build better products & services through “optimal” customer feedback
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Build Better Products & Services Through “Optimal” Customer Feedback. Greg Ryan March 6, 2013. GREG RYAN BACKGROUND. Research Manager and Product Manager at Cisco Systems Built a Customer Feedback Process which became “best practices” Consultant at J.D. Power & Associates - PowerPoint PPT PresentationTRANSCRIPT
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1
Build Better Products & Services Through “Optimal” Customer Feedback
Greg Ryan
March 6, 2013
© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 2
GREG RYAN BACKGROUND
Research Manager and Product Manager at Cisco Systems
• Built a Customer Feedback Process which became “best practices”
Consultant at J.D. Power & Associates
Research Manager at Nissan Motor Corporation
Product Line Manager at Plantronics
Product Manager at Schlage Lock
New Products Manager at K2 Skis
Forte is “actionable” research
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OBJECTIVES AND AGENDA OF THE PRESENTATION
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THE “MARKETING CONCEPT”
“Determine the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors”
Philip Kotler
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Source: Winning at New Products
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RESULTS OF POOR RESEARCH OR INSUFFICIENT RESEARCH
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WHAT HAPPENS WHEN YOU BUILD AN ASPARAGUS TRUCK VS. ICE CREAM TRUCK
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HIERARCHY
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Key Components for a Successful Customer Feedback Process
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SELL THE BENEFITS OF GOOD CUSTOMER FEEDBACK
• “Hit the target” on market requirements
• Avoid building poor products and “fixes”
• Improve product team efficiencies and priorities
• Increase customer & partner loyalty and repeat business
• Maximize revenues
• Discover new products/services
• Increase “share of wallet” over the competition
• Portfolio penetration
• “Leap frog” the competition
• Better decision making
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SELECTING EXECUTIVE SPONSORS AND CUSTOMER CHAMPIONS
Those who are customer focused
Likely candidates are close to the customer (marketing/sales)
Find champions in cross functional areas
Those who have strong influence
Will be supportive
DON’TS
Recruit those who don’t have time
Simply looking for exposure
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CUSTOMER LIFECYCLE
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PRE-INTRODUCTION PROCESS
Product Requirements Documents (PRD)
Market Requirements Documents (MRD)
Betas
Field Trials
Labs
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FEEDBACK FROM ALL MAJOR AREAS
Include all of the following groups:
• Customers
• Partners
• Sales
• Marketing (Trade Shows, Web, Newsletters)
• Help Desk (TAC)
1) Gather input from above stakeholders
PLUS
2) Get their opinions on areas for improvement
Use Secondary research
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METRICS AND GOALS “Overall measurement” plus areas in the customer lifecycle
Focus on known “pain points”
Customer defined metrics
Measurable and agreed to by stakeholders
Set metrics which can be tied to compensation
Use “Top 2” boxes vs. averages
Use realistic goals (PPI - Percent of Possible Index)
Metrics statistically sound
Benchmark the competition
DON’TS
Don’t force it
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COMPENSATION Tie compensation to metrics
Agreed to by stakeholders
Enough to motivate them
Make it more of a “carrot” than a stick
Sliding scale vs. “all or nothing”
Tied to people who have a real impact
Get executive pay tied to metrics
DON’TS
Don’t force it
Don’t create a potentially large negative “hit”
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CLOSE THE LOOP WITH THE CUSTOMER & EXECS
EXTERNALLY
Newsletter
Follow-up email
Trade shows, webinars, etc.
Only provide information that is non-sensitive and confident of action
INTERNALLY
Track results and show Execs
Post results on a website, newsletters, email
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WHAT CAN YOU DO IF YOU DON’T HAVE CUSTOMER FEEDBACK??
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RESEARCH PROJECT CONSIDERATIONS Methodology
- Qualitative vs. Quantitative (and method)
- Stated vs. Implied
- Numerous techniques
Eliminate bias (e.g. blind surveys)
Type of surveys (phone, online, panel)
Sample size
Screening of respondents
Wording of questions
Order of questions
Scales to be Used
Pricing
Types of Data (e.g. Nominal, Ordinal, Interval, Ratio)
Data Measurements (e.g. Mean, Median, Mode)
Data Analysis (e.g. sample variances, regression analysis)
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WHAT INFORMATION SHOULD BE GATHERED?
