Applying Customer Journey Methods in SST-based Service Design: A

Applying Customer Journey Methods in SST-based Service Design: A Proposed Methodology 1 Huey-Jiuan Yeh, 2 Lee-Chuan Chuang, 3 David Chien-Liang Kuo 1, First Author Industrial Economics and Knowledge Center (IEK), Industrial Technology Research Institute (ITRI), Hsin-Chu, Taiwan, R.O.C., barbrayeh@itri.org.tw 2 Industrial Economics and Knowledge Center (IEK), Industrial Technology Research Institute (ITRI), Hsin-Chu, Taiwan, R.O.C., lc_chuang@itri.org.tw *3,Corresponding Author School of Continuing Education, Chinese Culture University, Taipei, Taiwan, R.O.C., clkuo@sce.pccu.edu.tw Abstract This paper develops a methodology in how to apply customer journey methods in designing technology-mediated services. The focus is particularly on how to improve customer satisfaction and perceived value through introducing innovative services delivered through self-service technologies (SSTs). Action research is applied on a sub-program of a four-year-long government sponsored project in Taiwan. A methodology covering nine steps is proposed, which is believed valuable in bridging perspectives of service marketing, innovation design, and IT-enabled service (ITeS) development. The strategic roles and implications of customer journey methods in identifying current service gaps and diagnosing the potentials of SST-mediated services are also spotlighted. Keywords: Self-Service Technology (SST), Service Innovation, Service Design, Customer Journey. 1. Introduction The widespread concept of service economy has made service innovation a hot topic. Both the academy and the practice start addressing issues relevant to service innovation or SSME (stands for service science, management and engineering) [1]. Strategies, policies, and regulations, therefore, have been formulated by practitioners and the governors for triggering service innovation [2]. In particular, the rapid advances in information and communication technology (ICT) and service sector development have led the scope of service innovation design far beyond the scope of traditional service management. The growing use of ICT in service sectors revolutionizes the interactions between service providers and customers. ICT, in fact, not only helps increase the standardization of services [3, 4]; technological breakthroughs further help generate new forms of services, including self-service technologies (SSTs) or technology-mediated services [5]. The purposes of IT-enabled innovative practices introduced service firms by IT providers are to help increase productivity and efficiency, and to offer customers access to services via new and convenient channels, thereby better meeting customer demand and increasing customer satisfaction [3, 4]. That s no wonder Parasuraman [6] proposes a pyramid model of service marketing incorporating technology as a new dimension into the twodimensional triangle model and features three new links that need to be managed well to maximize marketing effectiveness: company-technology, technology-employee, and technology-customer. As such the nature of customer service and company-customer interactions is undergoing fundamental changes. In particular, it is expected that the B2C context might have fundamental changes owing to the popularity of SST device acceptance and usage. Many companies have infused more and more SSTs into their customer relationships initiatives, which highlight the importance of balance between hightech and high-touch [7]. From the practical viewpoint, the following driving forces will make SSTs much more widely adopted in B2C service context. The first driving force is the highly adoption rate of a variety of mobile devices (especially smart phones and pads) globally. The survey done by Google and IPSOS, for instance, reveals that more than 25% people in many developed countries (e.g., USA, Korea and Taiwan) use smart phones within 2010-2011 1. The second reason highly correlated with the previous one is the so-called 2.0 impacts, which attracts an extremely high download and usage of 1 http://www.ourmobileplanet.com/ Journal of Next Generation Information Technology(JNIT) Volume4, Number3, May 2013 doi:10.4156/jnit.vol4.issue3.16 130

