CREATING REAL BUSINESSVALUE WHEN DESIGNING       SERVICES       Damian Kernahan
rn ah an    i     an Ke         u sin essDam       e in Design +BIb  e liev
“   More companies are               taking a customer-customer                       ”               centred approach.
“   It’s important now    because our world has                         ”    never been so complex.
“   There’s really nobody    doing this really well    right now.              ”
WHY ISN’T THISHAPPENING?
“   Designers often like to                      ”    start from scratch.
“   It’s about mastering               ”    the magic...
“   There isn’t a variety of    skills or experience.”
“   Design & Business don’t    feel compatible at first         ”    sight.
organisation   customer
It outlines what anWHAT IS A   organisation wants to be VISION?    or how it wants the world            to be.
aving         that h ong.It’s not n is wr  a  visio          just     It’s t        tha t         ’s no h.      it g      ...
True value createsWHAT IS   strategic, operationalVALUE?    & financial value          for an entire organisation.
1. ASKING THE RIGHT QUESTION2. IT’S ALSO ABOUT JOBS3. REDUCING COMPLEXITY4. PROMISES KEPT
1.ASKINGTHE RIGHTQUESTIONS
“ usually hidden from The killer question is  view.”
“   Every one of your?       competitors is asking        the same question.                          ”
There are three layers to finding and fixing business challenges.   “What is the problem?”            “Why is this a probl...
WHAT?   ...is the problem?        ...does the customer like and dislike?        ...is their preferred channel?
Surface levelunderstanding
WHY?   ...does this concern you?       ...does it make you feel this way?       ...is this valuable to you?
Design Research
people do not always do what you think they do                     people do not always do what you tell them to do       ...
7 Days In My Life
We askstakeholdersto do the same
Empathy withcustomers
HOW?   ...do you solve this problem?
DevelopingPersonas
Mapping theirideal journey
How do you getraving fans?                                                 Defining Service 1. By doing things exceptional...
THIS IS WHERE THEMAJORITY OF SERVICEDESIGN STOPS.
THIS IS ONLY HALF OFWHAT CLIENTS ARELOOKING FOR.
Artefacts                                                        7 Days in the                  Shadowing &               ...
“   You need to make a robust    case to the bean counters    that customer experience                       ”    is worth...
Tenure                                                             Spend                                   +        How of...
Likelihood to        promote…+                                           ++                               … or            ...
(   Customer      data     +       Business                   Intelligence Data   +   Understanding                       ...
RAVING FANS AREWORTH NEARLY 4XMORE THANDETRACTORS!
“How do we install the   internal processes and capabilities and behaviours     FUNDEDthat will guarantee that we’ll    be...
2.IT’S ALSOABOUTJOBS
“   Two questions you can ask                           ”    to improve value created
“   Two questions you can ask        to improve value created                                        ”“What does the custo...
“What does the customer value from us?”“How well are we doing in delivering it?”          A                        B      ...
Close the gap         Ignore it          Increase focus              A                    B                    C          ...
traditional:                 “   What if there was another                     way to introduce60% increase               ...
“   We just used the service    offering as the current                   ”    unit of analysis
“   But what if the job was the                            ”    primary unit of analysis?
“   A “job” is the fundamental                                  problem a customer needs                                  ...
“   ...and what if customer    needs didn’t just relate to                      ”    the service itself?
The job of a credit card is to   finding desired products                                                               co...
“   When using the job as the    filter, whole new customer                       ”    needs are revealed .
The job of a credit card is to   finding desired products                                          comparing brands to buy...
bank    job     new     +       = valuedata   needs
customer valuebank    job     +       =data   needs       business                    value
Digital Manuals         for products you                                                  Warranty App                buy ...
A        P                B           Q           C        R                     8/10 9/10                 8/10 8/10      ...
customer needs:     Adding Jobs :60% increase       270% increase
3.REDUCINGCOMPLEXITY
“Can we do iton iPad? ”
“Can we do iton iPhones? ”
“Let’s connecton facebook”
“Can weupdate themvia SMS?”
“Can they payx    via phone”
PICTURE
x                  x      1980                2012banking ecosystem   banking ecosystem
JUST BECAUSE YOUCAN, DOESN’T MEANYOU SHOULD.Source: Bill Taylor
“   The effort required to    achieve this is               ”    logarithmic.
x                                      x                                                         2012                     ...
“   Customers expect    organisations to                ”    be intelligent.
Ensure existingchannels all worktogetherseamlessly.
