Post on 24-May-2015
description
2170 Mills Avenue
Menlo Park, CA 94025
Valuing Customers and their Value to Your Company
04/12/23
About Vision & Execution
• Founded in 1999 by Patrina Mack
• Expertise in the software, telecom, Internet, financial services, and packaged goods industries
• Focus, Facts, InsightTM Methodology
• Virtual organization that enables the fluid development of focused teams to meet client needs.
What we’ll discuss today
• Importance of customers to creating value for companies
• How customer research can be used to uncover real customer needs that create purchase demand
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Guy got it wrong…
"Ask customers what they want and the result is me-too products that perpetually trail industry leaders"
- Guy Kawasaki, former Apple Computer executive and notorious 'Angel'
04/12/23
Research Terms
• Primary research: data collected specifically for the purpose of a given project
• Secondary research: previously collected/published data that can add clarity to a different project
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Why Involve Customers?
• To identify unmet needs that new products can address
• To validate assumptions about business opportunities
• To focus resources
• To reduce cost/time to market
• To build good will/loyalty
Ultimately, to reduce or eliminate risk
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When to Use Market Research
• Solicit or test new
product ideas
• Test and prioritize
product features• Test product names
• Test positioning
• Test pricing
• Test packaging
Ideation & Preliminary Investigation
Development & Testing/Validation
Market Launch
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Talking to the Right People
• Be sure you are talking/listening to representatives of your target audience– demographics– industry– role– need– experience level
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Using the Right Tools
• Ethnographic Research• Qualitative Research
– In-person interviews
– Focus groups
– Customer panels
– Web-based survey
• Quantitative Research– Telephone interviews/
surveys
– Paper survey/Web-based survey
• Market Trial– Usability testing
Disruptive New Product Category
Validating Execution
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Primary Research Tips
• Use the right technique for the stage you’re at
• Thoroughly define respondent profile - either before you field the research or as a result of your research
• Make sure you’re asking the right questions in the right context
• Allow time to test instrument(s)• Don’t be afraid to ‘just do it’!
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Primary Research - Success Factors
• Asking the right questions– in the context of a problem that URGENTLY needs to
be solved– in the context of a purchase decision using an actual
price point or price range
• Talking to right people– people who intend to or are likely to buy
• Using the right tools at the right time
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After Internet Time….Now What?• Selected slides from the research study:
After Internet Time: 5 New Realities for Product Development in the Internet Economy
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The Role of the Customer
What sources do you use to gather, validate and/or prioritize features?
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Total Respondents Introduced products faster Increased market share 25%+
Prospect DrivenInternally Driven Customer/Industry Data Driven User Driven
Heaviest use of customer input is prospect driven
Weakest use of customer input is user driven
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The Role of the Customer
• Top 5 resources used by companies who met or exceeded revenue projections for more than half of their products: – Participating in sales calls
– Pilot programs
– Cost/benefit analysis
– Focus groups/qualitative research
– Prototype evaluations
to make decisions about product priorities
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The Role of the Customer
Application of Customer Segmentation
0%5%
10%15%20%25%30%35% Segments for
which yourcompanydevelopsspecific productsor servicesSegments whichinfluence featureprioritization
Best Customers Partners Industry Segments
Least likely to develop products/prioritize features for most
profitable customers
0%
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Prioritizing Investments
“At some point companies must invest as much in improving product architectures, testing and process control as they do in
generating new features, sales and additions to the product portfolio.”
Competing On Internet Time, Cusumano and Yoffie
04/12/23
Questions?
Patrina MackManaging Partner
Vision & Execution650 233 0256
www.visionandexecution.com