VOC for CRM How Voice of the

VOC for CRM : How “Voice of the Customer” can Enhance Customer Relationship Management A Tutorial Prepared for ASQ Section 0509 12 October 2010 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 1 of 23

Objectives Despite our best efforts to make Customers the focal point of our QMS, our efforts are usually reactive, not collaborative It is imperative that we: ¡ Identify easy-to-use, practical & economic tools to: l l ¡ Also, employ the tools in order to … l l 8/8/2010 Allow Customer-facing employees to provide better service Collect data efficiently and unobtrusively for other teams to analyze l communicate complex ideas or programs to Customers help customers to arrive at ideal solutions VOC for the means to Offer Customers CRM Tutorial_oct 2010. ppt appreciate how well 2

Riding the Curves: 3 Phases of CRM Life Cycle 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 3

“Discovery” Life Cycle Phase Determining what the Customer REALLY wants 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 4 of 23

Direct Customer Feedback ¡ Current Sources of Feedback l Written Surveys [Annual perception, SI transaction, Service renewal] Executive Scorecards l Repair/depot feedback cards ¡ What do we need [in the future]? l Validation: before and after surveys l Before [are we assessing a need or dis-satisfier correctly? ] ¡ After [did we hit a “home run” with the solution? ] ¡ l 8/8/2010 Leading indicators of threats and opportunities VOC for CRM Tutorial_oct 2010. ppt 5

Content Analysis [CA] / KJ Imaging [KJI] How to Use: • To covertly collect real needs through many diverse When to Use: contributors • Collect all e-mails, notes from Customer facing meetings & use CA programs to evaluate common verbiage hinting at Customer real needs • Do for customers identified as “Trusted partner” from annual perception survey Benefits for CRM • anticipating concerns and opportunities • complimenting conventional feedback [surveys] Examples/Success Stories • Pursuing with CBP/DHS • Still investigating opportunities to use, costs to implement & benefits 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 6

KJ Mapping How to Use: Taking those attributes or needs from CA/KJI & putting them in the context of clusters of opportunities When to Use: Before major proposals, to identify Customer “delighters” and things MOTO does extremely well Benefits for CRM • Reinforces feeling of “partnership with Motorola” • More efficient communication/ delivery of solutions (because we know what Customers REALLY want) Examples/Success Stories • None currently; need a “beta” 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 7

Kano Marketers, product developers & Customer support staff have long been challenged by the following questions: ¡Why do some products/services achieve dramatic success based on one or two exciting characteristics while others fail because the Customers' basic requirements aren't met? ¡Can we predict which features will delight or ‘bore’ Customers? l. For which features would we get the most "bang for our design, development & marketing buck? “ l. Upon which service features should we focus our advertising, promotion, sales and after-sales efforts? 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 8

Considerations with Kano ¡ “Delighting l l l Customers” means: Consistently and efficiently delivering basic quality Listening to & delivering current needs [ “performance” quality] Anticipating the excitement opportunities. . . …& exploiting them! ¡ As time passes, excitement devolves (sometimes quickly) to basic need ¡ KANO requires a continuous, consistent process to gather, analyze & interpret excitement offerings ¡ Discover “Customer-driven opportunities” by: Observing Customers l Using technology & process engineering to improve performance l Replacing or improving on key product features. l Improving on where all competitors are doing poorly VOC for CRM Tutorial_oct 2010. ppt 9 l Lateral benchmarking l 8/8/2010

What Can Kano Tell Us? ¡ ¡ Focus R&D/product improvement $ on excitement features Pick out features from the performance curve where we outperform competitors & ADVERTISE these! • For Basic features, prove that our company outperforms competitors [give to sales, marketing…to constantly remind prospects & existing Customers] 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 10 [model is notional]

“Delivery” Life Cycle Phase Making sure our Customers GET what they really want 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 11 of 23

“House of Quality” Topography 7 “How’s” Correlation Matrix Direction of Improvement [for “how’s”] HOW’s 8 3 • Product Characteristics VOC VOP • Measurable 2 b 4 5 Want’s Vs How’s Correlates Customer’s ‘Needs’ with HOW the Standard can met the Standard 2 a Competitive Market Analysis 1 Importance [of WANT’s ] Customer “WANTs” • Satisfy WANT’s Absolute Importance Ratings 6 Technical Competitive Analysis 9 Performance Targets [for “how’s”] 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 12

House of Quality (example*) * - The actual HOQ must be jointly developed Done for USPS in 2007 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 13

QFD Flow of Activities until Final Deployment” VOC HOQ VSM FMEA Operations/ Financial Analysis Flow Charts Pugh Concept Selection Analyze Critical Processes Critical Success Factors What’s How’s Process Planning Matrix [PPM] How’s What’s How’s Quality Assuran ce Matrix [QAM ] QA Tools Check Sheets Inspection points, audits SPC Charts FMECA Tests 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt Scripts; mistakeproofing 14

Allocating How’s from HOQ to PPM (example*) Extract from HOQ Take "How's" from HOQ & Transpose to "What's" of PPM Process Planning Matrix [PPM] Focus on these 3 "how's" since they have the highest Absolute Importance #'s. Continue analysis to Process Planning Matrix. * - The actual HOQ & PPM must be jointly developed 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 15

Transactional Outcome Analysis [TOA] How to Use: • To support strategic planning • At a tactical level, determine bottlenecks in processes and possible outcomes of Customers at decision points in the process When to Use: • When extreme, out of the box thinking is needed • When concrete data forecasting is not available, but… • …the impacts of not acting can be predicted with some degree of accuracy Benefits for CRM • A tailor-able model to show product team & strategic planners, the effect of proper timing of release , upgrades and new products • Provides concrete examples of how Motorola wishes to partner Examples/Success Stories • 2011 USFGMD strategic planning 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 16

Example of TOA [for USFGMD ‘practical sales forecasting model’] 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 17

“Dedication” Life Cycle Phase Anticipating & delivering on what the Customer REALLY wants 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 18 of 23

Failure Modes & Effects Analysis [FMEA] How to Use: • Determine failure modes & effects; • Prioritize risks and determine how to mitigate them. • Communicate unique use cases to the product developers When to Use: When true SMEs are available… • …to communicate our understanding of Customer’s operating profile, hazards and severity and probability related to each. • …to put unique Customer required functionalities in the context of missions & risks involved; and how good communications can mitigate these Benefits for CRM • Foster true partnering; free flow of communications with the Customer • Assure proper priority is put on product features & support requirements Examples/Success Stories • Customs and Border Protection 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 19

P-FMEA 8/8/2010 (1 of 2) [“As-Is” view] VOC for CRM Tutorial_oct 2010. ppt 20

P-FMEA 8/8/2010 (2 of 2) [“To Be” view] VOC for CRM Tutorial_oct 2010. ppt 21

Conclusions ¡ ¡ ¡ We may get feedback, but do we know how to use it? Are we reactive? If so how does that effect CRM? CRM is a life time commitment l l Actually, it’s a life cycle commitment Remember the “ 3 D’s” ¡ ‘determining’ ¡ ‘delivering’ ¡ ‘dedicating’ ¡ 8/8/2010 Recognize that LSS tools have value outside of continuous process improvement… … but you must use VOC for CRM Tutorial_oct 2010. ppt 22

For Additional information, contact: John Weisz, SSBB, CQE, CRE 443 -472 -1709 8/8/2010 VOC for CRM Tutorial_oct 2010. ppt 23 of 23