What customer needs are you actually addressing with your product? If you think that question is hard to answer, you're not alone! With constantly emerging digital technologies, customers have more needs and expectations than ever before. Navigating these needs and identifying the right ones can be a challenge. In this talk, Tobias will dig into the two primary types of customer needs: functional and emotional. With concrete examples from Blackboard, Tobias will guide you through how to understand, operationalize and measure these needs to build better and more fitting products for your customers.
20. Maximize ability to protect
assets
Minimize # of times I have to
share facts
Maximize knowing where
claim is
Maximize future loss
prevention
Before loss Loss occurs Claim is processed Claim is settled Back to normal
Minimize risk of not being
covered
Minimize # of unknowns
(process, who to call,
coverage)
Maximize understanding of
claims process
Minimize out of pocket
expenses
Maximize flexibility in
process given the situation
Minimize downtime in my
situation
Maximize confidence I have
in carrier to address the
situation
Minimize anxiety and
uncertainty of outcome
Minimize # of people I have
to work with
Minimize carrier taking
advantage of me
Minimize # of steps to
complete
Maximize accuracy of
payment details and
instructions
Maximize understanding of
payout amounts (e.g.,
deductibles)
Reduce payment delivery
risk
Maximize understanding of
future premium impact
Minimize redundant follow
ups
Maximize final closure
Maximize proactiveness of
carrier
Minimize worries about
getting paid right amount
21. Maximize ability to protect
assets
Minimize # of times I have to
share facts
Maximize knowing where
claim is
Maximize future loss
prevention
Before loss Loss occurs Claim is processed Claim is settled Back to normal
Minimize risk of not being
covered
Minimize # of unknowns
(process, who to call,
coverage)
Maximize understanding of
claims process
Minimize out of pocket
expenses
Maximize flexibility in
process given the situation
Minimize downtime in my
situation
Maximize confidence I have
in carrier to address the
situation
Minimize anxiety and
uncertainty of outcome
Minimize # of people I have
to work with
Minimize carrier taking
advantage of me
Maximize accuracy of
payment details and
instructions
Maximize understanding of
payout amounts (e.g.,
deductibles)
Reduce payment delivery
risk
Maximize understanding of
future premium impact
Minimize redundant follow
ups
Maximize final closure
Minimize # of steps to
complete
Maximize proactiveness of
carrier
Minimize worries about
getting paid right amount
Functional
Emotional
22. Maximize ability to protect
assets
Minimize # of times I have to
share facts
Maximize knowing where
claim is
Minimize worries about
getting paid right amount
Maximize future loss
prevention
Before loss Loss occurs Claim is processed Claim is settled Back to normal
Minimize risk of not being
covered
Minimize # of unknowns
(process, who to call,
coverage)
Maximize understanding of
claims process
Minimize out of pocket
expenses
Maximize flexibility in
process given the situation
Minimize downtime in my
situation
Maximize confidence I have
in carrier to address the
situation
Maximize proactiveness of
carrier
Minimize # of people I have
to work with
Minimize carrier taking
advantage of me
Minimize # of steps to
complete
Maximize accuracy of
payment details and
instructions
Maximize understanding of
payout amounts (e.g.,
deductibles)
Reduce payment delivery
risk
Maximize understanding of
future premium impact
Minimize redundant follow
ups
Maximize final closure
Minimize anxiety and
uncertainty of outcome
Functional
Emotional
23. How do we operationalize the customer outcome
statements?
25. How might we ________________________________________ ?
Customer outcome statement
26. How might we ________________________________________ ?
Customer outcome statement
Help the customer maximize their ability to protect their assets
27. Maximize ability to protect
assets
Minimize # of times I
have to share facts
Maximize knowing where
claim is
Minimize time to get paid
Maximize future loss
prevention
Before loss
Loss occurs
Claim is processed
Claim is settled
Back to normal
Notify user of relevant
damage mitigation
Claims prevention
notifications
Intuitive form to file the
claim and submit
information.
Online intake
application
Self-service
Easy claim tracking and
relevant status updates
Direct, online payments
with clear rationale
Direct payments Loss overview
Learn and understand
from previous losses to
mitigate future ones
32. The claims prevention
notification
helps
Maximize my ability to protect
my assets
______________________
Solution
______________________
Customer outcome statement
Strongly disagree Strongly agree
To what extent do you agree with the following statement:
34. Key takeaways
— We need tools for identifying needs, so we don’t just listen to wants
— We can organize and operationalize the customer needs in COSs
— This method allows for finding solutions and measuring success grounded in needs
— Customer needs are hierarchical and of both functional and emotional character
Hi!
Thanks UXDX
I’m here to talk about customer needs, what they are and how to design better for them.
Tobias Jensen
Senior Product Designer
From Copenhagen - lived in New York City for two years but from Denmark.
