Proto Partners founder Damian Kernahan explains four approaches on how to transform customer experience vision into tangible business value.

1. CREATING REAL BUSINESS
VALUE WHEN DESIGNING
SERVICES
Damian Kernahan

2. rn ah an
i an Ke u sin ess
Dam e in Design +B
Ib e liev

3. “ More companies are
taking a customer-
customer ”
centred approach.

4. “ It’s important now
because our world has
”
never been so complex.

5. “ There’s really nobody
doing this really well
right now.
”

6. WHY ISN’T THIS
HAPPENING?

7. “ Designers often like to
”
start from scratch.

8. “ It’s about mastering
”
the magic...

9. “ There isn’t a variety of
skills or experience.”

10. “ Design & Business don’t
feel compatible at first
”
sight.

11. organisation customer

12. It outlines what an
WHAT IS A organisation wants to be
VISION? or how it wants the world
to be.

13. aving
that h ong.
It’s not n is wr
a visio
just
It’s t
tha t
’s no h.
it g
e nou Va lu e come
s in .
s where
That

14. True value creates
WHAT IS strategic, operational
VALUE? & financial value
for an entire organisation.

15. 1. ASKING THE RIGHT QUESTION
2. IT’S ALSO ABOUT JOBS
3. REDUCING COMPLEXITY
4. PROMISES KEPT

16. 1.
ASKING
THE RIGHT
QUESTIONS

17. “ usually hidden from
The killer question is
view.”

18. “ Every one of your
? competitors is asking
the same question.
”

19. There are three layers to finding and fixing business challenges.
“What is the problem?”
“Why is this a problem?”
“How should we solve this problem?”

20. WHAT? ...is the problem?
...does the customer like and dislike?
...is their preferred channel?

21. Surface level
understanding

22. WHY? ...does this concern you?
...does it make you feel this way?
...is this valuable to you?

23. Design Research

24. people do not always do what you think they do
people do not always do what you tell them to do
people do not always do what they think they do
people do not always do what they say they do
Asking why lets you find out what people really do and need
ADAPTED FROM IDEO 2006

25. 7 Days In My Life

26. We ask
stakeholders
to do the same

27. Empathy with
customers

28. HOW? ...do you solve this problem?

29. Developing
Personas

30. Mapping their
ideal journey

31. How do you get
raving fans?
Defining Service
1. By doing things exceptionally and
consistently well
Principles
2. By doing things that strike a deeply
emotional and personal note with your
customers
3. By being like, and doing what your
customer aspires to be and do
4. By doing things that are exciting and that
customers love to talk about

32. THIS IS WHERE THE
MAJORITY OF SERVICE
DESIGN STOPS.

33. THIS IS ONLY HALF OF
WHAT CLIENTS ARE
LOOKING FOR.

34. Artefacts
7 Days in the Shadowing &
Life observation
Customer Journey
Customer Maps
Interviews Ideal
Personas
Capacity
Constraints
vs in-flight
projects Comms Plan
Data Analysis
Design Challenge:
Yes Meter
7.71 > 8.5 Experience
Innovation
Stakeholder
Interviews Synthesis
Customer Resource Plan
Journey Map
Desktop Current
Research
Initiatives
Commercials
Staff
Co Creation
Interviews Workshops
3 months Business Case 18 months
Go/No Go

35. “ You need to make a robust
case to the bean counters
that customer experience
”
is worth investing in.

36. Tenure
Spend
+ How often they contact
the call centre
Profitability How many
products they
NPS = % Promoters - % Detractors have
Customer data Business Intelligence Data

37. Likelihood to
promote…
+ ++
… or
dissuade
Understanding customers - design research A lot of Analysis...

38. ( Customer
data + Business
Intelligence Data + Understanding
the customers )x A lot of
Analysis...
= $ LIFETIME
VALUE

39. RAVING FANS ARE
WORTH NEARLY 4X
MORE THAN
DETRACTORS!

40. “How do we install the
internal processes and
capabilities and behaviours FUNDED
that will guarantee that we’ll
be able to predictably BUSINESS
DELIVER this customer
experience?” CASE
organisation customer

41. 2.
IT’S ALSO
ABOUT
JOBS

42. “ Two questions you can ask
”
to improve value created

43. “ Two questions you can ask
to improve value created
”
“What does the customer value from us?”
“How well are we doing in delivering it?”

44. “What does the customer value from us?”
“How well are we doing in delivering it?”
A B C
7/10 3/10 3/10 8/10 8/10 7/10

45. Close the gap Ignore it Increase focus
A B C
7/10 3/10 3/10 8/10 8/10 7/10
Pre 2.1 units of value 2.4 units of value 5.6 units of value 10.1 units
Post 6.3 units of value 2.4 units of value 7.2 units of value 15.9 units

46. traditional:
“ What if there was another
way to introduce
60% increase ”
additional value?

47. “ We just used the service
offering as the current
”
unit of analysis

48. “ But what if the job was the
”
primary unit of analysis?

