Presentation on theme: "1 Feedback: The Missing Link in Information Superiority Open Source Solutions, Inc. Conference 26 May 1999 Chuck Appleby."— Presentation transcript:
1 Feedback: The Missing Link in Information Superiority Open Source Solutions, Inc. Conference 26 May 1999 Chuck Appleby
2 Overview zSetting the stage zWhy is feedback so important? zWhat kind of feedback do we need? zHow do we collect good feedback? zImperatives
3 Setting the Stage
4 The Current State The Community is starved for feedback from consumers. It has been very difficult to get busy consumers to provide useful comments on a service they regard as a free good not subject to their control.
5 The Desired State …companies honing their competitive edge [must] meet the following real time requirement: Analyze customer feedback constantly-- with that feedback in many instances from customers tied closely to a companys operations. Regis McKenna, Real Time: Preparing for the Age of the Never Satisfied Customer, 1999
6 Barriers to Collecting Feedback zCost of collecting feedback prohibitive zConnectivity lacking zFear of re-engineering zSecurity barriers zCultural bias (no news is good news) zCynicism about use of data
7 Why is Feedback So Important?
8 Importance of Feedback zDifferentiation zAdaptation zFulfillment
9 Differentiation How do you distinguish yourself when there is infinite shelf space? Simple: by knowing more customers more intimately than your competitor does and by knowing how to use information about those customers as it becomes available. FAST COMPANY, June 1999
10 Adaptation Rapid and continuous adjustment based on regular sampling is the key to success in any fast-changing environment. Regis McKenna, Real Time, 1999
11 Fulfillment Dont forget that a persons greatest emotional need is to feel appreciated… Brian Dyson, CEO of Coca Cola Enterprises
12 What Kind of Feedback Do We Need?
13 What Kind of Feedback? zEmployee satisfaction zConsumer knowledge and satisfaction zLearning, innovation, and growth zProduct/service quality zSupplier performance zProcess and operational performance zFinancial performance
14 Setting the Feedback Agenda zBalance between current performance and future direction y Delivery xWhat capabilities do I need? xHow are my capabilities performing? y Direction xWhere should I focus my capabilities today? xWhat capabilities should I build for the future?
15 Customer Satisfaction Illusion Too often, measurements of customer satisfaction are like Magellans instruments. They tell you very little about where you are, and they cant show you where you should go. Fred Wiersema, Customer Intimacy, 1996
16 Intelligence Function Drives Feedback Agenda zThree basic functions of intelligence ySupport to Operations xPlanning xExecution yBaseline Intelligence xCurrent Intelligence xFuture Estimates xTarget Development yWarning xTactical xStrategic zUnique set of feedback questions and collection strategies for a given function
17 Current Intelligence Case Feedback Tasks zPrior to Product/Service Delivery yEstablish Baseline Customer Profile xShare of customer, customer loyalty, basic needs yTrack Order Fulfillment yEvaluate Product Quality zAfter Product/Service Delivery ySurvey Customer Service Quality yDetermine Product Utility yDetermine Product Impact
18 Product + Service = The Offer The difference between products and services blurs to the point that the the distinction is a trap. Winners provide an offer that is both product and service simultaneously. Stan Davis and Christopher Meyer, BLUR: The Speed of Change in the Connected Economy, 1998 The Cell Phone Story
19 Why Do Customers Defect to Competitors? Better Product 15% Cheaper Product 15% Lack of Personal Attention 20% Service, Rude, Unhelpful 45% Product differentiation is becoming increasingly difficult, therefore service is now the standard by which customers are measuring performance. Source: Forum
20 Information Impact Eye of the Beholder The place where information dwells, the holy moment where transmission becomes reception, is a region which has many shifting characteristics and flavors depending on the relationship of sender and receiver [and] the depth of their interactivity. John Perry Barlow, Electronic Frontier Foundation
21 Information Impact Intermediate Good Information has economic value if it leads to the satisfaction of human desires. A small portion is final goods, which derive their value from supply and demand. By far the larger portion is intermediate goods that derive their value substantially from the value of goods and services to which they lead. Michael Dertouzos, Director, MIT Lab for Computer Science
22 How Do We Collect Useful Feedback?
23 Collection Strategy zPassive capture (in the intelligence) zActive solicitation in surveys yFace-to-face yOn-line zDialog yOn-line Communities of Interest yFocus Groups (GroupWare enabled) zLiaison officers and Information brokers zCustomer Service Centers
24 Passive Capture in On-line Intelligence z Profile z Track z Learn z Anticipate
25 Profile zVignette Corporation yDecision support services help you gage how effectively your content attracts and retains visitors. yYou can generate reports based on customer criteria to determine what content is accessed, how often and by what types of visitors.
26 Track zCOSMOS is the database where tracking information is entered and is visited by customer service agents and anyone in FedEx ops.
27 Learn zCitibank Provides private virtual community on the web for its customers, it enables them to get closer to each other and to the bank. They get advice on such topics as investing in real estate… and Citicorp learns a lot about customer likes and dislikes.
28 Anticipate zWeb-site software such as NetPerceptions is used by Amazon.com to look at a users past purchases, compare them to those of a broader population, and make recommendations to users
29 Information Utility zIn gauging information utility through passive collection we might collection: yDwell time yRevisit frequency yForwarding to another consumer yPrinting the document
30 Direct On-Line Questions zHewlett Packard Web Page yDo you feel you were able to accomplish what you wanted during your visit to this site visit? yIf you did not resolve your issue/problem/inquiry--what other means of support will you seek? yHas your visit to this Web Site prevented the need to make another call to HP for additional info?
31 Customer Feedback: Key Success Factors yIt should minimize the inconvenience to the customer yThe outcome should be of some real benefit for the customer yIt should influence your behavior toward the customer yIt is tied to both product/service and delivery of the product and service yIt drives out what is truly important to the customer yIt is immediate yIt goes to the person/organization performing the task or job yResults are synthesized and easily visualized
32 It drives out what is truly important to the customer
33 Results are synthesized and easily visualized Opportunity Areas Continuous Improvement Sleeping Dogs Overkill Importance Low High LowHigh Performance Product attribute
34 Danish Bank Passive System Meets the Criteria
35 Exit Survey Useful Not Useful
36 What are the Imperatives?
37 Connectivity The winners will be the ones who develop a world-class digital nervous system so that information can easily flow through the companies for maximum and constant learning. Bill Gates, Business at the Speed of Thought, 1999
38 Dialog zCreation and support of communities of interest yContinuous dialog between collectors, producers, brokers, and consumers yEach party in the dialog is constantly educating the other members on needs, capabilities, and resources
39 Selected References zStan Davis and Christopher Meyer, BLUR: The Speed of Change in the Connected Economy, 1999 zMark Graham Brown, Keeping Score: Using the Right Metrics to Drive World-Class Performance, 1996 zDon Peppers and Martha Rogers, The One to One Fieldbook, 1999 zMichael Dertouzos, What Will Be: How the New World of Information Will Change Our Lives, 1997 zJ. Philip Kirby and David Hughes, Thoughtware: Change the Thinking and the Organization Will Change Itself, 1997 zShona Brown and Kathleen Eisenhardt, Competing on the Edge: Strategy as Structured Chaos, 1998
40 Contact Information Chuck Appleby Scitor Corporation 2411 Dulles Corner Park Herndon, Va (Office) (FAX)