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Session 7:
Service
Experience
Strategy
Dr Gerard Tocquer
College of Management
Mahidol University
1.Consumers
Needs &
Targeting
3.Service
Positioning
2.Service
Concept
4.Customer
Experience
Strategy
5.Service
Package
The Cornerstones of a Service Experience Strategy
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
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
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
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
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
Collecting feedback from customers
Source: Clarabridge 2012
DHL Major service
innovation
end of the 90’s
From shipping parcels to inventory
Providing financial services for consumers who cannot be served by banks
“The real act of discovery consists not in finding
new lands, but in seeing with new eyes…”
Marcel Proust
2. Service Concept
-The heart of your service strategy-
Service
Concept
Positioning Service
Experience
Service
Package
Service Concept
A detailed description of :
1.What benefits and results for customers
2.How the service is delivered (service
operations). What channels?
Twitter Original Service Concept
A service that uses
SMS to tell small
groups of people
what you are doing!
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.
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.
iPod iTunes iTunes Music
Store
Play Manage Acquire
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
Google map coordinate
A service that help businesses to track activities and movement of their remote workers
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
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
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
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
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? ”
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
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
Yin Yang
Positioning + Experience Strategy
Rational Emotional
5. Designing the Service Package
Core
Service
Facilitators
Value added
Services
“ differentiators”
Service Concept
Core Service
The basic reason for the hotel business to exist.
The core service
Services Facilitators
Services need to deliver the core service
Booking
Check in
Check out
Customer
service
Information
Local
Transportation
Spa
Health club
Business center
Room services
Mini bar
Video on demand
Reward program
Restaurants
Amenities
Wireless room
Limousine services
Laundry on site
Value Added Services
Value added services
Normally help to differentiate…you core service
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
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
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?
Service
Experience
delivery
Key Drivers
Service
Product
S.S
Technology
Service
Process
Physical
Environment
People
Thank You

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Service experience strategy

  • 1. Session 7: Service Experience Strategy Dr Gerard Tocquer College of Management Mahidol University
  • 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
  • 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
  • 12.
  • 13.
  • 14.
  • 15.
  • 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
  • 25.
  • 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?