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, I'll dig into the two primary types of customer needs: functional and emotional. With concrete examples from Blackboard, I'll guide you through how to understand, operationalize and measure these needs to build better and more fitting products for your customers. Tobias Holm Jensen, Senior Product Designer, Blackboard Insurance

1. Understand your
customer
Functional and Emotional Customer Needs
@TobiasHJensen

2. Hi! I’m Tobias
I use design thinking to solve complex
problems and create valuable experiences.
tobias.jensen@blackboardinsurance.com
www.tobiasholm.com
Senior Product Designer @ Blackboard Insurance

3. I’m from
Blackboard
A tech-forward insurance start-up reimagining
an archaic industry with a customer-, value-, and
data-centric approach.

4. Understand your
customer
Functional and Emotional Customer Needs
What?
Why?
How?

5. Needs > Wants

6. As __________
User
I want __________
Feature/solution
so __________
Need

7. We need better tools to create products around
our customers’ needs

9. Emotional
Functional

10. Efficient Informational ReliableCost effective
Trust Reduces anxiety ReputableAesthetic

11. Emotional
Functional
Efficient Informational ReliableCost effective
Trust Reduces anxiety ReputableAesthetic

12. How do we identify, operationalize and
measure customer needs?

13. Research Define Ideate Prototype

14. Identify
Research Define Ideate Prototype
Operationalize Measure

15. How do we identify customer needs?

16. Identify
Research Define Ideate Prototype
Measure

17. Customer Outcome Statement (COS)

18. Customer Outcome Statement (COS)
__________
Action
_____________________________
Objective
++__________
Context

19. __________
Action
_____________________________
Objective
++
Customer Outcome Statement (COS)
maximize__________
Context
Before loss my ability to protect my assets

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?

24. Identify
Research Define Ideate Prototype
Operationalize

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

28. How do we measure the outcome?

29. Identify
Research Define Ideate Prototype
Measure

30. ______________________
Solution
______________________
Customer outcome statement
helps

31. The claims prevention
notification
helps
Maximize my ability to
protect my assets
______________________
Solution
______________________
Customer outcome statement

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:

33. Identify
Research Define Ideate Prototype
Operationalize Measure

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

35. Thank you!
@TobiasHJensen
Any questions?