Key Aspects Of Service Innovation
In this era of disruptive technological change, products and services that are state-of-the-art one day are outdated the next day. In this context, the customer experience is changing too. To win hearts, companies must not only deliver amazing marketing, sales, e-commerce, and service interactions, but also prove that they care and they have the customers’ best interests in mind.
Customer have very high expectations from companies, and their standard are being elevated as they interact with various sectors. The result is that businesses must look beyond their own industry to understand the benchmarks they evaluated against.
Companies need to understand and work with Service Innovation
Service innovation is the process of creating and implementing new or significantly improved services to meet the changing needs and demands of customers or to gain a competitive advantage in the market.
Key aspects of service innovation may include:
Improving customer experience: Service innovation often aims to enhance the overall customer experience by providing better, more convenient, or more personalized services.
Creating more value: It involves finding new ways to create value for customers, such as offering unique features, reducing costs, or increasing efficiency.
Incorporating Technology: Many service innovations leverage technology, such as mobile apps, AI, automation, and data analytics, to deliver services more efficiently or in novel ways.
Process Redesign: Service innovation may require rethinking and redesigning internal processes and workflows to improve service quality or reduce operational costs.
Business Model Innovation: It can involve changes to the business model itself, such as introducing subscription-based services, or other innovative pricing structures.
Open Innovation: Collaborating with external partners, customers, or even competitors can be a part of service innovation to bring in fresh ideas and expertise.
Sustainability and Social Responsibility: Incorporating sustainability and social responsibility principles into services can also be a form of innovation, appealing to customers who value ethical and eco-friendly practices.
Service innovation is crucial in today's rapidly changing business environment, as it allows companies to stay competitive, adapt to evolving customer preferences, and create new revenue streams.
Questions for leaders:
How do you create more value for your customers? What are the main areas of service innovation? Do you innovate your products, delivery systems, service mindset and ongoing relationship?
Do you benchmark your own industry or you look beyond your industry?
Who is responsible for Service Innovation in your organization?