SERVICE AUDIT
CIRCA LIGHTING
Service Design Studio I - Spring 2015 - Prof. Xenia Viladas
Ameer Carter
Gian Villalta
Tiffany Slieff
Ana Soto
Lars Lee
Tom Mather
Andre Thelwell
Maria De La Vega
Yuanhao Lu
Andrew Fulp
Taylor Hester
1
INITIAL PHASE
RESEARCH
2
GOALS • Understand Circa’s business, brand and culture • Establish Circa’s business objectives • Identify potential opportunities for Circa Lighting • Define direction for concept phase
3
BUSINESS MODEL CANVAS The Business Model canvas allows us to describe the rationale of how an organization creates, delivers, and captures value. The canvas is divided in various segments: customer segments, value proposition, channels, customer relationships, key resources, key activities, key partners, and the cost structure of the organization.
4
5
FIVE FORCES ANALYSIS
STAKEHOLDERS ANALYSIS
6
PEST TREND ANALYSIS
7
WHAT WE FOUND SERVICE PACKAGE
8
Core Service
Facilitating Services
Lighting Services
• Showrooms • Online store • (Partnership) • Delivery
• Call center
Enhancing Services
Features & Benefits
• Hand-picked products • Website • International shipment • Home Try-on • Instore Appointments • Advice
• No sales tax (online) • Return policy • Showroom Locations • Relationship based/ oriented • Personalized Assistance • Meeting spaces 9
DESIGNER PERSONA
��� ���� ���� ������������������ � �������������� ������������������������������� ���������������������������� ����������������������������� ��������������������������� 10
11
SERVICE BLUEPRINT
USER
AWARE
Client contacts designer with project
CHANNELS
FACE TO FACE
Designer meets client
JOIN
Designer browses catalogs, websites and magazines and compares brands
Client
Book an appointment at Circa's Showroom
Sales Associate
Drives to Circa's Showroom
2 hour consultation at showroom *
Onsite product at client's pl
Sales Associate
Forms and merchandising
Catalog
WEB
USE
Website
PHONE
BACKSTAGE PROCESSES
LOCATION
Showroom
CUSTOMER SERVICES
Catalog edition Catalog distribution
Associate schedules meeting
IT-DEPARTMENT
Catalog online publication
database
THIRD PARTY
Catalog printers Photographers Designers Opportunity: Showroom location attending to city trends. Partnering with designers in the same locations to show products in their stores
Opportunity: Use pop up stores as a way to sell returns
Opportunity: Offer Designer workshops and showcases
12
Opportunity Bring the showroom associateÕ s knowledge to all clients on the website/blog/ social media
Opportunity: Develop a catalog thought in digital terms, making it interactive
Associate consults inventory
On-site
Associate bri product to loc
Supplier for forms, notepads, pencils...
Opportunity: Create a meeting planner that clients can have access to
Opportunity: Develop a Project management tool for showroom use. Include a link to the inventory
Opportunity recruit new young designers
Opportunity: Build showroom awareness by information display on windows and other spaces in the showroom (designer of the month, sales, etc)
Opportunity: Integrate lighting technology in the showroom with an app to change the brightness of the products that are lit in the showroom using ÒThe Internet of ThingsÓ
Opportunity: Develop a seasonal catalog or newsletter to make current catalogs shorter
Opportunity: Market lights as whole sets
Opportunit Lamp Lease Pro Allow clients to products to try them a period of tim
testing lace
ings cation
ty: ogram o rent m out for me
DEVELOP
Places order
order shipments
Receives order
LEAVE
Receives call for feedback from Circa
Installs Product
Sales Associate
Shows Client
Takes Picture and send to Circa
Client
e-mail Sales team On-site
On-site
On-site
On-site Sales Associate receives image
Associate places order in system
CRM
On-site
CRM
CRM
USPS
Opportunity: Technological device that tracks packages in transit to control damages
Installation service
Opportunity: Returns: repurpose materials and sell them to the creative community
Opportunity: Returns: Displayed at cruise ships or events to establish new market segments
Opportunity: Technical support after purchase
13
ENCOUNTERS MAP
Takes pic sends t Shows Client
Receives call from Circa asking how the order was received
T -EXPERIENCE S O P
Installs Product
Receives order
Receives order shipment notification
14
TRIGGER:
Client contact interior designer with project
cture and to Circa
Browses net/ magazines/ catalogue at office
PR E
Compares brands
-E E NC IE ER XP
Decides on a kid of fixture.
