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“Product Shrinkflation” is the practice of reducing the size or quantity of a product while keeping the same price. Smaller cans, less chips in the bag, etc. We have all experienced it, and we all hate it.
But what about “Service Shrinkflation?” As an experience designer, I can't help but see it everywhere, and it annoys me to no end. It's the practice of reducing the level of service you are given while maintaining the same cost to you. Often companies confuse this with process improvement, but it is NOT the same thing if your customer ends up getting less.
As an example, I could easily highlight the erosion of banking or healthcare experience, but today let’s do something simple - let's rent a car.
Not long ago, when you rented a car a human would walk out with you and confirm the existence or absence of damage. You would make note of any observed marks, sign the paper and accept the vehicle. A time consuming but essential step to ensure the condition the car leaves in matches the condition it returns in.
Today, this step has been removed. The rep at the desks just hands you the keys and says “enjoy the vehicle.” The first time this happened, I was impressed - a more smooth experience. But I noticed there was seemingly no record anywhere of the current vehicle condition, and I began to worry. The process was broken. I nervously took photos of my vehicle, inside and out. Personally noting any damage while other renters nearby thought I was crazy. Surely, if this step was needed, they would tell you. They would have an app asking to snap a few photos before taking off or would take detailed photos of the vehicle as you leave. The representative said we were done - don't be paranoid.
Sure enough. Two days after I returned that vehicle, a rental car rep called me dismayed at the condition of the vehicle. “It's covered in scratches and has bumper damage that will need to be repaired.” Fortunately for me, I sent him the time stamped photos I took showing the damage existed before I moved it from their garage. Satisfied, the rep ended his call with me and moved down his list to the next renter who may or may not have actually created the damage but would no doubt be expected to pay for it.
Isolated occurrence? Nope. This has happened at least two other times and thank goodness I always take photos before I drive away.
This horrible consumer experience is rooted in the fact that they didn't reduce costs by simplifying a process, they shrank a service and burdened their customer with doing their job of keeping track of their fleet condition.
There are at least a half dozen ways they could have solved this issue, but they have universally selected to burden the consumer and pocket their savings.
Today, everyone is in the consumer experience business and being competitive means achieving higher service AND greater efficiency. This might require new skill sets, new tooling, practical applications of Ai or a simplified & reimagined process, but the result must end in your customer getting more service than before and not less.
As the owner of a service company I fully understand the economic pressures they face, but the news is awash in “short term profits” horror stories that started with a clever idea to save money by cutting corners. When everyone is racing to short their customer, that's your signal to do the opposite; add more value, earn deeper loyalty and build new market share.
Add more chips to your bag.
...and don't forget to take photos of your rental car before you drive away. Tracking rental car fleet condition is your job now, afterall.
