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Understand your Customer: Functional vs Emotional Needs

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.

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Understand your Customer: Functional vs Emotional Needs

  1. 1. Understand your customer Functional and EmotionalCustomer Needs @TobiasHJensen
  2. 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. 3. I’m from Blackboard A tech-forward insurance start-up reimagining an archaic industry with a customer-, value-, and data- centric approach.
  4. 4. Understand your customer Functional and Emotional Customer Needs What? Why? How?
  5. 5. Needs >Wants
  6. 6. As __________ User I want __________ Feature/solution so __________ Need
  7. 7. We need better tools to create products around our customers’ needs
  8. 8. Emotional Functional
  9. 9. Efficient Informational ReliableCost effective Trust Reduces anxiety ReputableAesthetic
  10. 10. Emotional Functional Efficient Informational ReliableCost effective Trust Reduces anxiety ReputableAesthetic
  11. 11. How do we identify, operationalize and measure customer needs?
  12. 12. Research Define Ideate Prototype
  13. 13. Identify Research Define Ideate Prototype Operationalize Measure
  14. 14. How do we identify customer needs?
  15. 15. Identify Research Define Ideate Prototype Measure
  16. 16. Customer Outcome Statement (COS)
  17. 17. Customer Outcome Statement (COS) __________ Action _____________________________ Objective ++__________ Context
  18. 18. __________ Action _____________________________ Objective ++ Customer Outcome Statement (COS) maximize__________ Context Before loss my ability to protect my assets
  19. 19. 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
  20. 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 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
  21. 21. 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
  22. 22. How do we operationalize the customer outcome statements?
  23. 23. Identify Research Define Ideate Prototype Operationalize
  24. 24. How might we ________________________________________ ? Customer outcome statement
  25. 25. How might we ________________________________________ ? Customer outcome statement Help the customer maximize their ability to protect their assets
  26. 26. 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
  27. 27. How do we measure the outcome?
  28. 28. Identify Research Define Ideate Prototype Measure
  29. 29. ______________________ Solution ______________________ Customer outcome statement helps
  30. 30. The claims prevention notification helps Maximize my ability to protect my assets ______________________ Solution ______________________ Customer outcome statement
  31. 31. 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:
  32. 32. Identify Research Define Ideate Prototype Operationalize Measure
  33. 33. 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
  34. 34. Thank you! @TobiasHJensen Any questions?

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