Adding Service Efficiency
Service productivity is notoriously low, in part because of customer involvement in the design
or delivery of the service, or both. This complicates the product design challenge. We will now
discuss a number of ways to increase service efficiency and, among these, several ways to limit
this interaction.
Limit the Options Because customers may participate in the design of the service (e.g., for
a funeral or a hairstyle), design specifications may take the form of everything from a menu (in
a restaurant), to a list of options (for a funeral), to a verbal description (a hairstyle). However,
by providing a list of options (in the case of the funeral) or a series of photographs (in the case
of the hairstyle), ambiguity may be reduced. An early resolution of the product's definition can
aid efficiency as well as aid in meeting customer expectations.
Delay Customization Design the product so that customization is delayed as late in the
process as possible. This is the way a hair salon operates. Although shampoo and condition are
done in a standard way with lower-cost labor, the color and styling (customizing) are done last.
It is also the way most restaurants operate: How would you like that cooked? Which dressing
would you prefer with your salad?
Modularization Modularize the service so that customization takes that. form of changing
modules. This strategy allows for "custom" services to be designed as standard modular
entities. Just as modular design allows you to buy a high-fidelity sound system with just the
features you want, modular flexibility also lets you buy meals, clothes, and insurance on a
mix-and-match (modular) basis. Investments (portfolios of stocks and bonds) and education
(college curricula) are examples of how the modular approach can be used to customize a
service.