Designing for Customer Action - Enhancing Performance Through Positive Behavior Change

CustomerInnovations

Designing'for'Customer'Ac1on'Enhancing(Performance(Through(Posi2ve(Behavior(Change(

FCB'Webinar'November(12,(2014(

A'Company'With'a'Challenge'

2(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.((

The'Challenge:'Katrina,(Rita,(Gustav,(Ike,(Isaac(,(

Arkansas(Ice(Storm,(etc…(

In'2009,'all'5'Entergy'Opera1ng'Companies'were'in'the'4th'Quar1le'of'J.D.'Power.'''Entergy'New'Orleans'was'in'last'place.'

Entergy’s'U1lity'Business'

!  5(opera7ng(companies(across(4(con7guous(states:(Arkansas,(Louisiana,(Mississippi,(Texas(

Most'Organiza1ons'Follow'an'IdeaQBased'Innova1on'Approach'Rather'than'an'OutcomesQBased'Innova1on'Approach(


Clearly'defined'and'priori.zed'behavioral'outcomes'are'cri.cal'

Experien1al''Outcomes'

How(people(feel?(

What(people(think?(

Behavioral'Outcomes'

What(people((

do?(

Business''Outcomes'

How(we(improve(results?(

OUTCOMESQBASED'INNOVATION'

IDEAQBASED'INNOVATION'

Inno

va1on

'

Results'

Signature'Design'Interven1ons'

"  Outage'Experience'

#  Proac7ve(No7fica7ons(

#  Key(Informa7on(Elements(

#  Update(Text(Messages(

#  Storm(Center(

#  Annotated(Outage(Maps(

"  Save'Me'Money'Experience'

#  Interac7ve(Energy(Statement(

#  Save(Me(Money(Advisor(

#  Alterna7ve(Pay(Plans(

#  Credit(Counseling(

Experien(al++Outcomes+

How$people$feel?$

What$people$think?$

Behavioral+Outcomes+

What$people$$

do?$

Business++Outcomes+

How$we$improve$results?$

DESIGN+RELATIONSHIP+

CAUSAL+RELATIONSHIP+

Expe

rien

ce+

Results+

Experien1al'Outcomes'

• Customers(feel:(# In(Control(# Understood(# Cared(For(

• Customers(think:(# Keeps(me(informed(# Helps(me(save(money(

Behavioral'Outcomes'

•  Increase(selfSservice(/(reduce(reac7ve(inSbound(calls(for(high(bill(and(outages(

• Reduce(complaints(to(regulators(

•  Improve(JDP(responses(

Business'Outcomes'

•  Increase(customer(sa7sfac7on(

•  Improve(regulatory(outcomes((

• Reduce(cost(to(serve((

The'OutcomesQBased'Approach'Focused'Innova1on'at'Entergy''on'the'Two'Most'Cri1cal'Impera1ves(


By'Innova1ng'Solu1ons'Focused'on'the'Most'Cri1cal'Outcomes,''We’ve'Helped'Entergy'Transform'Performance'With'Customers(

29%'

26%'

25%'

25%'

23%'

14%'

14%'

13%'

12%'

12%'

11%'

11%'

11%'

Entergy'Mississippi'

Entergy'New'Orleans'

Entergy'Arkansas'

Entergy'Texas'

Entergy'Louisiana'

PSE&G'

We'Energies'

Con'Edison'

Pepco'

Southern'California'Edison'

Atlan1c'City'Electric'

L.'A.'Dept.'of'Water'&'Power'

PPL'Electric'U1li1es'

Proac1ve'Outage'Communica1ons'

Entergy'is'the'first'company'in'history'to'capture'all'of'the'top'spots'in'any'category'two'years'in'a'row.'


2013'J.D.'Power'Na1onal'Ranking''

Over'3'years,'Entergy’s'overall'posi1on'on'JD'Power’s'na1onal'ranking'improved'from'lowerQ4th'

quar1le'to'midQ2nd'quar1le.'

OutageQrelated'call'volume'was'also'significantly'reduced:'from'35%'of'effected'customers'to'8%'with'only'

2%'requiring'agent'contact.'

