Too often in this nascent industry called “service design,” practitioners, students, professors and pundits seem to love to endlessly debate the meaning of “service design.” Invariably, the definitions become long, complex and too abstract for most outsiders.

As I was thinking about a way to describe service design in simple terms – to prospective clients, friends, neighbors, etc – it hit me like a ton of bricks:
Service design is about asking, “How can I help?”

- How can I help make your flight better, less stressful, more meaningful, more fun, etc?
- How can I help you do business with me more efficiently?
- How can I help you in your time of need, (death, sickness, job loss, etc) as it relates to the service(s) I normally provide you?
- How can I help you get the information you need quickly?

But the key is in asking the question with a pure heart, as in, “How can I help you?” as opposed to “How can I help you help me make more money?” The fact is that if you truly add value – if you really help – then the money will naturally follow.

Sometimes, the help that a customer wants or needs is adjunct to your core business. Sometimes it logically comes before or after your typical point of engagement with that customer. And therein lies the opportunity to not only help, but to also create new revenue opportunities for your business.

In the end, if people would embrace this core idea of “how can I help” then the world of business – and the world in general – would be a far better place.

So… how can I help you?

How much time and effort does it take to go out and talk to your customers? I’m not talking about calling them on the phone. I’m talking about going out to where they work, live or play to engage in a meaningful conversation with them. To observe their surroundings; to see what they see and to feel what they feel.

Here’s a better question: what does it cost if you don’t talk with your customers?

In the case of the U.S. government and the Homeland Security Administration, one recent failed project has cost the U.S. taxpayers over $2 billion USD. Why? Because in the rush to get the project done, no one ever thought to go ask the people on the ground – the ultimate end-user or REAL customer – what they wanted or needed. No one put on their boots and suntan lotion to actually go out into the desert to see what people actually needed to do their job more effectively. Amazingly, this happens every day in business – from small projects to large, from new brand launches to roll-outs of massive software systems. Watch the brief video excerpt from 60 Minutes below to learn more…

I have been a big fan of Tom Peters for years. His books and speeches have had a big influence on how I have built my companies, and how I serve my clients. Peters recently posted what I thought was a profound yet very simple idea, of which I have reprinted a small excerpt below:

*****
That is “service”—WITHOUT MODIFIERS—is a sacred word.
To “be of service” is the highest aspiration possible.
To have “been of service” is the highest tribute possible.
*****

So true. This is what service design is about; helping companies to “be of service” that really matters to their customers.

Wawa is a very successful chain of convenience stores located in the Philadelphia area which has expanded into a number of states in the Mid-Atlantic region. Wawa has a great partnership with PNC Bank, wherein PNC runs the ATM network inside all Wawa stores. For years they’ve had “no charge” ATM fees for Wawa customers, so regardless of who your bank is, there is no charge for using the ATM. (Of course, this helps drive traffic to the store – get some cash, and while you’re there, grab a hoagie.)

There’s a great user interface feature on the PNC ATMs that I’ve never seen on any other network. Once you do a transaction, the ATM will ask you if you’d like them to remember this as your preference for the future. What PNC has realized is that when most people go to the ATM, they get the same amount of money every time. Whether that’s $40, $100, $150, chances are that you’re plugging in those same numbers each time.

To speed the process, they simply ask you: “We notice that you just plugged in $100; would you like this to be your default amount for future transactions“? If you say yes, then it’s all set up. Right now. I basically slide my card in, put in my pin number, and it comes up and prompts me: “default amount” or “other”? I press one button and am done. And by the way, that also includes language preference. Most ATM machines now prompt for multiple languages but again, why confirm your language preference for every ATM transaction?

Small steps, yet so simple and so brilliantly executed that you have to wonder why every ATM doesn’t do it. Kudos to PNC!

Think about this today: What steps or requirements or hoops are you putting your customers through that are unnecessary?