CIRCA LIGHTING: PROFESSIONAL CLIENTS
Books appointment with Circa
2 hour consultation with Circa employee E NC E I ER EXP
n Places order
Decides on products
On site product testing
15
END USER PERSONA
������������� ������������������ ����������������������������� ������������������������� ����������������� 16
17
SERVICE BLUEPRINT
USER
AWARE
Decides to renovate cottage
Looks on Pinterest for Circa's products
JOIN
Looks for Circa's Website
Browses online catalog
Search Engine
Circa's website
USE
Calls Circa with questions
Places order online
FACE TO FACE
CHANNELS
WEB
Circa's website
PHONE
BACKSTAGE PROCESSES
LOCATION
18
Sales team receives call and answers questions
CUSTOMER SERVICES
IT-DEPARTMENT
Community Manager
Inventory: web updates and web maintenance
CRM
THIRD PARTY
Catalog Development (Photographers and Designers)
Payment transaction system
E
DEVELOP
Receives tracking number when order is shipped
Receives email for feedback
On-site
CRM
LEAVE
On-site
CRM
USPS
Installation service
Tags picture on Pinterest and Instagram
On-site
CRM
USPS
Takes picture of lamp
Community Manager
Social Media
Opportunity: Range of care products and care packages
19
ENCOUNTERS MAP Tags picture on Pinterest/ Insta
Takes picture of product
Email for feedback
Installs product
Receives product
20
TRIGGER: Renovating new house
Looks on Pinterest for inspiration
Finds Circa through Pinterest
Looks at catalogue online
CIRCA LIGHTING: END USER Likes some fixtures but calls Circa to ask about size and alterations
Places order online
Order is shipped, user receives tracking number
Receives confirmation email 21
PERSONA EMPLOYEE
BASIC AGE
M
30
M
MOTIV
She is re shop fro showroo answers
BEHA
Julie Moore 30, Circa Manager ÒI expect to provide my clients satisfaction by having their quality fixture and service goals to be met.Ó 22
Julie like well as s relations designer firms, an Savanna persona onsite vi ensure t and assi needed.
C INFORMATION
MARITAL STATUS
EDUCATION
CHILDREN
Married
BFA
1
PROFESSION Business Development Specialist
VATIONS
HOBBIES
END GOALS
eady to help end users om the website to om and provide s to their questions.
Dine with her family & friends
She wants to share with her clients about how she possesses invaluable product knowledge.
Sketching Explore some museums Running
AVIORS
es to develop new business as service established business ships with builders, interior rs, architects, contract design nd specifiers throughout the ah Area. Drive sales through alized customer service and isits. Review lighting plans to that all specifications are correct ist in the reselection process if
She is available to provide the most accurate and timely information to assist her clients in their selection.
DAY IN THE LIFE Laura begins her day early in the morning to run before going out for breakfast in downtown Savannah with her friends. After that, she heads to Circa Lighting showroom to work, and she meets with contractors, architects, project managers and others to oversee installation of lighting. Provide technical information to trades and specifiers to ensure that the right product is being used for the space.
23
ENCOUNTERS MAP
Receives picture from of installed produ
Confirms client received order
Places order
Goes to project site, tests options
Confirms appointment with client
Books on-s meeting w client 24
TRIGGER:
Appointment with client Prepare space for appointment
m client ucts
site with
Client enter Circa
Client briefs Circa employee on project
CIRCA LIGHTING: EMPLOYEE Browse through catalog with client
Employee makes sure dimensions fit To clientÕ s brief
Employee checks stock of product
Employee shows pictures from the data base 25
CONCEPT EXPLORATION:
TRAVELING SHOWROOMS Ana Soto - Maria De La Vega - Yuanhao Lu
26
INDUSTRY BACKGROUND ABOUT Pop-up Shops are part of the experience economy: It’s about surprising consumers with temporary ‘performances’, guaranteeing exclusivity because of the limited timespan. Pop-up shops are taking over the retail world and rethinking traditional brick-and-mortar and big-box stores.
SPECIFIC DETAILS • Term: Typically 1 day to 3
• Price: Much lower than a traditional store; typically paid
• Location: High foot traffic
• Use: Sell products, presence during holidays or events,
months.
areas such as city centers, malls, and busy streets.
upfront.
launch new products, generate awareness, move inventory, test idea or location, increase ‘cool’ factor.
BENEFITS OF POP-UP SHOPS Connect with customers: The pop-up retail format allows you to personally get to know your customers and build stronger relationships.
