Headspace Service Encounter Analysis Report-1

Headspace Service Encounter
Analysis Report
by Stephen Ratcliffe
Submission date: 10-Oct-2021 02:20PM (UTC+1100)

Submission ID: 1669773399
File name: GSBS6015_Group_Report_FINAL.docx (1.62M)
Word count: 8121
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Headspace Service Encounter Analysis
Introduction
Consultancy have been engaged to undertake a service encounter analysis on HeadspaE_:.
Headspace is a leading health and fitness app with a focus on meditation and improving sleep.
Headspace's mission is to "improve the health and happiness of the world" (Headspace, 2021). As
part of this mission, Headspace wish to continually improve their service offering and have
engaged XYZ Consultancy to assist Ill
XYZ have undertaken a ful1-service encounter analysis of the Headspace app (the results of
which are provided below). This analysis includes: a review of the existing Headspace
organisation from a services marketing perspective, a service experience analysis, a critique of
the service experience and finally recommendations have been made for improvements to app.
Data sets obtained from both direct and indirect methods were used in the development of the
analysis including individual service encounter reports provided by the XYZ team, a review of
existing online reviews of the app and a customer experience survey prepared by XYZ.
2 Description of Service Organisation

Headspace is a service:iWhen considering the marketing strategy of a service company it is
worthwhile to first consider the seven P's of the expanded service mix. These are Product, Place
(distribution), Price, Promotion, Process, Physical Environment (Servicescape) and People
(Wirtz & Lovelock, 2018). Table 1. below, shows a summary of the seven P's as they relate to
the Headspace app.
Table 1 - Head space Expanded Marketing Mix
Product Training and Guidance in Wellbeing, Fitness, Mindli.1lness

Price $104.99 per year subscription
The price is affordable when compared to a guided meditation by a live instructor• $145 for
4 classes (approximately $1,800/year)
The price could also be considered expensive when compared to free altematives -
YouTube, some free meditation classes are available within local community
Promotion Advertising- Google ad words
YouTube, I nstagram,
Podcasts Free trial (14 Day)
Discounting (offered on can'ceTiil l!llof subscription)
•
Place Product is available in the relev pp store on smartphones, log in is also available via the
internet for computer-based use. Some free content is also available on YouTube.
Notably the app is not currently available on Smart TV.
People Instructors on app are the most visible element of people.They are well presented,
represent diversity
Process The process of downloading the app and starting use is simple and well designed. Ongoing
use is also simple, with a daily routine providing recommended content to the user and
additional content easily accessible if so desired
Physical evidence As an internet-based company the only discernible servicescape element is the design and
(Servicescape) presentation of the app itself. Heaclspace have clearly successfully invested in graphic design
of the app. The app is visually appealing with its use of colour. It is also easy to navigate.
GSBS6015 Services and Relationship Marketing Management-Trimester 2

Some key elements of note from the expanded marketing mix shown above are the use of
promotion. Headspace has a prominent place in google searches. Figure 1 below shows the
results for a google search on 'Meditation'. We can see that Headspace occupies the top
categories in paid advertisement. It is also among the top in non-promoted content.
Go gle meditation X
Cl Al El V"ideos C lmilll"S News 0 Map; 5 More Tools
About 752,000.000 "'""Its (0.71>second5)
Ad - h1tpsllwww.head51>ece.com/ Y
Headspace - Try It for Free

Everyday Mindhlness a.nd Meditltion for Stress. An•iely. Sleep. Foe.,.. Filnn,.. d Mon,.
Meditation Tocmique• For Mindlulne». Streu Relief & Peace of Mild. 66+ Million M&mben.
Weathering the storm

liaving a tough time? Try the&&. Headspace Subscription
Ueclilafion& for chalenging limes Urlock Acoa•• to 0..- Full Suite of
Medllalion Packs/Single& Join Nowl
Meet Andy Puddicombe
Fom.- Monk, Med.talion Expert and Leam About Headspace
the Vo,ce of AU Thing• l-laadspace. We Have Ono Miuion: To Improve Iha
He.allh and Happin•H al lhe World.
Figure 1 - Headspace promotional activity in Google Search
Another key element of promotion is the use of free trials

and discounting. These elements of promotion have become Would 50% off help?
synonymous with internet and app based products.
Headspace offers a free two week trial of its content to
prospective users. This promotion strategy attempts to 0rlglMI •lee ASIO1.99,''I'
overcome consumer uncertainty on the intangible aspects of Your price A$51.99/yr

the service (Bednall, et al, 2018). The company is effectively Keep go[ng wit Headspace and we'll 1h1e you 50%
off an entire ye-ar.
backing the product content to be able to convince the
consumer to continue use. It should be noted that studies
have found that it is more difficult to retain customers
obtained via free trials th er customers (Datta, et
al,
201s). Ell
Discounting is also used by the service. Figure 2 shows a
reduced pricing offer made by the service. It is of note that
the discount offer is made after the consumer's decision to no
longer use the service. A new 'Moment of Truth' is instigatt_d
The discount needs to be substantial to give the best chance
of changing the consumer"s ·nd - - over 50%
discount is offered_(? f£ Figure 2 - Discount provided to
dissuade from cancelation

Services can also be considered as a core product and supplementary services. In the Flower of
Service model, Lovelock split the service offering into the core product and the supplementary
services, which in turn are split into Facilitating services (Billing, Payment, Information and
Order taking) and Enhancing services (Consultation, Hospitality, Safe-keeping and exceptions)
(Lovelock, 1995). Table 2 below shows the various elements of the Flower of Service model as
they relate to the Headspace app .
Table 2 - Flower of service Model
Core Training and Guidance Specifically, Meditation, Mindfulness, Sleep and Movement
in Wellbeing
Facilitating Billing Via app, subscription
Payment Via Google play, Apple, Paypal credit card,
Information Prior to purchase on the app store, information on pricing,
content and terms and conditions
After purchase, information provided via daily schedule and
settings menu
Order taking Not applicable to this service.
Enhancing Consultation Consultation not present, seems to be a one size fits all app
Hospitality Meditation and exercise guides are the only personnel with
visibility.
Opportunity for direct interaction with staff is limited.
Safe keeping Personal Information,
Financial Information,
Usage data
Exceptions Problem solving -
FAQs, chat function via a Bot, likely elevated to a real person if
needed.
Handling of complaints/suggestions/compliments - Some user
comments have expressed disappointment with the complaints
handling process.
Of note when considering the flower of service model is the near absence of some 'petals'
Enhancing functions of Consultation and Hospitality are very limited. .D,_...,.n.,e be by design.
The Enhancing elements of the flower of servi are often directly tied to the People
element of the expanded marketing mix. The human factor in a service offering can often be a
source of complaints (Levitt, 1981). Headspace may have consciously decided to minimise the
L..-··--
human interaction element.U,.,....
3 Service Experience Analysis

