Woo, Wow, and Win

Service Design, Strategy, and the Art of

Customer Delight
Thomas A. Stewart and Patricia O’Connell
WOO, WOW AND WIN: Service Design, Strategy, and the Art of Customer Delight by
Thomas A. Stewart & Patricia O’Connell. Copyright © 2016 by Thomas A. Stewart &
Patricia O’Connell. Published by arrangement with HarperBusiness, an imprint of
HarperCollins Publishers
336 pages
[@] getab.li/28566
Book:

Rating Take-Aways

9
9 Applicability • You can provide quality customer service and yet deliver a poor customer experience.
9 Innovation • Use the proactive “service design and delivery” (SD2) approach to plan and execute
9 Style great service and great customer experiences.

• SD2 is not a one-off event or a series of disconnected interactions; it is a journey that is

designed in accordance with a company’s strategy to meet customer expectations.

Focus • SD2 has 10 core elements: “empathy, expectation, emotion, elegance, engagement,
execution, engineering, economics, experimentation,” and “equivalence.”

Leadership & Management • SD2 is based on five principles: Identify the right customers and pursue them.
Strategy
Sales & Marketing
• Customers don’t want to be surprised. They want to be delighted.
Finance • Make it easy for staff to deliver great service and for clients to do business with you.
Human Resources
IT, Production & Logistics • Deliver high-quality service at every customer touchpoint and in every channel.
Career & Self-Development
• “You’re never done.” Routinely reinvent and modernize your service and service
Small Business offerings. Innovate in what you sell and how you sell it.
Economics & Politics
Industries
• Be aware of your customers’ great “Ahhh” moments and bad “Ow” moments. When
leaders learn from these interactions and improve service, that’s an “Aha” moment.
Global Business
Concepts & Trends

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getabstract

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Relevance
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What You Will Learn
In this book summary, you will learn:r1) How to develop and nurture “service design and delivery” (SD2), 2) How to
apply its 10 core elements and five basic principles to your business, and 3) How to learn from consumers’ “Ahhh”
and “Ow” moments.
getabstract
Recommendation
In this pioneering guidebook, Thomas A. Stewart of The Ohio State University and consultant Patricia O’Connell
explain the “what, why and how of service design and delivery,” or SD2. The authors traveled thousands of miles
and devoted thousands of hours to research to determine how companies can design and deliver a superior service
experience. They offer a crucial parsing: the difference between customer service – which most companies regard as
important – and customer experience – which most companies unconsciously neglect. The authors provide rules and
principles every business can follow to enact SD2. getAbstract recommends their insights and strategies to those in
the service sector, including banking, retail, health care and public services.
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Summary
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No Guarantees
Author Thomas A. Stewart stayed at a Walt Disney World hotel in Orlando, Florida.
Arriving after a long flight, Stewart was tired. He was relieved to find he could register
quickly. He appreciated that the front-desk clerk was professional. She gave him his key
getabstract and directions to his casita.
“Service design
presents an exciting
opportunity to explore Disney World is a huge and rambling entertainment complex. Despite the concierge’s
something that is new to directions, Stewart wandered around for 20 minutes. Three of the four hotel buildings were
management thinking,
new to business clearly marked, but not the fourth, which contained his room. Stewart couldn’t find an
practice, new to many employee to give him directions. By the time he reached his room, Stewart was a worn out
business leaders.”
getabstract and unhappy Disney customer.

Stewart’s dissatisfaction had nothing to do with customer service. The front-desk service
had been excellent, and his casita was comfortable. Disney World could have solved
Stewart’s problem, as well as the dilemma of other confused guests, by having “golf carts
and drivers” available to deliver people to their rooms. This might make financial sense
for a luxury resort, but not for Walt Disney World, which serves the needs of families and
getabstract
“Service design is a conventioneers.
system for developing
the relationship
between an entity –
In this incident, Walt Disney World lacked great “service design and delivery,” or SD2,
a bank, a law firm, a which calls for planning and delivering great service as an essential part of any offering.
health care system, a Service design includes service delivery.
store, a church – and
its customers.” (Victor
Ermoli, Savannah For example, as part of its overall SD2, the hotel could offer quality maps and install
College of Art and
Design) sufficient signage. It could offer interactive guides, like those on the Paris Metro, which
getabstract show a wall map with buttons you push to learn your route.

Developing such service components requires having a customer-centric approach,

whereby service designers imagine all the individual steps clients may take as part of their

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 experiential journey with a firm. Before providing a service, the service designer walks in
the “customers’ shoes.”

