If you want to revise and optimize your services, you can do so with service design thinking. The agile process helps teams to find the best solution for the existing problem. Flexible, agile and comprehensive. We explain how the process works.
What is Service Design Thinking?
Service Design Thinking is a holistic, user-oriented approach to developing and improving services. It combines elements from classic design thinking with specific methods for the service sector. The method focuses on user needs and creativity in order to ultimately find innovative solutions.
The aim: to create services that are not only functional, but also appeal emotionally and offer unforgettable experiences.
Service design versus design thinking
There is often confusion due to numerous similar terms in the field of service design. The term itself is interpreted differently in German than in English-speaking countries, which makes it difficult to understand.
Design Thinking
Focus: Design thinking is a general, problem-solving approach that can be applied to a variety of challenges – from product design to business processes to social problems.
Area of application: Can be used for physical products, digital solutions, processes or even abstract concepts.
Methodology: Typically follows a five-step process: Empathize, Define, Ideate, Prototype and Test.
Objective: Aims to find innovative solutions to complex problems by focusing on the needs of users.
Result: Can lead to different types of solutions, not just services.
Service Design Thinking
Focus: Concentrates specifically on the design and improvement of services and service experiences.
Area of application: Mainly used in the service sector, including digital services, but also for physical service environments.
Methodology: Builds on the design thinking process, but adds specific tools and techniques such as service blueprints, customer journey maps and touchpoint analyses.
Goal: Strive to create holistic service experiences that take into account all aspects of customer interaction – from the first touch to after-sales service.
Result: Usually results in improved or redesigned services, service processes or customer experiences.
The main differences
1) Specificity:
Design thinking is broader in scope and can be applied to many different areas.
Service Design Thinking is more specific and focuses exclusively on services and service experiences.
2) Approach:
Design thinking often looks at individual problems or challenges.
Service Design Thinking looks at the entire service process and all associated touchpoints.
3) Tools and methods:
While both approaches share similar basic principles, Service Design Thinking uses additional, service-specific tools such as service blueprints.
4) Temporal perspective:
Design thinking can focus on short-term solutions.
Service Design Thinking often considers the entire life cycle of a service and long-term customer relationships.
5) Stakeholder involvement:
Design thinking focuses primarily on end users.
Service Design Thinking often involves a broader range of stakeholders, including employees, partners and indirect customers.
The three phases of service
Every service experience is divided into three phases: The pre-service phase, the service phase and the post-service phase. These phases represent the entire service process and are crucial to creating a holistic and high-quality service experience.
Pre-service phase:
This phase includes everything that happens before the actual service is provided. It is particularly important because this is where the customer’s expectations are formed and the first points of contact take place.
Good examples are:
Information search of the customer
Advertising and marketing
Initial contact or appointment
Preparation for the service
This phase is particularly important for service design thinking because it lays the foundation for a positive service experience. Designers need to understand how customers become aware of the service and what their expectations are.
Service phase:
The service phase is the core phase in which the actual service is provided. It comprises all direct interactions between the customer and the service provider.
Examples are
Counseling sessions
Implementation of a service
Purchase of a product
Use of a platform or app
The service phase is the customer’s main experience in connection with your service or product. It determines how customers experience your service. Designers must ensure that all processes run smoothly, efficiently and optimally for the customer.
Postal service phase:
This phase begins after the actual service has been completed. It is important for long-term customer loyalty and satisfaction.
The most important aspects of this phase are
Aftercare
Feedback and ratings
Follow-up sales or cross-selling
Customer support
The post-service phase rounds off the overall experience for the customer. In this phase, they express their satisfaction or dissatisfaction.
Why are service phases so important in Service Design Thinking?
Holistic approach: Only by considering all three phases can designers create a comprehensive service experience that covers all aspects of the customer journey.
Identify potential for improvement: Analyzing each phase makes it possible to identify and eliminate weaknesses or gaps in the service.
