Why are businesses now asking for service design?
Part one in: Mastering the Journey from Product Design to Service Design
In today’s rapidly evolving business landscape, companies are increasingly recognising the value of service design. They seek out professionals in this field to address internal obstacles in processes and technology to adapt to the shifting demands of customers who prioritise service outcomes. Let’s explore some of the key factors driving businesses’ interest in acquiring service design expertise.
Shifting Customer Expectations
The main reason businesses are looking into service design now is because customer expectations have really changed. I have observed over my 22 years working in a product and service design studios, customers want more than just products that work well; they’re after smooth, personalised, and meaningful experiences. They want connected online and offline services that meet their needs right away and also give them lasting value, emotional connections, and unforgettable moments.
A frequent issue I encounter with clients is their tendency to overlook the complete brand experience or end-to-end service. They often make decisions favouring short-term solutions, leading to subpar experiences across technological platforms and departmental procedures because of legacy constraints.
73% of customers point to experience as an important factor in their purchasing decisions*
Businesses who want to retain customers, attract new ones, and surpass the competition, they must exceed customer expectations. This is where service design comes into play. The practice puts the focus on customers and assists businesses in identifying their preferences, pain points, and true desires in the entire service journey.
Creating Differentiation and Competitive Advantage
In crazy competitive markets, businesses are constantly looking for ways to be different and rise above the rest. Service design is an awesome tool for that, giving them an edge over their rivals. By crafting fantastic service experiences, businesses can build a solid reputation and keep customers coming back for more.
Service design helps business understand how customers are interacting with their brand touch points and how they think and feel about them from start to finish. For a business to succeed, they've gotta get what their customers need and make sure they deliver on it on every interaction.
By focusing on service experiences, businesses can build strong emotional connections with their customers and create lasting relationships.
Customer-Centric Business Approach
Service design is all about putting customers first and realising that a successful business exceed customer needs. By using service design principles, businesses can shift from just focusing on products to really emphasising the whole service experience.
Customer-centric companies are 60% more profitable than companies that don’t focus on customers.**
Service design helps businesses get to know their customers super well through research and methods that put users at the centre. It gets businesses to involve customers in the design process, work together to create solutions, and keep making improvements based on feedback. This customer-focused approach makes sure businesses design services that really click with their audience, leading to happier customers, more loyalty, and people spreading the word about how great the business is.
Designing for the Entire Service Ecosystem
Another reason businesses are all about service design is that they know products are just one part of a bigger service ecosystem. This ecosystem has lots of touch points, interactions, and stakeholders that shape the whole service experience. Businesses get that to design amazing services, they need to think about the whole ecosystem and make sure everything works well together across different channels and platforms.
Service design gives businesses the tools and methods to map out the customer journey, find pain points, and create smooth interactions throughout the entire ecosystem. By focusing on the whole service journey, businesses can make sure everything’s consistent, makes sense, and gives customers a unified brand experience across all touch points. This big-picture approach makes customers happier and helps businesses stand out with a unique and unforgettable service experience.
Driving Innovation and Business Growth
Service design and innovation help drive business growth. Undertaking a service design program can help discover and encourage businesses to think outside the box and focus on people when solving problems, which leads to groundbreaking innovations and better customer experiences.
Innovating through service design can create new products, services, or even business models that open up fresh markets and bring in more money. Businesses that get on board with service design can stay ahead of the game, predict what customers want, and change their offerings to keep up with the market. Being agile and innovative like this helps businesses grow and maintain a competitive edge.
Employee Engagement and Internal Alignment
Service design is also great for breaking down barriers between different departments, like marketing, operations, and customer support. It gets everyone working together to design services that meet both business goals and customer needs. This teamwork leads to a shared vision, better communication, and a united approach to delivering top-notch service experiences.
Companies that excel at customer experience have 1.5 times more engaged employees than less customer-focused companies.**
Conclusion
So, businesses are really into service design these days because it helps them keep up with changing customer expectations, stand out from competitors, focus on customers, look at the big picture, drive innovation and growth, and engage employees and align teams. By using service design, businesses can create awesome service experiences that click with customers, set themselves apart, and achieve long-term success.
Embracing service design isn’t just a smart move; it’s a game-changing journey that helps businesses succeed in a world that’s all about services.
In summary
- Service design is increasingly recognised as valuable in addressing internal challenges and adapting to changing customer expectations.
- It prioritises customers, identifies their preferences and pain points, and creates personalised experiences.
- Service design helps businesses differentiate themselves from competitors, consider the entire service ecosystem, drive innovation and growth, and engage employees and align teams.
- By using service design principles, businesses can exceed customer expectations, build emotional connections, and create lasting relationships.
- Service design involves a customer-centric approach that emphasises the whole service experience and breaks down departmental barriers.
- Embracing service design is a game-changing journey towards long-term success in a service-focused world.