The service experience felt by the customer is critical to the success (or failure) of a service
organisation. As demonstrated by the GAP model, misalignment between the perceived/
expected and actual experience can have a negative impact on the consumer's attitude to the
service offered (Wirtz & Lovelock, 2018). Thus, organisations must continually monitor sources
of customer feedback to identify potential issues in the service experience. The Gap model can
also be utilised to identify opportunities to reinforce positive experiences and innovate new ideas.
To assess the Headspace app's service experience, a combination of feedback mechanisms were
utilised. Customer reviews from the Apple App Store (2021) and Google Play (2021) were

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Head space Service Encounter Analysis
3.5
Behavioural Intentions are · metric for exploring a user's likelihood to reuse the service and
recommend it to others. While most in the survey indicated they would be open to recommending
the app to their friends, all were unsure or against renewing their app subscriptions all together.
Some of this negative sentiment was echoed in the online reviews with many disgruntled users
citing crash issues as their reason for discontinuing service. However, many of those who did rate
the app positively highly recommended the app "I've recommended it to friends and family
without hesitation." (Google Play, 2021).
4 Critique of the Service Experience

Consumers come to a product or service with expectations that a need or want will be served
by engaging with the core product. The customer service Gap model offers significant
insight into the gaps that can occur between perceptions of the service from the provider and
consumer perspective. The flower of service model highlights the supplementary services that
support the core product and complete the service experience for consumers; if one of the
"petals" is not satisfactory, the overall experience may be found lacking and a gap may
occur.
The analysis of the service experience highlights that al though the Headspace app opera tes
within the zone of tolerance (ZoTI, there are several areas that underperform. Te zone of
tolerance
· fers tohe range in which customers perception of a service meets, exceeds, or falls short of
tions, this is limited by what is an adequate and what is a desired level of service
(Yap & Sweeney, 2007). The ZoTfective initial indication of whether the Headspace app
satisfies an individual's expectatiogge experience in relation to areas of the flower of service
as suggested by Yap and Sweeney (2007).
The prevalence of online and digital service platforms ensures that the average user will have a
level ofL:_XP surrounding the facilitating and enhancing services essential to the overall
service expe (Pihlstrom & Brush, 2008). I tis worth mentioning that although the XYZ team
do not have previous experience with meditation and wellbeing mobile services, ex ec
around ease of use, access to a variety of content and the ot a es ills to be "calmer"
are expected (as suggested by Headspace p omotional content). This set of expectations is
supported by the independent reviews (see Appendix 8.1).
Individual past experiences with free apps, and the increasing occurrence of paid subscription
services, suggested that there would be additional benefits to be gained when subscribing to the
service; there is a 14-day trial, before which you must input payment details, and this allows
access to the full catalogue of meditation and mindfulness audio-visual services. Although
prompted to partake, fulfilling the billing and payment petals, the beneficial ability to free] us
some aspects (including a daily set of activities), trial and cancel the l!..<lu.u-"""'!='- o
provides customers with a degree of ct>nsultation and hospitality. The daily schedule aspect
is accompanied by opt-out notifications that encourage users to engage with the
meditation/mindfulness videos which is beneficial for new users or those using the app as a stress
management tool; the notification directs the user directly to the schedule or a suggested
video appropriate for the time of day (i.e., a sleep assistance video in the evening). However,
both the XYZ team and several users expressed disappointment in the limited nature of
free content
Head
beyond the daily offerings, this space Service
created a senseEncounter Analysis in the wider offerings within the
of disinterest
paid service (Google Pay, 2021; Apple, 2021). EIIJ

Further cross referencing between the X:iZ team's

expectations and experiences and the independent
reviews highlighted the want and recognition of an
aesthetic or visually pleasing user experience. The
app relies upon a gamified experience through the
introduction ofa round character that is mimicked
across all pages and several videos that feature the
semi-anthropomorphised character as guide for
the meditation and mindfulness sessions. The use
of a single character, or a limited range of
characters offers a point of familiarity and mimics
the consultation and idea of interaction from an
identifiable presence across the different
. ..
categories of the app (Johnson, et al., 2016r.
positive connection between gamification an
health behaviours has been identified (Johnson, et v v
al., 2016). Use of gamification strengthens
Headspace's approach to encouraging individual
engagement.
Although, Headspace generally performs within

the ZoT and addresses the majority of the elements
of the flower of service, there are aspects of the
experience that fall short of customer expectations.
The X:iZ team and the independent reviews
indicate that the content of the service does not
meet expectations, that there are flaws in the
payment p hat there are l_imitations to the service platform. These underperformi,ng
aspects are prl5Bltic astheycontnbute to a lack Figure 3 _ Headspace's brand chara
of loyalty in short- to moderate-term users and The Dot
create concern in consumers around the security of
the data provided to the app through the payment facilities (Yap & Sweeney, 2007). Users that
have rated the service on usefulness and consumer satisfaction have indicated that the lack of
functionality in being able to cast it to a sympathetic service (i.e., Google Home, Amazon Alexa,
Apple TV, etc.) prevent them from using the app to its full effectiveness and creates or "falls into'l!
II a gap between management service perception and the service delivery (Google Pay, 2021; Apple,
2021).
Within the app, there are search functions and contact options that enable consumers to seek out
specific content and to report issues within the service (most are only accessible within the paid
subscription service). However, several users refer to glitches or functionality issues when Ell
viewing videos within the app and crashes within the service which impacts the perceived value
in engaging in mindfulness practices and working directly counter to the intended benefits of the
service.

