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37 Elements of Service Development

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Service development is the end-to-end process of developing and launching a new service to be sold to customers. This typically includes market research, service strategy, customer experience, marketing, operations and launch of a new service. The following are common elements of service development.

Competitive Analysis

Developing information about current products on the market.

Customer Needs

Identifying customer needs.

Customer Preferences

Identifying customer preferences.

Customer Motivations

Modeling customers motivations.

Market Fit

Evaluating strengths, weaknesses, opportunities and threats to identify a service that is likely to sell well.

Target Market

Identifying your target markets.

Service Positioning

Refining the value proposition of the service.

Customer Expectations

Document customer expectations relative to the new service.

Test Marketing

Develop prototypes and concepts and put them in front of customers to see if they work.

Service Objectives

Setting objectives and goals for the service.

Service Strategy

Outlining how the service will achieve objectives.

Service Requirements

Requirements for the service.


Designing elements of the customer experience such as user interfaces.


Ensuring that user interfaces are pleasing to use such that they fulfill customer needs and suit their preferences.


Examining every touchpoint with customers using techniques such as customer journey and service blueprints. Develop tools, processes and practices to manage each touchpoint.


Defining and delivering the quality of your service including intangible aspects such as the taste of food or diligent customer service.

Customer Convenience

Looking at ways to make the service convenient.


Design of physical environments such as the interior of a hotel lobby.

Information & Communication

Design information and communication processes.

Empathy & Tailoring

Aspects of the service that adapt to different customer needs and preferences such as personalization and customization.

Image & Identity

A target image and personality for your customer experience. For example, "the family friendly luxury hotel at the heart of Paris."

Voice of the Customer

Involve customers such as lead users in the development of your customer experience.


Developing a brand or extending a brand to include the service.


Developing distribution channels to sell and deliver the service.


Communicating the service to build brand awareness and generate demand.


Pricing structure and strategy including promotional pricing.


Preparing to sell the new service with processes such as lead generation and qualification.

Customer Service

Customer service processes, practices, procedures and training.


Other operational processes such as service delivery.

Technology & Infrastructure

Implement the infrastructure, technology and facilities required to operate the service.


Developing knowledge sources to support the service.


Train everyone in their role and general information such as product knowledge related to the service.


Implement internal controls to achieve service objectives.


Implement monitoring and reporting for marketing and operations metrics for the service.


Launch the service to your target markets. This typically includes a coordinated marketing and operations launch. In many cases, a service is rolled out to a small target market first such as one city.

Moment of Truth

Evaluate customer reception of the service.


It is common practice to launch a minimal service at first and then rapidly improve it.
Overview: Service Development
The end-to-end process of developing and launching a new service to be sold to customers.
Related Concepts

Service Development

This is the complete list of articles we have written about service development.
Service Design
Service Development
Service Differentiation
Service Experience
Service Marketing
Service Planning
Service Positioning
Service Requirements
Service Strategy
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Service Planning

An overview of service planning with examples.

Service Marketing

An extensive list of service marketing techniques.


A list of common types of services.


An overview of Product-as-a-Service.

Service Positioning

A definition of service positioning with examples.

Service Variety

A definition of service variety with examples.

Business To Business Marketing

An overview of business-to-business marketing with examples.

Service Experience

A reasonably complete guide to service experience.

Service Design

A complete guide to service design processes and practices.

Service Model

The definition of service model with examples.

Customer Experience

An overview of customer experience with examples.

Product Experience

The common types of product experience.

Customer Focus

A definition of customer focus with examples.

Tacit Needs

A definition of tacit needs with examples.

Experience Economy

A definition of experience economy with examples.

Critical To Quality

A definition of critical to quality with examples.

Perceived Value

The definition of perceived value with examples.

Experience Goods

The definition of experience good with examples.

Customer Service Improvement

The common ways to improve customer service.

Customer Service Improvement Plan

Detailed examples of customer service improvement plans.
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