A Guide to Understanding Service Design

Confused about what service design actually is? The text below will help clear that up for you!

The economy makes a clear distinction between services and goods in theory. Services are exchanges that do not result in ownership. The company provides a service for a client, and the company gets paid in return.

When we’re talking about goods, they are consumable. Therefore, they end in the client having ownership over an item. However, we are living in a day and age when this traditional theory is not suitable anymore. The reason being that these two terms are now widely different.

That’s why every business in the world needs to use service design to bring their services closer to potential clients. The answer to these problems lies in service design.

For this reason, hiring a service design agency became a necessity these days. Otherwise, businesses cannot hope to stay competitive in their respective industry. Now, let’s take a look at what we know about this term and what are benefits it can provide you.

What Does Service Design Mean?

UX designer desk

Service design is a term created by Lynn Shostack back in the early eighties. There are many definitions of this term, but none of them is considered definite. Despite how it may look, this is an advantage because it provides a chance of constantly evolving.

It can adapt to all the particular needs whenever needed. Because of this flexibility, we can see that there are now numerous terms that expand the original meaning of design as a term. However, all the experts in this field agree that service design improves service efficiency and operability.

It encompasses a wide array of different factors like graphic design, web design, business departments, and many other to create a new approach. As we’ve said, the concept of services is not the same as it used to be. From startups to multi-billion companies, they all need it.

The General Principles

To bring you closer to the idea behind this concept, we would like to guide you through the general principles.

1. Focus on Customer Needs

UX designer working

In most cases, business owners will follow their instinct and focus only on the company’s needs. However, service design requires a different approach. For design to be as successful as it can be, it needs to consider customer needs.

It is crucial for small businesses that try to attract new clients. Also, we can see that many organizations tend to opt for an automated process. Sadly, this will not end in the way they initially thought. In a survey conducted by Blue Corona, 48% of participants stated that they consider a website’s design crucial for determining a business’s credibility.

2. Set Realistic Goals

The next crucial principle is to have realistic expectations. To be precise, having an achievable goal is an absolute must. For instance, if the existing customer wants to cancel the account, the process should be as simple as it can be.

Otherwise, the business is at risk of damaging its status, which leads to a bad reputation. Ultimately it leads to the loss of clients, which you certainly don’t want to happen. So, make all the processes simple, and you will reap significant benefits.

3. Focus on End Experience

Person testing UX prototype

It’s common to see that businesses want to provide a complete experience to their customers. However, this is not an easy thing to do. There are many different factors to take into consideration, which is not always easy. Instead of providing the complete procedure, you should focus on the end experience.

Why should you focus on the end? Well, the explanation is simple. Customers are much more likely to remember what has happened to them recently than at the beginning of the process. With this approach, the procedure will end with a positive customer experience.

The Benefits of Service Design

Understanding the business value of service design is crucial. That’s why we will provide you with some benefits you can reap from this method.

1. Future Success

Coworkers high fiving

A lot of companies test their products and services internally before they launch them. However, this doesn’t provide the right picture. It’s not uncommon that the product or service proves surplus to requirements customers have.

By implementing a service design approach, companies will have a much better idea about what their services lack. When the team responsible for this part of the work understands the concept, the business will be much more efficient with the products and services they release in the future.

2. Different Perspectives

By having an insight into the customer’s needs, the company has a whole new perspective on their product or service. Furthermore, this is a great starting point for innovations and future growth. Above all, the business will have a much easier time identifying the opportunities that emerge on the market.

3. Distancing From the Competition

Chart close up on desk

According to McKinsey, companies who combine design and data record between 10% and 30% improvement in their performance.

By using service design, companies will establish unique selling propositions that will make them different from the competition.

Not only that, there is a chance this approach can help with attracting new clients. Different client groups have different needs and preferences. It all revolves around the research and competence of the staff to make the most of this knowledge.

The Conclusion

The interest in service design has skyrocketed in the last decade. Still, many companies don’t understand the importance of this approach. Here, you can take a look at some crucial points that will help you understand it completely.

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Published on July 26, 2021 by Peter Hughes. Filed under: , , .

Peter Hughes is a digital marketing consultant and author. Peter has more than 10 years of experience in SEO and Internet marketing.

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