Transformative Services and Systemic Well‐Being—Towards a Better Understanding of Distinction in Service Design

ABSTRACT Transformative service research studies the relationship between service provision and well‐being. So far, the notion of well‐being applied in this context is mainly directed at specific interventions to improve the customer's situation. We propose that well‐being should rather be conceptualized from a systemic point of view, referring to the ability of a system to sustain a floating equilibrium over time. Social systems theory posits that floating equilibria rely on distinction as a basic social operation to adapt boundaries and revise interactions as systems evolve. Based on this thought, we study the treatment of distinction in transformative services. We identify five different forms of distinction that need close attention in the practice of service design, its external assessment and regulation, and storytelling about services. We illustrate problems of well‐being resulting from distinction with examples from different application contexts in which service interventions are critically discussed. Furthermore, we raise a variety of questions that can help gaining a better understanding of service design for customer well‐being from a systemic perspective in theory and practice.