• Lifehacker’s top 10 under-hyped web apps - a very useful list of and for #servicedesign! http://is.gd/3xcPE

• New #servicedesign blog post about the Palm Pre and choosing the right dance partner - http://is.gd/3pZRN
• Dan Brown’s “The Lost Symbol” on file-sharing sites within hours of release, >100K illegal downloads so far - http://is.gd/3pLtQ
• RT w # - just posted 3 new videos about various aspects of #servicedesign on our site. Enjoy! http://is.gd/3o6w0
• Just posted 3 new videos about various aspects of service design on our site. Enjoy! http://is.gd/3o6w0
• Blockbuster to close another 1,560 stores. Can you say “technology disruption?” Good service design predicts macro trajectories.

Today’s Wall Street Journal has an article entitled, “Palm’s Pre Smart Phone Fails to Stem Deep Losses.” The article goes on to describe the Palm’s quarterly loss has quadrupled since the launch of the much-touted Pre on June 6. Revenues are down, profits are down.

But how much of this is attributed to the phone itself, which has been lauded as an “iPhone killer,” versus the partner that Palm chose to dance with on the network provider side? This is a classic case service design example of the symbiotic relationship between products and services. From our vantage point, Palm’s problem is not the Pre product, but the Sprint Nextel network, which is suffering from massive customer flight due to spotty coverage, dropped calls and bad customer service.

As a long-time (and happy) Verizon customer, I have been jonesing for the Palm Pre ever since I saw it in Las Vegas last January at the Consumer Electronics Show. Add into the mix that I am also a long-time (and happy) Palm Inc, customer who started on the old Palm Pilot handheld organizer, moved up into the Treo family of smartphones and is now happily using a Palm Centro. And even though I’m happy I STILL want a Pre. But I will not buy it until Verizon has it. (This is probably also the number one reason I don’t have an iPhone - even though I am Mac everywhere else in my life - you can only get an iPhone via AT&T, another inferior network to Verizon.)

Call me old fashioned, or just call me loyal. But Verizon has always done right be me when it comes to mobile communications and that service relationship is the stake in the ground around which my product decisions are made. This is a key insight of service design that product folks often don’t get: it’s more about the service “eco-system” than it is about individual features of a product.

When is this insanity going to stop? Imagine if you bought a Chevrolet and you could only put Sunoco gas into it. In Europe, the phone networks are independent of the handsets so that consumers are free to combine their favorites. Until the U.S. adopts the same model,  I just have to hope that Palm hangs in there long enough for me to get a Pre on the Verizon network. Please, Santa…

09/11/2009 - Facebook gets service design. See our new blog post here

09/10/2009 - Consumerist: Delta Airlines now has no customer complaint phone line - only their website. Really Delta? REALLY?

09/08/2009 - Great article on Zappos - a poster child of service design - in the New Yorker

• Facebook gets service design. See our new blog post here - http://is.gd/39mIb
• Consumerist: Delta Airlines now has no customer complaint phone line - only their website. Really Delta? REALLY? http://is.gd/36R6V
• Great article on Zappos - a poster child of service design - in the New Yorker - http://is.gd/34ZJI.

A critical part of the service design process is putting into place feedback loops which enable your customer to let you know how you’re doing. This is a delicate matter because you want to do it without disrupting the customer experience. That’s why we applaud Facebook and the way they’ve incorporated a simple feedback loop into their advertising.

Did you ever notice the little “x” at the top corner of a Facebook ad? I kept seeing these annoying ads for “Mafia Wars,” a Facebook game that appears to be wildly popular with others. Out of curiosity I clicked on the “x” up in the corner of the ad, having been conditioned over the years to know that clicking on an “x” makes things go away. That feature is standard user interface component for applications, or a way to get rid of an intrusive “overlay” ad that hides content below it.

In this case, the ad on Facebook was on the side of the page just sitting there. And being able to hit the “x” to just make it go away is a great idea. But before the ad goes away, Facebook solicits your feedback by asking “Why don’t you want to see this ad?” Your options are misleading, offensive, uninteresting, irrelevant, repetitive or other (in which case a text box pops up for your custom input.)

After making a selection, you see “Thanks for your feedback. Over time, this information helps us deliver more relevant ads to our users.”

There’s also the famous “thumbs up” logo at the bottom of the ad to show that you like the ad. (It would be interesting to see a breakdown of how many people click the “thumbs up” versus the “x” - and why.)

This is such a simple, yet powerful tool. Why don’t other websites integrate this feedback feature into their online advertising? The whole point of the web is that is interactive. “Ask and ye shall receive,” right? We all know that ads are the currency of the realm when it comes to delivering content. So why not do everything you can to get feedback from viewers as to what they like or don’t like, and why?

Smart move Facebook, and a great example of a powerful feedback loop for service design!

09/03/2009 - WSJ reports Southwest Airlines is adding a $10 priority boarding charge - could boost revenue by $250MM per year.

09/03/2009 - WSJ: airlines are upgrading food they sell on board. Suprise! Better quality means more sales. Don’t take captive customers for granted!

09/01/2009 - Wow! Our client, AnySource Media acquired by public company DivX - a great strategic fit!

08/26/2009 - Service design at Wal-Mart: offering a bill-pay service for customers who do not use traditional checking accounts

08/26/2009 - Grant-Thornton study says up to 10,000 retail stores will close nationwide this year, double from 2008

08/25/2009 - Fascinating article about Craigslist on Wired.com

08/25/2009 - Best stat: Craigslist gets more traffic than eBay (w 16,000+ employees) or Amazon (with 20,000+.) Craigslist has 30 employees.

08/24/2009 - Researchers estimate that 25% of dishes billed as “grouper” at restaurants is actually lower-priced “catfish”

08/24/2009 - San Francisco museum uses service design to lure patrons and generate entirely new revenue…

08/20/2009 - Enhancing the live sports experience with high-fidelity, realtime audio commentary….

08/20/2009 - Great Andy Kessler piecs on “Why AT&T Killed Google Voice”

08/20/2009 - Bought a $59 refurb TomTom GPS - celeb voice directions sell for $12.99 - John Cleese, Dennis Hopper, etc. Profit lies in enhancements!

08/18/2009 - Great, simple overview of the healthcare debate in the U.S.

08/06/2009 - Excellent tip for business… @andrewbaron Great story on why Van Halen insisted on the removal of all Brown M&Ms

08/05/2009 - Great overview of the NetFlix’ approach to company culture…