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Introduction to our workshops on metrics for customer centricity

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Introduction to our workshops on metrics for customer centricity

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Why and how to create metrics that introduce customer-centricity as a real strategic theme. Measuring value for customers in terms that are both relevant for customers and for businesses.

Why and how to create metrics that introduce customer-centricity as a real strategic theme. Measuring value for customers in terms that are both relevant for customers and for businesses.

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Introduction to our workshops on metrics for customer centricity

  1. 1. Itziar Pobes & Silvia Calvet RELEVANT METRICS FOR YOUR STRATEGIC DECISIONS
  2. 2. AGENDA OF THIS TALK Hi! Metrics about value for customers 
 [Theory & little practice] Your waste projects 
 [I worked for 7 years with the waste management authority in Barcelona]
  3. 3. A SIDE PROJECT THAT GREW BIG HOW DO DIGITAL BUSINESSES MEASURE THE VALUE THEY DELIVER? HOW CAN A SERVICE PERSPECTIVE PUSH TOWARDS REAL CUSTOMER CENTRICITY? WORKSHOP WITH ROSENFELD MEDIA
  4. 4. “THIS THING WE HAVE GOING FEELS SO SHALLOW AND STALE. I’D LIKE TO GO DEEPER, EXPLORE NEW THINGS, AND MAKE FRESH CONNECTIONS. REALLY FIGURE OUT WHAT MATTERS, YOU KNOW? YOU’RE SO HYPER- FOCUSED ON MONEY, AND THE BOTTOM LINE, AND... I GET IT, I REALLY DO. WE ALL HAVE TO PAY THE BILLS. BUT DON’T YOU THINK THERE’S MORE TO LIFE? I DO” SARAH MASON
  5. 5. CUSTOMER CENTRICITY IS VOID Three realizations STRATEGY IS DEFINED BY METRICS DESIGNERS DON’T SPEAK METRICS Full of sound and fury, but it doesn’t reach strategy Metrics about value for customers are poor, if you’re lucky Their knowledge is lost in translation
  6. 6. METRICS SUFFER 3 KEY BIASES STRATEGY IS BASED ON & DEFINED BY METRICS Picture by Juli Kosolapova SET BY MANAGEMENT
  7. 7. THE SELECTION OF PERFORMANCE METRICS IS BASED ON POWER Instead of accurately reflecting how the organization, its customers and and its context actually work Bias 1
  8. 8. ORGANIZATIONS ONLY CONSIDER ‘VALUE’ —AND MEASURE— WHAT THEY DELIVER While they forget the value that customers actively co-create Bias 2
  9. 9. ORGANIZATIONS TRUST FACTUAL AND QUANTITATIVE KNOWLEDGE But they don’t fully understand or know how to use qualitative insights —meaning Bias 3
  10. 10. THEY REPEAT AT EVERY LEVEL THOSE BIASES ARE FRACTAL Picture by Nathalia Gómez
  11. 11. YOU CAN’T CONFRONT THEM DIRECTLY BUT YOU CAN INTRODUCE A TROJAN HORSE Picture by Adam Jones METRICS ABOUT VALUE FOR CUSTOMERS
  12. 12. CURRENT LOGIC: VALUE CHAIN WAREHOUSE FACTORY SUPPLIERS SHOP CONSUMER THE VALUE IS CREATED BY 'THE COMPANY'... AND THE CUSTOMER DESTROYS IT! Icons by: Itim2101, Freepik & Monkik. 
 Humaaans by Pablo Stanley VALUE-IN-EXCHANGE
  13. 13. VALUE CO-CREATION VALUE IS CREATED IN INTERACTIONS Humaaans by Pablo Stanley VALUE-IN-USE OR BEYOND
  14. 14. Value Creation Spheres by Grönroos and Voima, 2013 Iconos de Freepik and Geotatah. Humaans by Pablo Stanley WHERE IS VALUE CREATED? + THE CLIENT 
 CREATES VALUE 
 —FOR HERSELF OR FOR OTHERS— WHEN USING THE SERVICE AS A RESOURCE INTERACTION PRODUCTION INDEPENDENT VALUE-IN-CONTEXT Avoid depending on her family Continue with her life POTENTIAL VALUE REAL VALUE REAL VALUE
  15. 15. A DIGITAL EXAMPLE Picture byTasty & Cuisinart
  16. 16. Plan Review Retro Value Creation Spheres by Grönroos and Voima, 2013 Iconos de Freepik and Geotatah. Humaans by Pablo Stanley WHERE IS VALUE CREATED? INTERACTION PRODUCTION INDEPENDENT POTENTIAL VALUE REAL VALUE REAL VALUE Can cook in a small space Can eat home-made Learns Easier shopping Impresses with her cooking
  17. 17. VALUE IS ALWAYS CO-CREATED Please, don’t ever talk about ‘delivering value’ again Or add ‘potential’
  18. 18. CUSTOMERS AREN’T PASSIVE 
 [OR NEEDY] They do have needs, but also resources! And they actively integrate them in value for themselves or for others
  19. 19. YOUR PRODUCT IS A RESOURCE For value integrating activities by the customers Focus on integrating better with their context & their other resources! [= a service]
  20. 20. Plan Review Retro Value Creation Spheres by Grönroos and Voima, 2013 Iconos de Freepik and Geotatah. Humaans by Pablo Stanley WHAT VALUE GETS MEASURED? INTERACTION PRODUCTION INDEPENDENT POTENTIAL VALUE REAL VALUE REAL VALUE Can cook in a small space Can eat home-made Learns Easier shopping Impresses with her cooking
  21. 21. USUALLY… Provider sphere Joint sphere Customer sphere THIS EXPOSES BUSINESS LOGICS OPPORTUNITY TO RETHINK & INTRODUCE NEW PRACTICE MOST METRICS ARE HERE NPS & CSAT
