Session 1

Executive Summary:
Customer Experience Design
Monday, 11 April 2016

Iwan Setiawan
WHY

WHAT

HOW
Service in Business

Nobody doubts the

importance of service
quality for company’s
business growth, especially
in a highly competitive
market
 The Shifting Customer Path in a Connected World

Connectivity Era Era

Pre-Connectivity

Aware AppealAttitude Ask Act Advocate

Act Again
Key Customer
Impression

I’m
I Know I Like I’m Buying I Recommend
Convinced
The Needs of Customer Experience

Customer experience decision

makers say that a good
90% experience is critical to their
success

Think the importance

of customer
experience has risen
63%
The Importance of Customer Experience

“The rapid rise of social media and growth of digital

customer interactions allow reports of both positive
and negative encounters experience to be
spread to millions in minutes”
(McKinsey)
Innovative
Customer Experiences
Urgency
“Any industry can sustain 1 or 2 players that tackle
commoditization by cutting cost. The rest need
something more and experiences are what come
naturally after goods and services.”
(Harvard Business Review)
Service Failure Affects Not Only The Loss of Existing
Customers, but also Potential Customers

News of bad customer service reaches more than twice as many ears as praise for a
good service experience.

Source: White House Office of Consumer Affairs

 The Cost of Service Failure: Negative Advocacy

DinnersFromHell.com is a blog that TripAdvisor allows its members to review

reviews restaurants that create horror hotels and give rating for their experiences
stories to their customers because of in the hotels. Bad reviews will lower their
terrible services or meals presented. overall ratings in the most visited hotel
reviews website in the world.
WHY

WHAT

HOW
Service Blueprint
To guide the every performance precisely, you need to know what customers
want and need.

We can use systematic tool, Customer Experience Blueprinting, to map the

whole performance on journeys and improve customer interface.
 Element of Service Blueprint

PHYSICAL
PROCESS
EVIDENCE
PERSONALIZATION SERVICES COLLABORATION

PEOPLE
Tools to Improve Customer Interface
Visualization of service delivery, identifying points where failures
Blueprinting are most likely to occur

Components of Service Blueprint

1 Customer Action
Identify main customer activities

2 Desired Experience
Identify customer experiences
Front
Stage
Physical Evidence
3 Specify physical evidence

4 Line of Interaction

Contact Person* “Visible Actions

5
Frontstage actions by customer-contact personnel

6 Line of Visibility
Contact Person* “Invisible Actions
7
Back Backstage actions by customer-contact personnel
Stage
8 Line of Internal Physical Interaction
Support Activities
9 Support processes involving other service personnel
Tools to Improve Customer Interface
Visualization of service delivery, identifying points where failures
Blueprinting are most likely to occur
STEPS in Blueprinting
• Identify key activities in creating
and delivering service
• Define big picture and drill
down to obtain a higher level of
detail
ADVANTAGES in Blueprinting
• Distinguish between “front-stage”
and “back-stage”
• Clarify interactions between
customers and staff, and support
by backstage activities and systems
• Identify potential fail points; take
preventive measures; prepare
contingency
• Pinpoint stages in the process where
customer commonly have to wait
(wait points)
Advancing The Customer Experience

“A growing majority of executives, nearly half,

said customer experience must be a strategic priority.”
(Survey 2014 by Harvard Business Review Analytic Services )

But what ensures success of the customer experience?

Advancing The Customer Experience
Answer according to Harvard Business Review
‘Advancing The Customer Experience’:

To have impact,
customer experience strategy must be
embedded in organizational culture.