5 Recommendations
Based off the critique of Headspace's service model, it is evident that the service meets the
expectations of new and short term users of the application. However, this report has
identified several areas within the service environment that could be improved in order to
increase retention rates and overall customer satisfaction of the service. The benefits of these
recommendations are further substantiated through application of both theoretical and practical
perspectives to provide a holistic understanding of the changes these recommendations
could have on the overall service offering of Headspace.
5.1 Increasing emotional benefit of the paid service

The first recommendation relates to the cognitive dissonance experienffe by customers between
their anticipated experience and the actual service experience (Gap 5 -The perceptions gap). This
is caused by Headspace's free vs paid service offerings that operate differently to many other
service providers. As mentioned in the critique, users appear disinterested after experiencing the
limited range offered in the free tier service, despite the availability of a premium tri
As part of the customer decision making

process, the customer has identified a need, is
conducting an information search, in the form
of trialling the service, and is greeted with a X
purchase decision in the form of a subscription
offer to access the content that they are trying
to evaluate. With subscription fatigue
becoming a common issue, particularly for
niche content (Nguyen, 2021), customers may
be hesitant to accept the subscription offer, and
in turn may be left with a limited experience, Try Headspace Plus for free
reducing their satisfaction and perception of
., Unlock the full Headspace experience
the service overall.
., A new meditation every day
To reduce this dissonance, XYZ consultancy ., Sleep sounds and bedtime exercises
recommend that Headspace better highlight ., Move Mode for mind and body fitness
the benefits of the service offering available in

their paid subscription servicl this could be $91.99 Annual ($7.99/month)
done in a more emotive way prior to asking for
the sale (the moment of truth). This would
serve to provide better information to the
$19.99 Monthly
customer and give confidence to the consumer
First 7 days free
prior to the purchase decision. Although the in
app purchase splash screen Figure 4[
Ro,tore Pure ha'" . Term, & Cond lon,
provides a basic outline of the service and
benefits, with the limited knowledge and Figure 4 - In app subscription purchase
understanding of most new users, they may splash screen
benefit more from a better explanation of the
advantages of their service and how it stands to
improve their wellbeing.

This is a relatively inexpensive component to upgrade within the service environment but could
provide a significantly stronger touchpoint for the customer if this information was conveyed in
the form of an animated video. As this touch point appears relatively early in the customer
service experience, it would likely contribute to a higher sign up rate of new users who are
undecided on purchase.
5.2 Better application flexibility and user customisation

The second recommendation for Headspace's service product regards customisation of the
Headspace app. In its current form, the Headspace app operates in a fixed layout on mobile
devices and permits little customisation to the user outside of pinning their favourite content,
evident in Figure 5. The tabs at the bottom of the screen are fixed and cannot be re-arranged,
removed, or altered in any way to reflect the preferences of the user. This report recommends
that the Headspace app further invest in developing customisation elements within the app that
enhance the flexibility and enjoyment of their service.
Service personalisation is an important element

that has a significant positive effect on customer
loyalty, retention and overall satisfaction (Ball,
Coelho, & Vilares, 2006). By allowing users to
adjust their own experience (such as layout, l!
lltreferred content etc), services such as Headspace
stand to gain from an increase in customer loyalty
as Consumer are provided with a personalised
experience.
Examples of these augmented features could

include more control over the applications
content enabling the user to shape and tailor
their experience as they see fit and support for
TV mirroring through Airplay or Miracast to
enable users to access the service through a
device of their choosing. As identified in the
critique, there exists a level of dissonance
between customer expectations and the
Headspace service. This is the result of
customers recognising that the service lacks
features that seem intuitive to the user but do
not exist within the app, such as compatibility
with smart speakers and other devices such as
TVs. Enabling the Headspace app to be more
flexible to suit the needs of their users would
require a significant investment in
development, user experience testing and
implementation; however, these expenses are
justified if the outcome of these changes increases
the retention rate among1!1PJ,ers and makes the service more attractive to new users.
Figure 5 - Head space mobile UI layout

5.3 Further research

A potential exists for Headspace to expand their customer research outside of their existing
knowledge of the consumer experience and examine how consumer perceptions of the brand can
be utilised to support the creation of a brand community. This can foster more positive
interaction, perception and relationships between Headspace and their user &
T:amrmuw
Opportunity also exists to look inward. To date, the work of XYZ has been focused on the
Consumer experience, and rightly so, however when considering the Gaps Model, three of the
six knowledge gaps are wholly internal to the company (The Delivery Gap, The Policy Gap and
the Communications Gap) (Wirtz & Lovelock, 2018). Further research could include the
preparation of an internal survey of company personnel, the result of which could assist with
reducing the remaining gaps.
6 Conclusion
In conclusion, XYZ Consultancy were engaged to undertake a service encounter analysis on the
Headspace app. XYZ's service encounter analysis of the Headspace app included:- 1!111
• A review of the existing Headspace organisation from a services marketing perspective,
• A service experience analysis, which includes both internal and external data sources,
namely - Online reviews, Service experience reports undertaken by the XYZ team and a
Consumer survey also prepared by XYZ,
• A critique of the service experience, and finally,
• Recommendations have been made for improvements to app with the aim to further
enhancing the consumer experience.

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Appendix C - Results of Consumer Survey

An online survey was conducted to evaluate the different service elemen ts and experiences
between users. The sample size for this survey was three. Outcomes of this survey are below.
1. The app affected my mental health positively
• Stror,glyA!Jrvo 0
• Ag""' 0
• Somowhat "9"""
• o...ci.... 0
• So.-hat o..ag,.. 0
• Stror,gly disag reo 0
2. The app works the way I need
• Strongly Agreo 0
• Agree 0
• Somewhat ag.- 2
• u. . .re
• Dl>agree 0
• Somewhat Oisa,g ... 0
• Strongly di<og!W 0

-
3. The app has taught me new skills in mindfulness
• Stn>ngly Ag..., D
• Sornewh•• agrtt
• Unsun, D
• Disag..., D
• Sorrwwh•t Oosag.-... 0
• Stn>ngly disagree D
4. The notifications help me to stay consistent on the app?
• Strongly Agree 0
• >,gree 0
• Sorn<What agree 2
• u.,..re 0
• Di<.ag.....
• Sornowl\atlffiagll!@ 0
• Strongly d,sogn,e 0

5. How often do you use the app in typical Day
• Th""' t.nes a day or more 0
• Twiceaday
• OnceaDay
• Somocime5 Olla a day
• N..,... 0
6. The text on the app is easy to read
• Strol'ogly Agree
• Ag,..., 2
• So""""11a1agree 0
• Unsure 0
• Dis.agree 0
• Somewhat D,sagree 0
• Strongly disagree 0

