Service experience strategy
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1) The document outlines the five cornerstones of developing a service experience strategy: understanding customer needs, developing a service concept, positioning the service, crafting a customer experience strategy, and designing the service package. 2) It emphasizes starting with customer needs by identifying both explicit, tacit, and latent needs through various research methods in order to develop customer profiles and prioritize needs. 3) Developing a clear service concept that describes the benefits for customers and how the service will be delivered is critical, and this concept should be tested with focus groups. 4) Effective service positioning identifies the points of difference and parity between a company's service and competitors in order to provide a reason for customers to choose that service
Service experience strategy
- 1. Session 7: Service Experience Strategy Dr Gerard Tocquer College of Management Mahidol University
- 2. 1.Consumers Needs & Targeting 3.Service Positioning 2.Service Concept 4.Customer Experience Strategy 5.Service Package The Cornerstones of a Service Experience Strategy
- 3. 1. Targeting Customers based on needs • What are customers needs? How different are they? • What are the customers profiles for each needs category? • The context. When, where customers have these needs? Start with Customer Needs
- 4. What are customers needs? Type of Needs Explicit Tacit Latent Description Customers talk about it Customers might not tell you about it Customers do not know about it Methods to know about it Get it by asking questions (survey. Focus group) Get customers feedback (Complaints.Text mining on social media) You can pick up them by observing customers (Users research. Contextual interviews. Shadowing. Diary...) Rapid prototyping and ask customers to assess (...Oh my god I never think about this!) Tools Traditional marketing research + Social network software analysis Ethnographic research Design Process
- 5. Needs Profile Context Coffee occasions Emergency Start the day Between meals For meals With friends With business associates In the evening Profile: Start the day timers The break timers The connoisseurs The Y & X generation Needs: I am thirsty I am hungry I need to take a pause I want to enjoy a small luxury I have a meeting Why? Who? Context? Source. Brand revitalization. Larry Light & J Kiddon. 2009
- 6. Not mass, not a niche market but multi segments Seg A Seg B Seg C Seg D Seg E Seg F Seg G Prioritization is critical & multi dimensional marketing
- 7. Segmentation = Strategic Opportunity Customers Needs (Why) Customers Profile (Who) Context Prioritization (Needs-Profile-Context) I am thirsty Occasional Emergency 5 I have a meeting outside Managers With my colleagues 4 I need to take a pause Day-timers With my friends 2 I want to enjoy a small luxury Connoisseurs I am alone 1 I have a date Students Upscale & Convenience 3
- 8. Collecting feedback from customers
- 10. DHL Major service innovation end of the 90’s From shipping parcels to inventory
- 11. Providing financial services for consumers who cannot be served by banks
- 16. “The real act of discovery consists not in finding new lands, but in seeing with new eyes…” Marcel Proust
- 17. 2. Service Concept -The heart of your service strategy- Service Concept Positioning Service Experience Service Package
- 18. Service Concept A detailed description of : 1.What benefits and results for customers 2.How the service is delivered (service operations). What channels?
- 19. Twitter Original Service Concept A service that uses SMS to tell small groups of people what you are doing!
- 20. San Diego SUBWAY® Cafés feature an upscale coffeehouse ambience, an expanded menu, and Seattle’s Best coffee offerings including espresso drinks, lattes and frozen blended beverages, along with amenities such as Wi-Fi, and DIRECTV, to allow customers to enjoy local news and sports events with their sandwiches.
- 21. Service concept for the BMW 7 Series Sedan. Data on replacement parts and fluid levels is constantly monitored. The data is stored in your car key and can be accessed by your BMW Service Centre during your next service appointment. Customize, flexible, cost-effective and time-saving.
- 22. iPod iTunes iTunes Music Store Play Manage Acquire
- 23. Our business idea is "To offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them."
- 24. 24 Google map coordinate A service that help businesses to track activities and movement of their remote workers
- 26. Test Concept in a Focus Group 1. Do not understand 2. Understand but not interested. Nothing new 3. Interested 4. Wow. Great idea. Eager to try Now! Check for clarity and relevance
- 27. 3. Service Positioning What are the points of difference in consumers’ mind between our service product and existing competitors. What are the points of parity? -Indeed difficult to differentiate services products- Provide to consumers a reason to buy
- 28. Service Positioning Statement To ------ our target markets -------- is the service in Mobile phone services (Service category) with_________ (Point of differences) The rational for consumer choice
- 29. 4. Service Experience Strategy “It defines the intended experience & the emotions evoked” - Highly satisfied customers. Higher customers loyalty & NPS- 1. Improving service functional quality 2. Reducing customer efforts 3. Making customer experience enjoyable Focus on the customer journey. On the whole experience Make customers reluctant to switch to competitors
- 30. Enjoyable Usability. Intuitive. Easy to interact. Clarity Useful. Meets needs “ Is it fun? “ I did not have to work hard.(no efforts). All touch points are easy to access & provide quick answers” “ Functional quality. I got what I wanted and accomplished my goal” 1. Willingness to buy more 2. Reluctance to switch 3. Likelihood to recommend With the focus on KPI’s Require an understanding of customer service journey “ How customers perceived their interactions with your company? ”
- 31. What is the customers experience in your industry? • “ What had stuck me during my years of consulting with banks was how similar they all were--and how bland. • You know from your experience that the typical brand is quiet, cold, and boring. It has ropes to keep people in line, empty desks, and stale coffee. You can see how bored people in line are. Often tellers aren’t much more animated. Sure, you ‘ll get a shy smile and a weak “thank you” but two minutes after you walk out, you ‘ll have forgotten the whole experience..” • Ray Davis.President and CEO UMPQA Bank
- 32. Workshop. Set up a Service Experience Strategy • Group work: Define a customer experience strategy for the following companies: • True Fitness Center • Paolo Memorial Hospital • Central Department Store • SCB • BTS • Villa Market
- 33. Yin Yang Positioning + Experience Strategy Rational Emotional
- 34. 5. Designing the Service Package Core Service Facilitators Value added Services “ differentiators” Service Concept
- 35. Core Service The basic reason for the hotel business to exist. The core service
- 36. Services Facilitators Services need to deliver the core service
- 39. Value added services Normally help to differentiate…you core service
- 40. The Danger of Focusing on Differentiators Added Value Services “Differentiators” Facilitators Core Service Focus on basic customer needs Necessary to deliver the core service Services that ad value to your offer. Should help to differentiate with competitors… Service Package & Customer Journey
- 41. The product is the experience Restaurants Show business The experience is the product Amazon Apple store SIA The commodity trap Competition on value added services. Late on sales promotions. Margins & Profitability drop Wireless Companies Hotels. Banks Core service Core service Core service Value added services All interactions are designed with customers in minds Three Experiences Strategy
- 42. Service Experience Strategy Service Delivery Mkg Communications Consumers Brand Experience A framework to assess services brands on experience How customers talk about their experience on social network Service Experience Delivery Connect & Attract targeted consumers What is the intended experience? How the experience is delivered and touch points designed?
- 44. Thank You