Smart Lighting Event
Thursday, November 13
12.30 pm - 9 pm
Session 4: Introduction to the theme Services: The road to a better customer experience
About designing services and better customer perception.
Good afternoon everyone, welcome.
The train journey from London to Paris used to take 3.5 hours.
20 years ago the question was asked: how do we make this train journey better?
The answer was: an investment of £ 6 billion to renew the entire route, making the train journey 40 minutes shorter.
Rory Sutherland of Ogilvy said that there was little imagination, his idea, somewhat hedonistic, was:
Hire all of the world's top models to distribute free champagne and drinks during the train journey.
That is quickly half the price. And travelers will just ask if the train can run slower.
My name is Thomas Lapperre from Bloeise, and I am going to give you an introduction to the theme of services: the road to a better customer experience.
Quality of life
How do we increase the quality of life in a city? That's what it's about today. I will discuss the development of services, or services, for consumers.
As consumers, we always want a good price / quality ratio. We want to enjoy. We want value. Experience. Experiences. A better customer experience is a better ratio between costs and product.
There are three major developments that help to improve that customer experience.
This goes hand in hand with Big Data. What is Big Data? How does that work?
An example of Kenneth Cukier:
“What is the most favorite cake in America? Apple pie. You can see that in all sales. But when supermarkets started selling smaller cakes, apple pie sales declined. What turned out to be? Apple pie is the second choice for everyone. When you buy a large cake, the whole family must agree. But with small cakes, everyone can buy their favorite cake. And that is not apple pie. "
Personalization is the alignment of a product, service or experience with a person. Big Data makes that better possible.
2. Product level
The 2e development has to do with product levels. Services and products consist of several levels:
A physical product, such as a car with an engine. What the product does. Color, model, performance. Easy to copy by the competition.
An extensive product: the warranty and service on a car.
Then you have the total product: including the derived values. What does the car mean for us as a consumer? A car stands for freedom, going wherever you want. A Volvo stands for safety. It is very difficult to compete at this level. You have a position as a brand, in the mind of the consumer.
Now this distinction is not new. But the shift from products to services. From owning to sharing. Having the physical product is no longer important, it is about what the car offers you. Nowadays you can share a car with other people, with a service such as Greenwheels for example. And tools, you can share, with Peerby. This trend is called appification.
The Nest is an example. A smart thermostat from Google, now available in the Netherlands through Essent. This thermostat is no longer just a knob to set the temperature. The Nest offers a service that downloads the weather itself, takes into account the preferences of the residents and learns independently. So when I'm home, the temperature goes up to 19 degrees. When my wife is home, the temperature goes up to 21 degrees. If we are both at home, it will be 20 degrees.
Honeywell and Nefit now also offer smart thermostats, so you'll be hearing more about it this winter.
Everything that can go digitally goes digitally:
- Since 2014 we have full coverage with the 4G network.
- Free internet in public transportation.
- Wearables such as the Smart Watch are on the rise.
- More and more devices get their own IP address.
- And above all: data goes digital.
Eric Schmidt, Google CEO
More and more data is coming online.
- And also about your living environment.
- air quality.
- Google Streetview.
And so there is this website: Insecam.com. This shows thousands of security cameras that are barely protected. The password is still at the factory setting.
These 3 developments, Personalization, Appification and Digitalization, are technical developments that give the government and companies the opportunity to offer more experience.
How does that meet our needs as a consumer?
I give 3 examples in which I discuss the role of the consumer.
The role of the consumer
This is Amsterdam in the winter. Lots of snow. The various city districts are responsible for clearing that snow. By sharing data, they now know exactly from each other who has gone which way. So that they no longer clean the same road twice, and therefore work more efficiently, with lower costs.
This is an improvement that you as a citizen, as a consumer, just expect from a city.
Thinking for your customer
An advertisement for the Ford T-Model. Henry Ford said:
“Any customer can have a car painted any color that he wants so long as it is black. "
The T-Ford was cheap, high-quality, available in large numbers ... and only in one color. Black. Henry Ford had a vision. He became very successful with that: in 1921, Ford had a market share of 65% in America.
