The Role of Customer in New Service Development in Insurance Industry

Abstract

New service development has become an important issue as service industries grow and the number of customers increases. More customers and more competition make it essential to continuously develop new services to serve more sophisticated and more demanding customers. In order to respond well and improve customer satisfaction, firms need to integrate the voice of the customer into the new service development process. However, the new service development process is not very well researched. This paper explores how the process works in the insurance industry in Thailand. It proposes a conceptual framework for including the voice of customer into the new service development process. We look at adaptation of general models of new product development and new service development, and how they must be adapted to work in the specific context of insurance. Voice of the customer must be included early in the process, and must continue to be included throughout subsequent stages in order to make sure that the new service fits market demand well and satisfies customers. This sort of better new service development will become one key element in keeping companies competitive as the industry develops.