An article in today’s Wall Street Journal discusses how hospitals are using the consumer version of the online virtual reality game, “Second Life,” to train nurses, doctors and administrators in dealing with “what if” scenarios. If, as in other news out today, the U.S. actually does face a shortage of 150,000 doctors in the coming years, then watch for this type of training to become pervasive. A two minute video overview of the simulation is here (along with a 15 second obligatory commercial):

Since I often refer to the famous quote, “the road to Hell is paved with good intentions” I was intrigued by an article in today’s Wall Street Journal entitled, “When Good Deeds Turn Bad” by Jefffery Zaslow. (Don’t ask my why the WSJ titles it one way in the paper edition and then titles it – “Doing Bad by Doing Good” – in the online edition. Also, don’t ask me why the search function on their website is so awful – that’s a topic for another post!) Anyway…

The article is a good one for anyone involved in service design. Zaslow points out a number of examples of people with good intentions, but bad results. While many of the examples are from the world of charity, the lessons directly apply to business and the design of services. From the article:

‘Most of us want to be effective, he says, “to make the world better. But before you help people, you have to ask them, ‘What do you need? What do you want?’” Every day, we see reminders of the limitations, and even the dangers, of good intentions. In Haiti, U.S. missionaries who said they only wanted to save orphaned children ended up arrested on child-trafficking charges. In Asian countries hit by the 2004 tsunami, residents still shake their heads over the warehouses filled with unusable donations, including winter coats and stiletto shoes. And earthquake-ravaged Chile is sure to receive its share of “useless aid” in the days ahead.

And from another section:

Ms. Hogan tells of going to a village in Peru where an aid group brought in tourists to help build public toilets. The group ran out of money and time, the tourists ended their volunteering vacations, and the toilets were never completed. The aid group had thought access to restroom facilities was needed to boost living standards, Ms. Hogan says. “But when I asked people in the community what they wanted, they said, ‘What we really needed was irrigation, and to have our bridge fixed, so we could take our goods to market.’” The never-completed toilets were gaping holes that had to be covered. Villagers feared their children would fall in.

We see these types of well-intentioned efforts all the time among businesses. At best, the companies really do (mistakenly) believe that they are working in the best interest of their customers. At the worst, the companies actually seem to have a sub-conscious contempt (see our previous post) for their customers and the very people who will be using the service. Either way, it comes down to a simple (almost too simple?) bottomline: JUST ASK.

This is what we do for our service design clients via ethnographic research; we go out and talk with their customers (internal or external) and have conversations. We observe, engage and ask questions. Then we compile those findings and bring them back to reveal what people want. This works for everything from service design, to volunteering, to parenting and spousal relationships.  It’s absolutely amazing what you can learn when you put aside what you think is right, and just ask.

On my recent trip to the Consumer Electronics Show in Las Vegas, my eye caught the logo of company exhibiting in a small booth. There were about four people there, with stacks of small boxes all around the booth. How could I not stop and ask what a company called “Quirky” did?

Turns out, they have a very innovative business model for product design and development. On their website, they have created a community for designers/thinkers/makers who collaborate with the stated goal of creating a brand new consumer product every WEEK. Everyone who participates gets a piece of the revenue of the launched product, with the inventor or idea catalyst getting the lion’s share, while others who provide feedback, comments, etc. get a relative portion, based on their feedback.

Once everything is locked down on the design side, the product goes on pre-sale on the website to assure that tooling costs are covered. Once a certain threshold of sales is hit, then the product actually goes into production and revenues start to get distributed. Since launching last summer, the site has 6 products that have cleared the threshold with another 17 in line waiting. A very clever idea indeed, creating a collaborative space for inventors who up to now, usually labor/suffer as individuals.

Could this idea be applied to service design as well? Sure (and probably is in various forms on the Web) but it’s much more difficult, since service ideas and concepts are much more “portable” and easy to launch than the logistics involved in actually creating manufacturing molds, tools, packaging, shipping, etc. Still, a great model of innovative thinking. Here’s a quick video…

Should companies protect consumers from themselves? That’s the question raised in the recent case of the teenager in California who, once added to his Dad’s Verizon Wireless account, ran up a bill of $22,000 by downloading over 1.4 gigabytes of data on his cell phone. Dad did not have a data plan, so…. as the meter ran (and ran and ran) Verizon was charging Dad by the byte.

In this particular case, Verizon agreed to waive the fee after the story got a ton of press. But typically, on an “oops I made a mistake” case like this, Verizon will split the charge with the customer. (So, Dad would still be on the hook for $11,000!)