4.PROMISESKEPT
$       $    $   $   $   $Interactions
Customer experience  $       $    $   $   $           $Interactions
Customer experience  $       $    $   $   $           $Interactions
What influences customer satisfaction?             •   Your brand values  Promises    made     •   Advertising campaigns  ...
What influences customer satisfaction?             •   Your brand values                      Promises   When they:  Promi...
A LARGE GAPBETWEEN OFFERAND DELIVERY.
95% say they are                                                 customer focused                                         ...
TheExpectation        The       Gap         Brand                   Gap             The        Delivery            Gap
TheExpectationGapnot designing servicesto meet customerexpectations
TheBrandGapfailing to match theperformances to brandcommunications
TheDeliveryGapnot performing theservice as designed
TheExpectation        The       Gap         Brand                   Gap             The        Delivery           Customer...
“   Organisations need a    better way to fill the    gaps.         ”
organisation   customerMutual value is generated
Customer experience $   $   $     $   $   $ $ $ $               $ $Interactions
DISCOVER   DESIGN   DEVELOP     DELIVER                              OUR CLIENT’S JOB                              OUR JOB
DISCOVER   DESIGN   DEVELOP          DELIVER                              ROLE OF COMMERCIAL                              ...
BRANDING IS THEPROMISE YOU MAKE,CUSTOMER EXPERIENCEIS THE PROMISE YOU KEEP.
Based on our latestWhite Paper“Talking Points”,contact us for a copy.
THANK YOU!& QUESTIONS  Sydney   Canberra   Rotterdam
Proto Partners how to transform vision into value
Proto Partners how to transform vision into value
Proto Partners how to transform vision into value
Proto Partners how to transform vision into value
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Proto Partners how to transform vision into value

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

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Proto Partners how to transform vision into value

  1. 1. CREATING REAL BUSINESSVALUE WHEN DESIGNING SERVICES Damian Kernahan
  2. 2. rn ah an i an Ke u sin essDam e in Design +BIb e liev
  3. 3. “ More companies are taking a customer-customer ” centred approach.
  4. 4. “ It’s important now because our world has ” never been so complex.
  5. 5. “ There’s really nobody doing this really well right now. ”
  6. 6. WHY ISN’T THISHAPPENING?
  7. 7. “ Designers often like to ” start from scratch.
  8. 8. “ It’s about mastering ” the magic...
  9. 9. “ There isn’t a variety of skills or experience.”
  10. 10. “ Design & Business don’t feel compatible at first ” sight.
  11. 11. organisation customer
  12. 12. It outlines what anWHAT IS A organisation wants to be VISION? or how it wants the world to be.
  13. 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. 14. True value createsWHAT IS strategic, operationalVALUE? & financial value for an entire organisation.
  15. 15. 1. ASKING THE RIGHT QUESTION2. IT’S ALSO ABOUT JOBS3. REDUCING COMPLEXITY4. PROMISES KEPT
  16. 16. 1.ASKINGTHE RIGHTQUESTIONS
  17. 17. “ usually hidden from The killer question is view.”
  18. 18. “ Every one of your? competitors is asking the same question. ”
  19. 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. 20. WHAT? ...is the problem? ...does the customer like and dislike? ...is their preferred channel?
  21. 21. Surface levelunderstanding
  22. 22. WHY? ...does this concern you? ...does it make you feel this way? ...is this valuable to you?
  23. 23. Design Research
  24. 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 needADAPTED FROM IDEO 2006
  25. 25. 7 Days In My Life
  26. 26. We askstakeholdersto do the same
  27. 27. Empathy withcustomers
  28. 28. HOW? ...do you solve this problem?
  29. 29. DevelopingPersonas
  30. 30. Mapping theirideal journey
  31. 31. How do you getraving 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. 32. THIS IS WHERE THEMAJORITY OF SERVICEDESIGN STOPS.
  33. 33. THIS IS ONLY HALF OFWHAT CLIENTS ARELOOKING FOR.
  34. 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 AnalysisDesign 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. 35. “ You need to make a robust case to the bean counters that customer experience ” is worth investing in.
  36. 36. Tenure Spend + How often they contact the call centre Profitability How many products theyNPS = % Promoters - % Detractors have Customer data Business Intelligence Data
  37. 37. Likelihood to promote…+ ++ … or dissuade Understanding customers - design research A lot of Analysis...
  38. 38. ( Customer data + Business Intelligence Data + Understanding the customers )x A lot of Analysis... = $ LIFETIME VALUE
  39. 39. RAVING FANS AREWORTH NEARLY 4XMORE THANDETRACTORS!
