Too many customer-focused product and service innovations create little more than 'better sameness'. Moving beyond better sameness requires targeting innovation in the areas of maximum financial impact, focusing on the essential rather than on the 'nice to haves'. The lynchpin is focusing innovation on a highly prioritized set of behavioral outcomes. In this webinar, Frank Capek shares a three-step process and case examples that illuminate how to design processes that positively and profitably influence customer behavior.

1. Designing'for'Customer'Ac1on'
Enhancing(Performance(Through(Posi2ve(Behavior(Change(
Customer
Innovations
FCB'Webinar'
November(12,(2014(

2. A'Company'With'a'Challenge'
Entergy’s'U1lity'Business'
! 5(opera7ng(companies(across(4(
con7guous(states:(Arkansas,(Louisiana,(
Mississippi,(Texas(
2(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(
The'Challenge:'
Katrina,(Rita,(Gustav,(Ike,(Isaac(,(
Arkansas(Ice(Storm,(etc…(
In'2009,'all'5'Entergy'Opera1ng'Companies'were'in'the'4th'Quar1le'of'J.D.'Power.'''
Entergy'New'Orleans'was'in'last'place.'

3. Most'Organiza1ons'Follow'an'IdeaQBased'Innova1on'Approach'
Rather'than'an'OutcomesQBased'Innova1on'Approach(
Experien1al''
Outcomes'
What(
people(
think?(
Behavioral'
Outcomes'
What(
people((
do?(
Clearly'defined'and'priori.zed'
behavioral'outcomes'are'cri.cal'
How(
people(
feel?(
3(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(
Business''
Outcomes'
How(we(
improve(
results?(
OUTCOMESQBASED'INNOVATION'
IDEAQBASED'INNOVATION'
Innova1on'
Results'

4. The'OutcomesQBased'Approach'Focused'Innova1on'at'Entergy'
Signature'Design'Interven1ons'
" Outage'Experience'
# Proac7ve(No7fica7ons(
# Key(Informa7on(Elements(
# Update(Text(Messages(
# Storm(Center(
# Annotated(Outage(Maps(
" Save'Me'Money'Experience'
# Interac7ve(Energy(Statement(
# Save(Me(Money(Advisor(
# Alterna7ve(Pay(Plans(
# Credit(Counseling(
Experien(al++
Outcomes+
How$
people$
feel?$
What$
people$
think?$
Behavioral+
Outcomes+
What$
people$$
do?$
Business++
Outcomes+
How$we$
improve$
results?$
DESIGN+RELATIONSHIP+
CAUSAL+RELATIONSHIP+
Experience+
Results+
Experien1al'Outcomes'
• Customers(feel:(
# In(Control(
# Understood(
# Cared(For(
• Customers(think:(
# Keeps(me(informed(
# Helps(me(save(
money(
Behavioral'Outcomes'
• Increase(selfSservice(/(
reduce(reac7ve(inS
bound(calls(for(high(
bill(and(outages(
• Reduce(complaints(to(
regulators(
• Improve(JDP(
responses(
Business'Outcomes'
• Increase(customer(
sa7sfac7on(
• Improve(regulatory(
outcomes((
• Reduce(cost(to(serve((
on'the'Two'Most'Cri1cal'Impera1ves(
4(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(

5. By'Innova1ng'Solu1ons'Focused'on'the'Most'Cri1cal'Outcomes,''
We’ve'Helped'Entergy'Transform'Performance'With'Customers(
29%'
26%'
25%'
25%'
23%'
2013'J.D.'Power'Na1onal'Ranking''
Proac1ve'Outage'Communica1ons'
14%'
14%'
13%'
12%'
12%'
11%'
11%'
11%'
Entergy'Mississippi'
Entergy'New'Orleans'
Entergy'Arkansas'
Entergy'Texas'
Entergy'Louisiana'
PSE&G'
We'Energies'
Con'Edison'
Pepco'
Southern'California'Edison'
Atlan1c'City'Electric'
L.'A.'Dept.'of'Water'&'Power'
PPL'Electric'U1li1es'
Entergy'is'the'first'company'in'
history'to'capture'all'of'the'top'spots'
in'any'category'two'years'in'a'row.'
5(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(
OutageQrelated'call'volume'was'also'
significantly'reduced:'from'35%'of'
effected'customers'to'8%'with'only'
2%'requiring'agent'contact.'
Over'3'years,'Entergy’s'overall'
posi1on'on'JD'Power’s'na1onal'
ranking'improved'from'lowerQ4th'
quar1le'to'midQ2nd'quar1le.'

