

Slide 2:Lecture overview

Service classifications Service as a process four types of service processes level of customer contact Core & supplementary service Service as a system service operations system service delivery system service marketing system Flowcharting Service encounter

Slide 3:Part 2

Consumer buying behaviour for services Cultural values & norms C B difference between goods & services The service encounter & consumption mood states role and script theory control theory consumer needs & values

Slide 4:Classifying services

Useful framework for describing a service and identifying challenges How tangible is the service? Who is the recipient of the service? people or possessions

Slide 5:Where does service delivery take place?

at the service factory at the customer's place at arm's length single v multi-site

Slide 6:What is the degree of customisation or standardisation of the service?

extent of customer involvement? use of judgement by service provider?

Slide 7:Other classifications

What is the nature of the relationship with customer? Is it a discrete (one-off) or continuous service? What is the nature of demand for the service? Fluctuating, random, cyclical? What level of contact is required?

Slide 8:Four types of service processes

people processing possession processing mental stimulus processing information processing refer table 2.1, p. 4 tangible or intangible actions to people or their possessions

Slide 9:Process type impacts upon level of customer contact

Is the customer's physical or mental presence required? High contact people processing Medium contact possession processing and mental stimulus processing Low contact information processing

Slide 10:Managerial Implications

What are the service benefits? Customer involvement and interaction The centrality and importance of customer service personnel Design of the service 'factory' and delivery system Alternative delivery channels?

Slide 11:Core and supplementary services

Service is a bundle of activities core service supplementary services supplementary service may be the source of competitive advantage (value added) need to perform well on each element

Slide 12:Core and supplementary service elements: An example of an overnight parcel delivery service

Slide 13:Service as a system

High contact system (fig 2.2, p. 47 - next slide) The service marketing system comprises: 1. service operations system inputs are processed and elements of the service product are created (back-stage) final assembly and delivery of the service product overlaps with service delivery system (front-stage) 2. service delivery system final assembly and delivery of the service product may involve interactions with other customers 3. other contact points

Slide 14:The service marketing system for a high-contact service

Slide 15:Service operations system

technical core of the service back-stage support system impacts upon overall service offering contact personnel and physical facilities front-stage visibility of front and back stage varies across degree of contact and customer involvement

Slide 16:Service delivery system

front-stage where, when and how the service is delivered includes: contact personnel physical support (facilities and equipment) may also involve interaction with other customers note the service marketing system for a low contact firm (fig 2.3, p. 50)

Slide 17:Service marketing system

Customer's overall view of the service includes contact personnel physical support other customers plus: communications (all the ways that a customer learns about the organisation)

Slide 18:Service can be likened to interactive theatre

refer to text reading 1, pp. 539-48 back-stage audience is not allowed back stage front-stage actors (contact personnel) audience (customers) - scripts and roles setting (physical facilities) service performance (actions that shape the customers' experience)

Slide 19:Flowcharting

refer to fig 2.5, p. 52 also called service mapping or service blueprinting mapping the service experience

Slide 20:Steps in flowcharting

1. identify each service element or activity 2. put elements into a chronological sequence (set of linking steps) 3. analyse each element or activity to see if it can be improved

Slide 21:Flowcharting analysis

what does the customer want at each step? what represents value to them? can the process be sped up? can any steps be eliminated? where are the potential failure points - bottlenecks? consider the links between front and back stage activities - need to coordinate basic advice on flowcharting table 2.3, pp. 53-4

Slide 22:What is the service encounter?

that period of time during which a consumer interacts directly with