What the heck is Customer Understanding anyway?

When we tell people that Panoptika is focused on Customer Understanding it sometimes seems to confuse them.  I guess that’s normal, as the current practice can be different depending on your organization.  When we talk a bit more a typical response is “Oh, you mean Business or Customer Intelligence?”, or even, “Market Research?”

curious kid

We’re not a big fan of the term Customer Intelligence…it kinda sounds like spying, doesn’t it? Your customer needs to know that you want to understand them so you can deliver products and services they want and need, as opposed to trying to seduce them into buying.

So let’s look at a few of the aspects of Customer Understanding that our clients have needed help with, and see if they resonate with you.

In the first example, do you understand where your product or service fits into your customers’ operations?  How and when they use it? If they use in in conjunction with other companies’ products?  What happens immediately before and after they use your product? If you don’t understand this, you may be missing out on opportunities for line extensions, improved pricing, or other value added services.

How can we help you get a better handle on all of this?  First, we help develop a roadmap you can use to walk the customer through their day, focusing on all their daily or weekly tasks, with them as the star of the story, rather than the product you sell.  The drawback to this is that often it tries to impose a linear sequence in jobs that are more convoluted.  It might be better to use an analogy, such as a Spider Web, to map out the interactions that occur in and around the problems they have to solve, and where your product fits in all of that. In either of these methods, the important part is listening to the story they tell, which will reveal not only the facts, but the emotions they experience.

Another fundamental aspect of Customer Understanding is the ability to deliver the right features for your key customers.  It seems everyone has their own way of trying to determine this, but we recommend getting your customers intimately involved in the discussion. Our friends at Conteneo have developed some great tools we often use, regardless of whether you are able to get your customers together in a room, or they are far away and you need to engage them remotely.

If you have the opportunity to get key customers in one place, at an industry conference or site visit, we can use Buy a Feature, a game where players work collaboratively to purchase the features they feel are most important to them. If your team is together, but neither you nor the customer can afford a face-to-face meeting, then the online version, called Decision Engine, may be a better choice. It’s a powerful graphic interface we use to accomplish the same goals, but using a cloud platform and a chat function. Working in teams of up to 8 people, each player has a limited amount of money to spend on the features they feel are most important.  The key is they don’t have enough to buy everything they want, so they have to negotiate with the other players to successfully get what’s important to them. This lets you hear the “why” – which is more important than the money when it comes to motivating action. It’s the heart-and-mind part of the story.

As in most Customer Understanding discovery work, the ultimate outcome is a clearer picture of why certain things are important to your customers. It helps reveal the pain they experience, they problem they’re encountering, or the need they can’t always articulate (or won’t, because the idea of a possible solution is beyond their imagination).

Last of all, let’s think about developing empathy, or improving your ability to see things from your customers’ perspective.  A tool we’ve found extremely helpful is called an Empathy Map. It’s not a new tool, and you may have seen it before. For our clients, it still always nets some real value. You can use the Empathy Map in a couple of different ways.  The most effective is to actually have your customer map out what they hear, what they say, and what they think in a particular situation.  Again, we can do this in person, or use an online visualization tool.  The second way, which can also be very powerful, is to have you team complete the same exercise, but put themselves in the customer’s shoes. Whether it’s engineering, sales, marketing, or finance, when they start to think about what’s in the customer’s head at the time of interaction – somehow that’s when the magic happens.

If you’d like to learn how to use some of these tools and techniques to strengthen your customer relationships, we’re here to help.

Always sharpening our tools,

Steve and Megann

 

 

 

Sailing through your next planning session

We’ve been using the Innovation Games® framework Speedboat for many years to help teams evaluate the anchors holding back their product or company, then develop solutions to cut the anchor chain and propel them forward.  It’s a great, easy to understand metaphor.

We adapted it to use the Sailboat analogy so we could add in the positive aspects of the breezes filling the sails, representing the things which are moving the team or product in moving.  This went down especially well in coastal areas.

Recently we’ve been extending the metaphor to more closely align with the elements of SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) that most managers are used to using.

Our approach using anchors and wind, didn’t differentiate between internal and external factors, so anchors could capture both Threats and Weaknesses, and winds could capture Opportunities and Strengths.

As this seems like a brilliant idea, it must have been done before, right.  Well…it has.

There are two approaches we like, developed by diverse organizations; Black Swan Farming and Paladin Studios.

