Service Life Cycle
07/December/2025 17:40
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SERVICE LIFE CYCLE (SLC)
The Service Life Cycle refers to the different stages a service goes through from its initial idea and development to its decline or transformation.
Just like products have a Product Life Cycle (PLC), services too pass through well-defined phases such as:
1️⃣ Introduction
2️⃣ Growth
3️⃣ Maturity
4️⃣ Decline
However, service life cycles differ from product cycles because services are intangible, perishable, inseparable, and require continuous improvement. Services depend heavily on customer experience, service delivery quality, employee performance, and evolving customer expectations.
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? Diagram: Service Life Cycle (Text Format)
Idea → Design → Introduction → Growth → Maturity → Decline/Revival
OR the marketing version:
Introduction → Growth → Maturity → Decline (or Renewal)
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**? 1. Introduction Stage
This is the beginning stage where the service is first launched in the market.
At this stage, customers are not aware of the service, and demand is usually low.
High investments are made in developing service infrastructure, training employees, and promoting the new service.
Key Features:
High cost per customer
Low sales revenue
Heavy need for advertising and awareness
Service blueprinting and training still developing
Examples:
When Ola Electric Taxi Service was introduced in select cities
Launch of 5G internet services in India
A new mobile app offering laundry pickup services
Strategies:
Promote unique benefits
Offer trials and introductory pricing
Build customer trust
Ensure reliable service delivery
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? 2. Growth Stage
Demand increases because customers are now aware of the service.
Service quality improves due to customer feedback, and economies of scale reduce operational costs.
Key Features:
Rapid increase in customers
Improved reputation and trust
Competitors begin to enter the market
Service becomes standardized
Market expansion begins
Examples:
Zomato and Swiggy rapidly expanded food delivery service across India
JioFiber gaining massive users after introduction
Amazon Prime becoming widely popular
Strategies:
Expand to new markets
Improve technology and customer service
Introduce loyalty programs
Train staff to maintain service consistency
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? 3. Maturity Stage
The service becomes well-established, competition is highest, and market saturation occurs.
Businesses focus on maintaining loyalty, differentiating themselves, and improving the service experience.
Key Features:
Slow or stagnant growth
Strong competition
Price wars common
Customer loyalty becomes critical
Innovation becomes necessary to survive
Examples:
Telecom industry (Jio, Airtel, Vodafone) in India
Insurance services
Banking services like savings accounts
Fast-food delivery services now common everywhere
Strategies:
Service diversification (new packages, new features)
Improve service speed, convenience, and personalization
Offer additional services (bundling)
Focus on CRM (Customer Relationship Management)
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? 4. Decline Stage
Demand decreases due to technological changes, customer preference shifts, or new competitors with better solutions.
Key Features:
Falling sales
Higher cost of retaining customers
Reduced market interest
Service becomes outdated
Examples:
Landline telephone services declining because of mobile phones
Cable TV services declining due to OTT platforms like Netflix
Traditional travel agency services replaced by online apps
Strategies:
Revamp the service → upgrade with new technology
Reduce costs and optimize operations
Target niche markets
Or discontinue the service if non-profitable
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? 5. Revival or Reinvention Stage (Modern Addition)
Many services can re-enter the market by reinventing themselves with technology or new strategies.
Examples:
Cinema theatres revived with IMAX, recliners, luxury halls
Banks reinvented themselves with mobile banking, ATMs, apps
Food delivery reinvented with cloud kitchens and instant delivery
Strategies:
Digital transformation
New service bundles
Rebranding
Collaborations and mergers
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? Why Service Life Cycle Is Important?
Helps managers plan investments
Helps design competitive strategies
Helps predict customer behavior
Helps allocate resources (staff, technology, marketing)
Helps businesses know when to improve or reinvent services
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? Service Life Cycle vs Product Life Cycle (Short Note)
Point Product Life Cycle Service Life Cycle
Tangibility Tangible Intangible
Storage Can be stored Cannot be stored
Production Produced first Produced & consumed simultaneously
Variability Less variable Highly variable
Importance of employees Moderate Very high
Customer interaction Low to medium Very high
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? Case Study Examples
Case Study 1: ATM Services in India
Introduction: New in 1990s; people hesitant
Growth: Convenience → rapid adoption
Maturity: Every bank installed ATMs; competition on transaction charges
Decline: Mobile banking and UPI reduced ATM usage
Revival: Cash recycler machines, cardless withdrawals
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Case Study 2: Netflix Service Life Cycle
Introduction: DVD rental service
Growth: Online streaming revolution
Maturity: High subscription base, global expansion
Decline threat: Many OTT competitors
Revival: Original web series, localized content
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Case Study 3: Ola Cabs
Introduction: Launched in metropolitan cities
Growth: Expanded to 100+ cities
Maturity: High competition from Uber
Decline: Consumer dissatisfaction, driver strikes
Revival attempt: Electric vehicles, Ola electric scooters