Customer-centric design: By understanding customer expectations and experiences, the service can be even better tailored to the needs of the user.
Touchpoint optimization: Each phase offers specific touchpoints with the customer that can be optimized in Service Design Thinking.
Emotional journey: Taking all phases into account makes it possible to understand the customer’s emotional journey even better and influence it positively.
Added value: Optimizing the individual phases increases the overall value of the service for the customer.
Expectation and experience: The difference between expectation and experience ultimately determines how the customer perceives your service.
The principles of Service Design
These basic principles of Service Design Thinking form a holistic framework for the development of innovative and user-oriented services. They enable companies to go beyond mere functionality and generate real added value for their customers.
User-centered
The user is at the center of all considerations and decisions. A person’s individual expectations and experiences before and during a service significantly influence their satisfaction.
The aim is to develop a deep understanding of the needs, wishes, motivations and pain points of the target group.
Empathy: Developers and designers actively put themselves in the user’s shoes.
Field research: Direct observation and interaction with users in their natural environment.
Personas: Creation of detailed, fictitious user profiles based on real data.
User tests: Continuous involvement of users in the development process.
Co-creation
This principle emphasizes the importance of cooperation between different stakeholders in the design process.
Interdisciplinary teams: collaboration between experts from different fields.
User involvement: Active participation of the target group in the design process.
Workshops: Creative sessions with employees, customers and partners.
Open innovation: Use of external ideas and resources.
Sequencing
Here, the entire service is viewed as a sequence of interrelated actions and experiences.
Customer journey mapping: Visual representation of the customer journey from start to finish.
Touchpoint analysis: Identification and optimization of all contact points between customer and company.
Process optimization: Improvement of service flow and elimination of bottlenecks.
Experience design: Designing a coherent, positive overall experience across all phases.
Evidence
This principle aims to visualize abstract concepts through tangible elements and make them tangible.
Service prototypes: Physical or digital models to illustrate service concepts.
Storyboards: Visual representation of service scenarios.
Role plays: Simulation of service situations to test ideas.
Service artefacts: Development of physical touchpoints (e.g. brochures, apps) that make the service tangible.
Holistic approach
This principle takes into account the entire context in which a service is provided and experienced.
Systemic thinking: Viewing the service as part of a larger ecosystem.
Stakeholder mapping: Identification and inclusion of all relevant interest groups.
Environment analysis: Consideration of cultural, technological and economic factors.
Future orientation: anticipation of future trends and developments.
Other principles that are often taken into account in service design thinking:
Iterativity
Agile methods: Flexible, step-by-step development and adaptation of solutions.
Feedback loops: Regular review and refinement of concepts.
Learning orientation: Understanding mistakes as opportunities for improvement.
Sustainability
Environmental responsibility: Consideration of the environmental impact of service solutions.
Social responsibility: ethical considerations and social added value.
Long-term: Development of solutions that will remain relevant and valuable in the future.
The Service Design Process
Phase 1: Understanding
This phase is about developing a deep understanding of the context, the users and their needs.
User research: conducting interviews, surveys and observations.
Context analysis: Examination of the environment in which the service takes place.
Stakeholder mapping: Identification of all relevant interest groups.
Trend analysis: Research into current and future developments in the market.
Competitive analysis: Analysis of existing solutions and competitors.
Phase 2: Define
This is where the findings from the understanding phase are structured and translated into a clear problem definition.
Synthesis of the findings: Merging and analyzing the collected data.
Problem framing: Formulation of a precise problem or challenge.
Persona development: creation of detailed user profiles.
Journey mapping: Visualization of the current user experience.
Objective: Definition of clear, measurable goals for the service.
Phase 3: Brainstorming
This phase focuses on the creative development of a wide range of solutions.
Brainstorming sessions: Implementation of structured idea generation workshops.
Design sprints: Intensive, time-limited creative phases.
Co-creation workshops: Involving users and stakeholders in the generation of ideas.
Analogy technique: Search for inspiration in other industries or contexts.
