Excerpted from BusinessWeek, “Change Your Process to Boost Profits”, By G. Michael Maddock and Raphael Louis Vitón, October 7, 2008
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Wherever there is interaction among your brand, your people, and your customer, there is an opportunity for service innovation and increased profits.
Questions to Ask:
How do you serve up your products? What behavioral hoops do you make your customers jump through to get what they want? How much of how you are selling is due to tradition, habit, or a business model that has not been challenged?
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I recently went to the bank to make a deposit. I had to find a parking place, find the right form, find my account number, fill out the form, stand in line, show an ID, and wait for a receipt. If I wanted my balance, the process would take even longer.
If my bank eliminated some steps with, say, SpeedPass technology, it would save us both time. Moreover, the bank would get a chance to make me feel special, and I’d might go to the bank more often and give it more of my money to invest.
Service innovations are often disguised as product innovations. Think about the airline kiosk, where you check in yourself, and the wedding gift registry. These enabling technologies are all born of the insight that the buying process was too cumbersome. Technology made a transaction easier, but only after the experience was examined and challenged.
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The primary arguments against service innovation usually come from high-touch, service-minded people.
They will tell you that by adding technology, or simplifying the ordering process “you are dehumanizing our business” or “that is not the way this business is done”—or something like that. Don’t listen. Push your team to create a totally new experience based on what your customers are saying or how they are behaving.
Then test the new experience. You will know soon enough if you have made life better for your customers. If you choose, you can then add a halo of people to the mix to make the service more personal. Southwest Airlines has kiosks. That does not mean it has used them to replace its incredibly well-trained and thoughtful employees.
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Typically, when we think about innovation, it is on the product side. How can you introduce something new, or improve an existing product?
Both those things are vitally important. But if you miss (or forget about) the chance to improve the service portion of your offering, you are missing a huge opportunity.
Edit by DAF
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Full article:
http://www.businessweek.com/managing/content/oct2008/ca2008107_013799.htm?chan=careers_managing+index+page_managing+your+company
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