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Webinar on Customer Insight
      What do customers really want?

                         March 15th 2012




 © 2012 - All rights reserved Noventum
      Service Management Ltd.            1
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            © 2012 - All rights reserved Noventum
                 Service Management Ltd.               2
Jan van Veen

Partner




          © 2012 - All rights reserved Noventum
               Service Management Ltd.            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




                      © 2012 - All rights4
                                         reserved Noventum
                           Service Management Ltd.
About Noventum

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




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




             © 2012 - All rights reserved Noventum
                  Service Management Ltd.            5
Noventum offers her expertise through
different lines of business




        © 2012 - All rights reserved Noventum
             Service Management Ltd.            6
Some of our clients




         © 2012 - All rights reserved Noventum
              Service Management Ltd.            7
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




          © 2012 - All rights reserved Noventum
               Service Management Ltd.            8
Today’s Business Challenges


                                                 •Rapid Commoditisation
                                                    •Products / projects
                                                    •Product related services
                                                 • Pressure on growth
                                                 • Pressure on margins




         © 2012 - All rights reserved Noventum
              Service Management Ltd.            9
How is value created with services?

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




Feature-
 driven                                              Solution
                                                     provider


 Price-
 driven
                            Vendor

                    Services                                                             Solutions
              Warranty        Product support           Availability   Knowledge driven Transformation
              services            services               services          service         services
                    © 2012 - All rights reserved Noventum
                         Service Management Ltd.            10
Low Cost Service Delivery Models


Costs
        100%
        (80%)
                                          On Site

        60%                         Bench Repair             Rough
                                                             estimate of
                                                             cost levels,
        40%                            Exchange              exclusive of
                                                             parts
        20%            Supported Self Service

         5%                          Self Service


                © 2012 - All rights reserved Noventum
                     Service Management Ltd.            11
Enhanced customer insights is required for

Strategic management                                       Operational management
• Manage brand perception                                  • Design service factory
• (Re)design service offerings                             • Manage and improve delivery
• (Re)design customer experience                           • Improve & manage experience
                                                           • Improve customer centricity



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




              © 2012 - All rights reserved Noventum
                   Service Management Ltd.            12
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




                                        13
                      © 2012 - All rights reserved Noventum
                           Service Management Ltd.
Common practices

       Customer panels
       User groups




                                                                 Dialogue with customers




                 Tranasactional surveys
                 Periodical surveys
                 Market research surveys
                                                                       Customer interviews

                                           14
                         © 2012 - All rights reserved Noventum
                              Service Management Ltd.
Common practices appear insufficient




 80% of companies think they deliver
 superior experience…

 8% of their customers agree…




            © 2012 - All rights reserved Noventum
                 Service Management Ltd.            15
Common practices hardly predict behaviour




        © 2012 - All rights reserved Noventum
             Service Management Ltd.            16
Reasons


• Response of customer is circumstancial
• Structure of research causes bias
• Interviewer causes bias
• Intangibles are hard to reveal




            © 2012 - All rights reserved Noventum
                 Service Management Ltd.            17
Intangibles are hard to reveal




Surface                                              Survey
                  Say
                                                                   Explicit

                  Do                               Observations   Interpretable
                  Use

                                                    Associative
               Know                                  Methods         Tacit
 Deep           Feel
               Dream                                                Latent




           © 2012 - All rights reserved Noventum
                Service Management Ltd.             18
Feedback on performance is too dominant
Lack of focus on insight

• Common practices only look at the the past
• Need to develop “adaptive foresight” to predict the future
  by:
      Exploring changes in the business environment
      Anticipating customer behaviour




              © 2012 - All rights reserved Noventum
                   Service Management Ltd.            19
Objectives and approach often not clear




         © 2012 - All rights reserved Noventum
              Service Management Ltd.            20
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




                                        21
                      © 2012 - All rights reserved Noventum
                           Service Management Ltd.
Understanding needs along product life cycle



Purchase   Delivery             Use                    Maintenance   Complete   Dismantle




               © 2012 - All rights reserved Noventum
                    Service Management Ltd.            22
Understanding needs along value chain




        © 2012 - All rights reserved Noventum
             Service Management Ltd.            23
Typical challenges


• Do customers know what they want?
• Will your brand limit customer expectations and therefore
    impact the information they provide?
•   Do your people think they know what is good for
    customers?




             © 2012 - All rights reserved Noventum
                  Service Management Ltd.            24
Observations / Video


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




                 © 2012 - All rights reserved Noventum
                      Service Management Ltd.            25
In-depth interviews with                             Do you need this
the right people                                          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?



