 Oh gosh, showing the impact of service design is hard and you know what makes it even harder when people ask you to show short-term and tangible benefits. And the reality is that a lot of people in business do expect that from us and we can't ignore that. So in this video, I'm going to teach you a framework that will help you to show these quick and tangible results. I've been teaching this framework for years in the Selling Service Design with Confidence Program. It's one of the most popular lessons there and I think at the end of this video, you'll know exactly why. As a service designer, you're not always connected with people in an organization who think about long-term value. Most people are just focused on short-term results. They don't think about the value that will be created in a year time. So what's the problem? Well, the problem is that these people often do have the budgets for you to do good work. And if you can't connect with them, address their needs and gain their trust, you'll miss a lot of opportunities to do good for the company and for customers. But maybe even the bigger problem here is that service design will always stay something that's nice to have and that's just done when there's budget left. So what is the secret to overcoming this? How do we effectively address this challenge? Well, for that, we first have to look at how service design impacts profit. And when you boil it down, there are just two ways. It's either by creating new value through what I call growth drivers or it's by reducing costs by impacting cost drivers. It's really simple. Come on, let's admit it most service designers like to think and talk and hang out around growth drivers. It's a thing that we enjoy. It's about navigating the unknown. And I think we're actually really good at this. But the problem here is that it can take a while for service design to show its impact on growth. And when it does, it's often really hard to trace it back to your specific work. So growth drivers aren't per se the best thing to show short term results and benefits. So we're much better off at looking at cost drivers, which do a much better job at showing short term results. There's ton of research that proves that unsatisfied customers are expensive customers. So cost drivers are really your classic story about fixing the leaking pocket. Now, let me show you the framework around cost drivers and help you to understand how you can translate that into actual business metrics that can be influenced through service design. The framework is really simple. You need to break down cost drivers into four business metrics that are related to customer experience. Let's go over them one by one and see how they impact costs. The first thing we want to look at is lower margins because unsatisfied customers are more focused on price. The next thing we want to look at is higher support costs. Think about it, unsatisfied customers just complain more. The next thing we want to look at is less annual spending and satisfied customers will do less repeat purchases. And the final thing is negative word of mouth which will damage your reputation. Just think about the story of United Airlines from a few years ago which almost lost a billion dollars in value after dragging a passenger off a flight. Here's a story that will hopefully help you to drive home how you can use cost drivers in your environment. This is a story about a service design project in a water company. So the company that supplies water to your home, they send out a yearly bill. In the service design project, they were looking at where most of the questions and where most of the friction was around that yearly bill. And it turned out that there were just one or two things that were causing most of the confusion. They redesigned the experience around the bill and were able to save 400,000 euros in customer support costs. Pretty significant. Why are cost drivers so effective at showing short term results? Well, the answer is pretty simple because it's real money that is being lost every single day. The service is already a place which makes it much easier to find numbers and metrics on how well or how bad the service is performing. Sometimes you need to do a little bit digging but it's totally worth it because when you have these numbers, it's much easier to make an interesting business case. Like I said at the start of the video, I teach this framework in the selling service home with confidence program. In the program, we all saw a look at how to use growth drivers and many other things. So if you're interested in learning how to express the value of service design in a way that non designers understand so you can work on more interesting challenges and find better clients, I encourage you to check it out and see if it's a good fit for you. The link to the program is down below the video. So I hope that by now you see that there's a huge opportunity. There are still so much to gain from fixing crappy services. If you take one thing away from this video, I hope it's the fact that unsatisfied customers are expensive customers and it really pays off to fix the leaking bucket. Use that to your advantage when arguing for the value of service design and if you need even more help and guidance with that, have a look at the selling service now with confidence program and see what it can do for you.