Discover Ways to Build Better Products thru Optimal Customer Feedback

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1

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

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


OBJECTIVES AND AGENDA OF THE PRESENTATION


THE “MARKETING CONCEPT”

“Determine the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors”

Philip Kotler


Source: Winning at New Products


RESULTS OF POOR RESEARCH OR INSUFFICIENT RESEARCH


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


HIERARCHY


Key Components for a Successful Customer Feedback Process


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


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


CUSTOMER LIFECYCLE


PRE-INTRODUCTION PROCESS

Product Requirements Documents (PRD)

Market Requirements Documents (MRD)

Betas

Field Trials

Labs


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


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


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”


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


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


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)


WHAT INFORMATION SHOULD BE GATHERED?


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


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


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


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.


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”


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)


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


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


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


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


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




QUESTIONS???

Contact Info:

[email protected]


Business

Discover Ways to Build Better Products thru Optimal Customer Feedback