Get the right customer insights & validation (by Michiel Cambron)
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The document discusses the importance of obtaining customer insights and validation in agile product development, emphasizing a shift from traditional planning to a build-measure-loop mindset. It highlights the psychological aspects of buying decisions, the need for innovative research methods, and the value of direct customer interaction to enhance product design. Key takeaways include utilizing different research approaches, understanding emotional drivers in decision-making, and adopting a creative mindset to extract valuable customer insights.
Get the right customer insights & validation (by Michiel Cambron)
- 1. 4.3 Get the right customer insights & validation CONFIDENTIAL 1 Template presentation Innovation Day 2016CONFIDENTIAL GET THE RIGHT CUSTOMER INSIGHTS & VALIDATION Michiel Cambron Consultant InnoLab michiel.cambron@verhaert.com TRACK 4: HUMAN TOUCH, YOUR TEAM & THE CUSTOMER
- 2. 4.3 Get the right customer insights & validation CONFIDENTIAL 2 CONFIDENTIAL 2 PART 1: INTRODUCTION
- 3. 4.3 Get the right customer insights & validation CONFIDENTIAL 3 CONFIDENTIAL 3 “The company that consistently makes and implements decisions rapidly gains a tremendous, often decisive, competitive advantage.” Steve Blank – The Start-Up Manual
- 4. 4.3 Get the right customer insights & validation CONFIDENTIAL 4 INTRODUCTION Facts: • Agility pays off and we all aim for it in product development. • Talking with our customer pay’s off, because we look at opportunities & aim to derisk our innovation process. (Customer Insights & Validation Research 1.0) Source: Mckinsey.com
- 5. 4.3 Get the right customer insights & validation CONFIDENTIAL 5 A NEW PARADIGM IN AGILE PRODUCT DEVELOPMENT From launching a new enterprise/product with a hit-or-miss proposition towards a build-measure-loop mindset … Differences • Elaborate Planning vs Experimentation • Intuition vs Customer Feedback • Big Design Up Front vs Interactive Design Source: The Lean Start-up
- 6. 4.3 Get the right customer insights & validation CONFIDENTIAL 6 CUSTOMER INSIGHTS AND VALIDATION RESEARCH 1.0
- 7. 4.3 Get the right customer insights & validation CONFIDENTIAL 7 What has been the biggest invention all time for the next-gen super amazing innovator structuring insights & validation? Customer Insights & Validation Research 2.0
- 8. 4.3 Get the right customer insights & validation CONFIDENTIAL 8 THE POST-IT It contains a tiny little space so you need to think about what the key take away was/is.
- 9. 4.3 Get the right customer insights & validation CONFIDENTIAL 9 DISPLAY YOUR RESEARCH CONFIDENTIAL 9
- 10. 4.3 Get the right customer insights & validation CONFIDENTIAL 10 GROUP AND SEGMENT CONFIDENTIAL 10
- 11. 4.3 Get the right customer insights & validation CONFIDENTIAL 11 SYNTHESIZE CONFIDENTIAL 11
- 12. 4.3 Get the right customer insights & validation CONFIDENTIAL 12 DESIGN CONFIDENTIAL 12
- 13. 4.3 Get the right customer insights & validation CONFIDENTIAL 13 CUSTOMER FEEDBACK What kind of tools, frameworks do you use to get insights on your customers? What are the main barriers for you and your company to start with agile & continious customer insights & validation? What is your key take-away from this session ?
- 14. 4.3 Get the right customer insights & validation CONFIDENTIAL 14 CONFIDENTIAL 14 PART 2: HUMAN FACTOR
- 15. 4.3 Get the right customer insights & validation CONFIDENTIAL 15 CONFIDENTIAL 15 “There are no facts inside the building so get the hell outside.” Steve Blank – The Start-Up Manual
- 16. 4.3 Get the right customer insights & validation CONFIDENTIAL 16 REMEMBER, YOU ARE BUILDING A PRODUCT FOR PEOPLE Some psychological facts: • People make purchase decisions rooted as much in emotional impulses as logical facts Source: The Wheel of Emotion
- 17. 4.3 Get the right customer insights & validation CONFIDENTIAL 17 REMEMBER, YOU ARE BUILDING A PRODUCT FOR PEOPLE Some psychological facts: • Buyers have egos B2C • They want to make a buying decision that will enhance their careers. • They want information that will help them make the best business decision possible – a decision that will result in cost savings and/or increase top line revenue. • How can they become the hero of their company • They can talk about issues (problems, opportunities) that are important to them … to get there first need to understand their perceptions about the business problem (that your product or service could solve) That's why when it comes to designing the customer experience, no detail is too small. There are several elements involved: 1. what customers see 2. what they hear 3. what they smell 4. what they touch 5. how they are physically affected (e.g. temperature) B2B
- 18. 4.3 Get the right customer insights & validation CONFIDENTIAL 18 REMEMBER, YOU ARE BUILDING A PRODUCT FOR PEOPLE. Some psychological facts: • Buyers respond psychologically to visual elements and stories • True Customer insights through « Selfies ». The kind that can drive breakthrough innovations come from these kinds of surprising individual stories. • Classic Market Research would tell us that most of us aspire to make healthier eating choices – but the subtleties of when and why we actually do (or don’t) tell a far more important story to product developers. Source: The NY Times
- 19. 4.3 Get the right customer insights & validation CONFIDENTIAL 19 REMEMBER, YOU ARE BUILDING A PRODUCT FOR PEOPLE Some psychological facts: • Buyers crave value Products & Services deliver fundamental elements of value that address four kinds of needs: • Functional • Emotional • Life Changing • Social Impact
- 20. 4.3 Get the right customer insights & validation CONFIDENTIAL 20 CONFIDENTIAL 20 PART 3: INNOVATION RESEARCH FACES
- 21. 4.3 Get the right customer insights & validation CONFIDENTIAL 21 6 FACES OF CUSTOMER INSIGHTS The Co-CreatorThe Data Detective The Scientist The Anthropologist The ImpersonatorThe Journalist Source: Value Proposition Design
- 22. 4.3 Get the right customer insights & validation CONFIDENTIAL 22 CONFIDENTIAL 22 THE ANTHROPOLOGIST Customer Observation – Getting unconventional insights on the way customers handle their activities.
