Build Better Products & Services Through “Optimal” Customer Feedback

1. Build Better Products & Services Through “Optimal” Customer Feedback Greg Ryan March 6, 2013

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

3. OBJECTIVES AND AGENDA OF THE PRESENTATION

4. THE “MARKETING CONCEPT” “Determine the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors” Philip Kotler

5. Source: Winning at New Products

6. RESULTS OF POOR RESEARCH OR INSUFFICIENT RESEARCH

7. WHAT HAPPENS WHEN YOU BUILD AN ASPARAGUS TRUCK VS. ICE CREAM TRUCK

8. HIERARCHY

9. Key Components for a Successful Customer Feedback Process

10. 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

11. 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

12. CUSTOMER LIFECYCLE

13. PRE-INTRODUCTION PROCESS • Product Requirements Documents (PRD) • Market Requirements Documents (MRD) • Betas • Field Trials • Labs

14. 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

15. 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

16. 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”

17. 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

18. WHAT CAN YOU DO IF YOU DON’T HAVE CUSTOMER FEEDBACK??

19. 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)

20. WHAT INFORMATION SHOULD BE GATHERED?

21. 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

22. 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

23. 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

24. 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.

25. 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”

26. 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)

27. DON’TS OF QUANTITATIVE DATA • Don’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’tsolicit business in your survey

28. 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

29. 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

30. 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

31. 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

34. QUESTIONS??? Contact Info: ryan.greg@comcast.net