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10/18/01 © 2001, Predictive Consulting Group, Inc.
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Customers? Who Customers? Who Needs ‘em? Needs ‘em?
Customer SensingCurtis N. Bingham
Predictive Consulting Group
An address given to the Boston Product Management Association, 10/18/01
Attendees rated 4.6 out of 5
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Bell Labs Mentality
“We know what our customers want! We told ‘em so!”
It was more important to be right than to do right.
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Outline
Symptoms & problems Becoming customer focused Organizational considerations Political considerations Resources Blah, blah, blah Applause and fanfare
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Is Your Company Customer-focused?
Does your company:– Have a vision that doesn’t mention the customer?– Issue press releases stating they are customer-
focused?– Ask a nanny for input on advertising?– Develop the CEO or VP’s pet-product?– Ship the “cool” product that came from engineering?– Respond to the most vocal sales people?
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Results of False Customer Focus
Great idea—but nobody buys Hugely expensive product launch/customer
acquisition efforts—but nobody buys Sales don’t meet forecasts Extreme Marketing vs. Development
friction
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Customer Satisfaction Index
Source: ACSI/UMich Business School
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ACSI & Spending
Source: ACSI/UMich Business School
10/18/01 © 2001, Predictive Consulting Group, Inc.
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ACSI & Earnings
Source: ACSI/UMich Business School
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Why Do Customers Buy?
Consumers– Gratification– Emotion
Businesses– Security– Politics
Bottom line:– To make problems go away!
We must understand the customer pain, their willingness to buy, and profitably address it!
10/18/01 © 2001, Predictive Consulting Group, Inc.
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How Focused Must We Be?
Initially? Extremely!– MarketSoft
It depends on where your products are in the industry lifecycle
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Industry Lifecycle
10/18/01 © 2001, Predictive Consulting Group, Inc.
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How Do You Learn What Customers Want?
Research, research, research Development Research Marketing Research Sales Research Support
May require organizational change
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Types of Research
3rd party research (be careful!)
Primary research– Surveys– Focus groups– 1:1 interviews
Sales reports Field engineers Customer service reps Customer complaints
& suggestions Data mining Numerous other semi-
automated tools
10/18/01 © 2001, Predictive Consulting Group, Inc.
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3rd Party Research
Think about their methods– Everyone wants to influence them– Companies pay them to come on-site– Many analysts seem to be easily influenced
Big research firms– Common complaint is that Jupiter stinks– Gartner, Forrester have decent reputations– Aggregators such as eMarketer may be better
Don’t have the richness of your own data!
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Direct, Qualitative Research
Types– 1:1 interviews– Focus groups– Some surveys
Excellent for B2B or smaller # of customers
Good precursor for more in-depth research
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Getting Started
State/uncover what pain the customer feels? Select the audience Conduct interview, survey, focus group Aggregate feedback Interpret Test Implement Test Repeat until well mixed
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Formulating the Problem
Problem well-known– Make generic questions from development issues
• “What are your thoughts on the new J2EE standards?”• “What OS platforms are you using? What are your upgrade
plans?”
Uncover it– Follow MarketSoft’s example and let customers tell
you• “What keeps you awake at night?” • “What three things are you presently unable to do?”
Allow for additional discovery
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Select the Audience
Remember—target both economic and use-buyers! Start with advocates
– Sales force, field engineers, tech support Friendly foes
– Current customers Neutral
– Companies that sales hasn’t yet approached Possible enemies
– Customers of competitors, lost sales
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Making the Appointment
Avoid the sales defense! Focus on their needs, not yours Approaches
– “Attempting to better understand your needs…”– Market research
Considerations– Most people will allow an hour, at least 20 mins– Offer an incentive ($100 AMEX gift certificate)
Read book: “Selling to Vito”
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Interviewing
Be mindful of Outcome, Time, Process
Open-ended questions– What does <company>
need to do/improve to be the most successful at <something>?
– Valuable for discovery
Record on tape so don’t have to waste time taking notes
Jot ideas to drill into during interview
Communications skills
Body language and NLP– Ensure comfortable,
free of distractions Location
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Common Interviewing Mistakes
Selling during the interview– Interviewee doesn’t care about YOU!
Leading or closed questions– When are you implementing <feature>?– You’re not using <technology> are you?
Too rigid in following survey Body language
10/18/01 © 2001, Predictive Consulting Group, Inc.
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So You Have Some Quotes….
What do you do with them all?– Contextual Inquiry– FOCUS– KJ– Affinity mapping (sticky notes)
All require up-front planning to execute properly– Select method before interviewing
10/18/01 © 2001, Predictive Consulting Group, Inc.
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FOCUS
5 phases– Frame the project– Organize the resources– Collect data– Understand the voices– Select action
Developed for military applications Somewhat rigorous
10/18/01 © 2001, Predictive Consulting Group, Inc.
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KJ
Nobody knows what the acronym means!
Start interviews with very open-ended question
Transcribe interviews, put all quotes on board
Group similar and write summaries
Re-group and continue until have 1 final group
Last group is product to build, direction to turn, etc.
Sub-groups are product features
Extra rigor around format, style, color, etc.
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Affinity Mapping
Similar to a KJ, but without the rigor Uses “sticky notes” to post quotes up
around the room Find basic similarities and group like
sticky notes with each other
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Testing & Interpreting
Verify with customers– “This is what we heard, is that what you said?
Anything else to add?” Work with development to create solutions Consider
– Strategic goals– Resource levels– Competitive concerns– Time constraints
Results into development & product roadmap
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Testing
Verify with interviewees that product design meets need– “Does this solve your pain? How would you
improve it further?”
People are horrible at telling you what they want– Terrific at telling you what they don’t like!
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Publishing the Results
Publish far and wide, and at every opportunity!
1 page executive summary 4-5 page overview Supporting material as necessary
– Don’t need volume
Use actual quotes everywhere possible
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Implementing
CPD—Customer Profile Document MRD—Marketing Requirements
Document PRD—Product Requirements Document FRD—Functional Requirements
Document
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Testing
Traditional alpha, beta, etc.
10/18/01 © 2001, Predictive Consulting Group, Inc.
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Organizational Considerations
Need a champion Create interdependency amongst service,
product management, sales, development, etc.
Create avenues for customer feedback Customer advisory board Customer experience manager?
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Political Capital
MUST HAVE With management
– Know the customers better than the salespeople With Engineering
– Know the customer better than anyone or know engineering better than they do
Develop by sticking your nose everywhere Actively involved with sales, engineering, support Present your findings at every opportunity
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Resources
Whitepaper– “The Swiss Army Knife of Marketing: Demand-
Oriented Pricing” Newsletter: “Tips & Tricks for Product Managers”
– 1x monthly electronic newsletter Customer interview template InContext training Voices into Choices KJ whitepaper
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What Do You Do Tomorrow?
Sign up for Product Manager’s newsletter Schedule long-time customer interview Set up customer input mechanism Interview sales people/field engineers Interview customer support Explore resources on communications skills
--OR— Hire me!
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Summary
It mattereth not what thou doest, so long as thou dost find out what pain thy customer feeleth!”
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Applause and Fanfare