Let’s (not) get (too) physical, physical • 4
While the shift from products to services – often referred to as servitization – is far from new, it remains a powerful framework for manufacturing companies and digital-first startups looking to embrace customer-centric, service-dominant business models. In this blog post, I explore the Journeys Over Transactions strategy, one of seven ways to think services instead of products.
4. Journeys > Transactions
The Journeys Over Transactions strategy is about empowering customers across every phase, moment, and touchpoint in their journey (i.e., value creation process). It shifts the emphasis from providing products (value delivery) to equipping customers with the tools and support they need to ‘get the job done’ and achieve desired outcomes (value facilitation, value co-creation, and value creation). See my blog post Get the balance right! • 2 for a deeper dive into this topic.
The customer journey can be mapped at different altitudes – from 30,000 feet (the broader experience ecosystem) to 500 feet (microinteractions within a touchpoint). Examining maps at specific ‘scales’ uncovers opportunities for new or enhanced supplementary services that empower customers in their value creation process. See my blog post about the Solutions Over Products strategy for an introduction to supplementary services and service packages.
In this discussion, I will focus on phases, moments, and touchpoints in the context of physical products (loosely based on Grönroos, 1990; Wirtz & Lovelock, 2016; Risdon & Quattlebaum, 2018; Bau, 2006, 2010, 2011, 2015, 2021: and Ulwick, 2005). The thinking applies to digital products as well, albeit with some adjustments to the terminology.
At 10,000 feet: Phases
The customer journey for tangible products typically unfolds across the following phases:
Learn & Buy: Customers gather information, explore options, make purchase decisions, complete payment, and arrange for delivery or collection.
Use & Adapt: Customers install, utilize, explore, and adapt the product.
Own & Maintain: Customers protect, preserve, and upgrade the product (through actions like storage, upkeep, repairs, and updates).
Repurpose, Resell, or Recycle: Customers extend the lifecycle of the product or its components.
Troubleshoot: Customers address and resolve issues that arise at any point of the journey.
Advocate: Customers share their experiences and promote the product/brand at any point of the journey.
Power tip: At this altitude, determine customer jobs (core, emotional, social) or goals (functional, emotional, self-expressive, social) for each phase. This will make it easier to uncover unmet needs and identify opportunities for supplementary services.
Note: I am intentionally using ‘phase’ rather than the more common ‘stage’ to emphasize overlapping or fluid periods within a journey. Phases highlight multiple activities or experiences that may occur simultaneously or cyclically, whereas stages imply a linear process with distinct transitions between steps.
At 5,000 feet: Moments
Each phase comprises of one or more customer moments. From the customer’s perspective, each moment represents a significant stepping stone toward reaching their goals, whether at a phase or journey level.
Examples of moments in each phase:
Learn & Buy: Searching for information. Comparing, customizing, and evaluating options. Deciding on the best fit. Exploring financing options. Completing payment. Arranging delivery or collection.
Use & Adapt: Receiving and inspecting the delivery. Unboxing and examining the product. Installing or setting up the product. Exploring features and functionalities. Using the product. Adapting the product to specific needs.
Own & Maintain: Storing the product. Protecting the product from damage. Monitoring usage and performance. Performing regular maintenance. Resolving issues. Replacing consumables. Upgrading to enhance performance or functionality.
Repurpose, Resell, or Recycle: Repurposing the product. Reselling the product. Recycling the product responsibly.
Troubleshoot: Identifying an issue. Resolving the issue (DIY or guided). Seeking professional support.
Advocate: Writing reviews or feedback. Recommending the product to others. Showcasing use on social media or community platforms.
Reflecting a customer-first approach, customers may engage solutions from multiple brands throughout the journey to ‘get the job done.’
Power tip: At this altitude, include internal and external triggers in your journey map to illustrate what prompts customers to take action. Triggers draw attention to unmet, underserved, or overserved needs and can arise at any point in the customer journey, not just at the beginning. Examples include replacing a broken product, buying a gift, receiving a recommendation, noticing signs of wear and tear, facing challenges during setup, or learning about a trade-in program.
At 2,500 feet: Touchpoints
Each moment is shaped by multiple touchpoints that work together to create a seamless and cohesive experience. These touchpoints facilitate interactions between the customer and the product or brand.