The website The Consumerist raises the question: why not create a fail-safe system that would alert a customer if there was an unusual spike in their usage? Credit card companies have done this for years, mostly related to preventing fraud. But is it the job of a corporation to prevent customers from spending too much money on their goods or services? How about sellers of luxury goods or automobiles or casinos? Should companies become their “brother’s keeper?”

Actually, we would suggest a middle ground. When signing up new customers, Verizon should provide the account owner with the option of being notified in case of a spike in usage or fees. They could even offer levels of 100, 200 or 500 percent over normal. These are (or should be) simple variables that can be plugged into their management systems that in turn, would add a great deal of value to customers, if they chose to participate.

(And no, Verizon – you shouldn’t charge for the alert service. Use it as a point of differentiation!)

The Wall Street Journal pointed out an interesting trend this week, in which many of the best known names in corporate America are reversing a long-standing trend and now going vertical with their business models. Using the recent acquisition of Sun Computers by Oracle Software, CEO Larry Ellison plans to transform Oracle into a maker of software, computers, and computer components, and a services arm which will look more like the large computer conglomerates of the 1960s.

According to the Journal, vertical integration is “a 100-year-old strategy in which a company controls materials, manufacturing and distribution. Others moving recently in this direction include ArcelorMittal, PepsiCo Inc., General Motors Co. and Boeing Co.”

What’s causing this trend? Volatile commodity prices, financial pressures at suppliers and quests for new revenue, all of which have become more acute due to the recession. Ultimately, these companies want more control over their destinys and their customers. From our vantage point in the area of service design, one point not mentioned in the article was the role of the Internet on these changes. Since the Internet has made almost everything much more transparent and immediate, large companies can better control the vertical “stack.”

But in the end, time will tell if this trend stays or goes. As Mr. Ellison summed up: “We’re really brilliant, or we’re idiots.”

But then again, Ellison didn’t get to be one of the most successful CEOs (and the 4th wealthiest man in the world after Gates, Buffet and Helu) by being an idiot. Watch this trend.

We have a saying that we share with our clients when talking about service design: “Add value and money will follow.”

What this means is that you should look at your business – your expertise – and find small, inexpensive ways to leverage that expertise for the benefit of either your existing customers,or prospective customers. Often, the net effect is huge.

Why? Because, supposedly, you are the expert in whatever you do. And consumers these days don’t have time to be experts in all things. So they are looking for what we call “editorial filters,” the companies or individuals who know something they don’t, that can point them in the right direction, make their lives easier, safer, richer, more convenient, etc. These are the “trusted advisors” in our lives. You would think that the those vendors who make the most money from us (think lifetime value) would be most incented to actually be a trusted advisor, and not just a provider of a commodity service. (Think bankers, lawyers, insurance companies, mortgage companies, auto dealers, airlines, etc.)

So imagine my dismay the other day when Allstate Insurance – who I have been with for over 20 years and in that time have probably given them over $35,000 of my hard earned cash – sent me a “Happy Birthday” email. Really? A birthday email? Does someone at Allstate marketing really consider this a best practice of “customer relationship management?” Come on folks. This is 2009!

There a plenty of ways for Allstate to add value to our relationship beyond paying a claim I might submit on average, once per decade. How about using that same email to direct me to that online video about the horrors of texting and driving that I could then send to my teenage daughter? (You know I have teenage daughter – she’s on the policy!) Or how about links to defensive driving classes and offering me a 5% discount for taking it? Maybe you could send me the annual list of the top 10 safest cars, as rated by an independent agency? Tips on how to make my car last longer? Anything… except a gratuitous birthday email!

And these are ideas I am coming up with off the top of my head. This is YOUR business – cars, safety, driving, technology, best practices, statistics, data. You have thousands of employees and massive investments in collecting and analyzing all this information. So why don’t you share a bit of it with me – your customer – to make me a better driver, a safer driver – and ultimately a better customer for YOU?

But you better hurry, because statistically speaking I only have about 40 more years of driving (and insurance payments) left!

Need some help figuring this out? Call us – you’ll be in good hands…