New( 1(day(old( 5(days(old( 7(days(old(

What(customer(behavior(has(the(greatest(impact(on(profitability?(

If(you(use(a(razor(like(this,(how(o\en(do(you(replace(the(blades?(

How(would(you(influence(this(behavior?(


Levers'for'Influencing'Behavior'Exist'at'the'Intersec1on'of''Mo1vators,'Enablers'and'Triggers'

Mo1vators'

Triggers'Enablers'

Influence'Levers'


What'Maeers?'

What(are(people’s(goals,(priori7es(and(desired(states?((What(do(they(

find(meaningful,(comfortable,(as(well(as(a(posi7ve(and(socially(acceptable(

expression(of(their(iden7ty.(

What'Makes'it'Easy?'

What(very(significantly(reduces(the(cogni7ve(and(

physical(effort(associated(with(taking(the(smallest(steps(

towards(the(desired(behavior?(

What'Ini1ates'Ac1on?'

For(each(small(step,(what(external(triggers((e.g.,(prompts,(

reminders,..)(and(internal(triggers((e.g.(anchors(to(exis7ng(

habits)(s7mulate(ac7on?(

Observa.ons'

•  If(any(component(is(inadequately(addressed,(the(individual(is(highly(unlikely(to(act.(

•  Understanding(mo2va2on(is(very(important(but(Influencing(it(is(always(expensive(and(2me(consuming.(

•  All(else(being(equal,(reduc2ons(in(effort(with(adequate(triggers(significantly(increase(the(likelihood(of(ac2on.(

The'Challenge:'''Gegng'Beneath'Safe'and''Ra1onalized'Alibis'for'Behavior'

Conscious' I’ll(tell(the(truth(

if(you(ask(

I(think(or(feel(it(but(don’t(or(won’t(say(it(

Subconscious'

I(can’t(recognize(it(but(it(strongly(influences(how(I(feel(and(what(I(do(

I(sense(it(but(can’t(easily(find((((the(words(to(express(it(

I’m(not(aware(of(it(but(might(recognize(it(if(I’m(prompted(

Semiconscious'


Objec1ve:''Create'Highly'Engaging'and'Intui1vely'Simple'Offerings'that'Reinforce'Specific'High'Value'Behavioral'Outcomes'

Behavioral*Outcomes*

Influence*Profiles*

Influence*Playbook*

1*

2*

3* GOAL:**Measurable*Results*Develop'a'phased'Influence'Roadmap'for'valida/ng,'refining,'pilo/ng,'launching,'and'ensuring'results'from'interven/ons'described'

in'the'Influence'Playbook.'

GOAL:**Design*Develop'an'Influence'Playbook'that'

describes'specific'design'and'execu/on'interven/ons'that'will'generate'the'desired'behaviors.'

GOAL:**Understand*Develop'a'set'of'Influence'Profiles'that'iden/fy'specific'levers'for'

genera/ng'the'desired'behaviors.'

GOAL:**Focus*Clarify'and'priori/ze'the'specific'

behaviors'that'drive'desired'business'results.'

'Next'Steps'

1*

2*

3*

We'Leverage'a'Structured'Toolset'to'Inform'the'Design'of'Influen1al'Products,'Services'and'Experiences'

Design'for'BehaviorTM'


Influence'Profiling'Toolset'

Who'are'these'people?'Tool:''Behavioral'Portrait.'An(instrument(that(

measures(the(individual(behavioral(orienta2on(of(target(customers.(

What'are'they'trying'to'accomplish?'Tool:''Goal'Space'Mapping.(A(projec2ve(technique(for(

surfacing(the(desired(states(that(influence(engagement.(

How'do'they'make'sense'of'choices?'Tool:''Metaphor'and'Construct'Elicita.on.((Tools(for(((describing(the(senseRmaking(framework(people(use(to(

decide(and(act.(

What'endQtoQend'path'do'they'follow?'Tool:''Behavioral'Pathways.(Mapping(endRtoRend(

ac2vi2es(people(follow(including(unwriTen(rules(and(automa2c(behavioral(scripts.(

How'does'it'make'them'feel?'Tool:''Emo.onal'Lifecycle.(Surfacing(the(latent(emo2onal(states(that(influence(how(people(focus(

aTen2on(and(take(ac2on.((

What'influences'desired'behavior?'Tool:''Influence'Triggers.(The(current(and(poten2al(

levers(for(influencing(the(desired(behavioral(outcomes.(

M'

E'

T'Important:''This'approach'is'ALWAYS'focused'on'influencing'behavior'that'benefits'

the'customer.'''It'informs'the'design'of'experiences'that'enable'the'organiza.on'to'profitably'influence'customers’'ability'to'achieve'their'desired'states.'

