Understanding the Customer Needs and Expectations
Service design is an approach that emphasizes understanding users’ needs, dreams, and desires through empathy, aiming to create user-centered services that align with user preferences while leaving room for interpretation and improvisation. Service design ensures a balanced approach by prioritizing user needs and connecting them with business objectives to address consumer and business requirements.
The user-oriented service design approach enhances the value provided to users, reduces product risks through prototyping and testing, and differentiates businesses in competitive industries. Positive customer experiences result in increased spending and brand loyalty. A well-designed customer experience (CX) strategy integrates all customer touchpoints, ensuring seamless and effective communication to enhance customer satisfaction and loyalty. CX design integrates individual interactions, the customer journey, and long-term relationships, prioritizing customer satisfaction to reduce churn rates and secure steady revenue streams.
Customer Experience Management (CEM) strategically manages customer interactions to cultivate long-term relationships. Unlike Customer Relationship Management (CRM), which primarily deals with transaction records, CEM focuses on continuously improving initial customer experiences at touchpoints. A comprehensive CX strategy involves measuring goals, monitoring progress, fostering teamwork, and empowering employees to understand customer needs. Companies committed to prioritizing customer-centricity must fully understand customer expectations and involve all departments in contributing to a unified understanding of the customer.
The methodology for studying service design’s impact on customer experience at a company X involved primary and secondary data collection through literature sources, interviews and workshops. Methods and tools such as stakeholder mapping, mystery shopping, PESTE analysis, and business model canvas were employed to gain insights and improve services.
Stakeholder mapping identified the motivations and challenges of various groups connected to the company, providing a comprehensive view of interactions and relationships. Mystery shopping offered objective feedback on customer service quality. PESTE analysis examined macroeconomic factors affecting operations, helping businesses to understand potential impacts and make informed decisions. Business model canvas facilitated the development of sustainable business models by integrating economic, environmental, and social concerns.
The master’s thesis highlights that user engagement activities encourage co-creation, making services more aligned with user needs. By understanding customer experiences, behaviors, and expectations, service design helps to create valuable and satisfying user experiences. This approach enhances customer satisfaction.
Furthermore, the thesis underscores the importance of customer-centric organizations prioritizing their most valuable customers and reflecting this focus on their mission, vision, and values. It also discusses the challenges businesses face in adapting to constantly changing customer needs and expectations. Digital technology has added complexity to customer experiences, necessitating seamless integration across online and physical channels. For example, the growth of home shopping has highlighted the need for a delivery experience that matches the online shopping experience.
Overall, the thesis demonstrates how service design, through various methods and tools, can significantly improve customer experience by fostering a deep understanding of user needs and strategically managing customer interactions throughout their journey.
Rijal, S. 2024. Enhancing Customer Experience through Service Design: A Strategic Analysis of Company X, Finland. Master’s Thesis. Turku University of Applied Sciences.
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