Harnessing Voice of the Customer for Incremental Innovation

Best Practice Guidebook Harnessing Voice of the Customer for Incremental Innovation 1 Citrix INDUSTRY Information and Communications Technology REVENUE (2012) $2.59 billion USD Applicability to Executive Functions Challenge Citrix needs to improve customer retention in an economically feasible way. Solution Components Solution Citrix develops a comprehensive program to collect, prioritize, and embed the voice of the customer in the innovation process to drive meaningful product improvements and increase customer retention. Corporate Strategy R&D/ Innovation R&D/ Innovation Sales Leadership Collect and Analyze Customer Voice» Embed Insights within Product Teams» Apply Insights to Innovation» Marketing CEO Corporate Development Investors/ Finance Competitive Intelligence Market Market Research Ask The Thought Leader (ATL) Webinar Read a summary of the questionand-answer session with Citrix LISTEN TO THE ATL NOW» Citrix s Key Lessons Learned Establish the Customer Insights team as a service center, rather than as a mandate from above. This will increase buy-in, open up access to business units data, boost the use of Customer Insights work, and avoid territorial behavior by divisions with revenue targets. Ensure the Customer Insights team has access to companywide data. This allows the team to integrate cross business insights, support decision-making at all levels of the business, and link customer feedback to measurable changes in customer behavior (such as increased revenue, retention, and loyalty). READ MORE» Note: Data are illustrative and do not represent actual data.

2 Contents Overview Page........ 3 Customer Insights (CI) Department......... 4 Collect and Analyze Customer Voice....... 5 HEADQUARTERS Santa Clara, California, United States GEOGRAPHIC FOOTPRINT Global OWNERSHIP Public EMPLOYEES (2012) 8,212 Embed Insights within Product Teams........ 6 Apply Insights to Innovation......... 10 Business Results...... 12 Key Lessons Learned.... 13 Frequently Asked Questions.......... 14 Supporting Tools & Resources........ 17 Design Matters Initiative 17 Customer Experience Survey 18 Net Promoter Score (NPS) 18 Business Results Approximately 45% of customer-driven business cases become new products or product features 30% reduction in cost-per-lead for some segments 100% adoption of VOC process by product teams Contact the Growth Team Membership (GTM) Resources Required Dedicated centralized program manager or analyst Buy-in by key stakeholders to take action on primary insights Funding for tools, resources, and research: -- If an in-house effort a survey tool, method for sending the survey invitations, a text analytics tool to categorize open text comments, and a tool to aggregate and analyze the data (such as a spreadsheet tool) -- If an outsourced effort vendor will handle the survey tool and contact process GTMresearch@frost.com www.gtm.frost.com twitter.com/frost_gtm

3 Citrix uses a three-part process to capture and translate customer feedback into insights for product teams From Customer Voice to Product Innovation Collect and Analyze Customer Voice Embed Insights within Product Teams Apply Insights to Innovation Objective Capture the voice of the customer and translate it into usable insights Objective Package and deliver customer data and insights to influence product development s decision making Objective Apply insights to improve products features and performance Activities Assign ownership of stakeholder needs by analysts specialization Develop qualitative and quantitative customer feedback mechanisms Assess and prioritize customer needs based on their frequency, value, and impact Activities Develop customer personas to bring to life the needs and preferences of customers for stakeholders Illustrate the impact of customer perceptions and use of products Provide usable insights (needs and trends) for new products and/or features Activities Collaborate with product teams to use customer insights for a new product business case Track and communicate the ROI (as measured by revenue, retention, and brand loyalty) of insights-based innovations Use Virtual Customer Advisory Boards to collaborate with customers on high-priority projects from voice of the customer to customer retention Voice of the Customer Insights Incremental Innovation Increased Customer Loyalty and Retention Customer engagement depends upon two-way communication: customers provide feedback to the company, and the company reports back to the customer on how the feedback was used. Voice of the Customer (VOC) is a key component of this engagement cycle because it enables companies to harness customer feedback to drive incremental innovation (existing product enhancements that maintain or increase competitive advantage), thereby contributing to customer satisfaction and retention.

4 key takeaway: Centralize all voice of the customer collection and analysis activities Citrix establishes a centralized Customer Insights (CI) department for its voice of the customer activities and aligns CI s research programs by purpose and output Customer Insights (CI) Department Head of Customer Experience Why Centralization is Key Director of Customer Insights Responsibilities: Managing the program, identifying stakeholder needs, educating stakeholders on Customer Insights capabilities, and generating buy-in. Customer Experience Division Each manager is responsible for one program in the VOC collection and analysis process (detailed on the next page). Customer Journey Customer Insights Program Managers Customer Listening Posts Customer Research Customer Analytics Responsibilities: Managing the VOC activities and analyses for their particular program, management of their analyst staff, identifying stakeholder (Product Managers and Product Engineers) needs, and conveying insights to stakeholders. Citrix s CI department is a centralized support service group that is a part of its customer experience division. Centralization of this critical activity enables the CI department to: Specialize staff and research by output and customer activity to develop expertise and increase productivity Establish a companywide network to capture customer information Generate a cross-business perspective Integrate feedback from customers that use multiple products Centralization also ensures CI is perceived as a support service for all; reducing competitiveness with profit centers, increasing buy-in, and improving use of CI s services.