Build Awareness:
Sell more:
It’s Cheaper:
About 95% of all purchases are still completed offline. This is your opportunity to take advantage of the retail channel.
Launching a pop-up shop is 80% cheaper than a traditional retail store.
Consumers and the media love the excitement generated by pop-up shops. Build brand awareness by going offline.
Sources blog.thestorefront.com/what-exactly-is-a-pop-up-shop/ www.slideshare.net/mobiuxe/integrating-mobile-into-pop-up-retail-marketing-strategies www.slideshare.net/ElsDemey/pop-up-as-a-marketing-tool
Test new markets: Easily enter a new market and launch new products.
27
RESEARCH
MARKET SEGMENTATION: TOP CITIES IN DESIGN 1. Chicago 2. New york 3. Boston 4. Los angeles 5. Portland
6. San Francisco 7. Seatle 8. Denver 9. Philadelphia 10. Washington
Based on RMJM Hillier Communications Department June 2008 Criteria: • Quality of public transportation • Number of leed buildings • Number of city’s employees in creative industries • City’s architecture
MARKET SEGMENTATION: CITIES TO WATCH 1. Dallas 2. Minneapolis 3. Austin
4. San Diego 5. Miami 6. St. Louis
Based on the placement of top Interior Design Firms
28
MARKET SEGMENTS: TOP CITIES IN DESIGN Demographic Traits
Group One Upper Mid Middle Age Family Mix
• Urbanicity: Urban • Age Ranges: <55 • Presence of Kids: Family • Homeownership: Owners • Employment: White Collar • Education Levels:
College Graduate • Ethnic Diversity: White, Black, Asian, Hispanic, Mix
Demographic Traits
Group Two Upper Mid Middle Age Family Mix
• Urbanicity: Urban • Age Ranges: <55 • Presence of Kids: Family • Homeownership: Renters • Employment: Professional • Education Levels:
College Graduate • Ethnic Diversity: White, Black, Asian, Hispanic, Mix
Demographic Traits
Group Three Wealthy Older Family Mix
• Urbanicity: Urban • Age Ranges: 45- 64 • Presence of Kids: Family • Homeownership: Owners • Employment: Management • Education Levels:
Graduate Plus • Ethnic Diversity: White, Black, Asian, Hispanic, Mix
Lifestyle and Media Traits • Shop at Kaiser Pharmacy • Visit the zoo • Read Tribune • Watch E! Entertainment • Volkswagen Tiguan • Median HH Income: $57,481
Lifestyle and Media Traits • Shop at The Gap • Watch foreign movies • Read GQ • Watch Boxeo Telemundo • Audi S4 • Median HH Income: $56,676
Lifestyle and Media Traits • Shop at Banana Republic • Travel for business • Read New York Times • Watch tennis • Mercedes E Class • Median HH Income: $88,837
29
Source: Nielsen 2014
Seatle
• Market Segments: Group One and Two
San Francisco
• Market Segments: Group One and Two
• 988 Interior Designers* • Firms: Callison, NBBJ
• 2,711 Interior Designers* • Firms: Gensler, IA
Portland
Los Angeles
• Market Segments: Group One and Two
• 522 Interior Designers* • Firms: ZCF Architects
• Market Segments: Group One and Two
• 3, 375 Interior Designers* • Firms: Jacobs, HBA
Denver
• Market Segments: Group One and Three
• 1,176 Interior Designers* • Denver Design District
Top Cities in Design Circa’s Current Showrooms
New York City
• Market Segments: Group One and Three
• 5, 562 Interior Designers* • Firms: Skidmore
Philadelphia
• Market Segments: Group One and Two
• 1,169 Interior Designers* • Firms: Nelson,E wing Cole
Boston
• Market Segments: Group One and Three
• 1,479 Interior Designers* • Firms: CBT Architecture
* Number of Interior Designers listed in houzz.com
INSIGHTS
Location
Popup shops tend to be targeted to prime consumer locations and they are customized for each one. Opportunities: Open in areas that have a large concentration of interior designers. Participate and open popup shops in special events that are targeted to interior designers.
32
Affordability
Popup shops are characterized for their temporary nature, they require a smaller retail space than a traditional showroom and they also have lower rent. Opportunities: Circa Lighting can open popup shops in locations where they donâ&#x20AC;&#x2122;t have showrooms yet, to test the market.
Testing and Experimentation
Popup shops make excellent testing sites. Among the things a company can try out are: marketing campaigns, new products and promotions, and new business ideas. Opportunities: Test new technologies to incorporate into the showrooms later.