mobile Apps, both directly and indirectly. The last driving force comes from the contribution of governments and business pioneers (e.g., IBM) on infrastructure installation for mobile or ubiquitous contexts, which help reduce the perceived barriers for users in SST trial. However, as argued by the magic bullet theory [8], introducing a SST neither automatically leads to its usage, nor can be an issue in technology markets where the law of critical mass applies directly [3, 4]. Unfortunately, past research focuses primarily on characteristics and dynamics of interactions between customers and service representatives; less is paid on design choices and the service attributes provided by SSTs and user needs [9]. Therefore, whether the relevance of conventional wisdom is still held true is questioned when it comes to managing SSTs. When looking back to the field of service management, customer journey is regarded as one of the most representative human-centered methods worth applied [10]. To bridge the gap mentioned above, this paper is interested in how to make customer journal methods serve greatly as the basis in designing innovative SST-enabled services, in order to achieve the goal of customer satisfaction or user experience improvement. 2. Literature Review 2.1. The Importance of User Centric Service Innovation Innovation in services can be regarded as an inter-play of service concepts, service delivery practices, client interfaces, and service delivery technologies. And, innovations in services are increasingly brought to the market by networks of firms, selected for their unique capabilities and operated in a coordinated manner, referred to as a service system or service value network (SVN) [11]. Voss and Husan [12] argue that for much of the area of service design, a manufacturing-based, product development paradigm is no more appropriate in the era of service economy. When the interactive view perspective is applied, the innovative services is suggested developed jointly with customers. It implies that designing innovative services requires careful consideration of the overall user experiences, thereby echoing the arguments made by customer-centered innovation [13, 14]. Consequently, only companies that can identify customer needs and align these needs with their core competencies are most profitable and champion innovation [15]. In other words, the success of service innovation lies in clearly understanding consumer demand [16]. However, in most cases, customers may have problems articulating their needs; they cannot imagine what they have not experienced and what they do not know [17]. The challenges in service innovation would, thus, be how to capture constantly changing priorities of consumers, design new services that incorporate new technologies, and create new business models that generate new service value. To conclude, service innovation is extremely complex and warrants further consideration. To seize on consumer demands and overall experience of users, successful innovative service design must address different demands and issues associated with stakeholders within the ecosystem, and adequately set up its goal, type, viewpoint, and well-integrated with devices that may surround or appear in the service context. 2.2. SSTs and Technology-Mediated Services The role of SSTs in service delivery can be traced back to early research on self-service emphasizing the significant advantage of customer co-production. Thanks largely to the emergence of SSTs, the dynamics of the marketplace have completely changed. According to Meuter et al. [3], SST is a technological interface that enables customers to produce a service independent of direct serviceemployee involvement, and changes the way customers interact with firms to create service outcomes. Although Schumann et al. [5] makes a distinction between SSTs and technology-mediated services, this paper regards these two words interchangeable, owing to the their definitions and characteristics from customers viewpoint. The value of SST can be seen from two perspectives. On the one hand, service providers introduce SSTs to increase productivity and efficiency, and to offer customers access to services via new and convenient channels, thereby fulfilling customer demands and increasing satisfaction [3, 4]. On the other hands, customers take a participative role as co-producers, contribute to the process of service 131

delivery, and become an important source in service production [18]. With SSTs, customers nowadays are engaged in a proactive relationship with a company. They are empowered to co-work, co-produce, co-create and co-design services and value electronically owing to enhanced self-service delivery [18]. For instance, Gerow & Miller [19] illustrates how web 2.0 or SSTs can be used to facilitate and effective service delivery by crossing Froehle & Roth s technology-mediated customer service contact model with Ives & Mason s customer service life cycle model. Cunningham et al. [9] seek to identify the attributes of SSTs based on two dimensions: separability (separable from product/service, moderately separable, and inseparable from product/service) and customization (customized vs. standardized). Such taxonomy is similar to that of Kelly et al., which typology directed at traditional services but based upon the role of consumers as participating in the service encounter. In case of tourism, the increasing demand for information at popular destinations as driven tourism specialists looking for better guiding solutions. A couple of research then proposes new methods for providing such services to fulfill emerging customer usage patterns and to satisfy tourist needs [20]. In short, the combination of self-service and technology is believed to transform the service economy in much the same way that mass production transformed manufacturing, by allowing services to be delivered at low cost in large volume. For instance, Second Life, a 3-D virtual world, successfully builds and owns it residents; and each resident creates his own persona adding the necessary feeling of high-touch to the virtual high-tech world [7]. In terms of the area of SST or ITeS research, issues on the elaboration of profiles for the distinct SST users based on demographic characteristics, classification schemes for new technologies, the role of technology in enhancing service quality, the developing attitudes toward technology, and factors influencing customers evaluation and usage of SSTs, are especially spotlighted [21]. In addition, current research has attempted to identify criteria customers use in evaluating technology-based services. On the basis of a synthesis of existing literature, these criteria can be summarized as following. First of all, customers are predisposed to technologies perceived as trouble-free and of low complexity; easy-to-understand-and-operate and responsiveness are critical concerns in this manner. Second, intrinsic motivation plays a key role in technology usage, indicating enjoyment is a crucial characteristic of IT service quality. In contrast, perceptions of risk and uncertainty (in particular security and privacy) are considered critical to technology-based service evaluation, serving as an inhibitor to SST usage [16]. To be in a nut shell, the role of SSTs in customer service has brought about major changes for both firms and customers [15]. However, the introduction of SSTs itself is not a magic bullet. What is worse, most companies are found not self-service innovators, whereas a self-service does not have to be novel to succeed [7]. Consequently, a methodology that may integrate multiple perspectives is called for. 2.3. Customer Journey As stated earlier, owing to the fact that understanding and capturing customers is a vital issue for service innovation, customer experience or user experience has become a very commonly used phrase in recent years, and has been seen as a key competitive differentiator [22]. From the very nature, customer experience can be regarded as a process, a flow which starts from an initial, entry point and goes to an end following intentions, motivations and goals of users [23, 24]. To visualize how customers interact with people and firms in order to purchase a product or to experience a service, the technique called customer journey map is developed and applied. Customer journey, which comes from the corporate sector and market research, is a tool used to track and analyze the user experience and assess the quality of a process or a service. It is used as a form for improving a service by finding out how customers use the service and how they interact with service providers. It provides a map in illustrating the interactions and emotions taking place, which helps a firm offer its customers with the experience it wants them to have [25]. According to Richardson [22], the customer journey map is a linear, time-based representation of the main stages that a customer goes through in interacting with a firm or a service. The concept of customer journey map is very simple: a diagram that illustrates the steps that a firm s customers go through in engaging with the firm, whether it be a product, an online experience, retail experience, a service, or any combination. It starts from the analysis of the user behaviors, for each stage with specific goals, intentions touchpoints, tools and issues identified, Lastly, the focus broadens on the connections and the dynamics between stages [23, 24]. Based on the practice of customer journey map, 132

