Service design is at the forefront of innovation and customer-centered business value generation. This deck explains how we, service designers approach problems, what tools we use and what exactly you, as a decision maker gain from working with us.
Return on Design: The business value of design for services
1. Return on Design
The business value of design for services
Csilla Nárai
Service Design & Strategy
2. When technology changes faster than we adapt…
any industry can be disrupted in no time, there is no exception;
just like yours, so quick response and resilience are now vital.
Management tools are decades old, created for
completely different markets and customers.
When your competitor is just a click away and customers need
you 24/7, it is crucial to understand what makes them happy.
Only 1/26 customers complain, the rest churn: Esteban Kolsky http://www.slideshare.net/ekolsky/cx-‐for-‐executives
Customer experience is key in a world of fast-‐paced, flawless services.
Cover photo: Kristina Alexanderson
3. “People need their interactions with technologies and other complex systems
to be simple, intuitive, and pleasurable. A set of principles collectively known
as design thinking […] is the best tool we have for creating those kinds
of interactions and developing a responsive, flexible organisational culture.”
— Jon Kolko, VP of Design at Blackboard in the Harvard Business Review
Design Thinking Comes of Age, Harvard Business Review, September 2015
4. Experience turns businesses into leaders
Chief Design Officers play a key role in spreading a customer-‐centered spirit throughout
industry leaders as Philips, PepsiCo, Johnson&Johnson, Hyundai, Samsung and many others.
Philips: http://www.fastcodesign.com/1669811/a-‐philips-‐exec-‐shares-‐the-‐keys-‐to-‐an-‐improbable-‐design-‐led-‐turnaround, http://www.firstpost.com/
fwire/insight-‐philips-‐restores-‐profit-‐by-‐rediscovering-‐relevance-‐1284811.html, http://www.mckinsey.com/insights/organization/from_bottom_to_top
LEGO: https://hbr.org/2009/09/innovating-‐a-‐turnaround-‐at-‐lego, http://on.ft.com/1bLWP82
Philips integrated design deeper with
strategy and development to get
consumer electronics back on its feet.
LEGO brought down silos to take a lead
in experience, reaching as far as to their
fans, now part of development, too.
Design-‐lead turn-‐arounds and innovation created billions of profit already.
5. Service design is a tool to generate business value
Photo: Tobias Toft
You will learn about why design’s human-‐centered
approach is often a missing link, and how we work
with your team together to generate results.
Boosting sales, conversion or repeat purchase
are typical results of good design.
So are reducing costs of development or support,
increasing efficiency or innovation capacities.
This deck explains how we do it.
6. Design became part of the
strategic landscape.
“The insights derived from data and analytics are wasted unless
they can be turned into well-‐designed, meaningful experiences.
In short, great design turns insights into impact.”
— McKinsey Digital Labs
What every executive needs to know about design, by McKinsey Digital Labs, Nov 2014
7. Design is about making things work for us.
We create well-‐functioning systems.
This is not art, it is business.
It is a set of tools and principles helping us create products, services or experiences that
are easy-‐to-‐use, enjoyable and useful, by meeting our needs in a great way.
Service Design
is concerned with how services, these complex processes of interactions
and decisions work well for the customer and everyone else involved.
We focus on the human factor,
behaviour and everyday aspirations.
8. Providing a key perspective on your business
TOUCHPOINTSCUSTOMERS ORGANIZATION SUPPLIERS
Icons designed by Freepik
Businesses know a lot about their performance and market, but too often,
information ends up in silos with customers’ perspective distant and vague.
Customers however, see just one fuzzy thing:
their everyday contact with your business. We
call it experience. They call it your brand.
9. Service Design takes the point of view of your clients, while looking at the entire system.
Our goal is get rid of information silos or blind spots and find
the most important action points for greater customer value.
Providing a key perspective on your business
TOUCHPOINTSCUSTOMERS ORGANIZATION SUPPLIERS
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10. In practice: customer success
Janssen increased treatment efficacy by taking the point of
view of successful patients and designing new therapeutic
schemes based on their behavior.
This proved to be a successful new approach to
Hepatitis C treatment across Germany.
http://liveworkstudio.com/client-‐cases/janssen/ Photo: Jake Stimpson
A demanding treatment program for Hepatitis C was often
abandoned by patients, leading to high costs and low efficacy.
In fact, successful patients had significantly different coping
strategies -‐ as revealed by service designers of Livework through
in-‐depth design research. A new planning scheme and support
software were then developed on the basis of these insights, to
help doctors and patients alleviate the difficulties.
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11. Service Design works especially well for
Strong competition Complex environment
Unfamiliar target
Human factor
When engaging customers is key,
desirability and usability is not an
option any more. This is exactly
the focus of design.
Being clear about your service
ecosystem is crucial when your offering
is complex. We help you focus on what
really matters for your strategy.
Understanding behavior or challenges can
make you fail or succeed on a new market.
Designers test and iterate to reveal
problems and find the right fit.
We work with empathy and
diversity to create a culture
of innovation, engagement
and success.
12. Service Design is evidence-‐based,
business-‐focused
and collaborative.
“I have found design a more effective medium of communication,
persuasion and inspiration than words and numbers. […] Design
connects the dots for how we do anything, across all disciplines.”
