Service V’s Services

20. September 2009 by Aidan.

The term “service” is used everyday is discussions about business activities and performance. At times it can be confusing because of the lack of definition in exactly what is meant by the term “service”. In fact, when discussing service it is very important that the context is understood.

There are two main areas of service that are unique and distinct and need to be understood. One helpful way of considering these are as the “service that you provide” and the “services that you offer”.

The “service you provide” covers the interaction of your business with everyone else. It can be the interaction with your customers primarily, but also with your suppliers and your own employees. Every company provides this service by the very nature of being in business (you sell something and you charge for it, you talk to your customers, etc). Anyone who interacts with your company experiences the “service your provide”. To improve customer satisfaction you need to ensure that the level of service you provide is of high quality, responsive and meets your customers needs. Service Design is increasingly being employed to optimise this process and ensure that your service meets or exceeds customer expectations. Essentially, the provision of this service is a cost for your company however the quality of this service can be a differentiator for your business.

The “services you offer” are completely different. These are closer to the product you sell. Essentially they are value added or essential services that you need to actively provide in order to grow your business. In this case it will often be the customers choice whether or not to choose to purchase your service.  These services are value added for your business and can substantially grow your revenue and develop longer term customer relationships. It is critical that these services are designed from the outset and not just drifted into, this is being addressed by the growing field of servitization.

For many companies there can easily be confusion between the service you provide and the services that you offer. These need to be considered as two separate aspects of service (”service” V’s “services”) and there are emerging design techniques and tools that can optimise both.

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