  40. 40. “How do we install the internal processes and capabilities and behaviours FUNDEDthat will guarantee that we’ll be able to predictably BUSINESS DELIVER this customer experience?” CASE organisation customer
  41. 41. 2.IT’S ALSOABOUTJOBS
  42. 42. “ Two questions you can ask ” to improve value created
  43. 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. 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. 45. Close the gap Ignore it Increase focus A B C 7/10 3/10 3/10 8/10 8/10 7/10Pre 2.1 units of value 2.4 units of value 5.6 units of value 10.1 unitsPost 6.3 units of value 2.4 units of value 7.2 units of value 15.9 units
  46. 46. traditional: “ What if there was another way to introduce60% increase ” additional value?
  47. 47. “ We just used the service offering as the current ” unit of analysis
  48. 48. “ But what if the job was the ” primary unit of analysis?
  49. 49. “ A “job” is the fundamental problem a customer needs to resolve in a given ” situation.Source: Clayton Christensen
  50. 50. “ ...and what if customer needs didn’t just relate to ” the service itself?
  51. 51. The job of a credit card is to finding desired products comparing brands to buy MAKE tracking expenditure PURCHASES purchasing is easier/quickerlow interest ratesfraud protectionwant it to be acceptedloyalty pointsinterest free dayslink to other bank accounts
  52. 52. “ When using the job as the filter, whole new customer ” needs are revealed .
  53. 53. 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 quickerin more places”
  54. 54. bank job new + = valuedata needs
  55. 55. customer valuebank job + =data needs business value
  56. 56. Digital Manuals for products you Warranty App buy Self service Impulse scanner with buying app customer ratingsMonitor spending while traveling app Shoebox link to send with receipts
  57. 57. A P B Q C R 8/10 9/10 8/10 8/10 9/10 9/10Core 6.3 units of value 2.4 units of value 7.2 units of value 15.9 unitsValueNew 7.2 units of value 6.4 units of value 8.1 units of value 21.7 unitsValue “what does the customer value from us?” 37.6 units “how well are we doing in delivering it?”
  58. 58. customer needs: Adding Jobs :60% increase 270% increase
  59. 59. 3.REDUCINGCOMPLEXITY
  60. 60. “Can we do iton iPad? ”
  61. 61. “Can we do iton iPhones? ”
  62. 62. “Let’s connecton facebook”
  63. 63. “Can weupdate themvia SMS?”
  64. 64. “Can they payx via phone”
  65. 65. PICTURE
  66. 66. x x 1980 2012banking ecosystem banking ecosystem
  67. 67. JUST BECAUSE YOUCAN, DOESN’T MEANYOU SHOULD.Source: Bill Taylor
  68. 68. “ The effort required to achieve this is ” logarithmic.
  69. 69. x x 2012 The other 90% is in ensuring theDeveloping a new app or new channel is seamless and consistent integration of only 10% of the work. each of those channels for customers.
  70. 70. “ Customers expect organisations to ” be intelligent.
  71. 71. Ensure existingchannels all worktogetherseamlessly.
  72. 72. 4.PROMISESKEPT
  73. 73. $ $ $ $ $ $Interactions
  74. 74. Customer experience $ $ $ $ $ $Interactions
  75. 75. Customer experience $ $ $ $ $ $Interactions
  76. 76. 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
  77. 77. 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
  78. 78. A LARGE GAPBETWEEN OFFERAND DELIVERY.
  79. 79. 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
  80. 80. TheExpectation The Gap Brand Gap The Delivery Gap
  81. 81. TheExpectationGapnot designing servicesto meet customerexpectations
  82. 82. TheBrandGapfailing to match theperformances to brandcommunications
  83. 83. TheDeliveryGapnot performing theservice as designed
  84. 84. TheExpectation The Gap Brand Gap The Delivery Customer Gap Experience Opportunity
  85. 85. “ Organisations need a better way to fill the gaps. ”
  86. 86. organisation customerMutual value is generated
  87. 87. Customer experience $ $ $ $ $ $ $ $ $ $ $Interactions
  88. 88. DISCOVER DESIGN DEVELOP DELIVER OUR CLIENT’S JOB OUR JOB
  89. 89. DISCOVER DESIGN DEVELOP DELIVER ROLE OF COMMERCIAL RIGOUR ROLE OF DESIGN
  90. 90. BRANDING IS THEPROMISE YOU MAKE,CUSTOMER EXPERIENCEIS THE PROMISE YOU KEEP.
  91. 91. Based on our latestWhite Paper“Talking Points”,contact us for a copy.
  92. 92. THANK YOU!& QUESTIONS Sydney Canberra Rotterdam

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