Services BP & SQ PT@19

https://youtu.be/xfPuQLbnsu8

1 - Cost & Value (worth) are different things!

SD Logic of Marketing
 https://youtu.be/tOVBSdqSk1Q

• Axiom1.FP1 . Service is the fundamental basis of exchange.

• FP2 . Indirect exchange masks the fundamental basis of exchange.

• FP3 . Goods are a distribution mechanism for service provision.

• FP4 . Operant resources are the fundamental source of strategic benefit.

• FP5 . All economies are service economies.

• Axiom2.FP6 . Value is cocreated by multiple actors,always including the beneficiary.

• FP7 . Actors cannot deliver value but can participate in the creation and offering of value
propositions.

• FP8A . service-centered view is inherently beneficiary oriented and relational.

• Axiom.3FP9 . All social and economic actors are resource integrators.

• Axiom4.FP10 . Value is always uniquely and phenomenologically determined by the beneficiary.

 • Axiom5.FP11 . Value cocreation is coordinated through actor-generated institutions and
institutional arrangements.

Axioms and Foundational Premises (FPs) of S-D Logic1 (Click on the link)

Mr. Bishop (IBM) identifies three fundamental shifts in marketing that can be summarized as (1)
knowing what to market, (2) knowing who to market to, and (3) doing that in a co-created way in an
environment where you know each customer as an individual in context using your entire organization,
not just your marketing department!

https://youtu.be/mExb4CdaS7g

Service Blueprint Readings

Must Read

• How to develop Service Blueprint to standardize service experience 2? (HBR Classic)

• Five steps of building a service blue print 3

Optional reading

1 https://www.researchgate.net/publication/282540931_Institutions_and_axioms_an_extension_and_update_of_s

ervice-dominant_logic
2 https://strategicdesignthinking.files.wordpress.com/2012/11/hbr -shostackpdf.pdf
3 https://www.nngroup.com/articles/5-steps-service-blueprinting/
 • Why care about Consumption experience 4 ? What is customer Journey map 5?

Service Blueprint vs. Consumers Journey

• Why care about Consumption experience?

• How to develop Service Blueprint to standardise service experience?

• How to Utilities of Gaps Model to improve service Quality?

https://youtu.be/bCRBaD2_dCQ

4 https://s3.amazonaws.com/academia.edu.documents/35132402/FINAL_HBR_Understanding_Customer_Experien

ce.pdf?response-content-disposition=inline%3B filename%3DUnderstanding_Customer_Experience.pdf&X -Amz-

Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIAIWOWYYGZ2Y53UL3A%2F20190623%2Fus -east-
1%2Fs3%2Faws4_request&X-Amz-Date=20190623T141746Z&X-Amz-Expires=3600&X-Amz-
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Signature=e66ccee8740886a0214be255c366615816ca28f97b610792bcc4f9c45c04877c
5 https://hbr.org/2010/11/using-customer-journey-maps-to
Blueprint of Bank Operation

– What’s Missing

Building Service Blue Print

Service Gaps Model

SERVQUAL scale

• Reliability—The ability to perform the promised service dependably and accurately.

• Responsiveness—The willingness to help customers and provide prompt service.

• Assurance—The knowledge and courtesy of employees and their ability to convey trust and
confidence.

• Empathy—The provision of caring, individualized attention to customers.

• Tangibles—The appearance of physical facilities, equipment, staff, and communication

materials.

How relevant are these elements you?

Service Recovery
ARFFD model for Great Service Recoveries

1. Apologize and ask for forgiveness (rather than avoiding the core issue): A real and sincere apology,
not a fake.

2. Review the complaint with your customer: turn your customers, into your customer service
consultants, i.e. in customer’s view what you should do to fix it.

3. Fix the problem and then follow up: Either fix the issue ASAP or follow up at regular intervals to
explain to the customer on the progress you have made.

4. Document the problem in detail to allow you to permanently fix the defect by identifying trends.

Parting AV

https://youtu.be/vWLcyFtni6U

Graded quiz on or 6th Session