Sometimes service design can be hard to explain because it should be so damned simple and obvious, right?

So here’s a link to a great article from The Toronto Star newspaper that ran in December of 2009, which I just saw today (thanks Twitter!) The article explains how Israel handles their airport security and compares it to the process in the U.S. (And airport security is even a bigger mess now than it was 11 months ago.)

In reading this article, I realized that this is a near perfect example of great service design and terrible service design. And yet, the phrase “service design” is never used once in the entire article.

Airport security is a service, paid for by our taxes and our airline fares. It is about people interacting with people and process and technlogy. Airport security is something that we’ve all experienced. So read the article and see how:
- One is logical and effective. The other is not.
- One balances what the customers need with what the service provider needs. The other does not.
- One combines the best of technology and people. The other relies almost exclusively on technology.
- One is quick and efficient with both time and money. The other is not.

This is service design!

Two guys come up with product idea – a “kickstand” for the iPhone than can be used to add value to the product. But to manufacture the “Glif“  they need to raise $10,000 to make the plastic injection moldings. So they turn to a fundraising website, Kickstarter to “pre-sell” the product, hoping to get 500 people to pledge $20 to buy one. (If they don’t raise the $10,000 commitment, then people who pledged don’t have to pay their $20.) Their fundraising period just ended; they raised $137,417 from 5,273 people. The Economist has just published a great story about this experience.

Our three takeaways from this story:
1 – The iPhone is a whole economic eco-system until itself.
2 – Anything can always be made better thru good design.
3 – Create value and money will follow.

Kickstarter – as a web service – is a great example of service design facilitating product design.

Have you ever noticed the gap that exists between most marketing departments and most sales departments? While they have common goals to increase the revenue of the organization, they’re almost two completely different silos. The fact is that the sales team is (or should be) considered as the internal client of the marketing team.

Unfortunately, many marketers, particularly in large corporations don’t have much empathy for sales people. They often see them as overpaid whiners, who work short hours and get big pay, entertaining clients on expense accounts. Conversely, sales people often see the marketing folks as being out of touch, self-serving and focused on all the wrong things. As in life, the truth always lies somewhere in the middle.

But the cold hard fact is that many marketers have never been in the sales trenches themselves. They’ve never carried a bag, they’ve never done cold calls, had a door slammed in their face and have never had to compete head to head with a competitor – let alone bump into them in the customer’s reception area.

So how can Frontier help? We go on “ride-alongs” with sales people, and have one-on-one conversations, which we record and later get transcribed. We learn about the salesperson’s background, their day to day routines, how they do what they do, and the frustrations they face everyday. We also get their feedback on what works and what doesn’t work “on the battlefield.” In addition, we go out and meet their customers, and talk with them as well. After we get a good cross-section of these conversations done, we compile all the information and knowledge we’ve gathered and sift through it to find the main trends, feedback and themes. We present our findings and recommendations via multimedia to the marketing department which puts a “face” on the sales people in the field, and also brings the “actual” voice of the customer into the room.

In many cases, things that appear to be important to the marketing department really matter very little to the sales people. More importantly, those things also often matter very little to the end customer, who is ultimately buying the company’s services.

There is a huge opportunity to help companies realize their goals when they are willing and able to bridge this gap between sales and marketing. Empathy from both sides and common understanding delivers great payback for both our clients and their customers – both internal and external.

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?

Here is something you can take to the bank: People love to talk about themselves.

As a result, your customers will give you the insight you’re looking for. The problem is – you have to ask them! This is a key issue in that a lot of companies just don’t ask their customers what they think, how they feel, what they want, etc. A lot of people think that market research has to be very complex with long surveys, and thousands of respondents.

Our experience – time and time again – is that you simply need to go out, sit down eye to eye with folks and have a conversation. Of course, you need to have enough conversations to get a good cross-section but in the words of Nike, “just do it!”

For the most part, you’re going to get pretty consistent answers pretty quickly if you actually have a sit-down conversation with people. And ask clarifying questions to get to the root of the issue. For example, “What do you mean when you say that?” or “That’s interesting – can you elaborate a bit more about that?” It’s useful to record the audio of these conversations and then have somebody – who was not involved in the conversations – review the transcripts to identify consistent themes that come out over and over and over again in those conversations.

What we’ve found is that while people have a problem filling out a survey because they don’t get around to it, they see it as a bother, etc. they are often glad (even thankful) to talk with someone from your company if they are approached in a direct, heartfelt conversational style. The approach is the key. When someone calls you with a survey, can’t you tell they’re reading it straight off the paper? No one wants to deal with that!

We’ve covered this theme before in other blog posts but it’s worth repeating over and over; the key to success in service design is to simply talk with your customers. That’s it.

Over the past month, I’ve been doing a good bit of air travel and due to layovers, have had the opportunity to experience a number of airports in quick progression. These airports include Philadelphia, Chicago, Los Angeles, Dallas, Miami and Key West.

Airports are interesting from a service design perspective because they serve as an aggregation point and hub for a wide variety of other independent services (both commercial and governmental) in an environment that is charged with stress caused by time (arrivals, departures, delays), security clearances, risk of life and limb (from engine failure to terrorist plots), crowds, money (hundreds or thousands of dollars at stake via airfares) and purpose (from business travel to once-in-a-lifetime vacations to your father’s funeral.)

