Voice of the customer training

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Voice of the Customer

How to get insight on what customers need

Leadership from withinCopyright www.leanimpact.biz 2

When do you use this tool?

• This tool is used to identify customer needs.• As a prerequisite...

– Customer segments must be defined– The customer analysis objective must be given


What do you get (deliverables)?

• The Voice of the Customer tool helps identify what it is that drives the customer - what the customer needs - on a specific issue.

– Through Voice of the Customer analysis, the customers “wants” are identified, I.e. a hole…

– Using the VOC tools (Kano and 5I’s) the customer “needs” are identified, I.e. a drill…

– Using the tools, KPI’s can be set for execution on meeting the needs.

“A well defined problem is 90% solved” (Einstein)


Process overview

1. Define the challenge.2. Choose the customer segment.3. Conduct analysis on customer wants.4. Design the product specifications using the Kano model.5. Develop a marketing mix that meet the needs using the 5I’s

model.6. ... Further work to define the ideal solution can be carried out

using the Quality Function Deployment model (QFD).


How to use the VOC tool?

1. Starting with your customer definition, consider if further segmentation is needed, and brainstorm on sub-segment profiles, if required.

2. Next, conduct a structured segment analysis to help you identify the specific customer wants in relation to the objective for the analysis:

Qualitative data (Focus groups, Point-of-use observation, interviews) Quantitative data (Surveys, Questionnaires, Coloplast information, Industry analysis) Contact experts from Market Insight to get assistance on analysis design:

[email protected]. When you have collected the Voice of the Customer data, review the data and

brainstorm to identify all the customer wants.4. Next, you can design a world class solution using the Kano design method to

understand varying levels of value that your customer place on different features of your service / product.

5. Diving deeper, you can use the 5I’s model to gain insight on how to deliver on what the customer needs.


Conducting the analysis

1. What are we trying to achieve?2. Who is the customer?3. What does the customer want?

– Focus groups: To get feedback on existing products or services or on proposed ideas from the point of view of a group of customers

– Point-of-use observation: High impact technique for experiencing what it is like for a customer doing business with us / using our product, and generating insights for improving products, services or processes

– Interviews: To learn about a specific customer’s point of view on service issues, product/ service attributes, and performance indicators/ measures

– Surveys / questionnaires: To get quantitative data across an entire segment or group of segments on customer reactions to a product, service or attribute

4. Upon completion of the analysis, tabulate and present the raw findings in a structured way, with a conclusion proposal at the end.

5. Use the Kano model to design the solution and/or the 5I’s to identify customer needs and design the marketing mix.


The Kano tool can help you define and prioritise the customer needs into a solution definition...

1. The Kano principle– Kano is an analysis to help understand the varying levels of value that your

customer place on different features of your service / product / solution.2. The basic product

– This defines the product must-haves. These are the things that customers take for granted. Typically, the basics can be identified through observation. I.e. Easy to open packaging.

3. The performance product– The performance product are the features that differentiate our solution from

competition. These are economically value-added elements that relate to customers having a quality experience with the product. I.e. Soft adhesion.

4. The delighting product– Over and above the basic and performance elements, delighters are the

unexpected “free” extra features that provide a “wow” experience. Typically, Delighters are low-cost utilities included in the product/ solution. I.e. the subtle click-sound when parts lock into place.


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Improving the solution by using the analysis findings in the Kano model

• Basic musts: Expected features or characteristics of a product or service. If these needs are not fulfilled, the customer will be extremely dissatisfied. Satisfying basic requirements is the entry point for getting into a market.

• Performance satisfiers: Standard characteristics that increase or decrease satisfaction by their degree (cost/price, ease of use, speed). Satisfying performance requirements will allow you to remain in the market.

• Unknown Needs - Delighters: Unexpected features or characteristics that impress customers and earn you extra credit. Satisfying delighters - excitement requirements - opens the opportunity to excel, to be World Class.


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Kano Example – Helps Define Value

Cost = Value Added + WASTE

Kano Model

How well need is met

Basic needs

Performanceneeds

Delighters

Satis

facti

on

Time

If you want one - Ikea

Basic Performance Delighter

• Holds coffee

• Handle

• Size

• Stability

• Insulation

• Style

• No puddle on upturned cup

• Changes colour when it warms up


The 5I’s tool can help you deliver on customer needs...

1. Issue– Based on identified customer “wants”, what are the most critical barriers to meeting the

customer wants? Brainstorm on data: “What are the barriers that prevent us from meeting the wants.”

2. Information– What information do we have that will help us understand how to remove/ overcome each

barrier/ issue? Brainstorm on each issue: “What information do we have/need that will help us understand how to overcome these barriers?”

3. Insight– What is the penetrating discovery, that can help us create added value on unmet customer

needs? Brainstorm with 5-why on each issue: “Why do customers do what they do? - go five levels deep.”

4. Implication– Based on the insights, what is the overall strategic direction we should take to resolve each

issue? Based on the deep insight from the 5-why process: “How do we resolve each underlying issue in order to meet the customer needs?”

5. Implementation– What is the key activity that will enable us to meet the needs? “How are the 4-P’s defined to

execute on the implications (Product, Price, Promotion, Place)?”


The 5I’s model as used by Nike…

IssueHow do Nike meet the wants of football players, to move their new product Mercurial Vapor?

Information(barrier)

The professional football players only buy into products with strong and credible profiles

Insight(barrier)

Football Crazies aspire to be like their footballing heroes

Implication(driver)

Use key opinion leaders e.g. star football players such as Thierry Henry in order to establish the product credentials

Implementation Increase awareness among opinion leaders and drive trial by sampling boots first to star players then with premier league players


The secret of in-depth thinking is to never be satisfied with the first observation

But why?

But why?

But why?

But why?

Insight

But why?

The 5-Why ladder


Asking “WHY?” Helps Us To Uncover Why Consumers Act As They Do

”I don’t want to change my current Ostomy product.”

WHY?

“I feel safe with the solution I use today.”

WHY WOULD THAT STOP YOU?

“I am concerned that another product might leak.”

WHY?

“I know how my current product works.”

WHY IS THAT IMPORTANT?

“I might not be able to get another solution to work.”

WHY SHOULD YOU CARE ABOUT THAT?“I would be too embarrassed to leak and smell in public, it is such a mess. I need to have full confidence in the product that I use.”

Deal with this implication to define the implementation

(marketing mix)


5thI (Implementation) is the Marketing Mix…

• Product: How is the product defined

according to the implications?• Price

How is the price determined at a strategic level?

• Promotion How is the positioning and

market communication done?• Place

How is the product brought to market?


Based on the data, brainstorm on each I…

IssueBrainstormBased on data from customer analysis

Information(barrier)

BrainstormTake one issue at a time through the remaining I’s

Insight(barrier)

BrainstormUse 5-why on each issue

Implication(driver)

Brainstorm

Implementation BrainstormUse the 4-P’s Marketing Mix


Good to know

• Practicalities– Consider a three to six month lead time on customer analysis, from

design to final analysis report.– Speak to Global Marketing, Market Insight to plan the analysis.

• Advices– Be as specific as possible on defining the objective / challenge for your

research. Input = output.– Choosing the segmentation model and conducting customer analysis

can be an iterative process, as insight on relevant segmentation criteria occur along with receiving analysis results.

– Allow ample time for participants to review the analysis results.

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Voice of the customer training