Scenario development: Creation of various future scenarios for the service.
Phase 4: Prototyping
In this phase, selected ideas are converted into testable models.
Paper prototypes: Quick sketches and mockups.
Digital prototypes: Interactive models for digital touchpoints.
Service blueprints: Detailed representation of the service process.
Role plays: Simulation of service interactions.
Storyboarding: Visual narrative of the service process.
Phase 5: Testing
This is where the prototypes are tested and evaluated with real users.
Usability tests: checking user-friendliness.
A/B tests: Comparison of different versions of a service element.
Field tests: Testing the service in real environments.
Feedback rounds: Structured collection of user feedback.
Metrics analysis: measurement of relevant performance indicators.
Phase 6: Implementation
This phase comprises the gradual introduction and continuous improvement of the service.
Pilot projects: Introduction on a limited scale for fine-tuning.
Change management: preparing the organization for change.
Training courses: Qualification of employees for the new service.
Scaling: Gradual expansion of the service.
Monitoring and optimization: Continuous monitoring and adjustment.
Also important during the process:
1) Iterative work and feedback loops:
Regular review and adjustment at every stage.
Fast feedback cycles for continuous improvement.
Flexibility to react to new findings.
2) Documentation and knowledge management:
Systematic recording of findings and learnings.
Creation of design guidelines and best practices.
Development of an organization-wide knowledge base.
3) Stakeholder management:
Regular communication with all parties involved.
Involvement of decision-makers in critical phases.
Coordination with other ongoing projects and initiatives.
4) Evaluation and performance measurement:
Definition of KPIs (Key Performance Indicators) at the start of the project.
Regular review of target achievement.
Long-term monitoring of the impact on customer satisfaction and business results.
Service Design Thinking: A practical example of agile working
Scenario: Redesigning the banking service for young professionals
Understanding: The team begins with comprehensive research
Interviews with 50 young professionals between the ages of 22 and 30
Observation of customer behavior in bank branches
Analysis of customer feedback and complaints
Investigation of trends in digital banking
Findings:
Young customers feel intimidated by traditional bank branches
You prefer digital solutions, but would like personal advice on complex issues
Financial education is a great need
Define: The team formulates the challenge
“How can we design a banking service that offers young professionals security and support with financial decisions, while at the same time being digital and personal?”
Brainstorming: In a two-day workshop, the team generates various ideas
A “Financial Buddy” app with AI-supported advice
Pop-up advice cafés near the university
Financial webinars and online courses
Personal financial coach for the first three years of your career
Prototyping:
The team decides to pursue two ideas further:
a) The “Financial Buddy” app:
Creation of a clickable prototype with the main functions
Development of a service blueprint for the background processes
b) Pop-up advice café:
Mockup of a café layout
Outline of the consultation process
Role plays for typical counseling situations
Testing:
The app is being tested in a four-week beta test with 100 young customers
A one-day pop-up café is set up on a university campus
Feedback:
The app has been well received, especially the real-time advice function
The café concept is popular, but privacy is an issue
Implementation:
Based on the feedback, the bank decides on:
Nationwide launch of the app with monthly update cycles
Establishment of “banking lounges” in selected branches that combine the café concept with more privacy
Continuous improvement
Monthly user feedback rounds
A/B tests for new app features
Training for employees in the banking lounges
Results after 6 months:
40% increase in customer interactions in the target group
25% increase in customer satisfaction
15% growth in new customers in the 22-30 age group
The process helped the bank to think beyond traditional solutions and develop innovative concepts such as the AI-supported app and the banking lounges. By continuously involving the target group in the development process, it was possible to ensure that the service actually meets the needs of young professionals.
triangility: Your partner for design thinking
We have decades of experience in supporting managers and teams on their way to effectively implementing Design Thinking. Time and time again, we are amazed by the results this process can generate. Curious to experience it for yourself?
Develop innovative services and offer an outstanding customer experience.
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