- 23. 4.3 Get the right customer insights & validation CONFIDENTIAL 23 “New Products are inherently hard to launch because both the problem and solution are unknown.” CONFIDENTIAL Eric Ries – The Lean Start-Up 23
- 24. 4.3 Get the right customer insights & validation CONFIDENTIAL 24 HOW TO APPROACH? Stay with the family Observe shopping behavior IF YOU NEED DEVELOP THE NEXT GEN VACUUM CLEANER … Go and observe how vacuum cleaning is done currently. Observe the work process Goal: Understand your customer’s world in more detail BE CREATIVE… Observe shop & product experience
- 25. 4.3 Get the right customer insights & validation CONFIDENTIAL 25 Opportunities in Cooking Equipment ? ( Through Pictures) We asked our own colleagues Send us insights from your kitchen We observed in cooking shops
- 26. 4.3 Get the right customer insights & validation CONFIDENTIAL 26 CAPTURING YOUR INSIGHTS…
- 27. 4.3 Get the right customer insights & validation CONFIDENTIAL 27 1. Observe and take notes. Hold back with interpretation based on your own experience. Stay nonjudgmental! Work like an anthropologist and watch with “fresh” eyes and an open mindset 2. Pay attention to both what you see and what you don’t see. 3. Capture not only what you can observe but also what is not talked about such as feelings or emotions. TIPS & TRICKS
- 28. 4.3 Get the right customer insights & validation CONFIDENTIAL 28 CONFIDENTIAL 28 The Journalist
- 29. 4.3 Get the right customer insights & validation CONFIDENTIAL 29 CONFIDENTIAL 29 « Pay attention to your subject’s habits and mannerisms. Subtle clues like posture, tone of voice and word choice can all, when presented to readers, contribute to a fuller and more accurate presentation of the interview subject » Two Ears, One Mouth… And Two Eyes
- 30. 4.3 Get the right customer insights & validation CONFIDENTIAL 30 NEEDS & MOTIVATION What are different jobs to be done? What motivates the use and purchase? What are unmet needs? What are the biggest pains, concerns? How success is measured? PERFORMANCE ATTRIBUTES What are important decisive elements (long list)? What are the most important elements (shortlist) ? FEATURE PREFERENCES To determine importance of different features To understand a preferred option for each feature Calculate utility values for each feature What combination of features would be preferred? CONCEPT PREFERENCES To understand perception of different product concepts in relation to the key product promises What product has the highest market acceptance potential? What are positive and negative perception factors? What is the logics of decision making ? To understand trade offs driven by specific features PRODUCT VALUE PERCEPTION To understand perception of different product concepts based on the look & feel experience To learn about criticalities in decision making What product version would have the highest market acceptance? USABILITY Collect insights on the usability & key values Collect insights on preferred options & appreciation of different features, potential trade offs Collect insights on overall use experience Idea generation product concept development product definition concept prototype testing engineering product prototype testing WHICH JOURNALIST ARE YOU ?