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EXAMPLES OF INFORMATION FOR “EXISTING” PRODUCTS & SERVICES
“New” needs or features desired (plus importance and benefits)
Importance of “current” needs or features
Changes and improvements
Usage: what, by who, how (maybe awareness problem)
Profile of customers across: demographics, geographies, business segments, vertical markets, etc.
Areas of satisfaction or dissatisfaction. Compare to importance.
DON’T FOCUS ON PRODUCT – FOCUS ON SOLUTIONS
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EXAMPLES OF INFORMATION FOR “EXISTING” PRODUCTS & SERVICES (cont.)
Pricing, structure, willing to pay for, value
Packaging/bundling, sold standalone
How improve attach/renewal rates
The “customer experience”
Customer’s business needs
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EXAMPLES OF INFORMATION NEEDED FOR “FUTURE” PRODUCTS OR SERVICES
Customer Level
• Unfulfilled needs/pain points
• Future business needs/problems
• Company/industry changes
• Regulations
• Growth opportunities, etc.
Market Level
• Strength of market importance
• Identify potential areas for revenue growth
• Price increases
• New products: who will buy it, how used and by who
• Prioritize features or desired needs
• Upgrade/upsell opportunities
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EXAMPLES OF “OTHER” INFORMATION
Future technologies: new paradigms
Beta or field trial feedback: Areas of satisfaction/dissatisfaction, what needs to fixed and how
Reseller/channel/sales feedback: areas of improvement, revenue opportunities, upsell opportunities, pricing issues, competitive issues, sales tools, marketing materials, etc.
Competitive/Market analysis: competitive opportunities, SWOT analysis, why are customers buying competitive products, etc.
Web or GUI feedback: changes or improvements to workflow, features, response time, etc.
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GATHERING QUANTITATIVE DATA Search and review existing primary and secondary research data first !!!
Set goals, objectives, target market etc.
Methodology, respondent types, sample size, list source
Get statement of work and costs
Hold stakeholder meetings
Screening respondents
Build survey draft - get approvals
Test skip patterns
Pretest
Send reminders
Adequate sample size
Clean data
Analyze results – “slice and dice”
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DO’s OF QUANTITATIVE DATA
Get research team early
Get budget – including customer lists
Determine who are stakeholders and implementers
Target respondent list (e.g. segments, verticals, geographies)
Reasonable expectations on data delivery
Look at future list of research projects for synergies
For each question ask yourself “how will we use this information”
Agree to any metrics in advance
Develop plan for implementation of results (before survey goes out)
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DON’TS OF QUANTITATIVE DATADon’t initiate a project unless research team
engaged
Don’t build actual survey yourself
Don’t contact customers or partners for research directly without researcher
Don’t send out a survey without an “opt-out” option
Don’t solicit business in your survey
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COMMON TYPES OF PRIMARY RESEARCH
Surveys
Focus Groups
1:1s/Interviews
Conjoint/Adaptive Conjoint
MaxDiff
Van Westendorp
Perceptual Mapping
Factor Analysis
Cluster Analysis
Discriminant Analysis
Regression Analysis
Gap Analysis
Kano, QSort
Many, Many Others
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GATHERING ACCURATE QUALITATIVE DATA
Train teams
Have an approved discussion guide
Be consistent with all customers
Get a cross section of customers
Don’ts
Create bias or lead the respondent
Rely totally on qualitative data
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CUSTOMER PANELS AND SOCIAL MEDIA
Provides “directional” information
Qualitative information (usually)
Generally not used for making decisions
Screening of respondents difficult
Don’ts
Don’t rely on social media alone for conclusions
Don’t draw conclusions from customer panels with small samples
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HOW TO LEAP FROG THE COMPETITION
Talk with customers about their:
• Current business problems and pain points
• Future business problems and pain points
• Future regulations and inefficiencies
• How you can save customers time and money
• Products they wished you would sell
• Companies they wished you would acquire
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QUESTIONS???
Contact Info:
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