Even if you are selling a product, it is providing a service to the customer which is the reason for him/her to buy it. Every business is a service business. Thus, it becomes extremely important to understand a service system. By understanding a service system, it allows one to create a better or a new service, make customers happy and make more profits!
A service is provided by a service provider. There are a number of offerings in a service. These offerings are provided to the customer through a range of interactions, which are called touchpoints. A customer may not interact with all the touchpoints. Every customer would interact with the touchpoints differently. The touchpoints he interacts with, the quality of the touchpoints, the synchronisation amongst the various touchpoints, all of these factor affect the value that the customer gets.
For example, when you subscribe for a caller tune on your mobile phone, this facility is an offering by the mobile service provider. The way you get informed about the service, the interface with the service, the agent that helps you with the service, etc. are the touchpoints of the service. Each of them should gel well to provide you a smooth experience of getting and using a caller tune for your mobile phone. When the caller tune is as per your want, it is easy to subscribe or edit, you feel that you have received something of value.