Black Swan Farming’s approach, which is most similar to our thinking (as it’s also based on Innovation Games) is:

Sailboat Exercise

So you can see the original elements, but they differentiate Storms, or negative wind events, representing Threats and Anchors, which represent Weaknesses or internal barriers.

The Tradewinds are a positive wind, so represent Opportunities, and the sails are the Strengths, as you can set the proper sails for you market, increasing or decreasing as required.

The Paladin Studios model is a bit different, but also easily understandable. Here is their representation:

The Sailboat Metaphor

In this case they extend the metaphor in, perhaps, an even more appropriate way.  As Threats and Opportunities are meant to focus on external elements, they use an Island to represent Opportunities and a Reef to represent Threats.

Their use of the sailboat with it sails representing Strengths and Anchors representing Weaknesses is consistent with the original Innovation Games® Speedboat game, as modified.

So we encourage you to think about how you might use these tools to help move your product, service, team or organization forward.

As always, you can benefit from having a professional facilitator help you with game design and set-up, playing the game, and then post-processing the results.  We’re always willing to help.

Happy sailing!

Steve and Megann

Did you Win? Or Did you Learn?

Learn to fail. Fail often. FaiSuccess vs Failure.pngl fast. Does this sound familiar? Failure is the current focus in many schools of “entrepreneurial thinking”. We contend that it is of no consequence whether you failed – rather, it’s what you learned that’s important. For us, “You win or you learn” is the key to keeping going when things don’t turn out quite as we had anticipated.

Seeking the “why” of any outcome will build your understanding of the processes, paradigms, or procedures that got you there. That kind of insight will improve your future outcomes, regardless of whether you won – or learned.

Keep asking questions,

Megann and Steve

Our Time is on Your Side

How time flies when you’re busy! Those critical product management tasks you’ve ProductCamp_Atlantic_2015been meaning to tackle just keep slipping lower and lower on the to-do list. So are they not that critical after all? Or are you putting your roadmap in jeopardy?

We’ve all been there. When we sat down with Allan Neil (@allanneil) of Ready Product Radio for this interview, we were busy working with our partners to put on the second annual Atlantic ProductCamp. We were also moving our home office and our business halfway across the country. So we understand that sometimes you need to reach out for help. If you’re looking for a partner to help with customer understanding, mentoring, facilitation, planning, or marketing strategy, we can give you a hand with that. And if you’re a seasoned Product Manager looking to strike out on your own and go freelance, we’ll tell you that it’s not for the faint of heart. But if you’re not afraid of hard work with a side of rejection, it can be the best career move you’ll ever make.

We hope you’ll check out our interview with Allan. And while you’re at Ready Product Radio, check out some of the other Product Management professionals that have been interviewed as well. There’s a goldmine of advice, help, and encouragement inside.

Continued success,

Megann and Steve

Remember the 80’s? These Opportunities for Innovation Still Hold Up

DruckerMegann has been re-reading Peter Drucker’s classic, Innovation and Entrepreneurship. It’s interesting to see the predictions (hmm…in the 80’s, innovation and entrepreneurship were the future that would save the economy – sound familiar?) What Drucker stressed was that innovation and entrepreneurship were not just about new technology, but about a revolution in thinking, in doing, and in performing. In short, innovative would be demanded of every organization. Fast-forward to today, and Drucker’s work really does look like a seminal work – with many of the same messages in “new” (dare we say “innovative”) treatises on innovation and entrepreneurship theory. So it seems worthwhile to revisit Drucker’s Seven Opportunities for Innovation. (For more inspiration, check out the Drucker Institute).

We help our clients explore opportunities to find out which are right for them and their organization. Which one resonates with you?

  1. The unexpected (What happened in your business that surprised you in 2014?)
  2. The incongruity (Is there a gap in your market or your business between the “on paper” reality – and the “real” reality?)
  3. Innovation based on process need (Have you found a new way of doing things that makes you say, “Wow, why didn’t we try this sooner?”)
  4. Changes in industry structure or market structure that catch everyone unawares (How could we have been ready for that tsunami?)
  5. Demographics – (Is your traditional buyer outgrowing your product? Or is someone unusual buying it all of a sudden?)
  6. Changes in Perception – (Do you have customers who are suddenly ready to buy, who weren’t before? Or just the opposite?)
  7. New Knowledge – (Has your team had an aha moment that makes them see a whole new way to offer your service or product?)

All of these opportunities are still valid. If you need a hand exploring them in your business, we’re ready.

Looking at all the angles,

Megann and Steve