Customer Insight - What Customers Really Want - Webinar (15 March, 2012)

Webinar on Customer Insight
What do customers really want?

March 15th 2012

© 2012 - All rights reserved Noventum
Service Management Ltd. 1

Jan van Veen

Partner

2

Logistics

Connect via
phone when
sound quality is
poor

Drop a
message or
question to the
moderator

3

Agenda

16:00 Welcome & Introduction
16:05 Need for customer insight
16:15 Challenges
16:30 Successful approaches
16:55 What’s next?
17:00 Closing

4

About Noventum

We are specialised in Strategic We focus on economic value
Service Management via sustainable, profitable
growth of service business

We serve large and medium We have 70 consultants
sized businesses, world-wide
multinational and local


Noventum offers her expertise through
different lines of business


Some of our clients


Agenda

16:15 Challenges
17:00 Closing

Service Management Consultants Ltd. 8

Today’s Business Challenges

• Declining Product
Revenues and Margins
•Rapid Commoditisation
• Not Meeting Customer
Expectations
• The Experience is the
Value

9

How is value created with technical services?

Differentiation
Brand- strategies
driven Strategic
Business
Partner
Trusted
Advisor
People-
driven

Feature-
driven Solution
provider

Price-
driven
Vendor

Services
Warranty Product support Availability Knowledge driven Transformation
services services services services services

Relational brand values are the strongest
differentiators

Thought leader
Understands my
Relationship business
Values Demonstrates
Flexibility

Responsiveness Price
Service Customer
Reliability Time
Values Sacrifices
Competence Conflict

Quality
Product
Customization
Values
Alternatives

Source: La Piere 2000 11

Standardised personalisation
Low cost – high value service delivery models

High cost
Low cost

Request Work Planning & On site
Diagnosis Dispatching
Handling preparation Scheduling service

(Assisted) Remote
Self Help Resolution

Bench Equipment
Repair Exchange


The most successful service strategies are
Brand and People Driven
Brand Driven
40% •Compelling value proposition
•Solving complex service challenges
•Globally-consistent services
•Unique knowledge
•Promoting experience
30% •Superior Customer Experience

People Driven
ales Growth

•Limited ability to differentiate on value proposition
•Long-term personal relationships
20% •Understanding and addressing specific customer needs
•Co-create solutions
•Continually build and maintain strong relationships
S

10% Feature Driven
Price Driven •Slightly better perceived benefits
•Commodity like proposition •SLA based, high performance
•Cost leadership and economies of scale is key to survival •Constant pressure to add extras
0%
-10% -0% 10% 20% 30% 40% 50%
Gross Margin

Driven by Price Feature People Brand
© 2012 - All rights reserved Noventum Source: Noventum

Customer insights required for

Strategic management Operational management
• Manage brand perception • Manage and improve delivery
• Design service offerings • Improve & manage experience
• Design customer experience • Improve customer centricity

(Service) Sales Service Delivery
• Recognise challenges of • Recognise context and type of
(potential) customers for customer to deliver desired
consultative selling experience
• Recognise sales opportunities • Identify unhappy customers to
fix


Agenda

16:15 Challenges
17:00 Closing

15

Common practices

16
Service Management Consultants Ltd.

Bain/Enquiry

80% of companies think they deliver
superior experience…

8% of their customers agree…


I am satisfied, therefore I buy…or… ?


Reasons

• Respons of customer is circumstancial
• Setup of research causes bias
• Interviewer causes bias
• Intangibles are hard to reveal
• Unclarity of purposes and requirements
• Too much focuss on performance feedback, too little on
insight


Feedback on performance too dominant
Too little focus on insight

• Customer metrics used by firms today are predominantly:
 Rear-view mirrors reporting the past
 Dashboards reporting the present
• Need to develop “adaptive foresight” to predict the future by
 Exploring changes in the business environment
 Anticipating customer behaviour


Objectives and approach often not clear


Agenda

16:15 Challenges
17:00 Closing

23

Generic overview of the research process
The success of customer research largely depends on good definition
of objectives and requirements, selecting the appropriate tools
whereby the research conclusions should lead to action

Define
Define purpose Define
method, tools Test & refine
& objectives requirements
and process

Capture
Research Close the loop
information & Analyse
conclusions to customers
data


Example: Identify Value perception

Purchase Delivery Use Maintenance Complete Dismantle


Example: Identify Value perception


Typical challenges

• Does customer know?
• Limited expectations from your brand?
• Limited expectations of employees
• Bias from relationship between customer and company


Observations / Video

Call intake by Customer describes Site visit by Customer and
phone or expectations technician Employee
Internet feedback


In-depth interviews Do you need this
service?
X
Do you need this
higher response
time?
X
What are your
challenges? 
What is your
strategy? 
How do we do
compared to our X
competitors?

Let’s discuss your
value chain


Customer advisory boards or panels


Frame opportunities and validate with a
survey

9. Reduction logistic costs

8. Improving planning, dispatching and
0% route optimization
100% 22% 7. Reduction costs for communication
90% 0%
10%
80% 6. Reduction repeat visits

70% 14%
0%
0% 5. Improve call avoidance/ improved
60% remote resolution
50%
34% 4. Reducing inventory costs
40%

30% 3. Improvement of cashflow by reducing
time to invoice
20% 19%
2. Lower administrative costs by Back
10%
Office
0%
1
1. Reduction of low value activities in
the field


Example: Design customer experience


Alternative customer navigation paths
Customer may deal with various supppliers during their journey. The
performance of one supplier may effect the perception of other suppliers


Brand values and customer expectations
A good understanding of what is important for the customer and
what is important for the brands’ positioning will define the
priorities for investment


Example: Monitor customer experience


Event driven experience surveys


Example outcome of experience surveys

Customer Experience Feedback

Actual score Importance for customer

Ease of doing business with

Brand Values as perceived by the customer
Understand my business

Industry leader

Environmental friendly solutions

Keeping technology up-to-date

Demonstrate flexibility in solutions

Reduce process cost

Reliability of solutions offered

Speed of repairs

Average customer rating on a 5 point scale

Agenda

16:15 Challenges
17:00 Closing


• Public Customer Experience Assessment
• Webinars
 ..
 ..
 ..
• Roundtable on Customer Insight
• Research survey on Low Cost – High Value Service Delivery
Models


Agenda

16:15 Challenges
17:00 Closing


Thank you

Jan van Veen
jan.vanveen@noventum.eu
+31 645660164


Customer Insight - What Customers Really Want - Webinar (15 March, 2012)

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