customer experiences spring from touchpoints, the concrete, controllable elements. A customer journey map describes the process of from cradle to grave, which looks at the entire arc of engagement. When applying customer journey map into customer experience improvement, three key steps namely, customer journey, touchpoints, and ecosystems in sequence are worth further investigated. As well, the more touchpints a firm may have, the more complicated such a map becomes [22]. From a customer relationship management (CRM) perspective, it is a customer-oriented strategic tool useful to analyze and understand an experience from the user s viewpoint, disclosing issues and hurdles as well as opportunities for improvement and innovation [25]. Thus, it is of particular helpful and effective also to examine complex experiences and processes that connect different touchpoints, channels and systems [23, 24]. When applied customer journey methods in the SST context, it is found that the range of customer experiences is tremendously diverse. First of all, ICT covers everything from health insurance to consumer electronics, from mobile communications to automotive. In addition, from the user s viewpoint, it is not a simple and coherent unidirectional flow based on technical or clear functional goals for scenarios of e-commerce, shopping and travel. It is rather an erratic journey made of different visits and browsing occasions where the users combine in an opportunistic way with different information, products and tools, followed by the goals and intentions of users [24]. It is then believed that once integrating customer journey into SST-based research and service design, it may help raise interesting findings with regard to innovative IT-enabled services from both industrial and firm levels. 3. Methodology and Findings 3.1. Research Methods and Design To bridge the practical gap mentioned above, this paper aims to propose a methodology for SSTbased innovative service design, based on customer journey perspective. By considering the needs of governments (i.e., leading the directions, offering suggestions, and providing supports for firms), this paper puts its emphasis on service design and plan phase, embedded with the industry development viewpoint [26]. With regard to research method, action research was taken as our research method, and has its testing target on a sub-program of a four-year-long project titled Development of technology-enabled innovative service business models sponsored by DOIT, MOEA, Taiwan. The sub-program applied in this research targets on backpackers, aiming to identify the ecosystem and to design feasible SST-based innovative services for backpackers. The ultimate goal is to create new markets for ICT-related industries and to maximize the economic contribution of the backpacker economy in Taiwan. The study here adopts a wide definition on backpackers; backpackers, budget travel, youth travel, rite of passage tourism, and business travels are all covered. 106 foreign tourists / business travelers were interviewed. The strategy for interviewee sampling and selection is based on variety in travel contexts, genders, ages, and types of foreign backpackers that visit Taiwan. During the research execution phase, activities done by the research team followed the guidance of customer journey map, that of brainstorming, and that of service design. Fig. 1, for instance, describes how the research team documents, groups and analyzes the customer journey map for each segment of backpackers responding from interviewees. Fig. 2 illustrates how the research team demonstrates the proposed service scenarios of each designed technology-mediated services 2. To ensure the validity of the findings and research processes, more than six business managers and industrial experts in tourism domain were also invited for discussion during and after the execution of the sub-program. After the sub-program was done, the authors reviewed with the remaining members of the research team, trying to clarifying what was worth highlighted, and what was lacked or what was called for improvement. 2 Since the value propositions, the contexts, as well as the business model design of service scenarios are done in Chinese, the authors do not show in detail herein. 133