7. I can E!asily find contE!nt I'm looking for
• SlronglyAgrN 0
• Agree 2
• so,,_-ha1 aglff 0
• Unsure 0
• Dis.aogree
• SO,,_hat Disagree 0
• Sffl)ngly disagree 0
8. I find the app easy to use
• Strcngly "9ree 0
• Ag""' 2
• So......atag,-
• Unsure 0
• Disagree 0
• So..-.at °'5a!I""' 0
• Strcngly disag,_ 0

9. The daily routine aligns to my goals
• SvonglyAgree 0
.Agree 2
• 5omewhili9rei!
• Un,ure 0
• D,sag,.,., 0
• So alc:l!sag""' 0
• Svongly dioagree 0
10. The app is visually appealing
•
- ly ree 2
Ag-
• Somewhit agre,o 0
• Unsure 0
• Disagree 0
• Somewhat Oisag ree 0
• Slron!lly d,saoree 0

11. The app design is innovative
• Strongly All,.. 0
• Ag,.., 3
• Somewhat agn,e 0
• Un,., 0
.Di>ao,.., 0
• SornowllotOGog.... 0
• Slrongly disaglft 0
12. Describe how you feel when before using the app
latest Respomes
"Bored"
3
Respomes ·stn>sse4 frustrated, curious"
"unsure, a bit cautious but optimistic enough to
try.•
13. Describe how you feel whilst using the app?
latest Responses
"EngagedI.t I I'm able to im= myself in the experience•
3
Responses "Calm"
'Slightly calmer'
14. Describe how you feel after using the app
latest Responses
"Ret,-e5hed•
3
Responses "Colmer. dissatisfied in ovoilability of"free"content'
"Alrnt:& satisfied? /(rnd of le a little bit underwhe/nw•i

1
17. There enough content on the app
• S<ron!llyAgra
.,.,,""'
• So-hat-
• Un5UTe
• ° """'""
So.......ha t
18. What new content would you like to see?

latest Responses
"More variety in th<! mediations. Some fttl the some e,,en
3
Responses th... "AiditiGtKHo(fline services, longer running utmc,sphaic
sou... "Maybemore ouef,o experi<!nas•.
19. I would not consider switching to another related app
• Strongly ,\g,... 0
• Agree
• Sornowhat ag= 0
• Unsure 0
• Disagree 2
• Sonwwhat ""' 0
• Strongly d..ag""' 0

20. I will renew my subscription
• StmnglyAg""' 0
• Agree 0
• St •9""' 0
• Unsure z
• °"-""'
• 5.,,._i,.,,Oisag= 0
• Stmnglyd""'9ree 0
21. I would recommend the app to my friends
• Strongly Ag!M 0
•-•g-
• 11g..... D
• Unsurw,
• Disag,- D
• Somewhat Oisagre<! D
• Strongly dis.ag""' D

22. How did you learn about the app?
Latest Responses
"Youtube Ad "
3
Responses ·word of mo11th"
·soc,al Media ads·
23. When did you begin using the app?
Latest Responses
·Jweeks·
3
Responses "less rhe 1 month·
"3 weeks ogo"
Appendix D - Service Experience Reports

To establish primary user service experiences with the Headspace app, the group documented
their expectations, experiences and evaluations during the 14-day free trial period. These are
documented below.
User 1 Expectation I had two conflicting expectations prior to using the service. The first was that as the app
was free to use l was expecting to be bombarded with in-app purchases and quite a
limited amount of content being made available for use. I tend to have lower
expectations for apps which are free to download.
The second expectation was based on the popularity of the app. Headspace indicates
that it is the second highest selling fitness app. The user "star" ratings for the app were
also quite high. This indicates that the app is popular and while not a guarantee of
quality, popularity is an indicator which is available prior to use.
Experience Starting the service experience

The app was easy to use from the beginning. After installation the app
immediately began with a brief and simple breathing exercise. This was accompanied
by quite a cartoonish, but also calming, graphic of a flower inhaling and exhaling.
The expectation I had of in-app purchases was incorrect. To use any content it was
necessary to subscribe to the service to start the "free trial". This indicated
that Headspace were using a business model which many other app and software
platforms use, namely subscription services. The use of the "free trial" is also a very
common promotional tactic for app/ content services. The use of a trial is a well
established technique but has been used with great success by Netflix, Stan, Spotify and
many oti1er companies in recent history.
Upon sign up, the app asked what I would like to have as a primary focus, I chose "Stay
Focused".
The app provided a daily plan (shown below) with differing meditation and other
activities to do throughout the day. It was also possible to explore a range of content on
the app with varying focuses. These were: Meditate, Sleep, Move and Focus, with each
providing a range of content.
Ongoing usage
To explore the app it is of benefit to not just trial the content itself but also other
elements of the app. The first step was the settings menu, shown in the screen shot
below. The first option was account and subscription. Here I was able to cancel my
subscription. The process for this was quite straight forward. In some apps it can be
quite difficult to terminate a subscription. This can be frustrating and was fortunately
not an issue.

The next option reviewed was "My data", here I found that 'personalised ads' and '
email offers about our partners' were switched to YES without my permissions being
sought during the sign up process. I found this to be annoying.
I also had the need to use "Support". There were quite a few options in this area. I
couldn't find what I was after in the FAQ section so I headed to 'contact us' and "chat'. A
bot assistance was available in tl1e chat, rather than a real costumer service employee.
In some instances I have found bots less than helpful, however in this instance was
directed to what I needed quite readily.
Varying platforms
After using the app on my smart phone for a few days, I decided to try some other
platforms. Apple TV and Computer.
The decision to try Apple TV was driven by the "move" content. Headspace has quite a
lot of yoga and other movement content such as workouts. I didn't find it easy to
consume these on my smart phone and decided that a TV (with a bigger screen) would
be more user friendly. I n·ied to install Headspace on my Apple TV but found that it
wasn't supported (see above). For me this was quite a draw back as it meant that a
significant amount of content (which I would potentially be paying for) was not very
usable.
Next I decided to try headspace on my laptop computer. Here I found that the app has
been very focused on smart phones and tablets for its content. As shown in the screen
shot below, the content had not been modified in the slightest for consumption on a
computer or larger screen. While a focus on smart phones and tablets is completely
understandable, it would have been possible to adapt the website with little effort.
Content was also limited on the website, with the yoga and move elements being
unavailable.
Evaluation The app was on the whole quite user friendly and I was happy with the content provided.
There is definitely room for improvement in some areas, as noted above. There are
further questions which require answers. This can't be achieved in a two week trial. How
does the app change/grow over time? ls new content continually added or will content
be repeated? Is content being targeted to beginners at the start of app usage with more
advanced content becoming available as usage continues, or is every user directed to the
same content?
l can foresee that for users who continue past the initial trial, the app would be ofbenefit.
I also imagine that it would take regular and prolonged use to achieve the full benefits.