6. What(customer(behavior(has(the(
greatest(impact(on(profitability?(
If(you(use(a(razor(like(this,(how(oen(do(you(replace(the(blades?(
How(would(you(influence(this(behavior?(
New( 1(day(old( 5(days(old( 7(days(old(
6(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(

7. Levers'for'Influencing'Behavior'Exist'at'the'Intersec1on'of'
Mo1vators,'Enablers'and'Triggers'
Mo1vators'
Influence'
Levers'
Enablers' Triggers'
7(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(
What'Maeers?'
What(are(people’s(goals,(priori7es(
and(desired(states?((What(do(they(
find(meaningful,(comfortable,(as(well(
as(a(posi7ve(and(socially(acceptable(
expression(of(their(iden7ty.(
What'Makes'it'Easy?'
What(very(significantly(
reduces(the(cogni7ve(and(
physical(effort(associated(with(
taking(the(smallest(steps(
towards(the(desired(behavior?(
What'Ini1ates'Ac1on?'
For(each(small(step,(what(
external(triggers((e.g.,(prompts,(
reminders,..)(and(internal(
triggers((e.g.(anchors(to(exis7ng(
habits)(s7mulate(ac7on?(
Observa.ons'
• If(any(component(is(inadequately(addressed,(the(individual(is(highly(unlikely(to(act.(
• Understanding(mo2va2on(is(very(important(but(Influencing(it(is(always(expensive(and(2me(consuming.(
• All(else(being(equal,(reduc2ons(in(effort(with(adequate(triggers(significantly(increase(the(likelihood(of(ac2on.(

8. The'Challenge:'''Gegng'Beneath'Safe'and'
Ra1onalized'Alibis'for'Behavior'
I’ll(tell(the(truth(
Conscious'
if(you(ask(
I(think(or(feel(it(but(
don’t(or(won’t(say(it(
Subconscious'
I(sense(it(but(can’t(easily(find(((
the(words(to(express(it(
I’m(not(aware(of(it(but(might(
recognize(it(if(I’m(prompted(
I(can’t(recognize(it(but(it(strongly(
influences(how(I(feel(and(what(I(do(
Semiconscious'
8(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(

9. We'Leverage'a'Structured'Toolset'to'Inform'the'Design'of'
Influen1al'Products,'Services'and'Experiences'
Design'for'BehaviorTM'
Objec1ve:''Create'Highly'Engaging'and'Intui1vely'Simple'Offerings'that'
Reinforce'Specific'High'Value'Behavioral'Outcomes'
Behavioral*
Outcomes*
Influence*
Profiles*
Influence*
Playbook*
1*
2*
GOAL:**Focus*
Clarify'and'priori/ze'the'specific'
behaviors'that'drive'desired'business'
results.'
GOAL:**Understand*
Develop'a'set'of'Influence'Profiles'
that'iden/fy'specific'levers'for'
genera/ng'the'desired'behaviors.'
3* GOAL:**Measurable*Results*
Develop'a'phased'Influence'Roadmap'for'
valida/ng,'refining,'pilo/ng,'launching,'and'
ensuring'results'from'interven/ons'described'
in'the'Influence'Playbook.'
GOAL:**Design*
Develop'an'Influence'Playbook'that'
describes'specific'design'and'
execu/on'interven/ons'that'will'
generate'the'desired'behaviors.'
'Next'Steps'
1*
2*
3*
9(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(
Influence'Profiling'Toolset'
Who'are'these'people?'
Tool:''Behavioral'Portrait.'An(instrument(that(
measures(the(individual(behavioral(orienta2on(of(
target(customers.(
What'are'they'trying'to'accomplish?'
Tool:''Goal'Space'Mapping.(A(projec2ve(technique(for(
surfacing(the(desired(states(that(influence(
engagement.(
How'do'they'make'sense'of'choices?'
Tool:''Metaphor'and'Construct'Elicita.on.((Tools(for(((
describing(the(senseRmaking(framework(people(use(to(
decide(and(act.(
What'endQtoQend'path'do'they'follow?'
Tool:''Behavioral'Pathways.(Mapping(endRtoRend(
ac2vi2es(people(follow(including(unwriTen(rules(and(
automa2c(behavioral(scripts.(
How'does'it'make'them'feel?'
Tool:''Emo.onal'Lifecycle.(Surfacing(the(latent(
emo2onal(states(that(influence(how(people(focus(
aTen2on(and(take(ac2on.(
What'influences'desired'behavior?'
Tool:''Influence'Triggers.(The(current(and(poten2al(
levers(for(influencing(the(desired(behavioral(
outcomes.(
M'
E'
T'
Important:''This'approach'is'ALWAYS'focused'on'influencing'behavior'that'benefits'
the'customer.'''It'informs'the'design'of'experiences'that'enable'the'organiza.on'
to'profitably'influence'customers’'ability'to'achieve'their'desired'states.'