49. “ A “job” is the fundamental
problem a customer needs
to resolve in a given
”
situation.
Source: Clayton Christensen

50. “ ...and what if customer
needs didn’t just relate to
”
the service itself?

52. The job of a credit card is to finding desired products
comparing brands to buy
MAKE
tracking expenditure
PURCHASES purchasing is easier/quicker
low interest rates
fraud protection
want it to be accepted
loyalty points
interest free days
link to other bank accounts

53. “ When using the job as the
filter, whole new customer
”
needs are revealed .

54. The job of a credit card is to finding desired products
comparing brands to buy
MAKE
tracking expenditure
PURCHASES purchasing is easier/quicker
“I have trouble finding exactly what I want”
“I am not sure which is the best brand to buy”
“I am not very good at tracking what I spend”
“I wish there was a way that I could pay quicker
in more places”

55. bank job new
+ = value
data needs

56. customer value
bank job
+ =
data needs business
value

57. Digital Manuals
for products you Warranty App
buy
Self service
Impulse scanner with
buying app customer ratings
Monitor spending
while traveling
app
Shoebox link
to send with
receipts

58. A P B Q C R
8/10 9/10 8/10 8/10 9/10 9/10
Core
6.3 units of value 2.4 units of value 7.2 units of value 15.9 units
Value
New
7.2 units of value 6.4 units of value 8.1 units of value 21.7 units
Value
“what does the customer value from us?” 37.6 units
“how well are we doing in delivering it?”

59. customer needs: Adding Jobs :
60% increase 270% increase

60. 3
.
REDUCING
COMPLEXITY

61. “Can we do it
on iPad? ”

62. “Can we do it
on iPhones? ”

63. “Let’s connect
on facebook”

64. “Can we
update them
via SMS?”

65. “Can they pay
x
via phone”

66. PICTURE

67. x x
1980 2012
banking ecosystem banking ecosystem

68. JUST BECAUSE YOU
CAN, DOESN’T MEAN
YOU SHOULD.
Source: Bill Taylor

69. “ The effort required to
achieve this is
”
logarithmic.

70. x x
2012
The other 90% is in ensuring the
Developing a new app or new channel is
seamless and consistent integration of
only 10% of the work.
each of those channels for customers.

71. “ Customers expect
organisations to
”
be intelligent.

72. Ensure existing
channels all work
together
seamlessly.

73. 4
.
PROMISES
KEPT

74. $ $ $ $ $ $
Interactions

75. Customer experience
$ $ $ $ $ $
Interactions

76. Customer experience
$ $ $ $ $ $
Interactions

77. What influences customer satisfaction?
• Your brand values
Promises
made • Advertising campaigns
• Collateral and packaging
• Welcome material
Expectations set
• at point of sale
• on your website
• by your sales people
• by your service staff
• Previous experiences
Influences • Word of mouth from family or friends
• Other people’s experiences,
• E.g., Social Media

81. What influences customer satisfaction?
• Your brand values Promises When they:
Promises kept…
made • Advertising campaigns or not
• Buy your products
• Collateral and packaging • Use your products
• Welcome material • Go into a store
• Read an e-mail from you
Expectations set • Surf your website
• at point of sale • Navigate your IVR
• on your website • Speak to your call centre
• by your sales people • Tweet you
• by your service staff • Look at a bill
• Previous experiences
Influences • Word of mouth from family or friends
• Other people’s experiences,
• E.g., Social Media

82. A LARGE GAP
BETWEEN OFFER
AND DELIVERY.

83. 95% say they are
customer focused
80% say they deliver a
“superior experience”
How many of these
firm’s customers agree
that they deliver a
superior experience?
8%
BAIN & CO 2008, B Schauer, Layout

84. The
Expectation The
Gap Brand
Gap
The
Delivery
Gap

85. The
Expectation
Gap
not designing services
to meet customer
expectations

86. The
Brand
Gap
failing to match the
performances to brand
communications

87. The
Delivery
Gap
not performing the
service as designed

88. The
Expectation The
Gap Brand
Gap
The
Delivery Customer
Gap Experience
Opportunity

89. “ Organisations need a
better way to fill the
gaps.
”

90. organisation customer
Mutual value is generated

91. Customer experience
$ $ $ $ $ $ $ $ $ $ $
Interactions

92. DISCOVER DESIGN DEVELOP DELIVER
OUR CLIENT’S JOB
OUR JOB

93. DISCOVER DESIGN DEVELOP DELIVER
ROLE OF COMMERCIAL
RIGOUR
ROLE OF DESIGN

94. BRANDING IS THE
PROMISE YOU MAKE,
CUSTOMER EXPERIENCE
IS THE PROMISE YOU KEEP.

95. Based on our latest
White Paper
“Talking Points”,
contact us for a copy.

96. THANK YOU!
& QUESTIONS
Sydney Canberra Rotterdam