Upload
institute-of-systems-science-national-university-of-singapore
View
121
Download
15
Embed Size (px)
Citation preview
#ISSlearn
#ISSlearn
CUSTOMER INTIMACY THROUGH DATA-DRIVEN PRODUCT MANAGEMENTSOME INSIGHTS….
August 2017 / Richard Tan & Lee Boon Kee
#ISSlearn 2
The Customer Perspective
© 2016 National University of Singapore. All Rights Reserved 2
Source: content26.com
#ISSlearn 3
The Heart or the Brain?
© 2016 National University of Singapore. All Rights Reserved
Source:Adapted from Bryan Eisenberg, Analytics ROI Marketing
Superior Perceived
Value
#ISSlearn 4
Changing Customer Expectations
New Trends…
© 2016 National University of Singapore. All Rights Reserved 4
1 - Drive Customer Intimacy
#ISSlearn 5
Importance of Segmentation
© 2016 National University of Singapore. All Rights Reserved 5
2- IPad Newspaper
#ISSlearn 6
Impact of Omni-channels…
© 2016 National University of Singapore. All Rights Reserved
Source: Forbes
#ISSlearn 7
Pervasive Technology
© 2016 National University of Singapore. All Rights Reserved
#ISSlearn 8
Invasion of Technology…
© 2016 National University of Singapore. All Rights Reserved
Into our City… Into our Homes…
#ISSlearn 9
Resulting Outcome…
© 2016 National University of Singapore. All Rights Reserved 9
Source: CSC
#ISSlearn 10
$1,000,000,000 Bet
© 2016 National University of Singapore. All Rights Reserved
Magic Bands
#ISSlearn 11
The Product Manager’s Perspective
© 2016 National University of Singapore. All Rights Reserved
(1) Is there is Gap in the Market?
(2) Is there is Market in the Gap?
#ISSlearn 12
Customer Intimacy…
#ISSlearn 13
Data
Information
Knowledge
Insights
Leveraged Data & Analytics…
© 2016 National University of Singapore. All Rights Reserved 13
Benchmark RecommendPredict
#ISSlearn 14
Product Life Cycle
© 2016 National University of Singapore. All Rights Reserved
Development Scaling Sustainability ExitIdeation
Design Thinking
Financial Outlook
Customer Experience
Product R&D
Minimum Viable Product
Pretotyping
A/B Testing
Product Launch
Go-To-Market
Alpha / Beta
Iterative Product Development
Sales
Product Maintenance
Product Road-mapping
Pricing Models
Market Requirements
Long Tail
Growth Hacking
BCG Growth-Share Matrix
Product Support
Financial Retrospective
Product Obsolescence
Product Extension
Business Case
#ISSlearn 15
Product Life Cycle
© 2016 National University of Singapore. All Rights Reserved
Development Scaling Sustainability ExitIdeation
Design Thinking
Financial Outlook
Customer Experience
Product R&D
Minimum Viable Product
Pretotyping
A/B Testing
Product Launch
Go-To-Market
Alpha / Beta
Iterative Product Development
Sales
Product Maintenance
Product Road-mapping
Pricing Models
Market Requirements
Long Tail
Growth Hacking
BCG Growth-Share Matrix
Product Support
Financial Retrospective
Product Obsolescence
Product Extension
Business Case
Right Data
Right Person
Right Time
#ISSlearn 16
Product / Market Fit
16© 2016 National University of Singapore. All Rights Reserved
Product / Market
Fit
Voice of the
Customer
Customer Decision Journey
Customer Lifetime
Value
(1) Is there is Gap in the Market?
(2) Is there is Market in the Gap?
#ISSlearn 17
Voice of the Customer (VOC)
© 2016 National University of Singapore. All Rights Reserved
• Every VOC touch point will generate or result in a form of VOC data.