10. What'Behavioral'Outcome'Dominates'the'Economics'
for'Automo1ve'Insurance'Providers?'
10(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(

11. Innova1ng'WITH'Customers'is'Almost'Always'
More'Effec1ve'than'Innova1ng'AT'Customers'
Innova.ng'AT'Customers'
“Plan'and'Push”'
Researchers'and'designers'get'closer'to'the'state'
of'mind,'behavioral'pathways,'and'feelings'of'the'
customer'
Designers' Customers'
“Engage'and'Experiment”'
Engages'customers'in'the'ar.cula.on'and'priori.za.on'
of'needs,'as'well'as'the'design'of'products,'services,'and'
experiences'
Innova.ng'WITH'Customers'
11(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(

12. Summary'of'Key'Points'
• Iden7fy,(priori7ze(and(start(with(a(small(set(of(the(most(cri7cal(behavioral(
outcomes(that(influence(desired(business(outcomes.(
• Develop(a(deep,(disciplined(understanding(of(the(Mo7vators,(Enablers(and(
Triggers(that(are(aligned(with(the(desired(behavior.(
• Understanding(mo7vators(creates(an(important(design(context.((However,(
remember,(mo7vators(are(typically(difficult(and(expensive(to(influence.(
• Focusing(on(Enablers(is(the(key.((Make(it(incredibly(easy(for(people(to(take(
the(smallest(posi7ve(ac7ons.((Provide(triggers(that(reinforce(these(ac7ons.(
• Innova7ng(WITH(customers(is(almost(always(more(effec7ve(than(innova7ng(
AT(customers.(((Engage(and(experiment(rather(than(plan(and(push.(
12(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(

13. Frank'Capek'
fcapek@customerinnova7ons.com(
Customer
Innovations
(404)(542S0258(
For(more(informa7on:(
www.customerinnova7ons.com(

14. An'Agile'Innova1on'Lab'Approach'Engages'
Customers'and'Other'Key'Stakeholders'
The((Agile'Innova.on'Lab'is(a(structured(approach(and(plajorm(for(engaging(customers(and(designers(along(with(
business(stakeholders(and(other(diverse(par7cipants(in(the(process(of(innova7ng(new(products,(services(and(
experiences.((Concepts(are(itera7vely(defined,(tested(and(validated(in(a(way(that(accelerates(progress(and(minimizes(risk.(
Solu.on'
Concepts'
Innova1on'
Lab'
Work'Teams'(Design,'
Implementa1on,'Tes1ng)'
Designers'
Subject'
Maeer'
Experts'
Customers'
Solu.on'
Concepts'
Solu.on''
Concepts'
Solu.on'
Concepts'
Facilitator/Process''
Manager/Recorder'
Business'
Stakeholders'
The(ini2al(focus(of(the(lab(is(
oUen(focused(on(customer(
discovery(and(preliminary(
concept(development.(
The(lab(is(structured(to(extend(
visibility(and,(as(appropriate,(
efficient(par2cipa2on(of(key(
stakeholders(and(other(internal(
and(external(par2es(important(
to(the(detailed(design(and(
successful(implementa2on.(
14(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(

15. The'Lab'Leverages'FastQCycle'Experimenta1on'
to'Move'from'Ideas'into'Ac1on'
Developing(Innova7ve(Product,((
Service(and(Experience(Concepts(
Understand(Customer((
Goals(and(Behavior(
Generate((
Ideas(
Develop((
Concepts(
Refine(Poten2al(
Offerings(
Structure(&(Run(
Experiments(
Align(for(Deployment(and((
Profitable(Opera7ons(
Define(Value((
Chain(Implica2ons(
Detail(Opera2ng((
Model(Changes(
Prototype((
Technology(
Surface(Cultural((
Changes(
Develop(Phased(
(Implementa2on(Plan(
FastSCycle'
Business''
Experiments'
Cycle'Time:'
1S3'Months'
Validated'Solu.ons'
Cycle'Time:'
3S6'Months'
15(|(©(2014(Customer(Innova7ons.(All(Rights(Reserved.(