To ground it in the company culture,

business should develop
precise & meaningful principles to guide
everything from investments to frontline
Creating Wow Service Value

H2H
H2H
WOW!
3.0
B2C
B2C
AHA!
2.0
B2B
B2B
OK!
1.0
Service Management Imperative

Company Initiatives Customer Insights

1
SOP Emphasize on
Needs
Standard Operating Service Product and Wants
Procedure Management

2
Emphasize on
SBP Service Process Expectations
Service Blue Print and Perceptions
Management

3
VBP Emphasize on
Anxieties
Values Based Service People and Desires
Principle Management
WHY

WHAT

HOW
 Blueprinting Service Process

1
Customer Scenario Check
Mapping Customer Register for Wait for
doctor’s
Action consultation consultation
schedule
2 Customer Nurse greet
Identify Key Frustation Employee
Point Actions service input customer and
Front Face-to-face customer’s ask customer
Identify critical point that have: stage data to wait
- Potential failure
- Potential waiting Customer
Phone service give
- Non-value adding activities Contact information
on schedule
3
Identify Areas of
Improvement Customer
Back data goes to
Type of improvements: stage the doctor
- Improve speeds
Check Input
- Eliminate failure
schedule data
- Customize service
 Customer Scenario
Mapping
First Layer – Mapping Customer Actions
First Layer
Customer Actions
Customer actions in this scenario. Remember
typical customer behavior flow:
• Awareness Customer Customer
• Pay Attention to info provided by company Action 1 Action 2 Face-to-Face

• Search info by himself or contact company Moment

of Truth
• Transaction
• After Sales (Expect great service)

Gather Evaluate Consult with Conduct Receive the

information alternative sales person transaction product

Customer
 Customer Scenario
Mapping
Second Layer – Mapping Customer Desires
Second Layer
Customer Desired Experience Customer Customer
Action 1 Action 2
Customers have a specific expectation during
service process
- Defining the outcome statement (what I want.. I want..
customer expect; ‘I want’) • Expectation 1 • Expectation 1 Face-to-Face
• Expectation 2 • Expectation 2
- Insist on mapping ideal state; not current state Moment
of Truth
- Map FIRST Layer completely along with
moment of truth

Gather Evaluate Consult with Conduct Receive the

information alternative sales person transaction product

I want to get I want to be able I want to be sure

I want to be sure
I want to get detailed to get feedback that i have
that i receive the
information from information on and input from a consider all
best quality
credible source specification and knowledgable alternatives.
product as i was
that i can trust price of all sales person I want a simple
Customer informed before
alternatives before I decide buying process
 Customer Scenario
Mapping
Second Layer – Mapping Customer Desires
Third Layer Physical Physical
Employee Activities to Fulfill Expectation Evidence Evidence

What company must prepare to fulfill

Frontliner.. Frontliner..
expectation: • Activity 1 • Activity 1
- Physical evidence of the service process • Activity 2 • Activity 2 Face-to-Face
- Front-stage activities by front liner personnel Moment
Support Support of Truth
- Back-stage activities to support the service Company
Process Process
process

Gather Evaluate Consult with Conduct Receive the

information alternative sales person transaction product

I want to get I want to be able I want to be sure

I want to be sure
I want to get detailed to get feedback that i have
that i receive the
information from information on and input from a consider all
best quality
credible source specification and knowledgable alternatives.
product as i was
that i can trust price of all sales person I want a simple
Customer informed before
alternatives before I decide buying process

Brochure, website Brochure, website Uniformed sales Brochures Manual book,

person, name tag warranty card

Sales person Sales person Sales person

show deep convince the check the product
understanding on customer about quality and show
the product and product benefit how to use the
its competitors product
Company
Update brochure Update brochure Update Product Update Product Update Warranty
& website & website database database database
 Identify Key
Frustation Point
Key Frustration Point
Key Frustation Point – The sales officer is…
– I’m tired with…
Identify Critical Points or problems that may – I don’t have enough time to..
occur in each process of the service encounter to – I don’t understand the product
ensure service quality. – The interest rate is..
Customer might frustrate with these – The service is… The response is…
things: – The procedure is… It’s hard to find…
- Sales officer
- Call centre/telemarketing
- Waiting time
- Product information
- Limited access
- Branch Location Critical Points = Fail Points
- Administration cost
- Interest Rate Risks that may give negative impact
- Aftersales service on service quality
- Procedure
Processes where there are a possible
- Slow response
delay or failure
 Identify Key
Frustation Point
Key Frustration Point - Failure Proofing

