Fostering Collaborative Research for Customer Experience – Connecting Academic and Practitioner Worlds

© 2020 This editorial calls for greater use of academic-practitioner workshops to co-create value for academics, practitioners and wider network actors through promotion of research relevance and sharing of problems, ideas and data. It describes how one such workshop, the 2nd Academic-Practitioner Research with Impact Workshop focusing on the design and decision making for customer experience, co-hosted in Manchester on 18th and 19th of June 2018 by Alliance Manchester Business School, University of Manchester and Loughborough University's Centre for Service Management (CSM), was delivered. The key processes for success and issues to consider for future such events are discussed. The workshop resulted in 8 papers (six theoretical and two empirical). This Special Issue advances current understanding of CE through the research considering the role of technology (AI and big data) in CE research, atypical CE (vulnerability, deviance behaviours and service failure and recovery) and focusing on important organizational and B2B issues (business model innovation, and CEM in business markets)

Identifying tensions in the servitized value chain

OVERVIEW: Servitization is recognized as an opportunity for manufacturing firms to harvest additional value by accessing new sources of revenue and expanding their reach up and down the value chain. It is a network activity, as it involves not just the servitizing firm but actors across the firm’s ecosystem. Most studies argue that servitization creates value for all network actors. However, service innovation activities may also result in the firm appropriating value from other actors, creating tensions in the network. Those tensions can undermine servitization efforts and destroy value for all participants. To avoid this outcome, firms must anticipate and manage tensions to create cooperative relationships with value chain partners. Through a series of semi-structured interviews with key actors at servitizing firms and their customers and intermediaries, we identified specific types and sources of tensions in the servitization process and explored how they might be mitigated or managed

Service Modeling of Compliments and Complaints and its implications for value co-creation

The paper demonstrates the impact of using text mining techniques to automate analysis and classification of large amounts of customer compliments and complaints (C&C). The research is using an empirical approach to generate a better understanding of how co-creation processes can be designed based on customer feedback experiences. In order to improve the service propositions, the integration of customer comments as operant resources of the organisation is discussed. A cocreation feedback model is proposed, considering positive and negative comments across three main categories, resources, activities and attributes (positive/negative comments). Finally, the co-creation feedback model enables the mapping of the organisation’s service processes from the customer perspective

When good news is bad news: the negative impact of positive customer feedback on front-line employee well-being

Purpose – Front-line employee (FLE) well-being is an under-researched field. Contrasting the prevailing view that Positive Customer Feedback (PCF) can only have ‘positive’ impacts, this study aims to answer the counterintuitive question: Could the apparently positive construct ‘Positive Custo mer Feedback’ have a negative impact on the well-being of front-line employees? Consequently, working within the Transformative Service Research (TSR) framework, we investigate whether PCF can negatively affect the eudaimonic and hedonic well-being dimensions of FLEs, thus decreasing their overall psychological well-being level. Design/methodology/approach – A multidisciplinary literature review was conducted, particularly in the social psychology, human resources and organizational behavior fields, to examine the potential negative impacts of PCF. Subsequently, an exploratory qualitative study consisting of seven focus groups with 45 FLEs and 22 in-depth interviews with managers working across various service industries were performed. All the transcripts were analyzed via an iterative hermeneutical process. Findings – A model describing ten negative impacts and six key contingencies of PCF was developed. The identified impacts can negatively affect the eudaimonic and hedonic well-being dimensions of FLEs. PCF can have a negative impact on the eudaimonic dimensions such as harmony, respect and support. Moreover, PCF appears to increase the negative affect by creating tension, fear, strain and stress, thus, negatively affecting the happiness level of FLEs (hedonic well-being). The identified contingencies play a crucial role in determining the direction and intensity of the negative impact of PCF. Therefore, the overall psychological well-being level of FLEs can suffer as a result of PCF. This study also discusses managerial challenges associated with PCF management. Research limitations/implications – The article discusses important managerial implications in the field of FLE well-being and PCF management and suggests directions for future research aiming to expand the boundaries of the current TSR agenda and service human resources. Originality/value – This study is the first to explore the negative side of PCF from a TSR perspective. It extends the understanding of the overlooked area of PCF and FLE well-being

Motivations for servitization: The impact of product complexity

Purpose – The purpose of this paper is to identify the commonalities and differences in manufacturers’ motivations to servitise. Design/methodology/approach – UK study based on interviews with 40 managers in 25 companies in 12 sectors. Using the concept of product complexity, sectors were grouped using the Complex Products and systems (CoPS) typology: non-complex products, complex products and systems. Findings – Motivations to servitise were categorised as competitive, demand based (i.e. derived from the customer) or economic. Motivations to servitise vary according to product complexity, although cost savings and improved service quality appear important demand-based motivations for all manufacturers. Non-complex product manufacturers also focus on services to help product differentiation. For CoPS manufacturers, both risk reduction and developing a new revenue stream were important motivations. For uniquely complex product manufacturers, stabilising revenue and increased profitability were strong motivations. For uniquely systems manufacturers, customers sought business transformation, whilst new service business models were also identified. Research limitations/implications – Using the CoPS typology, this study delineates motivations to servitise by sector. The findings show varying motivations to servitise as product complexity increases, although some motivational commonality existed across all groups. Manufacturers may have products of differing complexity within their portfolio. To overcome this limitation the unit of analysis was the strategic business unit. Practical implications – Managers can reflect on and benchmark their motivation for, and opportunities from, servitisation, by considering product complexity. Originality/value – The first study to categorise servitisation motivations by product complexity. Identifying that some customers of systems manufacturers seek business transformation through outsourcing