        © 2012 - All rights reserved Noventum
             Service Management Ltd.            26
                                                     Let’s discuss your
                                                        value chain       
Customer panels




        © 2012 - All rights reserved Noventum
             Service Management Ltd.            27
Event driven experience surveys




        © 2012 - All rights reserved Noventum
             Service Management Ltd.            28
Measure each touchpoint




        © 2012 - All rights reserved Noventum
             Service Management Ltd.            29
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
                                © 2012 - All rights reserved Noventum
                                     Service Management Ltd.            30
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




          © 2012 - All rights reserved Noventum
               Service Management Ltd.            31
• Public Customer Experience Assessment
• Up coming webinar: Service Design and Deployment
• Live Roundtables on Customer Insight
• Research survey on Low Cost – High Value Service Delivery
  Models




           © 2012 - All rights reserved Noventum
                Service Management Ltd.            32
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




          © 2012 - All rights reserved Noventum
               Service Management Ltd.            33
Thank you

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


© 2012 - All rights reserved Noventum
     Service Management Ltd.            34

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

  • 1. Webinar on Customer Insight What do customers really want? March 15th 2012 © 2012 - All rights reserved Noventum Service Management Ltd. 1
  • 2. Logistics Connect via phone when sound quality is poor Drop a message or question to the moderator © 2012 - All rights reserved Noventum Service Management Ltd. 2
  • 3. Jan van Veen Partner © 2012 - All rights reserved Noventum Service Management Ltd. 3
  • 4. 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 © 2012 - All rights4 reserved Noventum Service Management Ltd.
  • 5. About Noventum We are specialised in Strategic We create value via Service Management sustainable, profitable growth of service business We serve large and medium We have 70 consultants sized businesses, world-wide multinational and local © 2012 - All rights reserved Noventum Service Management Ltd. 5
  • 6. Noventum offers her expertise through different lines of business © 2012 - All rights reserved Noventum Service Management Ltd. 6
  • 7. Some of our clients © 2012 - All rights reserved Noventum Service Management Ltd. 7
  • 8. 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 © 2012 - All rights reserved Noventum Service Management Ltd. 8
  • 9. Today’s Business Challenges •Rapid Commoditisation •Products / projects •Product related services • Pressure on growth • Pressure on margins © 2012 - All rights reserved Noventum Service Management Ltd. 9
  • 10. How is value created with services? Differentiation Brand- strategies driven Strategic Business Partner Trusted Advisor People- driven Feature- driven Solution provider Price- driven Vendor Services Solutions Warranty Product support Availability Knowledge driven Transformation services services services service services © 2012 - All rights reserved Noventum Service Management Ltd. 10
  • 11. Low Cost Service Delivery Models Costs 100% (80%) On Site 60% Bench Repair Rough estimate of cost levels, 40% Exchange exclusive of parts 20% Supported Self Service 5% Self Service © 2012 - All rights reserved Noventum Service Management Ltd. 11
  • 12. Enhanced customer insights is required for Strategic management Operational management • Manage brand perception • Design service factory • (Re)design service offerings • Manage and improve delivery • (Re)design customer experience • Improve & manage experience • Improve customer centricity (Service) Sales Delivery customer experience • Recognise challenges of • Recognise context and type of (potential) customers for customer to deliver desired consultative selling experience • Recognise sales opportunities • Manage good recovery of unhappy customers © 2012 - All rights reserved Noventum Service Management Ltd. 12
  • 13. 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 13 © 2012 - All rights reserved Noventum Service Management Ltd.
  • 14. Common practices Customer panels User groups Dialogue with customers Tranasactional surveys Periodical surveys Market research surveys Customer interviews 14 © 2012 - All rights reserved Noventum Service Management Ltd.
  • 15. Common practices appear insufficient 80% of companies think they deliver superior experience… 8% of their customers agree… © 2012 - All rights reserved Noventum Service Management Ltd. 15
  • 16. Common practices hardly predict behaviour © 2012 - All rights reserved Noventum Service Management Ltd. 16
  • 17. Reasons • Response of customer is circumstancial • Structure of research causes bias • Interviewer causes bias • Intangibles are hard to reveal © 2012 - All rights reserved Noventum Service Management Ltd. 17
  • 18. Intangibles are hard to reveal Surface Survey Say Explicit Do Observations Interpretable Use Associative Know Methods Tacit Deep Feel Dream Latent © 2012 - All rights reserved Noventum Service Management Ltd. 18
  • 19. Feedback on performance is too dominant Lack of focus on insight • Common practices only look at the the past • Need to develop “adaptive foresight” to predict the future by:  Exploring changes in the business environment  Anticipating customer behaviour © 2012 - All rights reserved Noventum Service Management Ltd. 19
  • 20. Objectives and approach often not clear © 2012 - All rights reserved Noventum Service Management Ltd. 20
  • 21. 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 21 © 2012 - All rights reserved Noventum Service Management Ltd.
  • 22. Understanding needs along product life cycle Purchase Delivery Use Maintenance Complete Dismantle © 2012 - All rights reserved Noventum Service Management Ltd. 22
  • 23. Understanding needs along value chain © 2012 - All rights reserved Noventum Service Management Ltd. 23
  • 24. Typical challenges • Do customers know what they want? • Will your brand limit customer expectations and therefore impact the information they provide? • Do your people think they know what is good for customers? © 2012 - All rights reserved Noventum Service Management Ltd. 24
  • 25. Observations / Video Call intake by Customer describes Site visit by Customer and phone or expectations technician Employee Internet feedback © 2012 - All rights reserved Noventum Service Management Ltd. 25
  • 26. In-depth interviews with Do you need this the right people 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? © 2012 - All rights reserved Noventum Service Management Ltd. 26 Let’s discuss your value chain 
  • 27. Customer panels © 2012 - All rights reserved Noventum Service Management Ltd. 27
  • 28. Event driven experience surveys © 2012 - All rights reserved Noventum Service Management Ltd. 28
  • 29. Measure each touchpoint © 2012 - All rights reserved Noventum Service Management Ltd. 29
  • 30. 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 © 2012 - All rights reserved Noventum Service Management Ltd. 30
  • 31. 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 © 2012 - All rights reserved Noventum Service Management Ltd. 31
  • 32. • Public Customer Experience Assessment • Up coming webinar: Service Design and Deployment • Live Roundtables on Customer Insight • Research survey on Low Cost – High Value Service Delivery Models © 2012 - All rights reserved Noventum Service Management Ltd. 32
  • 33. 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 © 2012 - All rights reserved Noventum Service Management Ltd. 33
  • 34. Thank you Jan van Veen jan.vanveen@noventum.eu +31 645660164 © 2012 - All rights reserved Noventum Service Management Ltd. 34

