Posts with the tag 'Qualitative Insight into Customer Experience'
One word changed the construct research subjects used to answer a question…and opened a flood gate of new product development insights.
We recently did some new product development research for a manufacturer trying to learn how tradesmen evaluate competing power tools. Personal construct psychology informed our approach.
Personal construct psychology (PCP) is a framework for understanding the categorical templates that people use to organize the realities of the world. Each person’s templates evolve in accord with what they learn from past experiences. They lay their templates over new, similar experiences to anticipate what will happen.
By understanding which constructs customer use to distinguish offerings, you can begin to understand which elements of message, product, package and experiential concepts differentiate offerings in customers’ eyes and which don’t.
In our initial draft of the discussion guide, we asked tradesman, “What makes some of these tools better than others?
We got these answers:
- “Durable. It’s going to get banged up on a construction job.”
- “The manufacturer stands behind their product. They’ll take it back if it breaks.”
- “You can maintain it easily to increase its working life.”
- “How much it costs to use.”
While these comments were helpful, they weren’t entirely satisfying. We felt we had tapped constructs that tradesmen use to evaluate the quality of tool manufacturing. This was only tangentially related to what we wanted to know: what constructs do tradesmen use to select tools they’re going to buy?
So, our client agreed to change the question from, “What makes some of these tools better than others?” to, “What makes some of these tools more useful than others?” The word, “useful,” evoked a different contextual construct. It surfaced memories of on-the-job customer experiences where some tools were frustrating to use.
Here’s what we learned over and above what we heard before…
- “Speed. How fast it does the work.”
- “Maneuverability. It needs to fit in tight spaces. It needs to be lightweight.”
- “Portability. Sometimes, electric plugs get kicked out by other workers on a job site. That costs me time. Help me avoid having to use extension cords.”
- “Safety, Make sure it can’t tip over while it’s on. Put a guard on it so no one backs into and hurts themselves. Pat a safety lock on this so there’s no change it will turn on when it gets knocked around in my tool bag.”
- “Run time. Make it so I don’t have to replenish the power source as often. Give me a way of knowing how much run time is left so I can replaced the power source before I start a job.”
- “Adjustable controls. Let me adjust the power to a level suitable for doing the job.”
Much richer stuff. In this case, using just the right word meant the difference between acquiring pedestrian insight and scratching the surface of strategically valuable wisdom. It informed a variety of decisions about the product design and package copy.
We typically find that customers in a product category,
- cluster into groups who share common, but not identical sets of, constructs that help them anticipate what their experiences will be, and
- assign varying levels of importance to each dimension (e.g., speed, maneuverability, portability, etc.) across these groups
Personal construct psychology informs approaches that complement segmentation. At times, it can provide insights that go deeper. You learn not only what customers needs exist, but also how customers distinguish new products that will help them better meet their needs.
Bottom line: If you know why and how your prospect thinks and feels (not just what they feel), you can anticipate how they’ll act in new situations. That focuses creative thinking around those few new product ideas worthy of developing further.
Jason M. Sherman is president of Whyze Group, the leading customer experience research and innovation firm. Whyze Group works with B2B and B2B2C Fortune 500 organizations. The company has been recognized by the Baldrige National Quality Program, business associations and numerous business media as a leader in research and innovation. Inquiries: Jason@whyzegroup.com, (440) 785-0547.
Tags: customer research, manufacturer, new product development, personal construct psychology, Qualitative Insight into Customer Experience, qualitative marketing research, Qualitative Research and Innovation
June 28th, 2010
Customer experience holds the promise of profound benefits for executives who understand what the term, “customer experience,” really implies:
- Your company doesn’t have a customer experience. Customers do.
- The customer experience does not begin and end with your company’s “touchpoints”. Competitors’ actions, expectations set by other industries, life changes, and changes in customers’ economic, technological, and political situations all influence the customer experience.
- Customers filter their experiences through their associated memories, mental models, values, perceptions, cognition and emotions.
- Whether you manage it or not, your customers are having an experience with your company.
- 20th century management methods assure that customers will have disjointed experiences delivered by discreet silos that regard customers as “targets” (marketing), “users” (product development), “audience members” (advertising), “prospects” (sales), or “callers” (customer service).
- 21st century customer experience research methods, many developed by Whyze Group, surface meaningful insights into customer experiences, in accordance with the time frames and contexts in which experiences form.
- The mental models of managers who spend 20 years in an industry are almost always misaligned with the mental models of customers, who may spend as little as 20 seconds dealing with you.
- An authentic, deep understanding of the customer experience shifts executives’ mental models into closer alignment with those of customers and accelerates their innovations of experiences that matter.
