Discovering new value drivers for new services

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Discovering new value drivers for new services

• 3rd National Services Marketing Summit
• New Delhi, 17th may 2008

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Growth of new services, but

• Profile of old services is changing
• Banks ATMs retail lending private banking
  wealth management
• Insurance LIC to multiple competition nature of
  products more investment products
• Airlines low cost airlines dynamic fares
  frequent flyer programmes web ticketing
• Retail large format specialty stores petroleum
• Hospitals
• New value drivers for old services?

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Problem of services marketing

• Experience, not product
• Every experience is unique
• Moment of truth
• All for this one moment

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Consistency across touchpoints

• Outsourcing is the bane of services marketing
• DSAs, call centers
• The customer doesnt know or care the brand is
  yours
• Operational and cost issues are yours to handle
  it comes with the territory

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Managing expectations is key

• Satisfaction Reality Expectation

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Threshold level of expectation

• People expect less of low cost products but not
  of low cost services
• You can raise the threshold level, you cant
  lower it
• You raise the level at your peril you cant
  lower it later

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Every business is a service business

• People dont buy products they buy the
  expectation of benefits

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Service recovery

• Things will go wrong sometimes
• How often do they go wrong?
• What do you do about it when they do
• Empowerment
• SOP

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Setting benchmarks

• Low expectations come from poor service
  experience but wont be so for long
• More experienced consumers expect more they
  dont demand it from you, they just go where they
  get it
• What is your level of expectation?
• Setting your own standards Jet Airways, Oberoi
  Hotels, Titan Watches

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• The old value drivers are
• the new value drivers