User 2 Expectation J'd heard of the app before but never used it My understanding is that the app provides
short meditation sessions or games to help relax the body and increase mindfulness.
YouTube ads seemed effective in inducing a sense of curiosity, their distinctively sound
a visual style stood out from other ads.
J've never been one for meditation, though 1 am always open to new. My closest frame
of reference is having participated a single meditation session at a Japanese Buddhist
temple. It will be interesting to see how this app compares to a meditation whereby the
physical world played such a big role in the experience.
I'm a wrestles sleeper, often waking five or more times a night feeling wide awake with
an active brain. If using this app can reduce that impact, I'd be extremely pleased. I'm
not typically an anxious or stressed person, but I do notice my brain constantly working
on the next 'project' or 'task'. I'd be satisfied if the app can at least help me take 10
minutes out of the day to unwind and shut off from the outside world.
Experience Opening the app for the first time, placed you immediately into a breathing
exercise.This provided an instant taste for what was to come, helping to relax the mind
before proceeding to the next section. This was an effective way to hook the audience.
From the outset, I was impressed by the number of options available to customise the
experience. The app prompts you to select goals to provide yourself with direction and
enable the app to better tailor content.
1 was surprised by the variety of content available. Beyond the guided meditation
sessions, there are a range of workouts, podcast style talks, soundscapes, breathing
exercises and motivational videos. Each of these offer sessions targeting different goals
whether it be winding down, thinking clearer, reducing anxiety and more.
1 found the sheer amount of content to be somewhat overwhelming with multiple

subsections within broader categories. To help prevent information overload and assist
navigation, the app provides a simply structured daily routine for you to complete at
different times of the day. As you progress, the suggested activities progress with you.
To help you stay motivated, Heaclspace has gamifiecl the experience by providing the
ability to view and compare stats with your friends. You can also enable app
notifications to help you stay on track.
The app utilises a simple design aesthetic with mostly flat vector-based graphics.
The colour palette reflects the style of activity and/or time of clay, with soft yellows
and orange for the morning and soft blues and purples for the evening. The
animations played during the activities are equally soothing. continuing the visual
style through smooth subtle movements. The imagery is fun and playful, helping to
convey the relaxed, regenerating tone.
Sounds in the app are vitally important, playing a large role in the experience.
Whether it's voices or the sound of rolling the waves, the audio is high quality.
When played through headphones, it helps create the illusion of stepping into
another world.
The content available for free is quite limited, though you can see all that is available. I
feel there could have been more free content from the outset, or potentially drip fed
slowly as the user increases their usage. The app also continually prompts the user to
sign up with the offer of free 7 days. Although this experience is annoying. it's to be
expected on most 'free' apps these days.
Evaluation One of the potential weaknesses I found is the app is quite dependant on the user's
commitment to the process in general. If you are not open to immersing yourself in the

experiences offered, your inhibitions might prevent you from feeling any potential
benefits. I believe this app provides the best results with longer term commitment. Yet
users may find it hard to commit the time or simply expect instant results leading to
fmstration an abandonment of the app entirely.
User 3 Expectations l am familiar with the company/real world experience due to being a teacher and the
focus on student wellbeing, particularly in the current climate.
l was familiar with the app through ads on social media (YouTube and lnstagram) and
was curious about what was offered in the app-I expected that meditation and
centering activities, along with some access to sleep sounds/videos.
I was expecting some guided meditation videos/audio would be accessible without

paying for a subscription.
In tenns of personal experience with meditation, I don't typically engage with the
practice. l have one outstanding experience as a teenager (Buddhist meditation at a
temple in Japan) anclhave been taught some techniques during dance/yoga classes.
l wouldn't typically describe myself as a restless sleeper or an anxious person; however,

I enjoy the occasional grounding exercise when stressed and rain/nature sounds when
getting back to sleep if J've woken up in the middle of the night.
Experience Upon starting the app, I was greeted by an almost video game welcome sequence with a
"sun" character and a blue background, and a basic breathing exercise. I found this
interesting; immediately connecting calm with a character and the app.
After this, the standard offer for a subscription (monthly/annual). However, was
disappointed by the lack of access to the services unless you subscribe. The offer ofa 14
day free trial is interesting-one of those "accepted" facts about 21 days to form a habit
does come to mind.
I was impressed by the initial layout, the customization of the user experience and the
option to gamify the experience. The layout of the different category of activities made
it easy to navigate through what you were looking for, and the options available in the
search function fhrther deepened the ability for users to customize their experience.
Evaluation Overall, the app appears to be visually appealing and fairly user friendly. However, the
lack of time to play around with the different services without subscribing to the app
limits the interest I have in using it long term. I feel that the lack of free services on the
app would also dissuade casual users, or those that aren't actively seeking a
meditation/calming app.
User4 Expectation I've head of Heads pace before. It seems like a simple tool to de-stress and relax through
video and audio guided classes. I'm not exactly sure what to expect, I think of myself as
a little anxious and I'm not 100% certain how this will help but I'm up to give ita try.
I'm a little hesitant with 'free· apps because they always tum into a subscription it
seems.
Experience When opening the app, l was surprised to be greeted by an orange blob guiding me to
breathe in and breathe out I already feel more relaxed and I haven't even clicked
anything yet. After this, the app takes me to a familiar sign in/up page with multiple
options. After signing up, the se1vice began to tailor its content by qualifying my needs
through questions. After selecting these, l was greeted with a full screen lightbox
encouraging me to sign up for Headspace premium or start a free trial. I initially
dismissed this, however l realised quickly that to experience any of their classes, you
must have a membership.

