Transparency of offering and pricing, empowered customers and increasing regulation are making it extremely hard to create sustainable competitive edge. Service businesses can seek renewal fromtwo main sources: (1) Rapid deployment of new service concepts, based on true value innovation; and (2) Customer experience and service culture development.

1. Service Business
Renewal
Talent Vectia view on growth and renewal
in service companies
2012
Mika Rytkönen
Partner, Talent Vectia
mika.rytkonen@talentvectia.com
+358 40 5848372

2. Transparency of offering and pricing,
empowered customers and increasing regulation
are making it extremely hard to create
sustainable competitive edge
Service businesses can seek renewal from
two main sources:
Rapid deployment Customer
of new service
1 concepts, based on
true value
2 experience and
service culture
innovation development
© Talent Vectia 2

3. Customer Experience is at the heart of service
concept innovation METHOD
Elements visible
to customer
Channels
and
customer care
Engagement and
co-creation Physical service
elements
(e.g. tools,
servicescape)
Customer
Experience
Emotional
context
Processes and
earnings logic
People and
resources
Internal
elements

4. Customer experience is designed on multiple levels
Encounters to support thinking.
Scripts, value quantifications, value
Thoughts propositions, results, references,
testimonials.
Encounters to support actions.
Actions Betatesting, try-outs, piloting, user
experience.
Encounters to support emotions.
Emotions Themes, metaphors, tales, analogies,
surprises, design, hospitality.
Community
Individual Presence in everyday life. What is
the company’s role in the life of the
customer?
Meanings Communities. What is the role of
family, friends, colleagues in creating
meanings?
Brand. How does the brand become
a co-creator of meanings?

5. Steps in Service Business Renewal
Focus on customer experience
Focus on service concept innovation
Value Rapid service Customer Service
insight concept creation experience design culture development
Critical customer
Practice research Service concept encounters Service identity &
innovation & design principles
Customer journey Customer Safaris
WHAT mapping Rapid deployment Service ambassadors
Desired customer and training
Big data analysis Commercialization & experience
industrialization Leadership and
Brain mining roadmap Service production employee engagement
redesign
To redesign processes To ensure a long-term
To optimize the service and encounters for and unique
To create insight into concept’s value for the
customers’ everyday ensuring delivery of competitive edge
customer customer experience
practices and to To ensure an adaptive
WHY identify value drivers To create new service To create a cost- and resilient
and new sources of concepts for efficient and coherent organisation
innovation differentiation and multichannel
growth To ensure customer
experience satisfaction and loyalty

6. Key methods Value
insight
Service
concept
Customer
experience Service culture
renewal
creation design
Value insight METHOD
Practice Customer decision Big data analysis
research journey analysis & brainmining
Home Awareness 11 434 565 5665
School 655 65 65665
Research
5656 6556 6565 6556
Bond 6565 56 58 79
9 779 97 978
99 89 898 98
Work Public Advocate Loyalty 998 98 98 8998
place place loop
89 98 98 988
8 98889 778 676
Consideration
Enjoy
Practices of maintaining health, Decision
wellness, eating, living,
communicating, playing. etc…
Observing customers’ everyday life Combining data from several
Mapping the customer’s buying and sources (e.g. purchase history,
and routines with ethnographic decision making journey category information, loyalty data,
methods (interviews, observation, socioeconomics, social media,
diaries) Identifying drivers behind decisions
(behavioral economics) location based) in order to
Identifying new sources for value understand behavioural patterns
creation and new market potential Designing ways to influence and
(volume, price, adaptation, loyalty) change the decision making process Applying brain research findings
to establish social cognition

7. Key methods Value
insight
Service
concept
Customer
experience Service culture
renewal
creation design
Service concept creation METHOD
Competitive arenas and Service concept creation Impact on business
market shaping model
Elements visible
to customer Channels
I II III IV and
customer Market definition
Engagement care
generation
evaluation
and co-
Strategic
Business
Customer definition
Concept
creation
creation Physical
model
Idea
service
elements Value proposition
Customer Pricing Mgmt
Channel
Experience logic atten-
Offering
Emotional tion
context
Process and Resources
earnings logic Key Core
partners activities Cost & balance
sheet
People and structure
resources
Human resources & competences
Internal
elements
Defining and prioritising competitive Generating service ideas for concept
arenas and target markets: where to creation
grow Defining of the customer benefits of Designing business model for the
Describing the target market and the service ideas new concept and analysing the
customer practices in these markets effects of the new concept to the
Designing the different concept current business model
Analysing target customers’ value elements, both elements visible to
drivers customer and internal elements

8. Key methods Value
insight
Service
concept
Customer
experience Service culture
renewal
creation design
Customer experience design METHOD
Critical customer Customer Desired customer
encounters Safaris experience
Service processes & tools
Thoughts
What does the customer do?
Service Service Actions
Customer work mgmt
encounters
practices How does the customer feel? system Emotions
Community
Individual Meanings
Servicescape & context
Mapping encounters with the Observing and visualizing selected
customer encounters: what is the current Defining the desired customer
Selecting encounters that are most customer experience and how do experience: how should the
critical: encounters that have service practices support it? customer think, act and feel when
volume, up-sell potential or most consuming or considering to
potential for developing deeper Identifying quick-wins for improving consuming the service
meanings customer experience

9. Key methods Value
insight
Service
concept
Customer
experience Service culture
renewal
creation design
Service culture renewal METHOD
Service identity Service principles & Making it stick
& principles ambassadors & KPIs
Our service principles
Stories & • All employees will know the
myths needs of their internal and
Practices external customers.
& Symbols • Each employee will continuously
routines identify defects.
Mission, • Any employee who receives a
values, customer complaint "owns" the
history complaint.
Control Power • Etc...
systems structures
Structure &
processess
Understanding what elements of the Creating a set of believable
principles for customer service Calibrating performance
culture should be strengthened in management goals and practices
order to deliver the desired Selecting and training ambassadors
customer experience that through their actions and own Ensuring evidence of change
Creating a service identity that example drive the service principles Supporting the ambassadors with a
encompasses the desired cultural and help the organization in community for exchanging ideas,
elements delivering the desired customer tools and best practices
experience

10. Service Business Renewal
• Enables future growth
• Builds long-lasting competitive edge that is difficult to copy
WHY TO
INVEST • Ensures a unified customer experience across organizational
silos
• Ensures an adaptive and resilient organization
• Increased sales through deeper understanding of customer
OUTCOMES value drivers
AND • Improved productivity through employee engagement
BENEFITS
• New ways to ensure customer satisfaction and retention
• Unique combination of customer experience and service
practice design
WHY • Capability to engage rapidly a critical mass of customer-serving
TALENT personnel
VECTIA
• Proven track record and references, as well as continuous
research and development through multi-client projects and
publications

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