In the digital world, several service businesses are finding their growth prospects and bottom lines under threat. One of the primary reasons is the popping up of digital upstarts that take advantage of technology updates and data about consumer behavior. Using the data, they create customer-friendly and innovative services as compared to the existing ones. Services innovations have become pretty common across all industries. Simply put, it modifies the way a company serves a customer. Various types of service innovation have been taking place for quite some time. A few of the most path-breaking service innovations are:
Voice Recognition Banking
ICICI Bank has launched an application that makes use of voice recognition technology. The above service innovation was introduced to ease the banking process for its customers. Thus, the customers can complete their transactions using their voice. The application has been tested for security as well. To take advantage of the hands-free banking service, all the customers need to do is register their voice in the ICICI database. As the voiceprint comprises over 100+ characteristics, it is quite difficult to mimic it.
Several organizations have implemented AI-powered chatbots to improve the customer experience. It could work as a pop-up that appears on their website or dedicated chat service. The chatbots have been modified to suggest recommendations to the customers and solve some of their basic queries. As per research, more than 70 percent of individuals have had a satisfactory experience with chatbots.
Through an interplay between several different actors, Uber has managed to impact the value chain like no other service innovation. The ability to choose a cab from a set of options without having to step out of your house has been popular among its users.
It has been a breakthrough in terms of service innovation. Similar to Uber, Airbnb has managed to venture into a business that couldn't have been thought of a couple of years back. With its service innovation, not only has Airbnb managed to build a significant market share, but it has also offered a unique experience to its customers.
It is one of the most creative types of service innovation that you will get to see. The AmazonSmile program was a refresher and donated 0.5% of all the sales on smile.amazon.com. The users would get to choose an organization where they would want the donation to be made. It is one of the most simple innovations as all other products and prices remain the same as the Amazon website. The only difference is that the AmazonSmile logo replaces the Amazon logo.
The definition of service innovation might vary from person to person. However, the goal remains constant - to generate value for the customers and improve their customer experience. Be it organizations like Apple who have revolutionized how we consume music, or Heineken, all of them have managed to build their brand equity using various types of service innovation. Applications like Bounce and Drivezy have allowed customers to have the flexibility of using a motorcycle or a car without having to own one themselves.
We can see how service innovation can help organizations in customer retention and customer acquisition. However, it might not be as easy it seems. A professional course in service innovation will help you develop the creative mindset to come up with innovative solutions. MIT ID Innovation is a market leader in India when it comes to innovation courses. The comprehensive course structure ensures that you are well-prepared to tackle the nuances you might encounter while working in the corporate structure. You can browse through our website to know more about our courses.