Capabilities for advanced services: A multi-actor perspective

This paper was published in the journal Industrial Marketing Management and the definitive published version is available at http://dx.doi.org/10.1016/j.indmarman.2016.04.015.Servitization involves manufacturers developing service offerings to grow revenue and profit. Advanced services, in particular, can facilitate a more service-focused organization and impact customers' business processes significantly. However, approaches to servitization are often discussed solely from the manufacturer's perspective; overlooking the role of other network actors. Adopting a multi-actor perspective, this study investigates manufacturer, intermediary and customer perspectives to identify complementary and competing capabilities within a manufacturer's downstream network, required for advanced services. Interviews were conducted with 24 senior executives in 19 UK-based manufacturers, intermediaries and customers across multiple sectors. The study identified six key business activities, within which advanced services capabilities were grouped. The unique and critical capabilities for advanced services for each actor were identified as follows: manufacturers; the need to balance product and service innovation, developing customer-focused through-life service methodologies and having distinct, yet synergistic product and service cultures; intermediaries, the coordination and integration of third party products/services; customers, co-creating innovation and having processes supporting service outsourcing. The study is unique in highlighting the distinct roles of different actors in the provision of advanced services and shows that they can only be developed and delivered by the combination of complex interconnected capabilities found within a network

Exploring the impact of customer feedback on the well-being of service entities - a TSR perspective

Purpose – Adopting the transformative service research (TSR) perspective, the purpose of this paper is to investigate the impact of positive customer feedback on the well-being of front-line employees, companies, and society. Using a multidisciplinary approach, the overlooked area of “positive feedback” is explored resulting in the development of the “Positive Feedback Model” (PFM). The study also compares managers’ and employees’ perceptions of positive customer feedback. Design/methodology/approach – Two exploratory qualitative studies were conducted: Study 1 consisted of 22 semi-structured interviews with managers working in the service industry and Study 2 consisted of seven focus groups with front-line service employees. The extensive literature review and the results of these two studies contributed to the development of the PFM. Findings – Positive customer feedback is an overlooked area of service research which offers potential for improving the well-being of the service entities. Front-line employees are the main recipients and topics of positive customer feedback. The developed PFM describes various forms, channels, and times of administration of positive customer feedback and its multitude of impacts on the well-being of service entities. Research limitations/implications – This study contributes to the literature on TSR and customer feedback management. The developed model presents possible positive feedback categories, their various outcomes and the outcomes for the concerned parties involved. By developing PFM and encouraging a multidisciplinary approach combined with advanced research methodologies, the researchers propose an agenda for further research insights within the TSR and customer feedback areas. The comparison of the managers’ and employees’ perceptions of positive customer feedback presents novel managerial implications and directions for future research. Originality/value – This study is the first to explore customer feedback from a TSR perspective. It examines the overlooked area of positive customer feedback. The well-being of service entities is prioritized as services have been extensively criticized for ignoring human well-being

I Can’t Always Get What I Want:Low Power, Service Customer (Dis)Engagement and Wellbeing

Purpose – This research examines experiences of low customer power in service interactions and the impact of those experiences on customers’ engagement and disengagement towards a firm. It subsequently identifies how such experiences may affect customers’ wellbeing. Design/methodology/approach – We conducted visual elicitation interviews with 30 customers of a range of services. Data were analysed thematically using abductive reasoning. Findings – Low customer power is influenced by several factors perceived by customers as associated with the firm and/or the context of the customer-firm relationship. Results show that low power drives negative customer engagement and may result in behavioural disengagement. Low customer power, negative engagement and disengagement can have negative implications for customers’ eudaimonic (physical and financial) and hedonic wellbeing. Research limitations/implications – Future studies might explore specific service contexts and power dynamics across service ecosystems and should further analyse the implications of these relationships on firms’ strategic organisational responses. Practical implications – Firms should monitor customer power and explore means of enhancing the wellbeing of their customers through strategies designed to increase customer power, thus reducing negative customer engagement, and avoiding detrimental impact on customer wellbeing. Originality – This study reframes discussions on low customer power in relation to firms and its impact on firms and customers. It identifies low customer power as a key variable in the study of customer engagement, disengagement, and wellbeing

Servitization capabilities for advanced services:a multi-actor perspective

Servitization is the process by which manufacturers add services to their product offerings and even replace products with services. The capabilities necessary to develop and deliver advanced services as part of servitization are often discussed in the literature from the manufacturer’s perspective, e.g., having a service-focused culture or the ability to sell solutions. Recent research has acknowledged the important role of customers and, to a lesser extent, other actors (e.g., intermediaries) in bringing about successful servitization, particularly for use-oriented and results-oriented advanced services. The objective of this study is to identify the capabilities required to successful develop advanced services as part of servitization by considering the perspective of manufacturers, intermediaries and customers. This study involved interviews with 33 managers in 28 large UK-based companies from these three groups, about servitization capabilities. The findings suggest that there are eight broad capabilities that are important for advanced services; 1) personnel with expertise and deep technical product knowledge, 2) methodologies for improving operational processes, helping to manage risk and reduce costs, 3) the evolution from being a product- focused manufacturer to embracing a services culture, 4) developing trusting relationships with other actors in the network to support the delivery of advanced services, 5) new innovation activities focused on financing contracts (e.g., ‘gain share’) and technology implementation (e.g., Web-based applications), 6) customer intimacy through understanding their business challenges in order to develop suitable solutions, 7) extensive infrastructure (e.g., personnel, service centres) to deliver a local service, and 8) the ability to tailor service offerings to each customer’s requirements and deliver these responsively to changing needs. The capabilities required to develop and deliver advanced services align to a need to enhance the operational performance of supplied products throughout their lifecycles and as such require greater investment than the capabilities for base and intermediate services