UCL School of Management is delighted to welcome Ioannis Bellos, George Mason University, to host a research seminar discussing ‘Service Design for a Holistic Customer Experience: A Process Perspective.’
We address the design of multi-step services, with holistic customer experiences. The design comprises the price and effort invested at each step of the customer journey. Steps are objective (higher functional value implies less experience variability) or subjective (higher value implies higher variability). We account for the adverse effect of variability, and for the coupling amongst the touchpoint experiences. Our analysis suggests practical guidelines based on closed-form derivations of the optimal design. Designs depend critically on a journey effect, which is shaped by the experiential coupling, and the heterogeneity of the touchpoints. Thus, efforts might be complementary or substitutable, and the designs exhibit spread efforts across the journey, or focused efforts on selective steps. Moreover, we prove that when the coupling decreases monotonically between the touchpoints, the journey effect can be determined through an analysis of three-step blocks. Finally, more effort is invested in services with more heterogeneous step types.