Why does Ola Electric need a service design approach?

The recent meltdown at OLA Electric reminded me of the famous service design case study “United Breaks Guitars," where United Airlines' stock value plummeted by 10% after a viral video highlighting their service failure (as detailed in This is Service Design Doing). Similarly, a single tweet from the comedian Kunal Kamra spotlighting serious service flaws wiped out 9% of OLA’s stock value, costing the company ₹3,500 crore. Instead of responding thoughtfully to the criticism, OLA's CEO, Bhavish Aggarwal, retaliated defensively- an approach that only compounded the negative image. For me, this situation isn't merely a series of PR blunders. It’s an example of what happens when service design is ignored. OLA Electric once considered a promising force poised to transform India’s electric vehicle (EV) market, now finds itself overwhelmed with tens of thousands of complaints each month. From my experience in service design, it's evident that these problems are not just technical in nature; they reflect deeper system and structural issues within the company.

Nov 3, 2024

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8

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Why does Ola Electric need a service design approach?

What might have gone wrong?

Several factors could have led to a poor customer experience, but based on my secondary knowledge, here is what I think.

1. Service scalability: OLA Electric did an impressive job developing a desirable product and scaling operations rapidly, backed by immense infrastructure support. But here’s the disconnect.

Scaling a business without scaling its service ecosystem is a recipe for disaster.

OLA’s rapid expansion outpaced the ability of its service network to keep up, resulting in frustrating delays in repairs and customer support.

2. Technology doesn’t equal total customer experience: We all get excited about new tech features, but those alone don’t guarantee satisfied customers. Despite OLA’s technologically advanced vehicles, many owners found themselves facing endless struggles when it came to basic services, such as repairs and the availability of spare parts. The shiny perception of innovation fades quickly when fundamental customer needs aren’t met.

Technology ≠ Total Customer Experience

3. Communication breakdown: This one hits home for me as a service designer: clear, consistent communication is non-negotiable. Numerous OLA scooter owners felt abandoned, stuck in limbo with long wait times and no updates on their service requests. That’s more than just an inconvenience—it’s a breakdown of trust. In a world where communication is often the simplest yet most impactful tool, OLA’s silence was deafening.

The Role of Service Design

Reflecting on this scenario, it's evident how a strong, customer-centric service design approach could have significantly changed the outcome for OLA Electric. Here’s how:


  • User-centric design: Imagine if OLA had a dedicated team focused on collecting real-time customer feedback, actively listening to pain points, and continuously refining their services. It may seem simple, but mapping out the customer journey and making data-driven decisions would have saved a lot of grief and preserved customer goodwill.

  • Proactive solutions: Service design is not just about reacting to issues, it’s about anticipating them. OLA could have implemented predictive maintenance technologies to preempt problems before they spiralled into major concerns. In a rapidly evolving market, this kind of foresight isn’t just beneficial; it’s crucial.

  • Scalable Service Networks: A robust service network is essential. OLA needed to invest more heavily in service centres, better-trained staff, and mobile units to offer on-the-spot solutions. Practical, scalable strategies like these could have dramatically improved customer satisfaction.



Learning from OLA Electric’s Journey

Here are some of the learnings from Ola Electric's journey so far:

In fast-moving industries like EVs, where futuristic expectations are the norm, embedding service design principles into the company's DNA cannot be an afterthought.

For organizations hoping to avoid such a scenario, here are some insights drawn from my experience:


  1. Prioritize a holistic customer journey: Every touchpoint matters. A well-crafted service blueprint helps identify critical touchpoints, aligning front-stage, backstage, and support teams to deliver a seamless experience. It makes the entire operation more streamlined and efficient.

  2. Redesign the complaint resolution process: Invest in a transparent, omnichannel system that prioritizes customer-centric solutions. It should be easy for customers to report issues and receive prompt, effective resolutions.

  3. Build robust feedback mechanisms: Gathering and acting on customer feedback in real-time is key. It enables businesses to adapt swiftly and meet customer expectations consistently.

  4. Data-driven proactive approach: Companies must be proactive, identifying and resolving issues before they escalate by utilizing the immense amount of data at their disposal in anticipating the service needs.

  5. The “Seva Bhav” Mindset: This is something I deeply believe in. A culture of empathy and genuine care, extending from top management to front-line staff, can transform customer experiences.


Every interaction should be driven by a sincere desire to assist and respect the customer.

Hope of change

I truly hope OLA Electric uses this experience as a catalyst to rethink its customer service approach and bounce back stronger, as EV has a bright future ahead and a larger impact on society; hence, fixing the system will help the overall economy.

Service design has the potential to reshape customer experiences and future-proof businesses.


I’d love to hear your thoughts: What else do you think could have been factors behind the current Ola Electric situation?

Sources:

IndustryWired

National Herald

Business Insider

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© All rights are reserved | 2024

Built by Pankaj