• Multi sources• Internal & External insights• Focus on:
- customer needs- expectations and- product improvement
17
Explicit Implicit
1) Direct discussion or interviews
1) Social listening -sentiment analysis; opinion mining
2) Surveys, focus groups 2) Chat-bots
3) Customer specifications, observations
3) Machine Learning
4) Warranty data, field reports, complaint logs
4) Augmented Intelligence
5) Customer service – both pre and post-sales
5) Cybernetics
3 - A day in the Life of a digital Customer
#ISSlearn 18
Source: Google
The Infinity versus Loyalty Loop
Google’s View…Customer Decision Journey (CDJ)
© 2016 National University of Singapore. All Rights Reserved
4 – Winning with ZMOT
#ISSlearn 19
Source: Adapted from WikipediaTimeline
Status Quo Active LookingWindow of Opportunity Status Quo
CDJ & Digital Touch Points
© 2016 National University of Singapore. All Rights Reserved
Digital Touch Points
Data Generation
Data Generation
Data Generation
Data Generation
Data Generation
Churn
#ISSlearn 20
Customer Decision Journey (CDJ)
© 2016 National University of Singapore. All Rights Reserved
McKinsey’s View…
#ISSlearn 21
Customer Lifetime Value (CLV)
© 2016 National University of Singapore. All Rights Reserved 21
Acquire Retain Chu
#ISSlearn 22
Product / Market Fit
22© 2016 National University of Singapore. All Rights Reserved
Product / Market
Fit
Voice of the
Customer
Customer Decision Journey
Customer Lifetime
Value
(1) Is there is Gap in the Market?
(2) Is there is Market in the Gap?
#ISSlearn 23
Data is King
"Opinions are important yet often prove meaningless. Have facts supported by charts and numbers or simply confess ignorance."
─ Robert S. McNamara, US Secretary of Defense, 1968
23© 2017 National University of Singapore. All Rights Reserved
#ISSlearn#ISSlearn
Product Life Cycle
24© 2017 National University of Singapore. All Rights Reserved
Development Scaling Sustainability ExitIdeation
Is there a gap in the market?
Is there a market in the
gap?How can I grow the market?
Product / Market Fit
ScalingProblem / Solution Fit
#ISSlearn 25
Product Iteration
Minimum Viable Product (MVP)
25© 2017 National University of Singapore. All Rights Reserved
Build
Measure
LearnIDEA
Product/Market Fit
What are the product metrics we should use?
#ISSlearn#ISSlearn
Product Metrics
26© 2017 National University of Singapore. All Rights Reserved
How do customers find you?
Do your customers have a great first experience?
Do your customers come back for more?
Do your customers tell others?
How do you make money?
Value Metrics for MVP
AARRR Framework
Growth Metrics for Scaling
#ISSlearn 27
Recursive Process
1. Define your objectives at each stage
2. Set up the right metrics
3. Set up goals to meet your objectives
4. Conduct experiments one at a time
27© 2017 National University of Singapore. All Rights Reserved
Objectives Metrics Goals Experiments
#ISSlearn 28
Product / Market
Fit
Voice of the Customer
Customer Decision Journey
Customer Lifetime
Value
Product / Market Fit
28© 2017 National University of Singapore. All Rights Reserved
• Market Research• Market Intelligence
• Customer Journey Planning
• User Experience Design
• Customer Segmentation
• Customer Lifecycle
#ISSlearn
VOICE OF THE CUSTOMER (VOC)
29© 2017 National University of Singapore. All Rights Reserved
#ISSlearn 30
Voice of the Customer
• Definition:• "Voice Of the Customer" is a process for eliciting
needs from customers.• Spend time with current and future customers to
determine past, present and future market problems
• Benefits:• A way to accumulate market information• Either confirms your actions or help decide how to
adjust your direction
30© 2017 National University of Singapore. All Rights Reserved
#ISSlearn 31
User Research
• Experiences of customers who use your product
• Articulated and unarticulated needs
• Explicit:• Examples: Surveys, customer feedback, etc.
• Implicit:• Examples: Opinion and sentiment mining, etc.
31© 2017 National University of Singapore. All Rights Reserved
#ISSlearn 32
Explicit: Kano Analysis
32© 2017 National University of Singapore. All Rights Reserved
SatisfyingBasic Needs
Satisfying Performance Needs
Satisfying Excitement Needs
Get Into Market Sustain and Compete
Excel andBecome World Class
#ISSlearn 33
Implicit: Machine Learning
33© 2016 National University of Singapore. All Rights Reserved
Create self-learning models using your own data
Caution!
