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Estimating the true business impact and ROI of service design

Service design is one of many buzzwords making its way into the business world. what is that? How and why should we care about it or know about it?

Service design is the planning and organization of the people, infrastructure, communications and material components of any service (digital or physical) to ensure its quality and effectiveness for the service provider, its internal stakeholders and its end users/customers. is to improve the interaction between

Service design is not 100% digital. However, digital can cover most of the disconnects, challenges, touchpoints and features that services face. And also because in today’s world services and their aspects are largely digital. So while service design is not about digital, it is important to accept that digital is becoming an increasingly common differentiator in today’s world as digital is fast becoming a common playfield for all organizations. is.

If your organization has been moving in the direction of digital transformation and UX in the last five years, you have unwittingly become a conduit to service design.

How will you measure the success of your service design initiative?
Correctly implemented service design has many long-term implications for business operations. It is supposed to improve the brand’s customer experience and the success of its products and services while making them more customer-centric and future-proof.

Any service design project or initiative can be measured by focusing on the right factors, metrics and company business goals.

What are those factors/indicators?
CES (Customer Effort Score) – The most common metric indicates the level of effort a consumer puts into purchasing, accessing, or performing a service.
CTS (cost to serve) – Costs associated with serving customers as an organization.
CSAT (Customer Satisfaction) – A measure of customer satisfaction with the service.
CLV (Customer Life Value) – The value of a customer relationship over the entire engagement lifecycle.

These are just some of the indicators. Others include adoption rate, conversion rate, and overall business growth. However, all these metrics are only optional. No two organizations are the same, so there is no one size fits all solution for measuring success. The key is to choose the metric that best meets your business requirements and set your project goals.

What are the tangible benefits that make service design a worthwhile investment for today’s organizations?
It helps businesses gain a 360-degree view by bringing their products and services into today’s experience economy. Structurally, any service design initiative forces you to take a holistic approach to your product or service. Considering the holistic user experience across the various channels and touchpoints your service traverses makes this possible. Internally, this helps organizations break down silos between teams and departments, increasing efficiency in delivering services. At the same time, externally, it provides a customer experience that has a positive impact on your brand.

The market focus has shifted from product capabilities driven by the post-industrial era to today’s experience economy era where mere products and services are not enough. Customers pay, spend time, care, and exchange data, votes, permissions, information and other things of value. Customers want organizations to jointly create value for them by helping them and solving their problems. / tasks, or by realizing their goals. And while that’s happening and being taken for granted, they’re committed to delivering experiences that organizations meet or exceed expectations, fit into their lives, and meet their emotional needs. I am looking forward to

A service design initiative provides a means for an organization to address all these aspects of a product or service by looking at it in a 360-degree view. Put people (including customers) at the center of your organization.

A truly successful customer experience can only be created in a truly customer-centric company where service design as a philosophy is fundamental to their day-to-day operations. A recent study by Deloitte showed that customer-centric companies are 60% more profitable than him.

Service design encourages brands to involve their customers in the product development process and consider their operation through service design methods. Many companies claim to be customer-centric while producing products and services in an enterprise-oriented manner. They get so caught up in their ways that they can’t see themselves through the eyes of an outsider. They develop and launch new products or services after only brainstorming and internal testing, but customers or end-users are never allowed to participate in the development process so that the product or service is You can see that it is not gaining momentum. You can be customer-centric if you welcome customer feedback and take it into account at all stages of development. So the product/service never meets the real need and the demand remains low. Service design improves loyalty, quality, and effectiveness, which in turn improves the bottom line of your business.

Post-pandemic, the market is changing rapidly and it is necessary to anticipate future product and service development trends. All metrics and measurement methods embedded in service design initiatives enable organizations to ensure a culture of change and help businesses meet the current and future needs of their customers.

Service design can be used not only to meet customer needs, but also to create innovations, new products, and new services that require bolder moves and bolder visions of the future. Service design helps organizations gain a competitive advantage.

Service design helps brands
• To ensure uniform quality of service across channels
• See things from the customer’s point of view.
• Understand customer needs and identify customer journeys as early as possible, before disruptions occur

Service design should be deeply integrated into the core thinking of the organization. It’s always cheaper to break down silos and know before it’s too late.

Amol Kadam is the co-founder and CEO of Red Blue Blur Ideas (RBBi).

https://gulfbusiness.com/estimating-the-true-impact-and-roi-of-service-design-on-business/ Estimating the true business impact and ROI of service design

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