After signing up for the trial, I gave a few suggested meditation classes a go. Initially I
found the narrators voice a bit annoying, however I realised there was an option to
change your teacher, so that was nice.
The classes were simple and effective. 1 enjoyed listening to them, more-so the audio
guided breathing classes than the videos however. I could see myself using this every
now and then when I have a quiet moment. I felt some of the classes were extremely
basic, but I had just started using the app, so I'd expect them to get more engaging.
The navigation was simple and easy to use, with the blue, orange and yellow colour
scheme giving a calming feeling.
Evaluation Overall I enjoyed using the Headspace app. The experience was user-cena·ic and
although the app required a subscription, 1 didn't feel pressured or stressed by the
thought of it. Perhaps the interactions leading up to asking for the subscription built
enough tnist and engagement that the subscription felt justified.

20
Headspace Service Encounter Analysis Report
ORIGINALITY REPORT
14 %
SIMILARITY INDEX
8%
INTERNET SOURCES
5%
PUBLICATIONS
12%
STUDENT PAPERS
PRIMARY SOURCES
Submitted to University of Newcastle

1
Student Paper
4%
2
Submitted to University of Sydney
Student Paper
1%
3
apps.apple.com
Internet Source
1%
4
fstep.org.my
Internet Source
1%
5
Submitted to CSU, Hayward
Student Paper
1%
6
Submitted to Tilburg University
Student Paper
1%
Submitted to National University of Ireland,
< 1%
7
Maynooth
Student Paper
8
Submitted to University of Southampton
<1
Student Paper
riunet.upv.es %
9 Internet Source
<1%
<1
10 Submitted to Erasmus University of
Rotterdam
Student Paper %
11
itunes.apple.com
<1
Internet Source
12
Submitted to Aalto Yliopisto %
Student Paper
13
Submitted to Nanyang Technological <1
University %
Student Paper
14
Submitted to The University of Manchester <1
Student Paper
%
15
highbeam.com
Internet Source
<1
16
studylib.net %
Internet Source
17
scholar.lib.vt.edu
Internet Source
<1
%
j--s.net
18 Internet Source
<1
%
19
revistas.udc.es
Internet Source
<1
20
Submitted to Regent's College
Student Paper %
<1
%
<1% <1
%
21 moam.info
Internet Source <1
%
22 Submitted to Taylor’s Education Group
<1
Student Paper
23 Johannes Glückler. "Making Embeddedness %

Work: Social Practice Institutions in Foreign
Consulting Markets", Environment and <1
Planning A: Economy and Space, 2016
Publication
%
Submitted to Royal Holloway and

24
Bedford New College
Student Paper
25
ediss.uni-goettingen.de <1
Internet Source
%
Submitted to HELP UNIVERSITY
26 Student Paper
<1
www.smore.com %
27 Internet Source
28
www.coursehero.com
Internet Source
<1
%
Blanca Hernandez-Ortega, Joaquin Aldas-
29
Manzano, Carla Ruiz-Mafe, Silvia Sanz-Blas. <1
"Perceived value of advanced mobile %
messaging services", Information Technology
& People, 2017
Publication
<1
%
< 1%
30
Rajagopal. "Managing Social Media and
Consumerism", Springer Science and Business
<1
%
Media LLC, 2013
Publication
highered.mcgraw-hill.com
31
<1
Internet Source
www.psychologyandeducation.net %
32 Internet Source
33
www.wipp.energy.gov <1
Internet Source
%
scholars.wlu.ca
34 Internet Source <1
%
<1
%
Exclude quotes
Exclude matches Off
Off Exclude bibliography
Off
Headspace Service Encounter Analysis Report
GRADEMARK REPORT
FINAL GRADE
GENERAL COMMENTS
26
Instructor
Stephen, Nicole, Andrew & Beau,
Overall a [great attempt on your SDS and customer

experience report. Your team should commend
/30 themselves on the effort and hard work that is

evidenced in this report. This report has been
awarded a high distinctionfor reasons that will be
outlined below.
1. At times you need to work on the linking of

your discussion between different lines of
argument or in reference to how sources are
used to support your discussion.
2. there are instances were citations are needed

in certain sections and further clarification of
points
3. the discussion around the dimensions of the

survey and the critique had overlap and you could
have integrate those sections together as further
support of the positives and negatives of the
service provided by Headspace.
4. the recommendations could would have

benefitted from prioritatisation and discussion
on how should the recommendation be
implemented by management
Please note that a copy of the marked assessment