Degrees from IT-University of Copenhagen
Obsessed with handling complex domains. Use design thinking to solve complex problems and create experiences.
Currently work at an insurance company.
We work hard to reimagine the current way insurance works.
New look at insurance - how can insurance be a good experience?
Historically boring and tedious
No trust
Asymmetry
My mission is to figure out how design can change insurance for the better.
Why should we be talking about functional and emotional needs?
What it actually is
How to use it in your organization.
I’ll try to leave time for questions at the end as well.
[WATER]
Before I dive too deep into talking about needs, let’s quickly discuss why needs matter.
Customers these days have more power and choices than ever before.
We are responsible for understanding and acknowledging their needs.
Users are more likely to choose products that meet their needs than ones that meet their wants.
However, needs are very hard to define for several reasons:
They are contextual and situational
They are also cultural
They are individual and can be difficult to generalize
Most importantly, they are often unknown to the user and can be hard to identify
This is problematic, since our mission as designers is to create products that meet customer needs.
User stories allow us to do is to understand what features will satisfy what user needs.
However,
Most people only think they know what the users want
We product people have to understand the needs
People get stuck with a narrow focus or understanding of user needs for the services they’re working on.
So ultimately, the challenge for product people is: How do we identify, operationalize and measure customer needs?
[WATER]
A good way to think about needs is using Maslow’s hierarchy.
I’m not going to go through Maslow’s hierarchy of needs.
However, there is one important point to keep in mind: humans have many different types of needs and some take precedence over others. This is also true for product development.
When we’re talking about products, there is a general consensus that we’re designing for two overall categories of needs: emotional and functional.
Functional:
basic, practical things that people need to do as part of a product or service.
low value by itself
Emotional:
Softer, more emotional aspects.
Control, trust, fun, playfulness, excitement and aesthetics.
By understanding the emotional needs, companies can more easily differentiate themselves from their competitors.
Companies that score high on emotional elements tend to have a higher NPS, on average, than companies that spike only on functional elements”— Harvard Business Review, 2016
These are some examples of the customer needs we’ve found in the insurance industry
It’s obvious that some a functional, others more emotional
[WATER]
Looking at a typical design process like the double diamond
We have to find ways in which we can inject the identification, operationalization and measurement of customer needs.
But the question is then: how do we identify the needs to design for?
For identifying the customer needs, we need to do customer research.
I’ve found that most types of research can lead to these insights, as long as the study has been outcome focused from the beginning.
What we typically want to do is to gather everyone in a room, then go through the different phases of a customer’s journey.
Then we identify the current pain points and then what the ideal state would look like.
The goal is to get the customers to be vocal about the outcomes they wish to achieve in each phase of their journey.
At Blackboard, we use so-called Customer Outcome Statements to summarize our research findings.
They’re concise, actionable problem statements that help structuring our understand of the customers’ needs.
They’re meant to guide the problem definition, ideation, prototyping and testing phases of the design process.
The basic format is this:
In a given context, the customer wants to either maximize or minimize some objective or outcome.
It basically summarizes the goal of the customer in the specific context and our goal then is to figure out how our product can cater to this need.
Once the COSs have been defined and prioritized
They are ready to be operationalized through design and ideation activities.
I typically use them to inform early design decisions and also prioritization of proposed solutions.
I’ve found it very useful to combine the COS with how might we questions
You plug in the COS to ask a question that needs to be answered with the proposed solution.
In the case of the customer wanting to maximize their ability to protect their assets
This allows for ideation and brainstorm with a focus on the customer need.
This journey map shows both this solution and also how the others informed solutions.
Use customer outcome statements to measure success!
Customer Outcome Statements, if properly crafted, have the added benefit of providing a metric for measuring success of the product.
Measuring whether you successfully designed for your customer’s needs is crucial.
By measuring, you will be able to, in a more quantitative way, find out if there are still areas of improvement.
This measurement can be done in many different ways.
I’ll present one way which is specifically for a survey.
You measure, you can use the COS directly to validate if you’ve done what you wanted.
In this formular, we see the relationship between the proposed solution and the original outcome statement.
If we now add one of the examples of a solution to a customer need, this statement becomes something that we can validate.
If we then pull this into a survey and specifically a Likert scale format, we can now ask the customers to show to which extent they agree with the statement.
This is just one example of how the COS can be used to measure success.
You can also ask your customers in interviews, or get them to vocalize what value they receive from using the product.
Hopefully, what you guys will take away from this presentation is that there are definitely ways to better identify, operationalize and measure customer needs throughout a design process.
It's a matter of defining the outcome statements and using them throughout the process.
We need tools for identifying needs, so we don’t just listen to wants
Customer needs are hierarchical and of both functional and emotional character
We can organize and operationalize the customer needs in COSs
This method allows for finding solutions and measuring success grounded in needs