Plan Great Service

getabstract Providing excellent service depends on being proactive and building it into your operations,
“Companies that apply just as intuitiveness is “designed into an iPad.” While most companies assert their
the principles of service
design will create… allegiance to customer service, few incorporate designing the customer experience as a vital
strategic strength.” component of their operations.
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Providing quality service is not automatic in most service-industry companies. They

generally base their processes on manufacturing metrics – the “quantity and quality of
output: how many widgets, how few defects.” But such a model addresses production, not
service. SD2 is service-based; its goal is consistent “grade-A service experiences” – a win-
win for the company and the consumer. SD2 enables leaders to make and execute sensible
decisions about their customer service strategy. Think of SD2 as “consciously constructed
connective tissue” uniting your “strategy, business plan, and operating system.”
getabstract
“The three foundational “The Ahhh, the Ow, and the Aha”
questions of strategy –
where to compete, what SD2 won’t work unless you target your most important “customer interactions” and design
to sell, how to win – are them with 10 core elements in mind. This requires managing the Ahhh, the Ow and the Aha
inextricably bound up
with design.” moments you generate for your customers.
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An Ahhh moment is when something good happens that makes customers feel positive
about a company and confident they are going to get the experience they expect, such as
being able to easily navigate an 800-number phone tree to get through to the right person.

An Ow moment is the opposite of an Ahhh moment. In an Ow moment, customers

experience something negative that makes them disinclined to do business with you again.
“They may complete the deal or transaction, may even come back, but something is
broken.”
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“Use strategy to
determine SD2; use An Aha moment comes when executives acknowledge customers’ Ahhh and Ow moments,
SD2 to execute and
reinforce strategy.”
interpret what they mean for the future of the business, and dig into the SD2 work required
getabstract to correct the problem. A customer’s Ow moment is a signal to improve the experience.
Every Aha moment means leaders are on the right path.

The 10 Elements of SD2

SD2 is not a one-off event or a series of disconnected interactions between a company and
its customers. It is a journey that is designed in accordance with a company’s strategy to
meet customer expectations. You do well, and then you continue to do your best, often in
new ways as you learn and develop your products or services. Great service design and
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delivery means aligning your firm’s strategic goals with the needs of your customers. Fulfill
“Within your customer 10 strategic dimensions:
base, there may be
segments…for which
you design different 1. “Empathy” – When it comes to product design, value your “customer’s point of view.”
experiences at different Empathy requires appreciating what clients experience with your business.
prices or in different
places.” 2. “Expectation” – Understand what customers expect from you and what you can
getabstract realistically deliver.
3. “Emotion” – Anticipate your customers’ feelings and design your services accordingly.
4. “Elegance” – Provide “clean” and “simple” goods or services.
5. “Engagement” – Communicate with your customers so you know what they want and

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 expect. Find ways to engage your customers – to have them become active participants
with you in the creation and delivery of service.
6. “Execution” – Always deliver on your promises.
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“What are you doing 7. “Engineering” – Provide products or services that exemplify technical excellence.
about your customer 8. “Economics” – Set prices that give customers real value and provide the desired profit.
capital? Are you
growing it, or are you 9. “Experimentation” – Innovate by testing new things and following the best results.
living off it? Are you 10.“Equivalence” – Your customers are happy with you and you are happy, too.
actively managing it
or letting it fend for
itself, like money in a Use these 10 elements to create your “SD2 report card” and give yourself a score. Rate your
checking account?”
getabstract company according to each factor. Use a zero-to-four scale, with zero meaning “We don’t
do this at all” and four meaning “We’re world class.” Use this report card as a baseline for
upgrading your SD2 performance.

The Five Principles of SD2

The five SD2 principles are “rooted in good business and management practices.” They are:

getabstract 1. Identify, Pursue, and Serve Your “Right Customers”

“Many touchpoints are
common transactions: Determine which customers are best for your brand and focus on them. Once you identify
They will not win a the right customers for your offerings, design your services to be right for them. This
customer to your side
– though they can cost strategic targeting refines your brand to be as perfect as possible for your ideal customers.
you customers if you get This means you won’t spend time, money or resources on customers who don’t make sense
them wrong.”
getabstract for you. Focus on “your most valuable customers”: loyalists who spend the maximum
amounts on their transactions and regularly give you a significant share of their purchasing
power. Proper targeting requires disregarding clients who aren’t right for you. Don’t pursue
or retain demanding, difficult clients.