Short term commitment
Because of their temporary nature, popup shops allow brands to adapt to changes quickly. They also allow them to open up in months where there are high levels of client traffic and close during slow times. Opportunities: Circa Lighting can open popup shops during the times of the year when most events for Interior Designers take place. Circa Lighting could also participate in those events as sponsors or speakers at conferences
33
INSIGHTS
Spontaneous Purchases
Popup shops cause the sense of urgency and offering “limited edition” types of products. This urgency leads customers to acquire products because they feel they will only be offered for a short period of time. Opportunities: Use “check-ins” through social media or an app Location services Sell “one of a kind” products. Like the ones they sell at trade shows.
34
Generate Buzz
They make great marketing tools, which draw attention from current and potential new customers. They can also be used to display a specific product or a promotion. Opportunities: Circa Lighting can showcase a specific designer’s product line in the popup shop. Circa could also showcase a line of products that have been curated by a famous Interior Designer. Attracting customers that respect or follow this person’s work.
Brand Extension
Popup shops help build brand awareness. They also facilitate face-to-face interaction with the brandâ&#x20AC;&#x2122;s employees and the chance to educate consumers about new and current offerings. Opportunities: Circa can use these stores to create a learning center for customers, bringing the Circa culture to them. Circa can also hold special workshops targeted to their customersâ&#x20AC;&#x2122; needs.
35
NEW SERVICE OFFERING KEY PARTNERS
KEY ACTIVITIES
Event organizers
Promotion/Marketing
Space owners
Distribution
Designer partners
Consulting
Distributors/manufac -
Inventory distribution
turers
Scouting locations
Other famous design -
Retail space design
ers
Staffing
Transportation and
Selling
logistics team Cities IT Media
KEY ACTIVITIES Staff Products Existing clients Retail space IT setup Design events Brand Designer partnerships
COST STRUCTURE Rent
Design of space
Salaries
Marketing costs
Transportation
Representation costs
VALUE PROPOSITION
Circa Lighting Pop-up Shops will bring the Circa experience to customers i a wider range of locations giving them access to new products, workshops and consulting.
Circa Lighting Pop-up Sho will give customers the op portunity to access reduce priced products and retur at locations different from the Savannah Annex, clos to their nearest showroom
N
a in s, w
ops ped rns m se m.
CUSTOMER RELATIONSHIPS Personal consulting Dedicated customer service Knowledgeable staff Company culture
CHANNELS Rented retail space Mobile retail space Booth/Kiosk Promotion: Featured products Featured designer Online blast Check-in apps Catalogs Special events/Conferences
CUSTOMER SEGMENTS END USER Curious/Design lover that attends design events. Is looking for consulting, face to face interactio n INTERIOR DESIGNERS That want to explore the Circa Lighting Brand. Attends interior design events and is looking for elements for specific projects and to store. DEVELOPER S That are looking for new partners for their future/current proj ects and collaboration opportunities.
END USER Design lover, looking for bargains for their home. Curious passerbyers INTERIOR DESIGNERS That have tight/small budgets. That like to take advantage of sales to store products for future use
REVENUE STREAMS Sales
Awareness
Sample products
Workshops
New customer base
Sell returns
Brand expansion
Connect with customers
New markets at lower costs
Reduce transportation of
Build new partnerships
returns
SERVICE PACKAGE
CORE SERVICES Lighting Services
ENABLING SERVICES Traveling Showroom New Product Exhibition
ENHANSING SERVICES Consulting Knowledgeable Staff Workshops
Promotion Services
Curated Product Selection Special Events
SERVICE PROVIDER 38
EASE OF ACCESS Bringing the showroom to the customer Face to face consulting availability Price reduction for returns
QUALITY OF INTERACT Face to face Extension of the company culture and brand.
EASE OF ACCESS Exploration and awareness of new products Workshop participation and learning Active and interactive activities
USER 39
SERVICE BLUEPRINT
USER
STEP
Needs a few fixtures to complete a project that has a tight budget
Recieves notification of Circa Truck Show comming to her city
Plans to attend first day of Truck Show focusing on chandeliers.
Goes to location
Asso p p
EXPERIENCE
FACE TO FACE
CHANNELS
WEB
PHONE
BACKSTAGE PROCESSES
LOCATION
40
Sta avai
CUSTOMER SERVICES
Event promotion Event preparation
Space and product preparation
IT-DEPARTMENT
Online marketing campaign
Inventory management system integration
THIRD PARTY
Truck preparation and design Printed materials
arts browsing ilable products
ociate explains products and promotions
Explores store looking for products for s specific project
Decides to stock up on Chandeliers and takes advantage of the sale prices.