will be emailed to the team so that each member
is able to review the comments and marking
rubric. It is advised that you look to bottom of the
pdf file for the related comments and rubric.
Jess
PAGE 1
Text Comment. Great Format!
PAGE 2
PAGE 3
QM
Weak Transition | Introduction
Weak paragraph transition:
Although paragraphs are separate, individual steps of your paper, it is important to clearly
demonstrate a logical connection between them. Generally speaking, the way your
paragraphs relate to one another displays how sound your argument really is. A paragraph
that begins with "also" or "in addition" offers a weak transition from the previous point, even
though it may develop a highly interesting and related point.
Comment 1 | Introduction
Just to note your the first team that took this approach of being a consultancy and its great to
see!
Comment 2 | Introduction
Greta work
Comment 3 | Service Descr
here is where you could have linked this to the type of processing of the service which
would then help you transfer into the service product/marketing strat
i.e. for note this would be considered a mental stimulus processing app (working on the
mind and changing attitudes way of thinking of consumers)
would have been great to see some references here
QM Sp. | Format
Spelling error
PAGE
Great use of example to highlight the prominent features of the service that you are
analysing!
was there anything that you found where this is a problem for your service or something in
which they havent seen a problem?
linking of the two sentences here would have helped to resolve this sentence . For example:
A new moment of truth is instigated and designed to create a positive impression of the
brand and change a consumers mind to continue their use of the service.
QM Substantiation| Service Descr
Substantiation of argument required. You need to ensure when developing your argument
that you are well-informed through theoretical concepts as well as business sources
PAGE 5
Strikethrough.
Fantastic. Again first team to lay out the flower of service model as you have done! love it!
QM
Weak Transition
due to the point above?
Comment 11 | Evaluation
great lead in of this section!
PAGE
great work
What would have been good here is to note that you placed the reviews into the dimension
below. I first read thinking you were discussing why you had selected these dimensions and
even noting your expectations pre experience here as opposed to what has been structured
as normally information such as this would have been great to use in your critique of the
service experience.
Comment 14 | Format
throughout this section you are just missing a refence for the definition of the dimension
used
Text Comment. ;
Strikethrough.
PAGE 7
QM
Support | Format
Support Needed:
A well-written paper will include strong support for its thesis. Support for your thesis should
come from primary (original documents, interviews, and personal experiences) and
secondary (information that has been processed or interpreted by someone else) sources. To
use your support effectively, you must elaborate upon the information, quotations, and
examples taken from your sources and connect them to your thesis. It is also important to
remember to cite the sources of the evidence and support you use in your paper.
Comment 16 | Format
missing a few references for the content covered in this section
Comment 17
just a reminder for your next assessment there is no need for you to provide definitions of
the theory at all. you application and contextualizing to the object at hand (service under
analysis) is what is needed to showcase your udnerstanding of the concept.
Comment 18 | Critique
so what makes it sit within the zone of tolreance, clarification of this based on the desired,
adequate and expected would have been great
what was this level of expectation? was it in line with the
Comment 20 | Understanding
this would link to its communication gap if there is one
add an example to clarify your discussion point
does this link to any of the gaps model of service quality, why is limited content in a free trial
a negative feature.
PAGE 8
QM
Weak Transition
would have been great to discuss why this is problematic
Comment 24 | Format
should have this under teh figure/check formatting
Comment 25 | Understanding
great link here to theory
also if you reflect on service quality it has an direct link to the reliability of the service, that is
being compromised here. Which is also linked to Gap 3 of the Gaps model
additionally if you think about perceived risk this represent functional risk that is being
realised
PAGE 9
Comment | Solutio
what was this level of expectation? was it in line with the
Comment | Solutio
great lead into the
Comment 28 | Solutions
It would have been great to see how these recommendations could be prioritized
Text Comment. d
QM Weak Transition
Text Comment. T
Strikethrough.
PAGE 10
How would this be implemented as part of the service product so this could be in its
promotion and information flow
Where would this information be made available
good justification
particularly those that trial the service before committing
PAGE 11
QM
Substantiation
Substantiation of argument required. You need to ensure when developing your argument
that you are well-informed through theoretical concepts as well as business sources
Comment | Conclusio
would have been great to have this in a paragraph as opposed to dot
additionally points are broad at recapping the report
PAGE 12
PAGE 13
PAGE 14
great to see this
PAGE 15
PAGE 16
PAGE 17
PAGE 18
PAGE 19
PAGE 20
PAGE 21
PAGE 22
PAGE 23
PAGE 24
PAGE 25
PAGE 26
PAGE 27
PAGE 28
PAGE 29
PAGE 30
PAGE 31
PAGE 32
PAGE
PAGE 34
RUBRIC: ASSESSMENT ITEM
INTRODUCTION High
Distinction
(85-100)
( /1.5)
FAIL (<50)
No introduction provided, or an inappropriate introduction is developed with a
lack of alignment to the proceeding information.
PASS (50-64)
Provides an adequate introduction, illuminating the direction of the SE analysis.
Some errors and omissions of what the analysis entails is evident.
CREDIT (65-74)
Provides a sound introduction, illuminating the direction of the SE analysis. The
introduction is logical and in most instances is consistent with the proceeding
information in the analysis.
DISTINCTION (75-84)
Provides a competent introduction, illuminating the direction of the SE analysis.
The introduction is accurate, logical, and consistent with the proceeding
HIGH
Provides an excellent introduction that clearly articulates the direction of the SE
DISTINCTION (85-
analysis. The introduction is accurate, logical, and consistent with the proceeding
100)
SERVICE DESCR
High
Distinction
(85-100)
Description of the Service Organisation ( /2.5)
FAIL (<50) No description of the service organisations is provided, or the description is