What'Behavioral'Outcome'Dominates'the'Economics'for'Automo1ve'Insurance'Providers?'


Innova1ng'WITH'Customers'is'Almost'Always'More'Effec1ve'than'Innova1ng'AT'Customers'

Innova.ng'WITH'Customers'

“Engage'and'Experiment”'Engages'customers'in'the'ar.cula.on'and'priori.za.on'

of'needs,'as'well'as'the'design'of'products,'services,'and'

experiences'


Innova.ng'AT'Customers'

“Plan'and'Push”'

Researchers'and'designers'get'closer'to'the'state'

of'mind,'behavioral'pathways,'and'feelings'of'the'

customer'

Customers'Designers'

Summary'of'Key'Points'

•  Iden7fy,(priori7ze(and(start(with(a(small(set(of(the(most(cri7cal(behavioral(outcomes(that(influence(desired(business(outcomes.(

•  Develop(a(deep,(disciplined(understanding(of(the(Mo7vators,(Enablers(and(Triggers(that(are(aligned(with(the(desired(behavior.(

•  Understanding(mo7vators(creates(an(important(design(context.((However,(remember,(mo7vators(are(typically(difficult(and(expensive(to(influence.(

•  Focusing(on(Enablers(is(the(key.((Make(it(incredibly(easy(for(people(to(take(the(smallest(posi7ve(ac7ons.((Provide(triggers(that(reinforce(these(ac7ons.(

•  Innova7ng(WITH(customers(is(almost(always(more(effec7ve(than(innova7ng(AT(customers.(((Engage(and(experiment(rather(than(plan(and(push.(


CustomerInnovations

Frank'Capek'[email protected](

(404)(542S0258(

For(more(informa7on:(

www.customerinnova7ons.com(

An'Agile'Innova1on'Lab'Approach'Engages''Customers'and'Other'Key'Stakeholders'

The((Agile'Innova.on'Lab'is(a(structured(approach(and(plajorm(for(engaging(customers(and(designers(along(with(business(stakeholders(and(other(diverse(par7cipants(in(the(process(of(innova7ng(new(products,(services(and(

experiences.((Concepts(are(itera7vely(defined,(tested(and(validated(in(a(way(that(accelerates(progress(and(minimizes(risk.(

Innova1on'Lab'

Work'Teams'(Design,'Implementa1on,'Tes1ng)'

Designers'

Subject'Maeer'Experts'

Customers'

Solu.on'Concepts'

Solu.on''Concepts'

Solu.on'Concepts'

Solu.on'Concepts'

Facilitator/Process''Manager/Recorder'

Business'Stakeholders'

The(ini2al(focus(of(the(lab(is(oUen(focused(on(customer(discovery(and(preliminary(concept(development.(

The(lab(is(structured(to(extend(visibility(and,(as(appropriate,(efficient(par2cipa2on(of(key(stakeholders(and(other(internal(and(external(par2es(important(to(the(detailed(design(and(successful(implementa2on.(


The'Lab'Leverages'FastQCycle'Experimenta1on''to'Move'from'Ideas'into'Ac1on'

Developing(Innova7ve(Product,((Service(and(Experience(Concepts(

Understand(Customer((Goals(and(Behavior(

Generate((Ideas(

Develop((Concepts(

Refine(Poten2al(Offerings(

Structure(&(Run(Experiments(

Define(Value((Chain(Implica2ons(

Detail(Opera2ng((Model(Changes(

Prototype((Technology(

Surface(Cultural((Changes(

Develop(Phased((Implementa2on(Plan(

Align(for(Deployment(and((Profitable(Opera7ons(

FastSCycle'

Business''

Experiments'Cycle'Time:'

1S3'Months'

Validated'Solu.ons'

Cycle'Time:'

3S6'Months'
