As shown in Figure 1, current approaches to service improvement constrain innovation by focusing on service as the unit of analysis, rather than on the fundamental needs of the customer (Bettencourt, 2010; Christensen, Cook, & Hall, 2005). For example, service quality research identifies service improvement opportunities through the use of mystery shoppers, point-of-purchase and trailer satisfaction surveys, and annual service quality surveys. By design, these approaches can only assess currently offered solutions; that is, they evaluate service offerings that have already been proposed. The results from this research can only improve extant company offerings, not provide a better understanding of customer needs or invent new ways of satisfying them. As far as innovation is concerned, we find three basic issues with traditional approaches to service innovation.