— Scott Belsky, VP Products, Mobile and Community at Adobe
Offscreen magazine, Issue 10
13. Design is like blueprint, not facade
We always recommend putting service design at the beginning of the development process,
because it adds a new, human-‐centered perspective to various parts of the service ecosystem.
IDEATION
RESEARCH
PROTOTYPING
EVALUATION SPECIFICATIONS PRODUCTION MARKET
Icons designed by Freepik
14. A typical design process runs from research through concepts to testing and deployment.
Visual and tangible outputs of research and concepts are
easier to understand and more engaging than any study.
Fast and early testing eliminates tedious correction
rounds, significantly reducing administration and cost.
We like to talk to your people: involving
Marketing and Development in the design
process gives less chance to resistance.
Design is like blueprint, not facade
IDEATION
RESEARCH
PROTOTYPING
EVALUATION SPECIFICATIONS PRODUCTION MARKET
Icons designed by Freepik
15. Deliverables tailored to your needs
Discovery and mapping
• Experience mapping throughout processes
• Understanding customer or stakeholder journeys
• Clearer problem definition, deep understanding
of your service space and goals.
Concepting and co-‐creation
• Co-‐creation workshops with relevant stakeholders
• Building up and prioritising touchpoints
• Set what the customer should do, feel or
experience and iterate, if needed
Service prototyping
• Building or staging interactive, real-‐life models
• Collect relevant feedback on how the concept
would be understood, received or appreciated
• Fast, low-‐cost iterations for optimal results.
Implementation
• Service blueprints: full-‐detail service concept
from the perspective of customer and provider
• Stewarding: create a shared understanding to
support deployment or organisational change
16. Deliverables: example
This is a simple example of a Service Experience Map.
This high-‐level, yet rich tool visualises how a client moves
through a service space from awareness to engagement:
what they do, feel or need and how we can improve on this.
It is based on interview data and it is specific to types of
customers. It plots the company’s communication channels
and key points of interaction to increase performance.
Experience Maps are powerful tools to:
• gain an overall understanding of the customers’ side,
• communicate strategic goals throughout the company,
• identify critical points of action for a seamless
customer experience.
More tools: http://www.servicedesigntools.org/, http://thisisservicedesignthinking.com/, http://www.service-‐design-‐network.org/
Own example
17. “If a service is to ‘live’ in tune with our connected and demanding
lives, it must learn and change continually so that it can match our
needs seamlessly. […] The objective is to deliver an experience that
feels to the consumer as if it has correctly anticipated their intent.”
— FJORD / Accenture Digital
The Era of Living Services, FJORD, 2015
18. In practice: standing out
Mercedes-‐Benz boosted satisfaction, store visits and car
sales trough its outstanding after-‐sales service.
After-‐sales services are key to dealer profitability, but
competition is strong, pushing Mercedes to creating a truly
differentiating service that keeps customers around.
http://enginegroup.co.uk/work/mercedes-‐benz-‐premium-‐after-‐sales-‐service Photo: Ali Bin Dawood
Customer satisfaction was up by 50%
on pilot, store visits by 8,1% against a national decline
and sales benefited from increased engagement too.
Throughout a process of in-‐depth discovery and co-‐creative
concepting workshops with key stakeholders, service
design firm Engine outlined a strategic vision and a detailed
specification for a new, customer-‐centered service ecosystem.
Before global launch, a fully functional pilot was rolled out first.
19. Producing business benefits is a
key goal for designers.
“…design is a highly influential force that, when effectively
integrated with strategy, marketing, and so forth, can help the
company stay out in front of its competitors by staying close to
customers and commanding handsome price premiums.”
— Jeneanne Rae, CEO of Motiv Strategies in the Harvard Business Review
Design Can Drive Exceptional Returns for Shareholders, Harvard Business Review, April 2014
20. How exactly do we know it works?
Well-‐adapted performance indicators are key to assess the far-‐reaching impact of
design. Depending on the goals and scope of your service design project you may see:
• Sales and conversion metrics improved on new service online and offline;
• Customer satisfaction improved (﴾NPS)﴿; loyalty increased, more repeat customers;
• Employee satisfaction increased with more productive work or processes;
• Cost of service development, training or support significantly reduced;
• Service delivery and enabling internal processes becoming more efficient;
• Innovation and learning capacities fortified (﴾initiatives, spin-‐offs, IPs…)﴿;
• Synergies: more customer value generated on underused resources (﴾e.g. data pools)﴿.
21. In practice: sales growth
Recreating retail and product experience to adapt to a new
generation of customers created material growth for Amplifon.
Continuum, a global design and innovation firm revealed an
unmet need for empathy, trust and credibility on customers’
side. They identified opportunities and redesigned the service
ecosystem by setting these values relevant across a wide range of
touchpoints, from retail to the personalised hearing solution.
http://continuuminnovation.com/work/amplifon/ Photo: Petras Gagilas
Amplifon, a world leader of hearing systems, detected market
share loss caused by its ageing retail network and the tool’s
negative halo turning off younger customers.
Creating a “new dimension of sound” lead to a
20% increase in sales
in shops with the new system implemented.
22. Make a difference, start today.
Happy to hear from you:
Csilla Nárai
Send me an email
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