IENG 451 - Lecture 08

1. IENG 451 - Lecture 08 Voice of the Customer: Analysis (KANO, CTQ) IENG 451 Operational Strategies

2. Contact Methods for Data • There are different methods of direct contact data: • Face-to-Face Interviews • Telephone Interviews • Surveys • Focus Groups • Point-of-Use Observation • All of these require: • Being clear about the purpose(s) • Being respectful of the contacted individual(s) • Deciding how, how many and which persons to contact • Preparing questions beforehand • Pilot Testing and revision • Collecting information • Transcribing and coding information collected IENG 451 Operational Strategies

3. Segmentation • There are different users, and their data have different value. Examples of segmentation criteria: • Economic: • Revenue • Profit • Loyalty • Frequency of Use • Purchase Size • Cost of business • Strategic Goals • Descriptive: • Location • Personal Demographics • Product / Service Demographics • Attitudinal: • Price • Value • Service IENG 451 Operational Strategies

4. Face-to-Face Interviews • This method allows you to develop communication on an individual basis – permitting flexibility and probing questions – while helping the individual feel “listened to” • Use early to find out what is important to customers • Use interviews during a project to: • Better understand customer issues • Get ideas or suggestions from the customer • To cheaply test ideas with customers • Use at the end of a project to validate findings and get “buy-in” • Mistakes to Avoid: • Not having a clear purpose • Not having prepared questions • Not planning for the logistics – timing, sample size, costs & training • Not performing practice / pilot interviews before going public IENG 451 Operational Strategies

5. Telephone Interviews • Similar to Face-to-Face, this method may obtain similar benefits (below), but is perceived as “less personal” • Use early to find out what is important to customers • Use interviews during a project to: • Better understand customer issues • Get ideas or suggestions from the customer • To cheaply test ideas with customers • Use at the end of a project to validate findings and get “buy-in” • Mistakes to Avoid: • Not having a clear purpose • Not having prepared questions or having an overly prepared “script” • Not planning for the logistics – timing, sample size, costs & training • Not performing practice / pilot interviews before going public • Not “hearing” the “body language” during a call IENG 451 Operational Strategies

6. Surveys • Similar to Interviews, this method is perceived as even less personal and cannot easily go into as much depth; but can efficiently gather more & anonymous information • Use get information from many customers (quantitative data) • Use as pre-work for interviews in order to: • Better understand the range of customer issues / responses • To identify target areas for in-depth exploration • Use as a follow-up to focus groups and interviews to quantify relationships and identified patterns • Mistakes to Avoid: • Not having a clear purpose • Not planning for the logistics – timing, sample size, costs & training • Not doing a pilot survey before going public • Not planning for a long enough response time or a low response rate IENG 451 Operational Strategies

7. Focus Groups • This method allows you to get feedback on new concepts or existing problems / products – along with a quantitative feel for the results • Use for same reasons as the interviews (see before) • Use with open-ended questions to get more creativity in answers • Use to observe physical interactions among participants: • Customer interactions with existing products / materials • Customer interactions with new prototypes / materials • Customer interactions with the community (providers / customers) • Mistakes to Avoid: • Not having a clear purpose • Not planning for the logistics – timing, sample size, costs & training • Not doing a pilot focus group before going public • Not having an experienced focus group leader (avoid biasing the group!) IENG 451 Operational Strategies

8. Point-of-Use Observations • This method is very similar to Focus Groups – minus the stimulated creativity benefits and biasing dis-benefits – but with a realistic qualitative feel for the user experience • Use to observe physical interactions among participants: • Customer interactions with existing products / materials • Customer interactions with new prototypes / materials • Customer interactions with the community (providers / customers) • Mistakes to Avoid: • Not having a clear purpose • Not planning for the logistics – timing, sample size, costs & training • Not developing and testing the observation form in a pilot study! • Not giving the observer(s) observation experience through a pilot study! • If going on-site (to a customer): • Not giving enough consideration to the customer’s logistics • Not giving the customer sufficient follow-up results (partnership!) IENG 451 Operational Strategies

9. Analyzing the Voice of the Customer • The VOC is integral to the assessment of Value: • Reduce the risk of Over-Emphasis on some features – such as those features that the customer does not view as meeting their need for the item or service • Reduce the risk of Under-Emphasis of some features – such as those features that that the customer expects as a matter of market entry, but does not view as a reason to select a specific item • To Identify features that entice the customer – those needs or desires that they did not recognize in seeking out the product or service, but will positively influence them to select a specific option IENG 451 Operational Strategies

10. KANO Analysis • Steps in performing a KANO analysis: • Collect data from as many different methods as possible • Identify the known and presumed customer needs • For each potential need, ask the customer to assess: • How they would feel if the need WAS addressed? • How they would feel if the need WAS NOT addressed? • Use the four levels of response (next slide) • Place the customer responses into the matrix (next slide), and classify each need as a: • Dissatisfier – a basic requirement that must be delivered • Satisfier – a performance requirement that allows you to stay in the market • Delighter – an unexpected requirement that earns extra consideration • Incorporate the information into the product / service IENG 451 Operational Strategies

11. KANO Analysis • Levels of response in a KANO analysis: • I’d like it • It is normally that way (an expected feature) • I don’t care • I wouldn’t like it Dissatisfier – a basic requirement that must be delivered Satisfier – a performance requirement that allows you to stay in the market Delighter – an unexpected requirement that earns extra consideration IENG 451 Operational Strategies

12. KANO Analysis HIGH Customer Satisfaction Delighter – a breakthrough need or feature that earns extra consideration Satisfier – core competitive requirements Performance requirement done very well Performance requirement done poorly or not at all Dissatisfier – a basic requirement that mustbe delivered LOW Customer Satisfaction IENG 451 Operational Strategies

13. Critical to Quality Requirements (CTQ) • Customer comments are often too vague to be acted upon, so: • Gather the relevant VOC data for your product / service • Identify the relevant statements of customer needs on cards • Use the Affinity Diagram process to find themes • Using the themes, probe the customer to find out: • WHY do they feel that way about the need? • CLARIFY their feelings as much as possible? • Ask WHY FIVE times (or as needed) • Conduct further customer contact to quantify the need, i.e.: • HOW – does the customer define timely? • HOW – does the customer define friendly? • HOW – does the customer define comfortable? • Step back and examine the requirements as a set. Are there things that are missing? What are the things that were not mentioned? IENG 451 Operational Strategies

14. Good CTQ Requirements • Customer requirements are good when they: • Are specific and easily measured • Are related directly to an attribute of the product • Don’t have alternative requirements • Don’t bias the design towards a particular approach • Describe what the need is, but not HOW it will be met IENG 451 Operational Strategies

15. Questions & Issues IENG 451 Operational Strategies