So you would think that the designers of airports would take all of these factors into consideration when designing an airport. I could write a whole paper on this topic (note to self: do it!) but for now, I will share these quick observations:

- Chicago – Beautiful airport, but where are the electrical outlets? Travelers are sitting on the floor plugging their phones and laptops into any outlet that is available. There is a whole social dance that takes place when one has to approach a fellow traveler and ask, “Can I use that other plug?” This is an untapped business opportunity. (See “Dallas” below.)

- Dallas – Nice airport, but what is with the layout of the restrooms? Virtually everyone in an airport has something slung over their shoulder or is dragging something behind them on wheels, right? In this airport, it is impossible not to bump into fellow comfort-seekers as you enter, exit and awkwardly wait around because they have few too many toilets. (I can only imagine that this problem is even worse for the ladies.) However, you can easily juice up your phone or computer at any number of charging stations, which are essentially electrified billboards that serve a purpose.

- Key West – After a few days in paradise, you really don’t want to leave. So the airport has built an faux outdoor lounge next to the gates where, once you’re through security, you can enjoy your last Mojito before you board. It’s a clever laid-back layout built in a glass enclosed atrium, complete with a boardwalk, sand, beach chairs and Jimmy Buffet tunes. However, keep an eye on your watch because the airport’s pubic address system does not provide boarding alerts in this little respite. (Maybe this is designed to get you stay longer in the Keys?)

Once again – as in most service design “misses” – these all are very easy issues to address if only airport designers and their municipal clients would actually go and watch what people do, and then ask those people what they want and need. It is far less expensive to design and build it right the first time, than it is to go and correct these issues after the fact. If there is any space that should be designed to minimize stress and hassle (besides hospitals), it should be our airports that serve as non-stop, human transport switches.

In our service design practice, we triangulate the trends of business, technology and society to predict for our clients where things might be in one, three or five years. (Okay, five years is a very long time.) So we’re always gratified when those predictions come true and here’s one we’ve been talking about for years: car monitoring to reduce insurance rates.

In effect, would you make a deal with your car insurance company that you promise not to go over the speed limit, in exchange for a 10% decrease? How about 15 or 20%? In order to prove that, would you be willing to let the insurance company install a small device on your vehicle that tracked your speed? Maybe you get one or two chances, but then the third time you speed – bing – you lose the discount.

Well, that future is here. Progressive Insurance has announced the My Rate Program, which provides a small device that plugs into your car’s on board computer. The device tracks things like when and how you drive your car including acceleration, hard braking, etc. and then sends that data back to Progressive wirelessly. (The system is not based on GPS, so it’s not tracking where you go but still, we can imagine that in a future generation.)

Let’s take this one step further: How about a deal where you promise your life insurance company not to text or talk on the phone while driving, in exchange for a very big discount? After all, that behavior has shown to increase the likelihood of accidents by a factor of four. After an accident, it would be a simple matter for the insurance company to compare the time of airbag deployment with your cell phone bill to determine if you kept your promise. If not, no health care for you or no death benefits for your loved ones. Would you take that deal?

There is a saying that “everything in life is a trade-off,” and with advances in technology these types of automated trade-offs will start to permeate our relationships with service providers and impact pricing options. Watch for these trends in everything from insurance to mortgages to TV and shopping. It’s one thing to have privacy taken away from you, but it’s quite another thing to trade it for cash. So what’s your “break-point,” at which you would give up details of your private life in exchange for a discount? 10%, 30%, 80%? Everything’s negotiable.

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…

We just added four new PDF case studies to our website, which can be found on our client list page. These include case studies about:

- ColorQuick, a software company developing game-changing technology in the printing industry. Our ethnographic research turned up new and compelling benefits for their target market.

- BlackGold BioFuels, an energy technology company that has a patented system for converting waste products into high quality bio-diesel fuel. We helped them design new services that support the technology product, as well as innovative new business models for rolling out their products and services.

- A major hotel chain and our work with them on designing new service revenue opportunities related to rapid developments in the Connected-TV space.

- A major luxury retailer and a series of card sort exercises we did for them related to a new product design initiative.

Also, after a number of requests from our business partners, we created a one-page executive summary about Frontier Service Design that can be downloaded here.

Read, learn and enjoy!

We heard a story the other day from a large infrastructure service company that has over a thousand field service personnel on the road on any given day, around the country. One of the senior executives did a ride-along with one of these long-time employees and heard an interesting story.

“You know, I’ve been driving this van for about 16 years now, going to people’s homes to help them out, or going to troubleshoot at one of our field facilities. For years, I always felt that I was part of a bigger team of people, you know? I’d be driving along and I’d hear the dispatcher coming over the radio calling out assignments to different techs. I’d hear those voices go back and forth and I’d have a feeling for what was going on around me, you know? So, if maybe Jim got assigned to a big issue about a mile away and it was raining, I might swing by there to see if he needed help. Or I might check in with him on the radio. But ever since we got these GPS systems and smartphones a few years ago, I just get text messages from central dispatch telling me where to go next. I go through an entire day never hearing any human voices of people I work with anymore, and frankly, I feel like I’m out here all alone. In fact, I don’t even feel like I’m part of the company anymore.”

The beauty – and terror – of service design is that it all revolves around people. Certainly, we want to leverage technology to make every process run more smoothly but we also have to keep in mind the collateral damage incurred by such choices. In order to provide an outstanding customer experience, service personnel need to feel as though they are part of a larger mission, and community. How has technology disintermediated your employees from your own company and culture?