- Successfully innovating the customer experience builds on an orchestrated delivery across your company.
- Sustaining a compelling experience requires that you focus on monitoring the consistency with which customers achieve their desired outcomes, not the consistency of company processes.
Whyze Group has a combined 60 years experience helping executive teams innovate and deliver compelling customer experiences. Our approach has resulted in more efficient customer acquisition, higher customer retention, lower operating costs and greater profitability. Learn more.
Tags: definition, Qualitative Insight into Customer Experience, Qualitative Research and Innovation, Whyze Group
February 1st, 2009
Last night, CNBC’s Jim Cramer said that Apple has become the bellwether stock that drove yesterday’s 900 point stock market rally. If that’s true, then Apple’s preeminence as a stock worthy of investor attention emanates from its strong customer experience fundamentals.
I recently bought my first Mac. So, my customer experience management audit of Apple’s customer experience is based on the experience of one–me–and my pre-purchase research about how consumers rate various PC brands and Macs.
This isn’t our complete customer experience management audit. However, it illustrates the kind of evidence we present to management teams deciding where to invest to improve customer experiences. Just like with stocks, a cogent presentation of the evidence can make your choices so much more obvious…
- Computer users rate reliability, ease of use, compatability, speed and computing power among the most important infuences on their computer and software purchase decisions.
- On these measures, Apple rates superior to most or all competitors.
- Customer loyalty, satisfaction and likelihood to refer are higher for Apple users than for other providers. Apple users are raving fans.
- PC users are defecting to Apple due to their frustrations with software bugs, vulnerability to viruses, incompatible software, system crashes and lost productivity. Consumers’ complaints about Microsoft’s Vista operating system have contributed to consumer resistance to upgrades under the Microsoft brand.
- Apple store staff I interviewed confirm that roughly a third of new Apple computer buyers had never owned a Mac.
- Apple stores provide local market presences, user-friendly product displays and highly trained staff. Live, in-store training sessions are provide for a nominal fee. These bolster customers’ confidence that their transitions from PCs to Macs will be short and successful.
- Apple store staff are well prepared to answer customers questions about transferring files and software compatibility. Staff positively differentiate Apple by describing how Apple designs their software and hardware to work together and why Apple’s software is less prone to bugs and hacks. Store staff introduced me to two ex-PC users in the store who testified to Apple’s superiority.
- Apple’s product lines, including Macs, iPods and iPhones, are literally made for each other and are 100% compatible.
- Post-purchase, the same Apple store staff who sold the Mac called to assure that I was satisfied with my purchase and to answer any questions.
- Computing consumption, in the form of desktops, laptops, software, entertainment and other products will continue to grow globally. New market entrants in the U.S. are mainly younger users who favor Apple in disproportionately higher percentages than Apple’s current overall market share. This presages likely increases in sales and market share for Apple.
According to stock market expert, Jim Cramer, if you were determined to invest in technology stocks, Apple would have to be near the top of your list. Choosing where to invest in improving your company’s customer experience is similar to choosing stocks. It’s not a mysterious process. With a robust review of the evidence in a customer experience management audit, the choices become clear.
Tags: Add new tag, Apple, customer experience management audit, investments, Jim Cramer, Qualitative Insight into Customer Experience, Whyze Group
October 29th, 2008
The process by which the American electorate chooses presidents is representative of how customers choose your products and services. They make decisions based on emotions, not necessarily a lengthy or even rational comparison of features.
The Obama and McCain campaigns provide lessons for organizations striving to deliver compelling customer experiences. Both campaigns are increasingly relying on sound bites and photo ops that stir emotion and influence a specific voter persona–those who are still undecided.
In the private and public sectors, emotions drive customer experiences and decisions. Presidential candidates use tracking polls to tell them what emotions they are are creating among voters. In response, politicians change their tactics daily.
While Obama’s platform includes tax reductions for 90% of households, the McCain campaign has repeatedly referred to Obama’s intent to raise taxes on the middle class. McCain’s sound bite is easier to understand and strikes a powerful chord with voters, even if it’s arguably untrue. The facts, however, carry less weight among undecided voters at this point in the election cycle.
Emotions rule, particularly among voters just getting to know the candidates. The persona of today’s undecideds is different from those who’ve been paying close attention for the last 18 months. The undecideds are probably far less engaged.
The process by which the American electorate chooses presidents is representative of how customers choose your products and services. They make decisions based on emotions, not necessarily a lengthy or even rational comparison of features. Emotions drive customer experiences. Each customer persona responds differently.
If you know what emotional hot buttons to push, how to push them and among whom, you’ll be well on your way to innovating customer experiences that grow grass roots support.