Pays for product
Signs up for Circa's Truck Show notifications
Associate receives payment
Associate promotes next day and notification system signup
User information collection
Payment system Inventory update
Plans to return for table lamps next day.
Space and product preparation
Database
41
SERVICE ENCOUNTERS MAP
TRIGGER:
Needs a lamp / fixtures for new projects
Installs Product
RSVPÕ s to special event & schedules an appointment
PR EEX PE RI E
CE
E NC
Receives order
POS T -E XP ER IE N
Receives follow-up call
Website, email link, phone calls, project mgmt tool
Goes online & looks at CircaÕ s catalog
Goes to storeÕ s opening event i.e cocktail party
CIRCA’S POP STORE: NEW PRODUCTS
Receives order confirmation email
Email blasts, magazine ads, phone calls with personal event invitations
Learns about new products
New product catalog
EXPERIENCE
Place order: online or in pop-up store
Tries to allign new products to current projects Has a 1-on-1 appointment with associate to talk about current & future projects
42
Project mgmt tool
TRIGGER:
¥ Use social media, email & calls to alert specific location of mobile truck show. ¥ Specific product for each day creating a sense of urgency
Needs a lamp / fixtures for new projects Plans to return tomorrow for table lamps
Plans to attend mobile Trunk Show PR EE
E NC IE ER XP
Signs up for CircaÕ s special event notification
Goes to location
CIRCA’S TRUCK SHOW: RETURNS Associate explains products & promotions
Pays for products
EX
PE
RI
EN
CE
Decides to stock up to take advantage of sale prices
Explore store Looks for products for specific projects
43
TRAVELING TRUCKLOAD
Promotion
Circa’s traveling Truckload will be promoted through the use of: social media, email blasts targeted specifically to clients in near locations, personal phone calls, and in showrooms (the nearest ones to where the Truckload will take place)
Product
The traveling Truckload will showcase a specific category of products each day i.e. chandeliers on the first day of the Truckload, and then scones on the second, lamps on the third, etc.
44
Placement
Circa’s Truckload will travel to nearby areas of existing showrooms. The purpose of this is to sell returned products in these areas preventing the need to ship the products to Savannah. At the same time, users will have access to discounted products without the need to travel long distances to acquire them.
Job descriptions:
Sales Associate: knowledgeable staff member that understands the products and reflects Circa’s culture bringing it to clients everywhere.
45
TRAVELING SHOWROOM
Promotion
Circa’s traveling showrooms will be promoted through phone calls, personalized invitations to events, e-mail blasts, and social media.
Product
The traveling showroom would: - Display the newest selection of products in Circa’s portfolio - Showcase a specific designer’s collection - Have curated collections by recognized interior designers - Offer one-on-one appointment consultations with Circa’s Sales Associates - Offer different workshops for clients Test new markets and products
Placement
This is the opportunity for Circa’s showroom experience to come to the clients throughout the USA. These 46
showrooms would be placed in strategic areas where conferences and interior design events are taking place, to take advantage of the large concentration of potential clients. The showrooms would be located in rented locations found in the top interior design cities described previously in the Market Segmentation section of this book.
Job descriptions:
Sales Associate: knowledgeable staff member that understands the products and reflects Circa’s culture bringing it to clients everywhere. Clients would be able to meet and collaborate through one-onone appointments with the sales representatives they have been in contact with for years.
47
TRIGGER:
Needs a lamp and values great customer service
Pop-up Shops
Brand Experience
CIRCA LIGHTING: NEW SERVICE OFFERINGS
Showroom experience
48
Project Management Tool
CONCLUSIONS
The nature of Service Design requires us to explore commercial problems from a multitude of perspectives. Accordingly, for this project, there was no single solution; instead we took a holistic approach by examining the different elements of the brand experience. Through our research findings and exploration of ideas, our team developed a range of service solutions that aimed to optimize the Circa experience for greater market share, customer loyalty, and long-term profitability.
Specifically, our team developed solutions that focused on 4 key areas: a project management tool, the brand experience, showroom (in-store) experience, and brand awareness & market segmentation. It is our sincere hope that our efforts will add value to the Circa Company and positively contribute to itâ&#x20AC;&#x2122;s future growth and success. Lastly, we would like to thank the entire Circa team for collaborating with the Service Design department and giving us this tremendous learning opportunity
49
50