#ISSlearn 34
VOC Limitations
• Assumptions• Customers know what they want• Can express their needs clearly• Willing to pay
• Innovation• Latent needs in your market through new product
development
34© 2017 National University of Singapore. All Rights Reserved
#ISSlearn 35
Desired Outcomes
35© 2017 National University of Singapore. All Rights Reserved
#ISSlearn
CUSTOMER DECISION JOURNEY (CDJ)
36© 2017 National University of Singapore. All Rights Reserved
#ISSlearn 37
Customer Lifecycle
37© 2017 National University of Singapore. All Rights Reserved
Source: Salesforce Canada
#ISSlearn 38
A Restaurant Example
38© 2017 National University of Singapore. All Rights Reserved
Entering restaurant
Walking pass the
restaurant
Getting a seat
Ordering from a menu
Enjoying the food
Paying the bill
#ISSlearn 39
Rethinking Customer Experience
39© 2017 National University of Singapore. All Rights Reserved
DisruptiveIncremental
Small improvements
to existing products and
service
New products or services that solve problems
in new and different way
Example: Amazon Dash
#ISSlearn 40
User Experience Design
40© 2017 National University of Singapore. All Rights Reserved
Source: https://www.pinterest.com/pin/525795325223973083/
MVP
#ISSlearn
CUSTOMER LIFETIME VALUE (CLV)
41© 2017 National University of Singapore. All Rights Reserved
#ISSlearn 42
Customer Lifetime Value (CLV)
42© 2017 National University of Singapore. All Rights Reserved
RFM Analysis
Recency:How recent was the last purchase?
Frequency:How many purchases have been made?
Monetary Value:What is the value of the purchase?
#ISSlearn 43
Customer SegmentationRecency Frequency Monetary
High HR HF HM
Medium MR MF MM
Low LR LF LM
43© 2017 National University of Singapore. All Rights Reserved
Segment RFM Description Marketing Action
Best Customers LHH Customers who transacted recently, most frequently and spend the most.
Onboard them for a loyalty program, retain them.
Big Spenders XXH Customers with high spends Opportunity to upsell and cross-sell.
Loyal Customers LHX Customers who transacted recently, and with high frequency. Referral program. Gather feedback.
Churning Customer HHH High value customer, but most likely about to churn.
Reactivation campaign aimed to drive repeat purchase
Low value Lost Customers HLL Hasn’t transacted in a long time, with low number of transactions and spend little. Re-engagement campaign
New Customer LLX Recently acquired customers Personalized communication aimed to cross-sell.
Source: Blog by Shafique Gajdhar on April 18, 2017
#ISSlearn 44
Customer Lifecycle
44© 2017 National University of Singapore. All Rights Reserved
Source: Lifecycle marketing guide by Metisa
#ISSlearn 45
Descriptive vs Predictive CLV
45© 2017 National University of Singapore. All Rights Reserved
Descriptive CLV Predictive CLV
Likely to remain inactive in future, even though more past purchases
Active and more likely to make more purchases
TimePurchases
Source : Webcast presentation by Jean-René Gauthier on February 28 2017
#ISSlearn 46
Maximizing CLV
46© 2017 National University of Singapore. All Rights Reserved
Source: Technical article by Naveed Asem November 23, 2013
#ISSlearn 47
Data-Driven Product Roadmap
1. Roadmap Flexibility• Keep flexibility in roadmap to accommodate changes
2. Product Evolution• Evolve product and customer segments in parallel over
time
3. Feature Pruning• Remove underperforming features from the product
4. Product/Market Fit• Use product/market fit strategy to accelerate product
feedback and iterate
47© 2017 National University of Singapore. All Rights Reserved
#ISSlearn 48
Summary
Deliver breakthrough customer experiences• Iterate your product to ensure product / market fit
using VOC, CDJ, and CLV.• Proactively shape customer behaviour at each
touchpoint by analyzing data for actionable insights.• Scale your product to maximize revenue, increase
repeat purchase and reduce customer churn.
48© 2017 National University of Singapore. All Rights Reserved
#ISSlearn 49
Product Community of Practice (PCoP)
© 2016 National University of Singapore. All Rights Reserved
• ISS will launch the inaugural Product Community of Practice (PCoP) in the 4th
quarter of 2017• Objectives of the PCoP:
- To gather like-minded professionals and industry thought leaders who share a common passion for product management
- Crowd source wisdom to facilitate an understanding and insights to better manage challenges in the product management domain
- Facilitate networking and exchange of ideas
• Format of PCoP will vary and will include:- Talks and sharing- Panel Discussions
• Please indicate your interest by providing us with your contact details
#ISSlearn 50
THANK YOU [email protected]
50© 2016 National University of Singapore. All Rights Reserved