In the context of physical products, examples of touchpoints during the moment ‘Searching for information’ may include online reviews on CNET, conversations with colleagues, product pages on Amazon, customer service hotlines, in-store displays at Best Buy, and product packaging. In this moment, customers often zig-zag between channels and leverage multiple touchpoints to reach their goals, especially in high-involvement purchases (Rossiter & Percy, 1987).
The critical roles touchpoints play within the moment or across multiple moments:
Role 1: Facilitate interactions between the customer and the product (e.g., touch-sensitive interface)
Role 2: Facilitate interactions between the customer and the brand or organization (e.g., live chat)
Role 3: Connect the customer with third parties pivotal to the overall experience (e.g., real-time delivery tracking)
Role 4: Enable interactions between the customer and other users or communities (e.g., online forum)
Role 5: Help the customer transition smoothly from one touchpoint or moment to another (e.g., SMS notifications)
Role 6: Assist the customer to recover effectively from problems or disruptions (e.g., self-service diagnostic tool)
Touchpoints can be categorised in various ways, such as:
Tangible vs. Intangible: Printed product brochure vs. product tutorial video
Analog vs. Digital: Printed user guide vs. interactive setup instructions on a mobile app
One-way vs. Two-way: In-store product display vs. real-time conversation with a customer service representative
Permanent vs. Ephemeral: Branded storefront vs. one-time SMS notification
Static vs. Dynamic: Product packaging (fixed, unchanging) vs. personalized recommendations on an app (adaptive, evolving)
Proactive vs. Reactive: Maintenance reminder (initiated by the organization) vs. conversation with customer support (initiated by the customer)
Functional vs. Emotional: Troubleshooting guide vs. thoughtfully designed packaging (for the unboxing experience)
In-control vs. Out-of-control: Company-owned help desk vs. third-party reviews
Branded vs. Non-branded: Physical product vs. community forum
Power tip: At this altitude, focus on touchpoints rather than channels or media. Touchpoints are more granular, representing specific interactions between the customer and the product or organization. For example, within a mobile app, touchpoints might include product descriptions, checkout, and push notifications. Adopting a touchpoint-first approach makes it easier to uncover pain, friction, and pleasure points throughout the journey, which in turn helps identify opportunities for supplementary services.
Benefits
Transforms products into holistic solutions that support customers at every phase, moment, and touchpoint of their journey
Reduces customer friction by addressing pain and friction points across the entire journey
Strengthens emotional connections by positioning the organisation as a trusted partner at every step of the journey
Increases switching costs and reduces customer churn
Builds strong, lasting relationships that enhance NPS, increase CLV, and drive loyalty
Extends the product lifecycle through refurbishment, repairs, repurposing, buy-back schemes, etc.
Creates potential for new and recurring revenue streams
Encourages innovation in value creation, value co-creation, and value facilitation (see my blog post Get the balance right! • 2)
Drives differentiation and builds brand equity
See also
Solutions > Products
Inclusion > Exclusion
Connection > Isolation
Circularity > Linearity
The Inclusion Over Exclusion strategy will be covered in the next blog post.
References
Bau, R. (2006). Design av tjänster och upplevelser [Design for services and experiences]. Part of Executive education in Design Management [unpublished training material]. Berghs School of Communication.
Bau, R. (2010, December). Ten strategy paradoxes in service Innovation and design. Paper presented at ServDes 2010 (Service Design and Innovation Conference), Linköping, Sweden.
Bau, R. (2011, December). Strategy paradoxes in service innovation and design. In: Cai et al. (Eds.), Design Management: Toward a new era of innovation. Proceedings from the 2011 Tsinghua-DMI International Design Management Symposium, Hong Kong, China. IDMA.
Bau, R. (2015). Thinking services instead of products. In: Service Design Boot Camp, Day 1 [unpublished training material]. Veryday.
Bau, R. (2021). Strategy playbook for service design [unpublished playbook]. Design Partners.
Grönroos, C. (1990). Service management and marketing: Managing the moments of truth in service competition. Lexington Books.
Risdon, C. & Quattlebaum, P. (2018). Orchestrating experiences: Collaborative design for complexity. Rosenfeld Media.
Rossiter, J.R. & Percy, L. (1987). Advertising and Promotion Management. McGraw-Hill.
Ulwick, T. (2005). What customers want: Using Outcome-Driven Innovation to create breakthrough products and services. McGraw-Hill.
Wirtz, J. & Lovelock, C. (2016). Services marketing: People, technology, strategy (8th ed.). World Scientific Publishing.