But the world changed, new technology and new models changed consumer needs. However, the Ford T model did not change, and the market share fell back to 15 % in 1926. (it is still there now)
Changing the world together
This is windmill the Red Deer. This windmill was purchased within 13 hours by almost 2000 Dutch households, via the Windcentrale. Every household owns a piece of windmill. With this they generate their own green energy for their energy needs. This set a world record in Crowdfunding.
What is crowdfunding? With crowdfunding, customers are first collected for a good idea, and only if there is enough support, it is implemented. The economy is changing through crowdfunding.
With these 3 examples I want to indicate that the dialogue is very important for the successful development of a service.
Dialogue and data
We find a good example of this in Tilburg.
As a citizen in Tilburg you can view your WOZ data online and also change it. This not only results in cost savings for the municipality, but also involved citizens who have more insight and understanding. And 40 percent fewer objections.
Share personal information
Electronic patient archive
When do you, as a consumer, now provide personal information?
For example, you might think that the government receives personal information rather than companies.
But click. So that doesn't always go well.
So it's not just about the party in question.
Look at the success of Facebook. There are 1.28 billion Facebook users. That number is still rising.
Which of you uses Facebook? are you familiar with <CLICK> this user condition?
You give Facebook the right to use all photos and videos that you upload. And then Whats'App. If Paco has my telephone number in his cell phone and uses WhatsApp, my telephone number is stored by WhatsApp, with the note whether I use WhatsApp or not. I didn't sign for that. But Paco is.
And Facebook Messenger appears to have more spyware than the software specially made for that.
Well, now that you know this ... Do you still use Facebook? I do.
According to an British consumer research most consumers give their personal data when:
- They know exactly what their data is used for
- There is trust in the brand
- It clearly delivers them.
This is a mix that differs per situation. Facebook offers enough value, their services are free, and there is a lot of confidence in the brand. And it is somewhat clear that our data is used for advertisements.
When you talk about Smart City, you soon talk about Smart Lighting. That is because when a municipality replaces its electricity grid,
- If you tell the consumer: smart city = free wifi, then most consumers are already tacking.
- There is talk of a receding government. Instead of buying new lamps, more and more municipalities are choosing a supplier who also installs and maintains the lamps.
- Companies are eager to install those new WiFi street lamps with everything around them: good business for the future.
There are 3 dangers in this:
Free WiFi, I quickly say yes to that. When it comes to politics and urban development, most citizens are not really interested in that. Opinions quickly become populist. But that I am not interested does not mean that I have no rights. Who monitors my privacy?
The task of lighting is 1, but the feeling that gives light, the atmosphere in the city, the impact on living safety ... who is responsible for that, when the municipality gives up tasks at a company? How do you prevent that responsibility falls between two stools?
What you also want to prevent is that consumers provide their data for the one free service,
Now innovation comes primarily from companies. And to what extent do you want companies to go limit with policy, before even experience has been gained with the application of a technique?
That about the risks. How can we further develop a new service?
From Service Design there are a number of ways to develop a new service.
Focus on the customer
A man. Grew up in England. Married. Rich. 50+ .. Has at least 2 children. Loves dogs. And the Alps. That includes this gentleman. Prince Charles.
And this gentleman too.
For which of the two are you currently designing a service?
Start the dialogue by trying. Prototyping. Like here in Eindhoven on Stripe.
Strp is a festival in which art, technology and culture come together. It is about experiencing and experiencing. The general public is introduced to new techniques in a playful way.
A project is currently running in Chicago, Array of Things, in which sensors collect all kinds of data and make them freely available.
FINALLY. The most important thing when developing a service: the Focus on the total value proposition for the consumer.
As a consumer we are critical. Just ask Hyves for example. We want the best alternative. Companies know all too well. A value proposition consists of 1. lower costs and 2 more value.
- What does it cost the citizen in terms of privacy?
- Are personal details required?
- Does it have positive consequences for my wallet?
- What does it actually deliver?
- What product level are you going to sit at? Do you make the train journey shorter or more pleasant?
- What experience do you offer?
Thank you for your attention.