SERVICE DESIGN WORKS!

DOESN’T WORK!a PALMU presentation for Singapore design week, 18.3.2015

DESIGN THINKINGDesign thinking is generally considered the ability to combine

Empathy for the context of the problem, creativity in the generation of insights and solutions and

rationality to analyze and fit solutions to the context.*

*Wikipedia

Relentless customer focus

Fast customer exposure

Service models and -processes

Roles and goals

Service surroundings

Service gestures and style

Interactions and communication

Tools supprting the change

Service experience which is born out of

human actions

What does the service designer design?

Business challenge

- Extremely tight competition in the field. Old biz-model doesn’t work any more need to stand out

- Sales goals lagging need for new sale model

Customer point of viewPlanning

+

-

POSITIVEEXPERIENCE

NEGATIVEEXPERIENCE

Life in the new bath-room

Selection of products and time scheduling

Renovation

Towards completion

Project planning

Hopes&expectations

Insight I The shop is a tool for the sales- team, not a show-room

Luottamus, korkeat palveluodotukset

Skeptisyys, varauksellisuus

Uncomfortable, anxiety, unclear big picture

Passion, research, dedication, own vision

Preparedeness to let others take care of things

Do it your self, preparedeness to put in

effort

In need of support

Enlightened

Doubtful

Do-it your self

Profiling of customers

Apuun tukeutuminen, epävarmuus

Harrastaminen, oma kehittyminen

Phased iterative and agile development model which enables light testing before

big investments

The new sales- model

Store to become the primary sales tool for sales

staff in which bathrooms are sold, not tiles or shower

cabinets

Sales skyrocketed during pilot phase and grew in all stores implementing the new concept

Time spent with individual customer

+60%

-20%

Focusing on customer value: dramatic business effect

Security check is acustomer oriented service 5 54

NPS

From selling tiles torenewing bathrooms 60%

SALES

From equipment and lesson salesto service experience

MARKET SHAREFrom 0 to 2. in sales in7 months (Finland)In 6 locations

From phone books to market leader in e-directory services

MARKET LEADER2.000.000 app downloads24 -> 47 NPS

REVENUE 6 -> 9 M€ / week350 -> 500 M€ / year

New games and servicesto new customer segments

From ticket salesto customer service +36%

NPS

SERVICE DESIGN‘Service design is an activity that, among other

things, suggests behavioral patterns or “scripts” to the actors interacting in the service.’

Wikipedia

WORKS!

95%CUSTOMER ORIENTED?OF COURSE, EVERYONE

IS!

Bain & Company

80%Management Customers

8%

We have experienced a SUPERRIOR

customer experience

We deliver a SUPERRIOR

customer experience

Customer journey

Customer encounter

Online- UI/UX

Business- kriittisetpalveluprosessit

Organisoituminenja prosessit

Osaaminen jalähijohtaminen

Suhtautuminen asiakkaisiin

Suhtautuminen omiin työntekijöihin

Visio tulevasta ja palvelustrategia

The goal for Service design is a better

customer experience

Jatkuvamittaaminen ja kehittäminen

Menestysennusteja taserakenne

Kulut ja investoinnit

MUTTA MYÖSKANNATTAVAMPI

LIIKETOIMINTA

Vision and servicestrategy KPI’s

Roles and processesMiddle management

Attitude towards clients

Attitude towards employees

Balance sheet structure

Costs/investments

Customer journey

Customer encounter

Online- UI/UX

But more importantly a more profitable and productive business

Customer focus is often superficial

PALMU’s finding

We asked our clients in which business areas they are customer focused

GAP

-Committees-Fixed policies

-Marketing-Brandguidelines

-Back-end IT renewal

-New managers own vision

-New planning teams-Not invented here syndrome

-Defensiveness of IT department-Tech challenges

-Shortsighted Quarter based decisions

-Random opinions&comments

Fantastic concept,

and our customer

insight and test

support it!!

Large corporations maximise profitsDevelopment of existing biz-model byquarterly results

New challengers take market shareDevelopment of challenging biz-model through iteration and customer focus

How can companies escape the shackles of the old biz-model?

Customer expectations and demand

Source: Innovator’s DilemmaWhen New Technologies Cause Great Firms to Fail

Clayton Christensen

Classic service design

New service design

Design thinking

Disruptivinnovation/ megatrend

AgileDevelopmen

t

Service Design, unrelenting client focus and agile development

Simultaneously ”classic” service design becomes the hit-product which is easy to buy

In 2015 succesful service design impact organisations in a profound way reaching organisational culture, business growth and

competitive advantage

SERVICE DESIGN

DOESN’T WORK!

Case Helsinki Airport Service Design http://vimeo.com/40504488

• Palveluprosessi• Palveluympäristöt• Palveluteot (§)

Fysical design to support new operating model and service

Solution

Result: A world class customer experience

Net Promoter tracking at Terminal 1 53

6

24.10.2011 27.3.2012

R&D

+M

anuf

actu

ring

Mar

keti

ng

Sale

s

IT Cust

omer

se

rvic

e

A combination of behavioural and market researchers, management consultants, designers and IT professionals – all working together across the silos, all focusing on the customer.

UNCOMPROMISING CUSTOMER ORIENTATION

SERVICE DESIGN

WORKS!THANK YOU

a PALMU presentation in collaboration with ideactio for Singapore design week, 18.3.2015