  22. 22. HOW DO WE KNOW THAT [SHE FEELS] SHE IS LEARNING AND THAT THIS IS VALUABLE TO HER? Icons by Freepik. Humaans by Pablo Stanley - Ethnographic or generative research - Other qualitative studies - Mobile ethnography - Surveys and other quantitative self- reporting - Behavioral metrics - A combination of several? A specific space and time, a situation A set of unique actors with unique reciprocal links among them
  23. 23. “MOST PEOPLE ARE SIMPLY UNAWARE THAT THERE IS A QUALITATIVE, INDUCTIVE LOGIC THAT IS JUST AS LEGITIMATE AS A QUANTITATIVE, DEDUCTIVE METHOD.” SAM LADNER DIFFERENT ONTOLOGIES 
 & EPISTEMOLOGIES WHAT KNOWLEDGE IS WHAT THINGS ARE
  24. 24. QUAL & QUAN APPROACHES ROLE OF THEORY 
 IN RESEARCH ONTOLOGICAL 
 ORIENTATION EPISTEMOLOGICAL ORIENTATION QUANTITATIVE Deductive, 
 testing of theory Objectivism Natural science / positivism QUALITATIVE Inductive, 
 generating theory Constructionism Interpretivism Quan and quan approaches explanation by Sam Ladner, 2019 Social reality is constructed: based on interpretations humans make Thick description of context and actors VALUE IN CONTEXT HAS A LOT TO DO WITH MEANING And the process by which people construct social reality
  25. 25. STILL… Provider sphere Joint sphere Customer sphere OPPORTUNITY TO RETHINK RESEARCH MOST INSIGHTS ARE HERE
  26. 26. - Standard ValConRIA test - Quality of life outcome scales and other similar devices in very lucky lines of business - Creating your own metrics HOW DO YOU MEASURE VALUE-IN-CONTEXT?
  27. 27. - Standard survey with 26 questions and 7 levels [Lickert scale] - Allows benchmarking - Applicable as a whole or per service moment/stage STANDARD METRIC [VALCONRIA] ValConRIA de Löbler  & Hahn, 2013. Survey by Löbler & Hahn DOESN’T SUBSTITUTE GOOD QUAL & NOT APPLICABLE ON A REGULAR BASIS
  28. 28. - Knee pain present during day - Painful inability to straighten knee - Changed job due to knee - Considering job change due to knee A VERY LUCKY LINE OF BUSINESS HEALTH AND QUALITY OF LIFE OUTCOMES SCALE Very “medical” Activity limitations - Knee slowing you down - Avoid turning/twisting/sideways moves - Interference with travel - Interference with sleep - Interference with work - Interference with hobbies, etc - Interference with family life - Interference with social activities - Interference with doing errands Emotional functioning - Time spent thinking about knee - Angry or annoyed - Downhearted and low - Worried about knee worsening - Embarrassed or self-conscious - Bad temper or grumpy - Frustrated - Worry about future - Worry about money - Think that you are getting old  Also “social”
  29. 29. “KPI DEVELOPMENT HAS TO START WITH YOUR STRATEGY AND THE OBJECTIVES THE BUSINESS IS AIMING TO ACHIEVE” BERNARD MARR Creating your own metrics
  30. 30. - Match value-in-context with strategic goals - Select value-in-context that is relevant to measure - Translate a qualitative insight or a description of value-in-context into a strong and feasible measure CREATING YOUR OWN METRICS EASY!
  31. 31. “VALUE IS ALWAYS UNIQUELY AND PHENOMENOLOGICALLY DETERMINED BY THE BENEFICIARY IN THE RESOURCE INTEGRATION PROCESS, FRAMED BY INDIVIDUAL AND CONTEXTUAL CIRCUMSTANCES” VARGO & LUSCH, 2008 SOUNDS ELUSIVE
  32. 32. “MEASUREMENTS ARE USED TO SUPPORT DECISIONS, AND THE THING BEING MEASURED MUST BE DEFINED IN TERMS OF OBSERVABLE CONSEQUENCES THAT RELATE TO YOUR DECISION IN A PARTICULAR WAY” DOUGLAS W. HUBBARD KEY TRANSLATION
  33. 33. IT’S A DIAMOND! Value-in-context to measure Chosen measure IDEATION GAME D i v e r g e C o n v e r g e OBSERVABLE CONSEQUENCES
  34. 34. Value-in-context to measure Chosen measure SUBJECTIVE VALUE OBJECTIVE CONSEQUENCES POSSIBLE MEASURES MEASURES EVALUATION Icons by Freepik IT’S A DIAMOND!
  35. 35. - Let’s start by drawing them on paper - Map the value streams or the activities in your journey - Once you’re finished, brainstorm potential value for customers [in-use & in-context] - It’s easier if you go activity per activity - There might be many in some activities - It’s better if you can recall your research and use your existing insights 10’ to create a shitty first draft of your value spheres CAN YOU CREATE THE VALUE SPHERES OF YOUR PROJECT?
  36. 36. - Match value for customers with the strategic goals of your client - The relationships might not be obvious - Think about what might contribute to reaching that goal - Try to come up with an argument to support why this value is related to your client’s strategy - Select a few values that are worth measuring 5’ to select 1-3 values worth measuring WHICH VALUE IS WORTH MEASURING?
  37. 37. - Describe the value in action from the subjective perspective of the customer - Describe what you could perceive as an external observer from your client’s organization with each sense - Translate each observation into a comparable and objective 
 measurement - Rate each measure for strength and feasibility 20’ to select create your first measure HOW DO WE TRANSLATE IT INTO A METRIC? In Mural: outline 5
  38. 38. THANK YOU!

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