Collect and Analyze Customer Voice key takeaway: Build VOC processes around the customer s decision-making process 5 Citrix studies the customer journey to understand emotional (not transactional) drivers of satisfaction, loyalty, and repeat purchases Customer Voice Capture and Analysis Programs Map out what they do Customer Insights examines the customer journey across the entire customer decision making experience to understand customers behavior patterns (needs, reasons for not purchasing, and influences). Owner: Customer Journey Program Outputs: Customer touch point maps and Virtual Customer Advisory Boards Gather information on what they think Listening posts are a series of qualitative and quantitative rating and feedback mechanisms (e.g., Customer Experience Surveys) embedded throughout the customer journey. Owner: Customer Listening Posts Program Outputs: Net Promoter Score (NPS), Customer Life Time Value (CLTV), win/loss analysis, needs (spoken and unspoken), customer retention, number of mentions, and customer recommendations Citrix s Activities Prospect Engagement: Demand Generation/Marketing Activities Transaction Relationship Engagement: Client Support Services Customer Journey Awareness Consideration Intent Purchase Support Loyalty Advocacy Listening Posts Predict how what they think affects you Customer analytics conducts comprehensive data analyses and predictive modeling on inputs from customer listening posts and customer research to inform customer acquisition and retention decisions. Owner: Customer Analytics Program Outputs: Customer-driven business cases (new business and product opportunities), product usage, long-range trends, and behavior models (including impact on revenue and retention) Customer Research Primary Research + Secondary Research Customer Analytics Understand what they think Customer research uses both primary (information from the customer listening posts and companywide data on customer feedback and product usage) and secondary research to understand customer behavior, develop customer segments, identify customer needs, and test ideas. Owner: Customer Research Program Outputs: Buyer and user segment personas and needs (spoken and unspoken)

Embed Insights within Product Teams key takeaway: Embed an in-depth understanding of customers with product teams Detailed customer segment personas share how, where, and why customers use Citrix s products, enabling product teams to empathize with customers and aid their solution-focused product development 6 Names, quotes, and descriptions catch the reader s attention and help product teams empathize with the customer segment. Background information transforms the customer from an abstract concept to a human being. Use of Competitors Products provides context around customer expectations and met and their unmet needs. Comments give product teams valuable advice on interactions with the customer segment and captures shifts in segments needs and preferences. About Education Job Titles Salary Case Studies Products & Tools Use of Competitors Products Customer Segment Personas JANE SMITH: a common name that reflects the demographics of the customer segment Quote: a quote that reflects the personality or goals of the customer segment Description: short description of the typical goals and personality traits of the customer segment Marketing to: provides information on motivators, challenges, ongoing campaigns, and which marketing tactics resonate with the customer segment Supporting: includes information for customer service on preferred interactions Day in the Life: outlines the typical day of the customer segment including the products they use and the purpose of those products Customer Journey: summary of the customer segment s experience including CLTV and purchase behavior Resources: links to customer segment-specific support tools and databases for employees (e.g., NPS reports) Comments: place where employees can add anecdotal information or feedback based on interactions with the customer segment persona triggers Product Managers, Product Marketing, and CI work together to monitor the business environment to determine when a new persona is needed. Key triggers include: Appearance of high-potential customer-segment(s) in new markets Shift in the market, resulting in new product users Evolution of segments due to changes in the customer base or technology An outline of how and why customers use a product enables the product teams to move away from product design based on technical feasibility to product design based on its potential as a solution. design matters initiative The Design Matters Initiative was developed to build a user-centric culture at Citrix. A series of collaborative product design discussions and on site customer visits help incorporate VOC throughout the company s business processes, reinforce the importance of design to the customer experience, and inspire product teams to take a design-focused perspective during development.

