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Session 7: ServiceExperience StrategyDr Gerard TocquerCollege of ManagementMahidol University
1.Consumers Needs & Targeting
3.Service Positioning
2.Service Concept
4.Customer Experience Strategy
5.ServicePackage
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 occasionsEmergencyStart the dayBetween mealsFor mealsWith friendsWith business associatesIn the evening
Profile:Start the day timersThe break timersThe connoisseursThe Y & X generation
Needs:I am thirstyI am hungryI need to take a pauseI want to enjoy a small luxuryI 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)
CustomersProfile (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’sFrom 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
ServicePackage
Service Concept
A detailed description of :1.What benefits and results for customers2.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 coordinateA service that help businesses to track activities and movement of their remote workers
Test Concept in a Focus Group
1. Do not understand2. Understand but not
interested. Nothing new
3. Interested4. 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 efforts3. 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 more2. Reluctance to switch3. 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
FacilitatorsValue added
Services“ differentiators”
Service Concept
Core Service
The basic reason for the hotel business to exist. Provide a room for a night
The core service
Services Facilitators
Services need to deliver the core service
Booking
Check in
Check out
Customer service
Information
LocalTransportation
SpaHealth club
Business centerRoom services
Mini barVideo on demandReward program
RestaurantsAmenities
Wireless roomLimousine 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
RestaurantsShow business
The experience is the product
Amazon Apple store SIA
The commodity trapCompetition 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 withcustomers 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
ServiceExperience Delivery
Connect & Attract targeted consumers What is the intended experience?
How the experience is delivered and touch points designed?
Service Experience delivery Key Drivers
ServiceProduct
S.STechnology
ServiceProcess
PhysicalEnvironment
People
Thank You