How to find out the economic value of service design? A three step approachh presented at the Service Design Network Conference 2010 in Berlin by Erick Mohr, from Truth Consulting.

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Measuring the
value of service
design
Erick Mohr
Service Design Conference
Berlin | 2010

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WHAT IS TRUTH?

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A MULTIDISCIPLINARY TEAM
ETHNOGRAPHERS, SEMIOTICIANS, DESIGNERS AND QUANTITATIVE RESEARCHERS

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A MULTIDISCIPLINARY TEAM
ETHNOGRAPHERS, SEMIOTICIANS, DESIGNERS AND QUANTITATIVE RESEARCHERS

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[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS
TO DELIVER VALUE TO USERS AND PROVIDERS

6. www.truth.ms
[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS
TO DELIVER VALUE TO USERS AND PROVIDERS

7. www.truth.ms
[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS
TO DELIVER VALUE TO USERS AND PROVIDERS

8. www.truth.ms
[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS
TO DELIVER VALUE TO USERS AND PROVIDERS

9. ROi absent from yet another
service design meeting
www.truth.ms
[SERVICE DESIGN]
ORCHESTRATING GREAT CUSTOMER
EXPERIENCES ACROSS DIFFERENT TOUCHPOINTS
TO DELIVER VALUE TO USERS AND PROVIDERS

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TO DEFINE THE MONETARY VALUE OF SERVICE
DESIGN, YOU NEED TO FIND THE ANSWER TO
THREE QUESTIONS:
1. WHO ARE YOUR USERS?
2. WHAT DO THEY WANT?
3. HOW MUCH WOULD THEY PAY FOR IT?

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BUT HOW TO FIND THE ANSWER THEN?
A COMBINATION OF QUANTITATIVE AND
QUALITATIVE METHODOLOGIES

12. Quantitative
» lots of users
» objective
» breadth
» few users
» subjective
» depth
Qualitative
www.truth.ms

13. Quantitative
» lots of users
» objective
» breadth
» few users
» subjective
» depth
Qualitative
discover define develop deliver
www.truth.ms
TRADITIONALLY, QUANT AND QUAL ARE SEEN
AS INCONGRUENT

14. Quantitative
Qualitative
www.truth.ms
WHAT ABOUT RUNNING QUANT AND
QUAL IN PARALLEL?

15. 1. Understand
who your
users are
2. Define
what they
want
3. Determine how
much they want
to pay for it
Quantitative
Qualitative
www.truth.ms
A THREE STEP APPROACH TO PROVIDE
ANSWERS TO OUR QUESTIONS

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CASE STUDIES
1. UNDERSTAND WHO YOUR CUSTOMERS ARE:
DEVELOPING A SEGMENTATION MODEL FOR A BANK
2. DEFINE WHAT THEY WANT:
IDENTIFYING AND PRIORITISING IDEAS FOR A MOBILE PHONE VENDOR
3. DETERMINE HOW MUCH THEY WANT TO PAY FOR IT:
DEFINING OPTIMUM PRICE LEVELS FOR A MOBILE PHONE VENDOR

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1. UNDERSTAND WHO YOUR USERS ARE
DEVELOPING A SEGMENTATION MODEL FOR A BANK

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USING INTERNAL DATA (SUCH AS RECORDS OF BANK TRANSACTIONS) TO
IDENTIFY GROUPS OF PEOPLE WHO SHARE SAME BEHAVIOURAL PATTERNS

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CLUSTERING GROUPS OF CUSTOMERS AND EVALUATING
THEIR BEHAVIOURS TOWARDS MONEY

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ETHNOGRAPHIC RESEARCH TO DEFINE CUSTOMER’S ATTITUDES TOWARDS
MONEY: UNDERSTANDING WHY THEY DO WHAT THEY DO AND EXPLORING WHAT
THEY MIGHT NEED FROM THE BANK

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QUANTITATIVE RESEARCH TO VALIDATE AND MEASURE KEY
ATTITUDE DIMENSIONS

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THE RESULT:
ROBUST AND CLEAR SEGMENTATION, WHERE CLUSTERS
OF CUSTOMERS ARE:
1. DISTINCT IN ATTITUDE
(SO WE KNOW WHAT PRODUCTS AND SERVICES EACH SEGMENT MIGHT NEED)
2. IDENTIFIABLE IN BEHAVIOURAL TERMS
(SO WE CAN EASILY SPOT THESE CUSTOMERS AND TARGET THEM ACCORDINGLY)

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2. DEFINE WHAT THEY WANT
IDENTIFYING AND PRIORITISING PROPOSITIONS FOR A
MOBILE PHONE VENDOR

24. ETHNOGRAPHIC AND CO-CREATION APPROACHES TO
GENERATE IDEAS ACROSS SEVEN MARKETS
www.truth.ms

25. USING STORYTELLING TO BRING CONCEPTS TO LIFE FOR QUANTITATIVE
TESTING: IT’S LIKE PROTOTYPING, BUT IN LARGE SCALE
www.truth.ms

26. Needs:
Line graph.
Brazil, South
Africa most
concerned by
safety.
China, US,
UK emphasise
connection.
Russia, Saudi
emphasise
knowledge. Enrichment an
issue in Saudi.
Time is a key
need in every
location.
MEETING THE NEEDS OF DIFFERENT MARKETS: SERVICES WHICH TAP
INTO FUNDAMENTAL NEEDS WILL BE MORE READILY EMBRACED
www.truth.ms

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The services sound exciting & cool.
I really like the idea of these services.
to use them.
I predict I will use these services
when they are available.
KEY:
DETERMINING THE LEVEL OF ENTHUSIASM AND SHORT TERM
TAKE UP ACROSS DIFFERENT MARKETS
www.truth.ms

28. LOWER MAXIMUM REACH
HIGH MAXIMUM REACH
ALMOST
DAILY
DEFINING THE MOST APPEALING IDEAS:
FREQUENCY OF USE VS REACH
www.truth.ms

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THE RESULT:
A CLEAR UNDERSTANDING OF WHAT’S RELEVANT
FOR CONSUMERS

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3. DETERMINE HOW MUCH THEY WANT
TO PAY FOR IT
DEFINING OPTIMUM PRICE LEVELS FOR A
MOBILE PHONE VENDOR

31. USING VIDEO TO COMMUNICATE INTANGIBLE
ASPECTS OF PROPOSITIONS
www.truth.ms

32. PRICE SENSITIVITY ANALYSIS: EXPLORING PEOPLE’S WILLINGNESS
TO PAY FOR SOMETHING
www.truth.ms

33. DETERMINING ACCEPTABLE PRICES FOR DIFFERENT OPTIONS
www.truth.ms

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THE RESULT:
‘THE SIMULATOR’

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BRINGING EVERYTHING TOGETHER
1. YOU KNOW WHO YOUR USERS ARE
YOU CAN TARGET THE RIGHT PEOPLE
2. YOU KNOW WHAT THEY WANT
YOU CAN DESIGN SERVICES THAT APPEAL TO THEM
3. YOU KNOW HOW MUCH THEY WANT TO PAY FOR IT
YOU CAN HELP THE BIG GUYS DECIDE WHETHER THEY WANT TO INVEST

36. A CLEAR ROADMAP TO GUIDE SERVICE DEVELOPMENT AND DELIVERY
www.truth.ms

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Erick Mohr
erick.mohr@truth.ms