Figure 1. How to use the customer journey map within this methodology: An example Figure 2. Examples of the proposed innovative service scenarios 3.2. Brief on the Proposed Methodology The proposed the methodology on how to apply customer journey in SST-based innovative service design can be depicted as shown in Fig. 3. In the proposed methodology, nine steps are identified: (S1) Identify goals and targets; (S2) Draw customer journey maps for each segment; (S3) Explore customer journey maps in-depth; (S4) Clarify customer needs, wants, and service contents; (S5) Transfer into opportunities and challenges for service providers; (S6) Enlist possible devices / interfaces customers may experience; (S7) Brainstorm service scenarios that may close the gaps mentioned above; (S8) Prioritize ideas based on cost-benefit analysis and attractiveness amongst segments; and (S9) Service design and business model design on given technology-mediated service scenarios. When comparing with current models and literature, it is believed that the proposed methodology fits well with principles coming from multi-disciplines of SSME. That is, concerns of technologyenabled, customer experience / satisfaction and market potentials, are all taken into account. More specifically, the proposed methodology starts with the S-T-P (i.e., segment, target and positioning) discipline in marketing area during S1. Thus, the goals and targets of this project have to be clearly stated. In S2, S3 and S4, to clearly depicting and decomposing the contents and values behind the service from the customer perspective, principles of customer journey map are directly applied, which helps documents maps of each customer journey, identify flow of feeling, moment-of-truth(mot), and touch-points, as well as convert into customer needs/wants and service contents. In particular, S2 134

focuses on service roadmap description by drawing customer journeys. S3 has its focus on in-depth discussion and analysis of patterns and meanings behind the current journeys. S4 focuses on clearly depicting types of needs and their links with the contexts. Figure 3. Steps of the proposed methodology on SST-based innovative service design In S5 and S6, the methodology turns its focus into service design. The focus is on further identifying possible challenges for business or customer experience. Meanwhile, we also look for all possible candidate devices (rather current devices merely) serving as interfaces of technology-mediated services based on current touch-points. Such practice, from the very nature, pays its attention to suggestions made by Richardson [22] with regard to the importance of linking with (tangible) touch-points. In S7, a revised brainstorming strategy for innovative service idea generation is taken. To ensure the quality and speed of creative idea generation, as well as to ensure most ideas are in line with business concerns and with clear targets, an assisted tool that helps to link with segment / target, procedure, touch-points, and customer needs, are recommended applied for brainstorming. Detailed procedures or examples can be found in Chiu et al. [27]. To ensure the potential of developing a new service, we group and prioritize innovative ideas proposed in S7 by considering the possible benefits (the economic side), the strengths of customer needs (commonality amongst segments), and the impact on customer satisfaction / experience improvement (the psychological aspect) in S8. Fig. 4 depicts how we incorporate the above three concerns. As for the operation processes in more detail, they can be found in Kuo et al. [2]. To ensure the feasibility (including technical, economic and political) of introducing the proposed technology-mediated services, service design and business model design are taken in S9. Concerns of stakeholders or members within the ecosystem are all covered and analyzed. From the very nature, when comparing with current models and literature, it is believed that the proposed methodology fits well with principles coming from multi-disciplines of SSME. That is, concerns of technology-enabled, customer experience / satisfaction and market potentials, are all taken into account. To sum up, the stages of the proposed methodology echo the stages and activities spotlighting in the industrial-based service innovation methodology (isim) [26]. As well, such proposed practice is also in 135

line with Richardson [11] which discuss on how to improve current services through customer journey map techniques. Therefore, it is believed that our proposed methodology make the concept of user centric innovation and interactions between service provider-receiver well integrated in the service design phase. Figure 4. An example of how to group and prioritize innovative ideas with multiple concerns 3.3. Strategic Roles and Implications of using Customer Journey Methods With regard to the value of customer journey in designing SST-based innovative services, in addition to serving as a simple technique in observing and visualizing customer behaviors, the following strategic roles can be found based on our finding. First of all, customer journey is believed suitable serving as interfaces or mediators in depicting the service context for the B2C context. Second, customer journey and the corresponding journey maps can play well in capturing possible stakeholders and to help maximize the probability of commercialization of innovative ideas. Third, as new technologies (especially ICTs and SSTs) develop rapidly, customer journey approach together with methods of brainstorming and business model design can help service designers efficiently separate the conceptual layer (i.e., service design) and physical layer (i.e., service development). It can then help service providers evaluate whether there are better alternatives appearing or worth taken periodically, therefore serving well as a strategic tool in sensing and responding to service offering. Finally, since the service ecosystem is becoming more and more complex, and since players within this ecosystem can offer alternative solutions / innovative services for customers, customer journey can help describe and simulate the as-is and to-be service scenarios. It can then help firms with different positions or with different core competences (e.g., service providers, device providers, and platform providers) evaluate the most suitable approach in new service development under the SST-mediated context independently or jointly, thus developing the most appropriate co-opetition roles and strategies. 4. Conclusions The wide emergence of SSTs has led to the paradigm shift of business operations and dynamics of the B2C marketplace, therefore shaping the belief that the combination of self-service and technology will transform the service economy in much the same way that mass production transformed manufacturing. In particular, the installation of infrastructure, high adoption rate of mobile devices, together with 2.0 and App economy make SSTs will be much more widely adopted in the foreseeable future. Meanwhile, SSTs empower customers nowadays engaging in a proactive relationship with a company, making them an essential part of the firm s value-creating network as co-workers or co- 136

