BA0377

SERVICE EXPERIENCE &

INNOVATION (SEI)
TOPIC 1 – Introduction to Service Experience
and Innovation

Service as the key driver of growth

SERVICE AS THE KEY
DRIVER OF GROWTH
 SERVICE CONTINUUM

Standardised Use of Goods Tangible

Custom
service
Experiential Good
“product”
Service Goods
Massage Credit Card Flights New Car
Swimming Rental Car
Lessons
“YOU’VE GOT TO
START WITH THE
CUSTOMER
EXPERIENCE AND
WORK BACK TO
THE TECHNOLOGY
– NOT THE OTHER
WAY AROUND.”
STEVE JOBS,
FORMER APPLE
CEO.
Producers of goods increasingly package
their products together with the service to
differentiate their offerings and create a
higher value for their customers.
 CUPPA COFFEE ANYONE?
• Buying a packet of instant coffee from the supermarket to
make at home. ($0.30 per cup)
• Takeout coffee from a food court ($0.80 per cup)
• Have a coffee with a friend in an urban café like Starbucks
($6 per cup)
• An expresso at the Ritz Carlton ($15 per cup)
 “WE’RE NOT
IN THE
COFFEE
BUSINESS –
WE’RE IN THE
EXPERIENCE
BUSINESS.”
HOWARD
SCHULTZ,
FOUNDER OF
STARBUCKS
 ORGANISATIONS EVERYWHERE
ARE UNDERGOING A RADICAL
PROCESS OF CHANGE RESULTING
FROM A SHIFT OF FOCUS FROM
PHYSICAL PRODUCTS TO
EXPERIENCES GENERATED FOR
CUSTOMER SERVICE.
RUNNING EXPERIENCE
RUNNING EXPERIENCE
RUNNING EXPERIENCE
RUNNING EXPERIENCE