If you’re like most leaders, you have the drive and dedication to improve your organization wherever possible. No organization is perfect and you likely realize that your business could stand to improve its services but, deciding where to start can be overwhelming – if not paralyzing. However, there is a way to effectively and efficiently create impactful change. ServiceDesign, a fast-growing discipline in the business world, has emerged as a way for organizations to create experiences that increase customer adoption rates, happiness, retention, and ultimately increase revenue. Why should your organization invest in Service Design? Here are our top 5 reasons:
1. Service innovation needs to be approached holistically*
The thrust of management theory and practice over the last century has focused C-level and mid-level management on developing their business around efficiency, causing many large organizations to get stuck in siloed thinking. As more leaders recognize the value of becoming a customer-centric organization, they realize the importance of looking at the business through their customers’ eyes. Customers don’t see silos. They see the organization as one entity.
For business leaders, investing in Service Design breaks down siloed thinking and helps internal stakeholders look at the customer’s experience from a holistic end-to-end journey perspective rather than a fragmented, touchpoint focused viewpoint.
Note: A study conducted by McKinsey across different service industries showed that most customers weren’t fed up with
2. Your services are an expression of your brand
Your services are the primary way customers experience your brand. What you do, how you do it, and how they felt during their experience is what customers remember about you. If you seek to improve your brand image, redesigning or innovating new services that enhance customer experience is a promising place to start. And for that, taking a Service Design approach will identify pain points and turn them into opportunities for delightful experiences with your brand.
3. Excellent services create customer loyalty- which is far better than a mere transactional relationship with your customersThe goal of successful service organizations is to increase customer retention and brand loyalty. Traditionally transactional engagements lack loyalty, see the service as a commodity, and the typical customers only want what is solely in their best interest (and often the lowest price).
An emotionally engaging service offering is the reverse of the above. It fosters extreme loyalty. Customers see the service as adding value to their lives and price does not become the sole driver as it often does in a transactional engagement. One of the primary objectives of Service Design efforts is to create an exchange of value between customer and provider so that customers engage in other or additional services.
4. It’s about the future
What worked for your customers in the past or even now may not be helpful in years to come. The marketplace is always changing. If you haven’t already, you need to co-develop products and services that will best meet the needs of your customers in the future. This is what a Service Design approach does best – ideate, prototype, test and develop services for the future. Incremental changes lead to near-term solutions but innovation usually requires bold leaps forward. Leaders need to take a step back and reinvent their service. There’s no better way to do this than investing in a Service Design approach.
5. Publicized Service Design efforts inspire organizations
As people in your organization experience the powerful effect of a Service Design effort, it creates an appetite for innovation in other areas of the organization. It creates momentum and ignites culture change. If you still aren’t convinced of the value of investing in a Service Design effort for your organization, should I mention that you can get excellent ROI for Service Design efforts? Stay tuned for the next blog post in this series: The ROI of Service Design.
We’d love to talk about your questions, doubts, fears, or previous experience with service design. Feel free to reach out to firstname.lastname@example.org and we can set up a time to discuss.