Service Innovation: Types and Benefits

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Questions and Answers

Which of the following questions are essential to consider when mapping a customer journey?

  • What devices do customers use and what information sources are likely to reach them?
  • Where do customers originate from and where do they go after engaging with the business?
  • How do customers feel during their interactions with the brand across different stages and channels?
  • All of the above (correct)

How can data-mining and personas enhance customer journey mapping?

  • By providing statistical information to complement the customer journey.
  • By identifying areas where customers are dissatisfied and likely to abandon the business.
  • By helping understand customer feelings and the reasons behind those feelings.
  • All of the above (correct)

What is the primary purpose of visualizing a customer journey?

  • To replace traditional business consultation methods with innovative service design.
  • To provide a clear, contextual, and easily understandable overview of the customer's experience. (correct)
  • To create non-linear information structures for advanced data analysis.
  • To eliminate customer complaints and ensure complete satisfaction.

Why is visualization particularly important in service design compared to traditional business consultation?

<p>It provides a shared understanding and reduces miscommunication among stakeholders due to its contextual nature. (B)</p> Signup and view all the answers

According to the material, what is a common misconception regarding customer complaints?

<p>A lack of complaints indicates complete customer satisfaction. (B)</p> Signup and view all the answers

What does the material suggest is the primary reason why a significant percentage of consumers do not voice their complaints?

<p>Venting frustration is perceived as a waste of time and effort, outweighing the potential benefits. (B)</p> Signup and view all the answers

How does a well-designed customer journey map aid in both general comprehension and specific data analysis?

<p>The map presents both general and specific data simultaneously, making significant amounts of information immediately comprehensible. (D)</p> Signup and view all the answers

What is the relationship between personas, data mining, and understanding customer emotions in journey mapping?

<p>Data mining offers statistical insights, while personas help in empathizing and understanding the reasons behind customer feelings. (D)</p> Signup and view all the answers

A company is experiencing declining sales in one of its established service lines. Which service innovation strategy would be MOST appropriate to revitalize this?

<p>Transitioning to new services that align with emerging market needs. (D)</p> Signup and view all the answers

A local bakery wants to differentiate itself from competitors. Which service innovation approach could best achieve this?

<p>Combining existing baking techniques with digital ordering and personalized cake design. (A)</p> Signup and view all the answers

Which factor is LEAST likely to directly influence the success of a service innovation?

<p>The historical stock prices of the company. (D)</p> Signup and view all the answers

A software company is launching a new customer support service. How can they leverage service design principles to ensure a positive customer experience?

<p>Designing the service from the customer's initial inquiry to the resolution of their issue, ensuring ease of use and clear communication. (A)</p> Signup and view all the answers

A small, rural business is considering implementing a digital service to reach a wider customer base. What is the most important consideration for them?

<p>Adapting the service to the specific needs and infrastructure limitations of their location and customer base. (B)</p> Signup and view all the answers

Which of the following exemplifies service innovation during the growth phase of a service offering?

<p>Conducting thorough market research to understand evolving customer preferences and adapting the service accordingly. (D)</p> Signup and view all the answers

A company successfully implemented a service innovation that significantly reduced costs. What is the MOST likely next step to maximize the benefits?

<p>Reinvesting some of the cost savings into improving other areas of the business and enhancing competitiveness. (B)</p> Signup and view all the answers

A company wants to create a new service by combining existing elements. Which approach would be MOST effective?

<p>Identifying unmet customer needs and combining relevant resources, technologies, and processes to address them in a novel way. (C)</p> Signup and view all the answers

Which factor does not typically contribute to a business's ability to deliver exceptional service consistently?

<p>Dominating a monopolistic market position. (A)</p> Signup and view all the answers

In the context of service delivery, managing customer experience primarily involves:

<p>Providing timely and relevant information throughout the customer journey. (D)</p> Signup and view all the answers

Which of the following is not a core principle of the design process?

<p>Affordability: Making the product inexpensive to produce. (D)</p> Signup and view all the answers

Service design emphasizes a user-centered approach with iterative improvements. What is the primary advantage of implementing changes in smaller steps?

<p>It leads to faster and more easily observed results. (B)</p> Signup and view all the answers

According to the principles of service design, what is the likely outcome when customers receive what they want at a fair price?

<p>They will become loyal customers and recommend the product or service. (C)</p> Signup and view all the answers

What is the definition of a 'touchpoint' in the customer service context?

<p>Any instance where a customer interacts with the business. (C)</p> Signup and view all the answers

What is the primary purpose of creating a 'persona' in service design?

<p>To develop a realistic representation of a target customer group. (C)</p> Signup and view all the answers

What is the main objective of using an empathy map?

<p>To understand and visualize the customer's decision-making process and experience. (C)</p> Signup and view all the answers

Understanding the 'impulse' that drives customers to your business enables you to:

<p>Manage customer experience more effectively. (C)</p> Signup and view all the answers

In an omnichannel world, what is a key consideration when innovating service?

<p>Considering the various interaction channels and methods in the customer journey. (B)</p> Signup and view all the answers

Flashcards

Service Innovation

The process of developing or improving services to meet changing customer needs.