designers. However, there are still few studies on how to design innovative SST-based services by adding customer centric issue and by adding human-device interaction concerns. At the same time, when bringing design and innovation into service, customer journey is regarded as one of the most representative human-centered methods worth applied [13]. Therefore, this papers is interested in how to propose a SST-enabled, customer-journey-oriented methodology of innovative service design for improving the value-add and customer experience. The customer journey perspective is adopted as our methodology design basis. Through an action research based approach on a project sponsored by Taiwanese government, a methodology with nine stages is proposed. The nine steps in sequence are: Identify goals and targets; Draw customer journey maps for each segment; Explore customer journey maps in-depth; Clarify customer needs, wants, and service contents; Transfer into opportunities and challenges for service providers; Enlist possible devices/interfaces customers may experience; Brainstorm service scenarios that may close the gaps mentioned above; Prioritize ideas based on cost-benefit analysis and attractiveness amongst segments; and Service design and business model design on given technologymediated service scenarios. Particularly, concerns of technology-enabled, customer experience / satisfaction and market potentials, are all taken into account, which then echoes the needs of SSME on integrating principles of multi-disciplines as a whole. What is more, some examples are shown for reference in this paper, which is believed helpful in demonstrating how to execute IT-mediated innovative service design. We believe this proposed methodology valuable in building up an overall supportive SSTs in B2C context. We wish our work can offer a complementary perspective linking customer experience and ITeS, and contribute to theory building of SSME. 5. Acknowledgement The authors are grateful to the Department of Industrial Technology (DOIT), Ministry of Economic Affairs (MOEA), Taiwan, R.O.C. to sponsor this study under the project titled The development of technology-enabled innovative service business models. The authors would also like to thank the valuable comments received from ICNIT 2012 and that from the reviewers and editors, which offer greatly aid in improving the paper presentation. 6. References [1] Faïz Gallouj, and Olivier Weinstein, Innovation in Services, Research Policy, Vol.26, No.4-5, pp.537-556, 1997. [2] David C.L. Kuo, Chien-Chiang Lin, and Jui-Lin Yang, Reconsidering the Role of Brainstorming in the Marketing of Technology-driven Innovation. International Journal of Technology Marketing, Vol.6, No. 1, pp.4-16, 2011. [3] Matthew L. Meuter, Amy L. Ostromb, Mary J. Bitner, and Robert Roundtree, The Influence of Technology Anxiety on Consumer Use and Experiences with Self-service Technologies, Journal of Business Research, Vol.56, pp.899-906, 2003. [4] Veronica Liljander, Filippa Gillberg, Johanna Gummerus, and Allard van Riel, Technology Readiness and the Evaluation and Adoption of Self-service Technologies, Journal of Retailing and Consumer Services, Vol.13, pp.177-191, 2006. [5] Jan H. Schumann, Nancy V. Wünderlich, and Florian Wangenheim, Technology Mediation in Service Delivery: A New Typology and an Agenda for Managers and Academics, Technovation, Vol.32, pp.133-143, 2012. [6] A. Parasuraman, Understanding and Leveraging the Role of Customer Service in External, Interactive and Internal Marketing, in Frontiers in Service Conference, October 1996. [7] Harald Salomann, Malte Dous, Lutz Kolbe, and Walter Brenner, Self-service Revisited: How to Balance High-tech and High-touch in Customer Relationships, European Management Journal, Vol.25, No.4, pp.310-319, 2007. [8] M. Lynne Markus, and Robert I. Benjamin, The Magic Bullet Theory in IT-enabled Transformation, Sloan Management Review, Vol. 38, No. 2, pp.55 68, Winter 1997. 137

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