- 31. 4.3 Get the right customer insights & validation CONFIDENTIAL 31 The vehicle will not start (the problem) • Why? - The battery is dead (first why) • Why? - The alternator is not functioning (second why) • Why? - The alternator belt has broken (third why) • Why? - The alternator belt was well beyond its useful service life and not replaced (fourth why) • Why? - The vehicle was not maintained according to the recommended service schedule (fifth why, a root cause) OPEN INTERVIEWING - THE FIVE W’S
- 32. 4.3 Get the right customer insights & validation CONFIDENTIAL 32 1. Stingingly Website 2. User Testing Solution 3. Combined to test your value proposition OPEN INSIGHTS - EXAMPLE: ONLINE TOOL HACKING
- 33. 4.3 Get the right customer insights & validation CONFIDENTIAL 33 Surveys give speed in insights & stability in analyzing process. CLOSED INSIGHTS - SURVEYING
- 34. 4.3 Get the right customer insights & validation CONFIDENTIAL 34 POSITIONING JOB TO BE DONE, PAINS & GAINS Look out for underserved needs. Skip overserved needs. Look out for needs that make a key difference. Plan the competitive positioning http://www.linkedtolaw.co.uk/ Key inputs for product planning 1. Needs based segmentation Different needs, importance & perception of value and performance. 2. Key needs & value drivers for product design 3. Key performance attributes for competitive positioning for specific values/needs space I vacuum every day at 9am. I have to control my husband’s allergies The less I have to do myself the better! My cat leaves its hair everywhere.... It never seems to be really clean...
- 35. 4.3 Get the right customer insights & validation CONFIDENTIAL 35 SMALL SAMPLE SIZE RESEARCH • Lead User Methodology • Lead users face needs that will be general in a marketplace – but face them months or years before the bulk of that marketplace encounters them, and • Lead users are positioned to benefit significantly by obtaining a solution to their needs. WHO TO INTERVIEW WISDOM OF CROWDS 1. It is possible to describe how people in a group think as a whole. 2. In some cases, groups are remarkably intelligent and are often smarter than the smartest people in them. 3. The three conditions for a group to be intelligent are diversity, independence, and decentralization. 4. The best decisions are a product of disagreement and contest. 5. Too much communication can make the group as a whole less intelligent. 6. Information aggregation functionality is needed. 7. The right information needs to be delivered to the right people in the right place, at the right time, and in the right way. 8. There is no need to chase the expert.
- 36. 4.3 Get the right customer insights & validation CONFIDENTIAL 36 TIPS & TRICKS • Adopt a beginners mind • Listen more than you talk • Get facts, not opinions • Ask Why to get real motivations • The goals of customer insight interviews is not selling it’s about learning • Don’t mention solutions too early • Follow Up • Always open doors at the end • Interviews are an excellent starting point to learn from customers, but typically they don’t provide enough or sufficiently reliable insights for making critical decisions
- 37. 4.3 Get the right customer insights & validation CONFIDENTIAL 37 CONFIDENTIAL 37 The Impersonator
- 38. 4.3 Get the right customer insights & validation CONFIDENTIAL 38 HOW TO APPROACH ? Mystery Shopping as a Cool Technician 1 Week as a Beer Appliance Technician IF YOU NEED DEVELOP THE NEXT GEN VACUUM CLEANER … Go and vacuum clean in different settings. BE CREATIVE…
- 39. 4.3 Get the right customer insights & validation CONFIDENTIAL 39 CONFIDENTIAL 39 PART 4: CONCLUSION
- 40. 4.3 Get the right customer insights & validation CONFIDENTIAL 40 KEY TAKE AWAYS 1. The POST-IT, a bit more then just a piece of paper with a sticky part 2. A new mindset from HIT-OR-MISS PROPOSITION towards a BUILD-MEASURE-LOOP mindset 3. Humans make decisions with 2 sides of the brain. Don’t forget the EMOTIONAL PART OF PEOPLE 4. Combine different agile approaches to get customer insights & feedback. Choice within the 6 FACES OF INNOVATION RESEARCH 5. GET OUT OF THE BUILDING & EXPERIMENT, and remember a human has Two Ears, One Mouth … And Two Eyes 6. BE CREATIVE & HACK EXISTING TOOLS, the right combination of online tools, environments, events, … can give you the opportunity of a lifetime to get valuable insights.
- 41. 4.3 Get the right customer insights & validation CONFIDENTIAL 41 Innovation Day is an initiative of Masters in Innovation, the umbrella brand of the Verhaert Group which aims to connect, train and accelerate professional innovators. Kruibeke Belgium Hogenakkerhoekstraat 21 B-9150 Kruibeke T +32 3 250 19 00 E info@verhaert.com www.verhaert.com Nivelles Belgium Noordwijk Netherlands Av. Robert Schuman 102 B-1400 Nivelles T +32 67 47 57 10 E info@lambda-x.com www.lambda-x.com Kapteynstraat 1 2201 BB Noordwijk T +31 71 760 05 50 E info@verhaert.com connect.verhaert.com INDUSTRY TECHXFER MEDICAL AEROSPACE TECHXFER FMCGCONNECT TECHXFER FMCGCONNECT MEDICAL Aveiro Portugal Av. Dr. Lourenço Peixinho 96D 4o 3800-159 Aveiro T +351 234 604 088 E info@load-interactive.com www.load-interactive.com CONNECT Gentbrugge Belgium Bruiloftstraat 55-57 B-9050 Gentbrugge T +32 9 330 27 90 E info@moebiusdesign.be www.moebiusdesign.com ON SITE CONSULTANCY