2. Customers Want to Be Delighted

“Don’t surprise and delight your customers – just delight them.” They want your product or
service to be reliable and excellent. Meet their expectations with no guesses or surprises by
providing an overall satisfying experience. Define the delight you deliver to customers on
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“When you make it “your own terms.” Delight represents your customers’ experiences (how good were they?)
hard for employees, multiplied by your “technical excellence” (how well did you deliver them?). Ensure that
they take shortcuts –
and customers leave.”
customers know what to expect as they move from one touchpoint to another. Such delight
getabstract will “woo, wow, and win” customers.

3. Make It Easy for Staff to Deliver Great Service and for Clients to Work with You
Your service design program should be “efficient, effective, scalable and, if not error-proof,
error-resistant.” Your goal is for your employees to deliver excellent customer experiences
with minimal effort. Just as important is the acknowledgement that your customers should
not have to waste their time and effort. Customers should be able to experience your
products or services just as easily. Your clients become co-creators of a shared experience
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“Archetypes are not as you become expert at delighting them by delivering what they want without wasting
straitjackets. Very few their time or money – or yours.
companies will fit an
archetype precisely.
Most are mongrels. 4. Deliver High-Quality Service at Every Customer Touchpoint and in Every
Do not use these as a Channel
pattern by which you
must cut your cloth. But Customers should have positive experiences whether they visit your store or office, navigate
use them.” to your website or call your 800 number. Be sure that moving from one touchpoint to
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another and between channels is effortless and always makes customers feel like they are
in your hands. For example, customers shopping online should find checkout painless and
intuitive. If customers need to return something in person that they ordered online, that

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 should be simple, too. Your firm needs a coherent approach for SD2 to work, so “wherever
and however you choose to play, you must play well.”

5. “You’re Never Done”: Routinely Reinvent and Modernize Your Service and
Offerings
You must manage the life cycle of your customer service as carefully as you manage the
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“Economists like life cycles of your products. View your services as “nonstatic, organic, and constantly open
to separate goods- to change and improvement.” Update the look and feel of your business to stay current.
producing companies
from those that deliver
services, but customers “Service Design Archetypes”
do not. They care about
the total experience
In every industry, some companies compete on price, luxury brands, and innovators. These
they have with a “service design archetypes” represent different value propositions and ways of going to
company.” market. Archetypes help companies figure out which customer experiences to offer.
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Consider how firms outside your industry that share your archetype provide superior
customer service and see if you can learn from them. For example, Apple modeled its
Genius Bar after the Four Seasons’ hotel concierge desk. The nine service design archetypes
are:
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“Design is about
decisions and trade- 1. “The Aggregator” – Like eBay, these firms are “one-stop shops” that provide different
offs, and therefore
everything is designed. products and services.
It is just that most 2. “The Bargain” – Like Walmart, these firms are price leaders in their industries.
things are often not
designed well.” (Jon
3. “The Classic” – Like Mercedes, these firms offer luxury within their overall industry.
Campbell, vice 4. “The Old Shoe” – Like Cracker Barrel or local coffee shops, these companies are
president, Continuum) familiar, reliable and comfortable. Often, they are hometown companies.
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5. “The Safe Choice” – Like Disney or Hilton, these firms often work well for everyone.
6. “The Solution” – Like IBM and ADP, these brands solve complex problems.
7. “The Specialist” – Like Manhattan Eye, Ear and Throat Hospital, these firms focus on
specific products or services.
8. “The Trendsetter” – Like Uber, Zara, Bard College, or Virgin Atlantic, these companies
getabstract are first-movers in their fields.
“Great service design, 9. “The Utility” – Government agencies, like the postal service, public utilities and similar
like great industrial
design, is elegant companies provide critical services to broad segments of the population. They are often
in…that its goal is to regulated.
achieve excellence and
efficiency at the same
time.” “Customer Capital”
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Every time a consumer comes away feeling good about a touchpoint, you develop valuable
customer capital. Every negative customer experience diminishes customer capital. The
more customer capital you amass, the more loyal your customers will be and the more
they will contribute to your sales and profits. “When service is designed well and delivered
expertly, it is because there is alignment among your strategic goals, your customer’s wants
and needs, and what actually happens between you.

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About the Authors
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Thomas A. Stewart is the executive director of the National Center for the Middle Market at The Ohio State
University’s Fisher College of Business and the former editor and managing director of Harvard Business Review.
Patricia O’Connell is president of Aerten Consulting, which helps develop content strategies.

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