Voice of Customer

Understanding Customers [VOC]RAHUL ARORA

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Agenda Concept of VOC

Different approaches to VOC

Tools and techniques to collect, process and analyze VOC data

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Target Audience Product Managers

Engineers

Entrepreneurs

Anybody who is interested in product development process

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Tata Ace• Mini truck to provide last

mile connectivity

• Takes on established 3 wheeler market

• Cost & Load factor

• Perceived prestige of the owner

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Low Cost ECG• Portable & Cost effective

ECG for developing world

• Off the shelf components

• Usability

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Tata Nano• Perfect example of frugal

engineering

• Why drive 2 wheeler when you can afford a car

• 31 Design & 37 technology patents

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Whirlpool Whitemagic• Design and develop a new

line of fully automated washing machines to meet the needs of the Indian market.

• Analyzed Ergonomic and Maintainability of Washing Machines for Indian Market

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Air Deccan• Fulfilled the dreams of

flying for the middle class

• Innovations for Reach, Cost, Timeliness etc.

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Your Verdict

Pass / Fail Pass / Fail Pass / Fail Pass / Fail Pass / Fail

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Why do products failTe

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* Image credit KenMiller Group

Understanding Customers !!!!

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Understanding Customers !!!!

18-32 Year Old Working, Independent, male/female, staying in a metro city, earning 5 figure salary, having Rs x/- disposable income. Drives a fancy car, Owns a iPhone and iPad …

Blah blah blah.

Matrimonial Advert ?

?

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Emotional Motor Behavioral Psychological

Customer Needs

UNSTATED NEEDS

STATED NEEDS

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Decision Cycle

Needs - Benefit - Value

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Why do VOC Test the hypotheses

Customer segment

Competition

Target audience

Product validation

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Where does it fit?Ideation

Planning

Development

Test

Launch

Maintenance

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Tactical Short term performance & issue driven

Conducted with select few customers

Focus on individual quality matrix by scorecards

Improves customer relationship

Sales

Social

Page Views

Customer Care Data

Customer Survey

CSAT

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Strategic Customers as well as non-customers

Cross functional

Understands customer priorities

Oriented towards generating higher value and clear economic benefits

Primarily done while introducing new products

Product

Development

Quality

Customer Care

Management

Marketing

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Introspect Before VOC What business are you in?

What problems are you trying to solve?

How will you make money?

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Let’s Talk About Customers How does your customer spend/make money?

How does your offering helps them save/make more money?

How does your customer make buying decision?

Do you know the decision tree in your customer’s organization?

What are key trade-offs in your customers purchase decisions?

Do you know short, mid and long term objectives of your customer’s business?

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Ideation

Planning

VoC Objectives Best time to start VOC process

Explore maximum amount of information about your prospective customers

Try to understand your customer pain points

Understand how your customer make money

Understand market and competitive forces that may impact the business

Create quick ideas that offers best value for money as compare to your next best alternative

Identify the CTQ

Cont…

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VoC Objectives

Quickly prototype ideas using cost effective ways

Solicit feedback and customer perception about products

Understand customers willingness to pay and trade-offs

Validate, validate, validate

Drop whatever seems irrelevant or customers show indifference

Cont…

Develop

Test

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VoC Objectives

Continue feedback loops

Integrate customer insights to position and placement of product

Keep an eye on competition for continually evaluate value proposition

Launch

Maintenance

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Output Based VOC process

VOC Charter

• Develop Hypotheses

• Define Goals• Identify Team• Define Timeline• Set the process

right

Preparation

• Identify target audience across value chain

• No Box-checking • Role-play

Conduct VOC

• Ask as many why’s• Open ended

discussions• Understand

situation, problems, implications and needs

Synthesize

• Analyze data scientifically

• Identify segments, strategies critical needs

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S P I NSITUATION PROBLEM IMPLICATION NEEDS

Approach

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Situation Problem Implications Needs

Segment 1 Seg 2 Seg 3

• Collect Facts• Ask only essential

questions• Have some pointers

ready to get customers started

• Ask for point of dissatisfaction with current approaches

• General difficulties

• Probe for consequences of problems

• Point of dissatisfaction

- - • Focus the prospect’s attention on the solution

• Uncover the benefits that they are looking for

• Probe Probe Probe

Spin Template

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Prioritizing Needs (QFD)Feature 1

Feature 2

Feature 3

Customer Needs Average customer Ranking

Need 1 6 4 7 0Need 2 3 10 4 7

Score 14 11 7

Requirement Ranking 1 2 3

Rating Scale for Customer NeedsMost Important - 9Highly Desirable - 6Nice to Have - 3I don’t Care – 1

Need/Feature RelationshipDirect - 10Strong Influence - 7Weak Influence - 4No Influence - 0

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On a Scale of Jack to Steve

YOU BETTERBE HERE

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@bizodyssey

@rahula