Voice of the Customer: Kano Model Delighting Customers through Differentiating Features John Cramer, Director Organization Effectiveness/Lean Six Sigma/1115 Waiver DSRIP June 18, 2014 john.cramer@memorialhermann.org (713) 338-4226 office
Kano Analysis Overview Kano Analysis is a technique to focus design and improvement efforts on those features or characteristics which will have the greatest positive influence on the customer. Offers insight into the service attributes which are perceived by customers to be important. Focuses the attention on differentiating features. Powerful when the full methodology is followed, also useful as a visualization tool. Description Developed in the 80's by Professor Noriaki Kano Model is based on the concepts of customer quality and provides a simple ranking scheme which distinguishes between essential and differentiating attributes. The model is a powerful way of visualizing service characteristics and stimulating understanding within the design team. Kano also produced a rigorous methodology for mapping consumer responses onto the model Product differentiation can either be gained by a high level of execution of the linear attributes or the inclusion of one or more 'delighter' features. But, remember that customer expectations change over time, and a cup holder in a car was yesterday s delighter, but is now expected. 2
Types of Features/Attributes One- Dimensional (AKA Linear, Performance, Desired, Satisfier) Customer Dissatisfied Customer Dissatisfied Must-Be (AKA Threshold, Required, Basic Need, Dissatisfier) Attractive (Delighter) Indifferent (HoHum) Customer Dissatisfied Customer Dissatisfied 3
The Kano Model Attractive (Delighter) One-Dimensional (AKA Linear, Performance, Desired, Satisfier) Indifferent (HoHum) Must-Be (AKA Threshold, Required, Basic Need, Dissatisfier) Reverse (Antagonizer) Customer Dissatisfied 4
Feature Classifications Threshold / Basic attributes (a.k.a. Must be / Required / Basic Need) Attributes which must be present in order for the service to be successful; can be viewed as a 'price of entry'. However, the customer will remain neutral towards the service even with improved execution of these aspects. One dimensional attributes (a.k.a. More-the-Better / Performance / Linear) These characteristics are directly correlated to customer satisfaction. Increased functionality or quality of execution will result in increased customer satisfaction. Conversely, decreased functionality results in greater dissatisfaction. price is often related to these attributes. Attractive attributes (a.k.a. Exciters / Delighters) Customers get great satisfaction from a feature - and are willing to pay a price premium. However, satisfaction will not decrease (below neutral) if the service lacks the feature. These features are often unexpected by customers and they can be difficult to establish as needs up front. Sometimes called unknown or latent needs. Reverse (a.k.a. Antagonizer) Attributes which cause dissatisfaction when they are present. These may result from projects to reduce internal processing costs, such as implementing voice recognition systems to reduce the number of customer service representatives. Reverse features also result from conflicting needs such as complex log-in procedures to improve network security. Indifferent (a.k.a. Ho-Hum) Attributes which cause neither satisfaction nor dissatisfaction when they are present. 5
Rise in Expectations Today s delighters may become tomorrow s ho-hum or must- be Performance that is acceptable today, may not be good enough tomorrow Today: Delighter Today Today Tomorrow Tomorrow Tomorrow: Must-Be 6
Extremes Delighter Zone Customer Dissatisfied Enrager Zone 7
Advantages of Kano Model Prioritize Development effort If Must-be Critical To Quality (CTQ) attributes are not met, the customer will be highly dissatisfied. Little value in improving Must-be CTQs that are already satisfactory Improving One-dimensional or more-the-better CTQs and delighters have proportionally higher influence on Customer Satisfaction Provides opportunity for service differentiation different solutions can be customized to different segments Products that only meet basic needs are considered interchangeable with competitors services, while adding or improving Delighters can result in customer loyalty 8
Cautions Customers usually do not express Must-have CTQs unless they have had recent issues with those CTQs Complaints, problems can be a source of must-have CTQs Customers usually do not express Delighters because they do not expect them One method to identify Delighters is to ask the customer what features would better meet their needs, or what improvements could be made Teams often think they know the customer and do not need to use questionnaires to classify the CTQs. 9
Thank You! What are your Questions? 10