Take the time to really listen to your customers

Sometimes we just get too technical when we discuss #lean and #sixsigma topics. We are masters of the #problemsolving tools and how to use them in every step of a project or a transformation.

However, what we don't discuss much about is the only reason we do this: The customer.

The first LEAN principle states that it is the customer that defines value, no one else, but yet sometimes we forget about this and just create a personal version of what we think the customer values. It is not uncommon and companies do not do it on purpose, they are just more entangled in getting the desired financial outcomes than this topic, although mentioned in every single meeting "put the customer at the centre" is often missed.

I remember a few years ago I was involved in a strategic exercise at a Financial institution. The C-level suite created three strategic groups to come up with and ideate what the next 18-month plan would look like. Without entering much into detail, I was asked to join the group dealing with the goal of increasing the Net Promoter Score. We were a multidisciplinary and cross-functional group led by the Customer Experience Director. I joined a couple of days after the workshops started and had to try to catch up very quickly.

In my first meeting, the team already had a list of initiatives created after a brainstorming session and was struggling to prioritize and create a roadmap to present in a couple of weeks. One of the most memorable initiatives I remember involved an app for the Apple Watch to gamify the onboarding process for new customers. They were already trying to quantify impacts on the initiatives ??.

I was listening to the discussions and trying to catch up. At one point I just said: "Can you remember to me which metric are we trying to improve?" the group responded "NPS" so I responded back: "And how is it measured?" They said: "You just subtract the percentage of promoters (9-10) from the detractors (0-6) and forget about the neutrals (8-7) to get the number", so I said to the group: "So if that is the case, the only way to increase that number is to make our detractors be at least neutral maintaining our promoters steady, right? so what do our detractors say about us?" An awkward silence invaded the room.

It turns out that the group was working for two days already and did not take time to reflect on what our dissatisfied customers were saying about us. I took #ownership and say to everyone that I would create a simple presentation for the next day, so I spent the rest of the day reviewing comments for the last 3 months and creating a small word cloud which I delivered the next day.

That simple question made the whole work of the group switch to a new focus.

I am not telling this story to try to sound smart. In that group, I worked with some of the most intelligent people I have met in my career. It is just a simple anecdote to illustrate two points: (1) When companies are pressured to deliver results sometimes they forget about the most important factor which is understanding what the customers value, and (2) the importance of structured problem-solving which you can read more about in my other article in this link.

Understanding the voice of the customer is critical if we want our company's results to be sustainable and our project to be successful. In my opinion, creating a customer perspective assessment is a simple 2-step process.

Gather the Voice of the Customer (VOC)

It can be obtained by collating the information from a number of data sources, such as:

• Point-of-use observation (such as observing the “day in the life” of the customer and mystery shopping). For me, this is the one where you can actually gather more insights, and should be done first and with as many team members as possible.
• Existing company sales information (Such as product and service sales/returns by customer group)
• Existing company service information (Such as customer-facing staff metrics, order entry quality, customer wait times, and customer complaints)
• Customer surveys (The most commonly used)
• Company initiated or purchased research within the local industry
• Interviews and Focus groups with real customers

Gathering VOC data allows you to see what the important attributes of a customer are when considering or evaluating a company's product and service offer(s).

Analyze VOC data

In this stage, you classify, organize, review patterns and apply some basic statistical tools and data visualization techniques to create insights. Here is where you translate the VOC into actual customer requirements, not solutions, REQUIREMENTS.

Here you use #leansixsigma tools such as the Kano Model and the CTQ assessment.

The Kano Model will help you separate customer attributes into Base requirements (Dissatisfiers), Core requirements (Satisfiers), and Delighters (remember the gamification app for the Apple Watch of my story ??).

The CTQ assessment will assist in understanding what those more critical attributes are for customer satisfaction.

Although the VOC comes in the early stages of a project or transformation, the important metrics are something that needs to be continuously collected, monitored, and evaluated. Remember that customer trends evolve and change rapidly and what is important today, may be obsolete tomorrow. So make sure to put the correct processes in place with help from your data teams.

Finally, and besides the tools and techniques you use to understand your customer, I personally encourage you and your team to make more visits to where things happen for your customer, your store, your contact centre, and your retail branch and talk with them, talk with the people that service them on a daily basis and really listen without judging, take notes and later go and try to validate your hypothesis with some data. Go to the Gemba and go often.

Cheers!

Tino