Purpose of Service Innovation

Rethinking existing services and creating new ones for livelihood and growth.

Elements of Service Innovation

Includes customer processes, value chains, service infrastructure, and more.

Benefits of Service Innovation

Includes improved productivity, reduced costs, and enhanced competitiveness.

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Service Design

Designing services from the customer's perspective to enhance their experience.

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Stages of Service Offering

Development phases include introduction, growth, maturity, and decline.

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Influencers of Service Innovation

Factors such as customer nature, feedback, culture, and legal issues affect innovation.

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Digitalization in Service Innovation

The use of digital tools to improve processes, products, or services.

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Quality Service Expectations

Customers expect universally high-quality products and services.

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Design Process Goals

Addresses understandability, usability, distinction, and aesthetics.

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Touchpoint

The interactions where business meets customer, comprising micro-experiences.

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Persona

A realistic character based on traits, demographics, and income indicators.

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Empathy Map

A tool to visualize customer experiences and decision-making processes.

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Customer Experience Journey

The series of interactions that define the overall customer experience.

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Impulse Routing

Understanding the routes customers take to engage with a business or channel.

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Omnichannel Innovation

Consideration of various channels and methods in service interactions for customers.

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Motivated Staff Impact

Empowered employees deliver a superior product or service, increasing customer loyalty.

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Customer Journey

The complete experience a customer has with a brand over time, including emotions and interactions.

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Data Mining

Analyzing large datasets to discover patterns or insights about customer behavior.

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Customer Emotions

Feelings experienced by customers throughout different stages of their journey with a brand.

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Journey Map

A visual representation of the customer journey, highlighting touchpoints and emotions at each stage.

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Service Visualization

The process of representing service processes visually to enhance understanding and communication.

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Complaints Statistics

Insights showing that many customers don't voice their dissatisfaction, not necessarily meaning they are happy.

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Feedback Mechanisms

Methods through which businesses gather insights from customers to improve services.

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Study Notes

Seminar 1: Service Innovation

  • Subject: SQIM
  • Class Type: Seminar
  • Date: January 18, 2025

Why Service Innovation?

  • People's needs and desires change over time, requiring businesses to rethink existing services and develop new ones.
  • Service innovation is vital for the sustainability and growth of businesses.

Service Innovation: Types

  • Part of a service or service process (including customer processes, value chains, or service infrastructure).
  • Applied to a new, improved, or updated service.
  • Can complement a product.
  • Combines existing elements to form a new service.
  • Digitalization can improve processes, products, or services.

Benefits of Service Innovation

  • Improved productivity
  • Reduced costs
  • Increased competitiveness and opportunities
  • Improved brand recognition and value
  • Ability to adapt to changing trends and customer habits

Different Elements Influencing Service Innovation

  • Customer demographics and feedback
  • Network connections and contacts
  • Cultural norms
  • Legal regulations
  • Skills and competencies of service providers
  • Internal and external collaborations
  • Considerations for location (town, country, etc.)

Service Design

  • Focuses on the customer's perspective.
  • Covers the entire customer journey, from the initial consideration of a purchase to completion of the product life cycle.
  • Aims to create a positive customer experience at all points of interaction with a company.
  • Fosters improved customer experiences.

How Did Service Businesses Survive in the Past?

  • Strong service delivery
  • Some businesses' monopolistic positions
  • Exceptional marketing skills
  • High-quality products
  • High barriers to entry

Providing Information and Managing Expectations

  • Communication of relevant and reliable information throughout the customer service process.

Design Process

  • A problem-solving approach to address key issues:
    • Understandability
    • Usability
    • Distinctiveness (memorability)
    • Aesthetics (pleasing design).

Service Design Aspirations

  • Profit-motivated businesses focused on proven track records.
  • Meeting customer needs at reasonable prices.
  • Retaining motivated staff.
  • Exceeding customer expectations.

Touchpoints

  • Interaction points between the business and customer
  • User experience is composed of numerous micro-experiences.

Persona

  • Realistic character traits
  • Considered believable
  • Includes socio-demographic and income indicators.

Empathy Map

  • Visualizes the customer journey to understand their needs and decision-making process.
  • Recognizes points of difficulty or friction in customer experiences.

Understanding Customer Impulses

  • Understanding customer routes to different channels help businesses efficiently manage customer journeys.
  • Provides examples such as convenience and pricing.

Omnichannel World

  • Includes multiple channels and devices (multichannel) that are integrated.

Service Design as Operations and Aspirations

  • Consider diverse interaction channels in service process mapping.
  • Use customer devices to communicate and understand information.
  • Understand where customers originate from and whither they go after interaction.
  • Employ personas and data to enhance service and journey maps.

How Do Customers Feel?

  • Mapping emotional responses in various stages and channels.
  • Data mining to spot customer dissatisfaction.
  • Persona development for a deeper understanding of customers.

Journey Maps

  • Detail emotional journeys.
  • Visually illustrating customer feelings during interactions.

Visualization and Non-Linear Information

  • Visual representations clarify information and processes.
  • Maps aid comprehension and reduce miscommunication.

Complaints

  • Absence of complaints doesn't imply universal satisfaction.
  • Venting frustrations can be costly in terms of time and effort.

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