How to develop new product or service

Services process Model for service life cycle

service life cycle



In order to have a successful product / service, you have to define in your mind what kind of product/service you are going to introduce to your customer, what its shape, the features , usage , and why customer should pay to get it. Here are the road map you may follow to have a good product/service. In this article we are going to discuss the service package development in particular.

Market research

Among many tools and methodologies, like KANO MODEL, quality function deployment QFD, and design of experiments which used to be common for identifying customer values as well as transferring customer’s perceptions to product / service specifications. Try to find out and identify key benefits for your customers, by answering the following 3 questions:

– What are the key buying features that customer values, make sure that you understand your customer better than he understands himself.

– How do customers rate service/ product features.

– What are the opportunities market is offering you to make your product / service unique?

By highlighting the best performance on each key factor, marketers obtain a market-derived, empirical collage of each supplier’s customer value proposition. Often the view from the marketplace differs from the organization’s internally-developed customer value proposition.

Creating Customer value model

Customer value model

customer value model

in this regard, customer experience includes many aspects which involve in creating the values you have to cover at least the aspects mentioned on the customer value model

The aspects, which considered as the highest values as defined by researchers, are as defined in the model graph, but actually are not limited to it.

  • Environmental aspect: in the area where the customer will be served, climate will play important role, lightening, temperature, and colors shall make customer comfortable even if he has to wait for a long time.
  • Aesthetic aspect: front-liner with their attractive looking could create the first impression which will last for ever.
  • Interpersonal aspect: again good training of front-liner for outstanding customer service justifies every penny will be spent on them, it will be paid back.
  • Procedural aspect: e.g. when and where to pay, how and where he can try/ test the product / service.
  • Informational aspect: what kind of information you are going to exchange with the customer, e.g. customer’s name, credit card data, service details, etc.
  • Financial aspect: e.g. price, installment, payment method.
R & D

R & D

These aspects, for minimum, have to be covered during designing and developing phase.

For the most important aspect, the deliverable, each product / Service package should include the following ingredients:

  • Basic part:

The reason of being or organization. In this part you will announce the commitment, terms and conditions to our customer, normally mentioned in the service contract that customer receives in his hand. (E.g. delivery time, price, features of the product / service)

Basic part must be written in the working procedures and staffs are trained on it.

  • Expected part:

product / Service package that the customer takes for grant.

This part normally is not mentioned in the agreement, nor announced to the customer; however customer knows that he will get it by default because all competitors are doing it. If customer didn’t get it, then we are out of the market.

Also this part must be written in the work procedures, and staffs are trained on it.

  • Desired part:

Elements that are not expected but valued highly

  • Unanticipated part:

product/ service elements that exceed expectation and desire, the surprise elements


KANO model


In general, the four parts of the product /service package have to be reviewed from time to time. Most of the time you will find out that some features have to be moved from one section to another, e.g. some from “expected part” could be moved to “Basic” depending on the market feedback and competition situation.

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