Tags: campaigns, McCain, Obama, persona, Qualitative Insight into Customer Experience
October 8th, 2008
This billion-dollar distributor of maintenance and repair supplies wanted to find ways to deepen its relationships with small businesses.A customer experience management audit revealed that the company relied heavily on research with large business customers to guide improvements in the customer experience. Small business customers, however, were becoming far less loyal.
Whyze Group led in-store cue scans and focus groups with small business customers. These showed that small businesses have buyer personas and needs that are different from large customers.
Small business customers’ usage of phone, internet and store locations correlated with these personas. This helped the company to anticipate the expectations of small business customers depending on which channel the customer used.
Whyze Group identified opportunities in sales, customer communications, products and pricing to deliver improved customer experiences to each small business persona. This became the foundation for redrafting customer communications and customer relationship management processes in ways that resonated with small business customers.
We prioritized these opportunities to improve small business customer experiences in light of changes in the size and composition of the small business market. Our analysis showed that the size and makeup of the small business market was likely quite different than the management team had believed. We worked with managers to prioritize opportunities in accordance with assuring mutual benefits to customers and company.
Tags: cue scan, focus groups, large business, maintenance and repair, Qualitative Insight into Customer Experience, small business
October 7th, 2008
A manufacturer of exterior coatings wanted to find ways to initiate superior customer experiences among shoppers browsing for deck stains.Managers wanted to know what consumers currently experience when they shop for deck stains.
A customer experience management audit revealed that the company had done little consumer research before. The company had only recently hired a marketing staff. Cryptic product names reflected chemical properties that were meaningless to us and, we presumed, other non-chemists. We suspected that homeowners needed more user-friendly information before they’d even consider buying this brand.
Whyze Group moderated interviews with do-it-yourselfers who own patio decks and other exterior wood products. Through this exploration, we identified six expectations and 14 different concerns among prospective users of deck stain products.
With Whyze Group’s help, managers identified 12 measures it could take to communicate more effectively and initiative positive experiences with shoppers in store aisles.
Tags: deck stain, do-it-yourselfers, exterior coatings, Qualitative Insight into Customer Experience, shoppers
October 7th, 2008
Managers of a wireless communications company wanted to improve customer experiences, loyalty and sales in two geographic markets. The company was considering several alternatives. These included changing its rate plans, improving customer service, investing in transmission quality improvements and increasing its advertising expenditures.
Improving “everything” was not feasible. Managers needed to focus its efforts in the areas that mattered most to consumers. Whyze Group designed, conducted and analyzed 1,000 interviews with cellular users, including competitors’ customers. Questions focused on perceptions of quality, price and overall value for each competing wireless carrier.
Comparing customers’ perceptions of each carrier enabled us to identify the strengths and weaknesses of each competitor. Additionally, we determined the relative importance of each quality and price attribute we explored.
Whyze Group demonstrated to managers that consumers in the first market were quality-sensitive. Also, consumers perceived that our client’s transmission quality was inferior to competitors.
The company needed to improve consumers’ perceptions of its transmission quality. We recommended that our client measure its signal strength throughout this market. If our client’s signal strength was on par with competitors, then our client could effectively employ marketing messages bolster perceptions of quality. If not, then managers should consider increasing signal strength.
In the second market, consumers perceived that our client’s quality, price and value were on par with competitors. Consumers in this market were more sensitive to price. We recommended that our client incorporate messages about its competitive rate plans in it marketing materials to boost its share of this market.
Tags: loyalty, Qualitative Insight into Customer Experience, Qualitative Research and Innovation, wireless communications
October 7th, 2008
Whyze Group recently completed an 18 month engagement at a leading Insurance company in conjunction with nGenera. The company’s property and casualty and financial services businesses are innovating their customer experiences based on wisdom they acquired with Whyze Group.
“We’re honored to have worked as a catalyst for innovation with these two great organizations,” explains Whyze Group’s president, Jason M. Sherman. Whyze Group deployed nearly its full complement of customer experience research and innovation design services over the course of the eighteen month timeframe. The financial services division asked Whyze Group to repeat its success with them after Whyze Group’s initial nine month engagement with the property and casualty side of the business.
Whyze Group facilitates management teams’ discoveries and innovations of new customer experiences. Whyze Group applies a reliable and powerful approach, integrating deep customer experience insight, strategic innovation frameworks and executive alignment workshops to guide managers toward innovation breakthroughs. Clients include Rubbermaid, Zales, Nationwide Insurance, Grainger, ING, Humana, Dominion Power, Key Bank and nGenera.
