Actionable Metrics 1

Using the Kano model to create marketplace

differentiation

Joely Gardner, PhD April, 2015

You get NO points for must have’s

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Audience poll… n  Using the Kano model now? n  Product-oriented company? n  Service-oriented company?

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Agenda

n  Learn about Basic, Performance, and Excitement needs (Must Have, Want, Wow!)

n  Determine which new features engage your users and which ones waste your effort

n  Identify the kind of investments in product and service design that return the best user satisfaction

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What is the Kano model? n  A technique for classifying

customer needs and determining appropriate levels of innovation for products and services

n  Created by Professor Noriaki Kano of Tokyo Rika University in 1980’s

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WOWs! What happens over time??

Time

Wants

Must have’s X

X

X

X

X

X

Neutral

You don’t get points for must have’s

Adapted from the work of Professor Noriaki Kano

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How to use the Kano Model

n  Voice of Customer research n  Interviews n  Focus groups n  Observational research n  Customer complaints and

feedback n  Social media n  Surveys

1 Step

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How to use the Kano Model

n  Translate VoC into Critical to Quality (CTQ) Characteristics n  Rank the CTQs into 3

categories: n  Must have’s (dissatisfiers if absent) n  Wants (more is better) n  Wow’s! (differentiators)

n  Kano Survey

2 Step

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How to use the Kano Model

n  Action Plan n  Analyze data n  Strategize development n  Plan for iterative usability

testing 3 Step

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Step details…

!

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Step 1: VoC (from focus group)

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§  It’s personal - “My cable guy” §  I’m “known” - He knows where to go §  I’m special - I don’t have to move desk §  I’m valued - Willing to do more for me §  Easy and convenient §  Trust they will take care of me

What did you hear? 1. Specific and actionable functional needs

for customer service

2. Actionable emotional needs

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The secret is to “operationalize”

the desired feeling

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Can hardware have an emotional appeal?

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Step 2: Kano Survey.com

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Kano survey directions n  Assess preferences for features. n  Ask pairs of multiple-choice questions.

n  The first question asks how you would feel if you had particular feature to an extent greater than you have that feature today.

n  The second question asks how you would feel if you had less of that feature than you have today.

n  Always ask rating questions in the same order. (See slide #15.)

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Kano survey directions (example)

We want to assess your preferences for certain cell phone features. To do that we will ask you pairs of multiple-choice questions. The first question in the pair asks how you would feel if your cell phone included a particular feature to an extent greater than you have that feature today. The second question asks how you would feel if you had less of that cell phone feature than you have today.

You should place a ✓ in the column that corresponds with your answer to each question. It is important that you answer both the (a) and (b) parts for each question.

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Examples of Kano-style questions

http://www.quirks.com/articles/2013/20130410.aspx Considerations in using the Kano method for international new-product surveys Author: Michael Latta

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Cautions

n  Reasonable number of questions n  Measure the time to respond n  Customer personas make a difference

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Who should be involved? n  Key customer segments (Company size?

Sales volume? Industry segment?) n  Satisfied vs. dissatisfied customers? n  Your customers vs. competitors’ customers? n  Experienced users vs. new users? n  “Stand-in users” who fit the profile of

customer segments?

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Step 3: Innovative Ideation

n  Basic Needs n  Your knowledge and experience, FMEA (Failure

Mode and Effects Analysis), Function Analysis

n  Performance Needs n  In-depth interviews, contextual research (Classic

customer research methods)

n  Excitement (WOW) Needs (30+ Methods) n  “Experience” design; PainStorming; etc.

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Be Strategic: Go beyond expected change!

NEEDS =

Verbs ✔

Nouns ✖

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Financial impact of “death grip” experience

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Antennagate cost Apple $9B

http://techcrunch.com/2010/07/13/in-the-wake-of-antennagate-apples-stock-takes-a-hit/

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The cost of failure

n  50% of failures in technical projects are requirements failures.

Standish Group CHAOS Report

n  Failed technology projects cost $Billions per year.

NIST

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Project Success Criteria Standish Group CHAOS Report 1.  User Involvement 2.  Executive Management Support 3.  Clear Statement of Requirements 4.  Proper Planning 5.  Realistic Expectations 6.  Smaller Project Milestones 7.  Competent Staff 8.  Ownership 9.  Clear Vision & Objectives 10. Hard-Working, Focused Staff

http://www.standishgroup.com/

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* Sun Developer Network, June 2005. http://java.sun.com/developer/technicalArticles/JavaLP/assertions/

$1 $5 $10 $20

$200

Definition Design Coding Testing After Release

Incremental  Cost  of  Fixing  a  Requirement-­‐Based  Problem  During  Different  Development  Phases  

Customer-Focused Development Saves Money

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Joely Gardner, PhD

§ Contact information: Joely.gardner@humanfr.com 760.994.6314 (m)

§ Professional Services: § Voice of Customer and Kano Analysis § Usability Testing (from concept through development) § Customer Experience Strategy § Medical device testing to meet HE75 and IEC 62366

standards §  In-house workshops