Notas do Editor

  1. Thanks for joiningWebinar, part of our Service Innovation Programme, a ongoing research, whici includes multiple webinars, roundtables meetings and surveys
  2. All participant are muted. Too many participants to open microphones and discuss questions.We are happy to answer your questions during the webinar. If you have any question, please enter that in the chat box at any time and we will cover those during the webinar.If you have any issues with sound quality, I recommend dialing in via the phone. Clicjk this radio button and you will see instructions and local phone numbers to dial in.The webinar will be recorded. Around the weekend you will all receive an email with a link to the recording.
  3. Strategy workshopsCustomer research and feedback solutionsManagement training, like service leadership, service development, service sales, Workforce training like trusted advisor
  4. Discuss agenda here.I would like to set the scene before moving on to techniques and challenges for capturing customer insight.Because requirements are changing and are becoming thougher. Common practices of today are not sufficient anymore.Why is that?
  5. Challenge is commoditisation of products and product related servicesMargings and growth are under pressure in most industriesMany business are looking for new opportunities to regain the growths and marging figures they used to haveAnd need to significantly reduce cost, also for delivery of product related services
  6. For successfuly managing the changes, need enhanced customer insights.The risk is to drive these developments in an approach which is too much inside out. With limited and internal view on customer expectations, needs, challenges, which is predominntaly based.Most succesfull business follow an outside-in approach, in which they capture al lot if views and insights from outside, from the market space.
  7. Various common practices for feedback and researchVarious types of surveys, either paper, web or phoneO fcourse we all have regular contacts with customers, sales and serviceSome formilised meetings in which objectives, expectations are discussed and also how they have been metSome businesses regularly interview customers or even organise customer panels or user groupsSo we do tend to think we know our customers and how we are perfroming
  8. HoweverBig discrepancy
  9. Also research has proven their is little correlation between what cstomers say about satifcation or loyalty and their future behaviour, like repurchase or continiation of services
  10. Circumstancial:Mood, unstableSituation (buying, choices, alternatives, social pressure)Pain / pleasure, experiencing self versus remembering selfSet up researchQuestions being asked, how leading they areWho am I asking to - DMU20/80External referencesInterviewer
  11. Basically, customer isnight programmes currently look too much at the past, focus too much on performanceAnd to little develop insights to preduct the future customer behaviour
  12. Quite often we see customer research or feedback programmes of which it is unclear what exacly the prupospe or objectives are. Not to speak about the requirements.As a result, they do not deliver the required insight and loose commitment from the organisation
  13. Initially maintenanceNow providing end to end servicesAdvise in design cooling concepts, including finianicingNow price per m3 cooling capacity, including energyCovering full life cycle
  14. Bio Merieux3-4% cost of equipment60% labourDeveloped of portifolio of 25 valua adding services
  15. Obsere, see your entire business through the eyes of your customerInsights on your brand, service offerings and propositions, management practices, service factory and behaviour of employeesHow they impact the value perception of customers
  16. Example of Yokogawa, Idustrial automation equipmentHad to believe sales people, talking with operational level, did not understand need s of customer as wholeInterviewed executives, asking right questions One of challenges was not lower cost, but more stable and predicible process for chemical plantsAnd even expected Recurring services to help managing client processes. Benchmarking with advisory of production processes
  17. Example for company wanting to fully understand how customer needs in terms of experience. Aksed participant to maintain diary, camera.After time, put ifnromation together, Explaining what the do, based on pictures.So no structured questionsPanel members also react on each other, revealing more thoughts and ideas.Well facilitatedResult was a new App for ipad having right information at right time very easily
  18. Summary:Insight in changing business challenges, leading to changing expectations and need for customer insightChallenges for gaining customer insights from feedback and researchPresented a few examples of advanced techniques to overcome the challenges and help getting ahead of the pack