Tags: insurance, Qualitative Insight into Customer Experience, Qualitative Research and Innovation, Whyze Group
September 5th, 2008
We are pulled toward shiny, new technology baubles, especially ones that promise greater customer intimacy and profits. Crowdsourcing is gaining traction after a couple of years of finding successful case studies (e.g., Threadless) that prove the concept…at least for specific applications.
Historically, other shiny baubles, like early dotcoms and CRM, lost their luster when they failed to live up to expectations. In hindsight, we learned, “This could be a great addition to our tool chest. We should learn how to use it next time.” History will repeat itself.
Crowdsourcing is so new that there are few real experts in it. But, a critical look at the social and business challenges and Web 2.0 technology platforms that support crowdsourcing reveals important clues about how to manage crowdsourcing effectively.
As Donald Trump once said, “If you manage the downside, the upside takes care of itself”. In her post about the challenges of crowdsourcing, Monica Hamburg does us all a great service by stripping the silvery patina off crowdsourcing and looking carefully at the cold gray steel underneath.
Among Monica’s observations, which I’m paraphrasing, are the following:
- Questionable wisdom. Not all crowd members act in the spirit of crowdsourcing or are well-intended. Just look at the stream of comments following a Youtube video.
- Limited demographics. The typical web user is white, middle- or upper-class, English speaking, higher educated and with high-speed connections.
- Myopic understanding. Crowds may not have enough understanding of your industry to make educated decisions.
- Limited control. Loss of control can result in crowdslapping, where the crowd turns on you and your brand. This may not be avoidable, especially if you want to encourage open dialog, which is the whole point of crowdsourcing.
- Lower quality. Quality expectations for some tasks should be lower, not higher, depending on the task that you’re asking the crowd to do.
- Insufficient programming. This is the digital analog to coffee, donuts and engaging events, which, if missing, will result in the crowd moving on.
- Leadership. Lest your crowd detect they’ve entered a space where anarchy reigns, you’ve got to have a socially astute host who introduces topics, moderates discussions with a light and easy hand and celebrates victory when the crowd takes ground.
- Exploitation fears. Key contributors expect and deserve rewards for their participation. These need to be spelled out in advance and followed through religiously.
Each of these challenges are overcome with a little forethought and deliberate action. Effective crowdsourcing starts with defining the problem that you’re going to ask the crowd to solve. The assignment needs to be specific, measurable, easily understood, and framed in a way that engages the right crowd.
Threadless is a great example of engaging a crowd to solve attractive new product development problems. The crowd designs t-shirts and votes on the winners. Threadless draws the right crowd, designers who can really design creative, off the wall t-shirts. Their reward system is transparent and straight forward: winning designers get $2,500 in cash and gifts. Their website is fun, engaging and serves as a catalyst for a creative community of talented artists.
Underlying their website is a savvy set of facilitators who change the website each day, posting recently submitted designs for sale and votes. This draws in a global talent pool that the company taps successfully and whom extend Threadless’s idea-generating capacity far beyond the walls of the company.
If your company is considering crowdsourcing, your approach should be equally clear and compelling.
This post only covers the basics of effective crowdsourcing. There will be more to come.
Tags: CRM, crowdsourcing, Qualitative Insight into Customer Experience, Threadless, Web 2.0
July 8th, 2008
Cleveland, OH, October 28, 2005–Whyze Group, the leading customer experience research and innovation firm in the U.S., has opened an office in Cleveland, Ohio. The firm serves clients throughout North America. It will continue to maintain a correspondence office in Atlanta.
Whyze Group president, Jason M. Sherman, cites several reasons for choosing Cleveland as a new location for the firm. He says that high quality of life, low costs, proximity to top universities and easy airline access to clients nationally figured into the decision.
“Cleveland is an undiscovered gem for most people in this country”, Sherman explains. “Cleveland offers everything that most larger metro areas offer, but without the hassles or the costs. There are four-season recreational opportunities, a vibrant multi-cultural community, a world-class orchestra and some of the nation’s finest hospitals all right here.”
Sherman also embraces Northeastern Ohioans, who he describes as hard-working, earnest and embodying Midwest sensibilities.
Whyze Group facilitates management teams’ discoveries and innovations of new customer experiences. Whyze Group applies a reliable and powerful approach, integrating deep customer experience insight, strategic innovation frameworks and executive alignment workshops to guide managers toward innovation breakthroughs. Clients include Rubbermaid, Zales, Nationwide Insurance, Grainger, ING, Humana, Dominion Power, Key Bank and nGenera.
Tags: Cleveland, design, Qualitative Insight into Customer Experience, Qualitative Research and Innovation, research, Whyze Group
October 28th, 2005
Older Posts