Collect information from customers, front-liners, suppliers,

Collect and other sources related to service delivery

Analyze and clasify the critical points based on type of failure

Analyze and the frequency

Prioritize the critical points based on its significance to

Prioritize overall service quality and the probability that the
problem occurs again in the future

Action Design plan to eliminate failures and implement the plan

 Identify Key
Frustation Point
Key Frustration Point
Identify Waiting and Failure Points

W
Gather Evaluate Consult with Conduct Receive the
information alternative sales person transaction product

I want to get I want to be able I want to be sure

I want to be sure
I want to get detailed to get feedback that i have
that i receive the
information from information on and input from a consider all
best quality
credible source specification and knowledgable alternatives.
product as i was
that i can trust price of all sales person I want a simple
Customer informed before
alternatives before I decide buying process

Brochure, website Brochure, website Uniformed sales Brochures Manual book,

person, name tag warranty card

Sales person F Sales person F Sales person

show deep convince the check the product
understanding on customer about quality and show
the product and product benefit how to use the
its competitors product
Company
Update brochure Updatebrochure Update Product Update Product Update Warranty
& website & website database database database

Risk of Excessive Wait

W

F Failure points
Service Blueprinting Exercise - Simplified

Customer
Behavior

Key Frustration Point

Desired
Experience

Interaction with
Company

Opportunity for
Differentiation
Integrating Service Blueprint and Service Value

Customer
Behavior

Key Frustration Point

Desired
Shared Experience
Values
Common
Behavior Interaction with
Company

Opportunity for
Differentiation
Integrating “PRIMA” to Service Blueprint
SERVICE REFLECTED IN
FINDINGS VALUES TACTICAL PROGRAMS THROUGH:
PEDULI

P
Empathy level of employees need to be
PHYSICAL EVIDENCE
improved
Service layout and facility
support improvement
RINGKAS CHARACTER
Front office and back office process are very
complicated R
PROCESS
INTERAKTIF
Business process
improvement to upgrade
There are still limitation of existing touch
I
WORK
service quality
point and lack of technology use ETHICS

MODERN
PEOPLE
Service office must sharply reduce their
traditional bureaucratic process.
M COMPANY
Employee training and
development to apply
service values (PRIMA) in
VALUES service blueprint.
AKTIF

A
Less active employees resulting in lack of
product and service knowledge
CEPAT, AKURAT, RAMAH, AKSESIBILITAS
Service Process Redesign

WHY Service Needs to be REDESIGNED? Expected Outcome

Changes in external environment Increased customer
• Changes make existing practices obsolete satisfaction
• Service firm needs to create new processes to stay
relevant

Rusting occurs internally

Improved productivity
• Natural deterioration of internal processes; creeping
bureaucracy; evolution of spurious, unofficial standards
• Symptoms:
‒ Extensive information exchange
‒ Data that is not useful Reduced number of
‒ High ratio of checking or control activities to value-
service failures
adding activities
‒ Increased exception processing
‒ Customer complaints about inconvenient and
unnecessary procedures

Reduced cycle time

Redesigned revitalizes process that has become outdated

Types of Redesign

• Improve efficiency, speed

Elimination of • Requires customer education
Streamlines • Separate service activation from
non-value- process
and employee training
delivery
added steps • Customizes service

• Must prepare customers for • Increase speed of service

Customer assumes
the role • Improves access
Self-service role of producer
• Harder to build relationship • Saves money
and get feedback • Increases perception of control

Service delivered to • Imposes logistical burdens

• Increase convenience
Direct service the customer’s • May be costly
• Improves access
location • Needs credibility and trust

Bundled service • Requires knowledge of

(combines multiple targeted customers • Increase convenience
Bundled service services into a • May be perceived as • Customizes service
package wastefull

Manipulation of
• Increase convenience
tangibles
Physical service associated with the
• Enhances function
• Generates interest
service