inadequate.
PASS (50-64) Demonstrates an adequate ability to identify & summarise aspects of the sservice
strategy of the service organisation. Limited use of examples is provided.
CREDIT (65-74)
Demonstrates a sound ability to identify and accurately summarise aspects of the
service strategy of the service organisation. Description should be more succinct.
DISTINCTION (75-84)
Demonstrates clear competence in identifying and accurately summarising the
service and its purpose. Discussion could be more succinct. Examples provided.
HIGH
Demonstrates excellence in identifying a service organisations strategy and its
DISTINCTION (85-
purpose. Examples are skillfully integrated into a succinct and well-articulated
100)
description.
EVALUATION
High
Distinction
(85-100)
Service Experience Analysis ( /5)
FAIL (<50)
Demonstrates little or no ability to analyse the SE. No knowledge of the importance
& relevance of service quality tools is included. No service quality instrument
provided in appendix.
PASS (50-64)
Demonstrates an adequate ability to implement a service quality tool and analyse
the SE. Demonstrates adequate knowledge of the importance and relevance of this
tool. Explanation of the importance & relevance of the tool is required. Some
service quality instruments are included.
CREDIT (65-74)
Demonstrates a sound ability to implement an appropriate service quality tool and
analyse the SE. Demonstrates sound knowledge of the importance and relevance
of this tool. Further clarification of the importance & relevance of this tool is
needed. All service quality surveys provided in the appendix of the report.
DISTINCTION (75-84)
Demonstrates clear competence to implement an appropriate service quality tool
and analyse the SE. Demonstrates competent knowledge of the importance and
relevance of this tool. In most instances, the discussion is clearly articulated.
Service Quality surveys provided in the appendix of the report.
HIGH
Demonstrates excellence in implementing an appropriate service quality tool and
DISTINCTION (85-
analyse the SE. Demonstrates excellent knowledge of the importance and
100)
relevance of this tool. A skilful and engaging explanation of the importance of
service quality assessments. All completed service quality surveys are provided in
the appendix of the report.
CRITIQUE
High
Distinction
(85-100)
Critique of the service experience ( /6.5)
FAIL (<50)
No critique or an inadequate critique of SE and service quality findings. Limited
detail. No use of secondary materials to support critique.
PASS (50-64)
Provides an adequate critique of most/all aspects of the SE and service quality
findings. Discussion is primarily descriptive. Limited use of secondary sources to
support critique.
CREDIT (65-74)
Provides a sound critique of most/all aspects of the SE and service quality findings.
Elements of description with deeper evaluation in most places. Scholarly
secondary materials used to support critique.
DISTINCTION (75-84)
Provides a competent critique of all aspects of the SE and service quality findings.
Deep argument in most places. Multiple scholarly & secondary materials used to
support the critique.
HIGH
Provides an excellent critique of all aspects of the SE & service quality findings.
DISTINCTION (85-
Deep analysis provided in all instances. Multiple, relevant, scholarly secondary
100)
materials used to support the critique.
High
UNDERSTANDING
Distinction
(85-100)
Understanding and analysis ( /4)
FAIL (<50)
No evidence of linking services & relationship marketing theory to the analysis
discussion. Inadequate grasp, and limited use of course terminology.
PASS (50-64)
Services & relationship marketing theory is adequately linked to the analysis
discussion. Limited use of course terminology and/or minor inaccuracies are
evident.
CREDIT (65-74)
Services & relationship marketing theory is linked soundly to the analysis
discussion. The extent and use of course terminology is sound.
DISTINCTION (75-84)
Services & relationship marketing theory is competently used and clearly linked to
the analysis discussion. Use of course terminology is extensive and largely correct.
HIGH
DISTINCTION (85-
100)
SOLUTIONS
High
Distinction
(85-100)
Recommendations to Improve SE ( /6.5)
FAIL (<50)
No recommendations provided and/or the recommendations are not informed by
services marketing theory. Significant limitations are apparent.
PASS (50-64)
Demonstrates an adequate ability to propose several recommendations. Limited
evidence of services marketing theory linked to the recommendations.
CREDIT (65-74)
Demonstrates sound competence to propose and discuss a range of actionable
recommendations. In most instances, recommendations are appropriately linked
to services marketing theory.
DISTINCTION (75-84)
Demonstrates clear competence to propose and critically discuss a range of
actionable recommendations. Recommendations are clearly supported by services
marketing theory.
HIGH
Demonstrates excellence in proposing and critically discussing actionable
DISTINCTION (85-
recommendations targeted at improving the SDS. Recommendations are
100)
insightful, well justified and are prioritised.
Distinction
CONCLUSION
(75-84)
( /1.5)
Either draws no conclusion or draws an inappropriate conclusion with a lack of
FAIL (<50)
alignment to the preceding information.
Draws an adequate conclusion, reiterating the SE. There is consistency with the
PASS (50-64)
analysis but could be improved. The conclusion attempts to unify the SE analysis.
CREDIT (65-74)
Draws a sound conclusion and reiterates the SE and recommendations. The
conclusion is accurate and consistent with the analysis. The conclusion brings
unity to the SE analysis.
DISTINCTION (75-84)
Draws a competent conclusion and clearly reiterates the SE recommendations.
The conclusion is accurate, logical, and consistent with the analysis. The
conclusion unifies the SE analysis successfully.
HIGH
Draws an excellent conclusion and clearly reiterates the SE Strategy and
DISTINCTION (85-
recommendations. The conclusion draws a fully constructive SE analysis.
100)
FORMAT
Distinction
(75-84)
Format, referencing and grammar ( /2.5)
FAIL (<50)
No consistent style or structure. Limited evidence of appropriate APA referencing
in-text and/or no reference list.
PASS (50-64)
The CRM analysis reflects minimal structural flaws. Information has been
organised to convey meaning to the reader. Some in-text referencing errors
evident (no page number/s for direct quotes or similar). A reference list provided;
some references omitted. APA referencing style followed.
CREDIT (65-74)
The SE analysis reflects consistent structure. Information is organised and
sequenced to convey the intended meaning to the reader. Appropriate and
consistent referencing provided with minimal errors. Both in-text referencing and
reference list follow APA Style.
DISTINCTION (75-84)
Analysis is well structured. Information is logically organised and sequenced to
convey the intended meaning to the reader allowing ease of reading. Appropriate
and consistent referencing provided with no errors (APA Style).
HIGH
The SE analysis is very well structured. Information is very well organised and
DISTINCTION (85-
easily accessible to the reader. Appropriate and consistent referencing provided
100)
with no errors (APA Style).

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Headspace Service Encounter

Submission date: 10-Oct-2021 02:20PM (UTC+1100)

2 Description of Service Organisation

Table 1 - Head space Expanded Marketing Mix

Product Training and Guidance in Wellbeing, Fitness, Mindli.1lness

GSBS6015 Services and Relationship Marketing Management-Trimester 2

Cl Al El V"ideos C lmilll"S News 0 Map; 5 More Tools

About 752,000.000 "'""Its (0.71>second5)

Headspace - Try It for Free

Weathering the storm

Figure 1 - Headspace promotional activity in Google Search

Another key element of promotion is the use of free trials

overcome consumer uncertainty on the intangible aspects of Your price A$51.99/yr

GSBS6015 Services and Relationship Marketing Management-Trimester 3

Table 2 - Flower of service Model

3 Service Experience Analysis

GSBS6015 Services and Relationship Marketing Management-Trimester 4

4 Critique of the Service Experience

GSBS6015 Services and Relationship Marketing Management-Trimester 7

Further cross referencing between the X:iZ team's

Although, Headspace generally performs within

GSBS6015 Services and Relationship Marketing Management-Trimester 8

5.1 Increasing emotional benefit of the paid service

As part of the customer decision making

the benefits of the service offering available in

GSBS6015 Services and Relationship Marketing Management-Trimester 9

5.2 Better application flexibility and user customisation

Service personalisation is an important element

Examples of these augmented features could

GSBS6015 Services and Relationship Marketing Management-Trimester 1

5.3 Further research

GSBS6015 Services and Relationship Marketing Management-Trimester 1

Appendix C - Results of Consumer Survey

1. The app affected my mental health positively

• Stror,gly disag reo 0

2. The app works the way I need

• Somewhat Oisa,g ... 0

GSBS6015 Services and Relationship Marketing Management-Trimester 1

4. The notifications help me to stay consistent on the app?

GSBS6015 Services and Relationship Marketing Management-Trimester 2

5. How often do you use the app in typical Day

• Th""' t.nes a day or more 0

• Somocime5 Olla a day

6. The text on the app is easy to read

GSBS6015 Services and Relationship Marketing Management-Trimester 2

7. I can E!asily find contE!nt I'm looking for

8. I find the app easy to use

GSBS6015 Services and Relationship Marketing Management-Trimester 2

9. The daily routine aligns to my goals

10. The app is visually appealing

• Somewhat Oisag ree 0

GSBS6015 Services and Relationship Marketing Management-Trimester 2

11. The app design is innovative

13. Describe how you feel whilst using the app?

14. Describe how you feel after using the app

GSBS6015 Services and Relationship Marketing Management-Trimester 2

17. There enough content on the app

18. What new content would you like to see?

19. I would not consider switching to another related app

GSBS6015 Services and Relationship Marketing Management-Trimester 2