Embed Insights within Product Teams key takeaway: Build awareness around which product attributes influence customer loyalty 7 Customer Insights creates a Net Promoter Score (NPS) dashboard that allows product teams to track each product s performance over time and identify unmet customer needs that necessitate product improvements Quarterly NPS Dashboard Use each product s branding icons and colors to make the dashboard immediately recognizable. NPS by Quarter By comparing the expected (goal) and actual NPS over time, the product teams pinpoint the product attributes that are positively or negatively influencing customer perceptions. For example, in Q9 the Remote Meeting Service s NPS begins to diverge from its expected goal. The NPS report (outlined on the next two pages) enables the product team to identify which influencer is primarily responsible for the decline in NPS. Remote Meeting Service NPS by Quarter 60% Goal Actual 30% 0% Q7 Q8 Q9 Q10 Q11 Q12 Top Five Key Influencers 1. Ease of Use 2. Consolidate Number of Dial-ins 3. Streaming Quality 4. Simplify Interface Options 5. Price Top Five Key Influencers The top five key influencers are statistically significant topics that have a positive or negative effect on the NPS. Tracking the influencers surfaces opportunities for incremental or new product innovation. CI updates the NPS dashboards and reports for each product in Citrix s portfolio every quarter. why net promoter score (nps)? NPS measures customers willingness, on an 11-point scale, to recommend a company or product to a peer or colleague. Customer Insights uses this metric as the foundation of its feedback program because it directly correlates customer loyalty and product innovations to customer lifetime value, retention, and revenue. Data for the NPS are collected through Customer Experience Surveys. Note: For more information on the Customer Experience Survey and Net Promoter Score see the Tools & Resources Section.

Embed Insights within Product Teams key takeaway: Prioritize the product attributes undermining customer loyalty Product teams use the NPS report to assess the long-term effects of the five key influencers on customer perception and prioritize influencers for development based on their impact 8 NPS Report Prioritization Components NPS Trends Remote Meeting Service NPS = 45% Quarterly Change = + 2.7% 60% Goal Actual Color-code the change in NPS to ensure product teams do not react to minor shifts in value (black = not statistically significant, green = positive, significant change, red = negative, significant change). 30% 0% Q7 Q8 Q9 Q10 Q11 Q12 Ease of Use requests increased Price requests increased NPS Trends This section tracks the top five influencers impact on the products NPS and reveals persistent issues. For example, requests to improve Ease of Use correlate to a steep decline in NPS in the seventh and ninth quarters, indicating that this persistent issue requires further attention. Key Influencers Current Quarter Ease of Use Simplify Interface Options Price Consolidate Number of Dial-Ins Streaming Quality 0% 10% 20% Promoters Passives Detractors Key Influencers Influencers are ranked by the number (or percentage) of mentions for the quarter and which NPS category they fall into (as indicated by the color coded, stacked bar charts). For example, the Ease of Use influencer is primarily mentioned by detractors. Though detractors perceptions are harder to change, addressing their feedback and improving their NPS will ultimately produce a higher yield in retention.

Embed Insights within Product Teams key takeaway: Provide in-depth information on key influencers to guide innovation plans that address customer concerns 9 Product teams use the NPS report to pinpoint the causes and effects behind the prioritized influencers and to serve as a foundation for developing a solution NPS Report Actionable Components Key Insights This section gives product teams comprehensive contextual information on the relevant influencers for NPS. Driving the Score: summarizes how the key influencers are driving changes in NPS over time Score versus Goal: provides explanation of and suggestions for addressing the drivers behind any variance Additional Insights: shares further information and trends relevant to the NPS Key Influencers Snapshot This section provides transparency on the ongoing effects of each influencer and accountability for the plans to address problems. The snapshot is developed collaboratively by the CI and product teams to ensure accuracy and alignment. For example, project team alpha is currently working on a new interface to address the Ease of Use influencer, and the product team will reassess the price point in six months after the new interface is launched. The NPS change indicates how each influencer affects the overall NPS for the quarter. Key Insights Current Quarter Driving the Score Pricing mentions continue to negatively affect the overall score. Text analysis indicates that Price complaints are linked to the Ease of Use influencer. Detractors scores are predominantly linked to Ease of Use and Streaming Quality. Actual versus Goal The NPS, while improving, is still well below the goal. This is attributed to ongoing sensitivity around the price. We should readdress the timeline for assessing the price point once the new interface is launched. Additional Insights The communications about the development of a new interface to address the Ease of Use have had a positive impact on the score. Key Influencers Snapshot Current Quarter Key Influencer NPS Change Recommendation/Project Status Due Date Ease of Use + 3.4% Project team alpha working on new interface. End of Q13 Simplify Interface Options 0.90% Monitor comments with release of new product in February. TBD Price 2.6% Reassess the price point in six months. Ongoing Consolidate Number of Dial-Ins + 1.25% Strategic partnerships team looking at consolidation options. TBD Streaming Quality + 1.55% Monitor for a significant change in NPS over the next three months. Ongoing

Apply Insights to Innovation key takeaway: Ensure that new product concept evaluations measure the impact on customer loyalty Once an influencer attains critical mass, CI and the product manager build a business case using a dashboard that connects the product concept to increased loyalty and revenue Customer-Needs Driven Business Case Process 10 Business Case Inputs Once an influencer becomes statistically significant (impact on NPS) or the product manager identifies a product improvement opportunity, the product manager works with CI to develop a business case based on the: Impact of the Key Influencer provided by CI Solution Investment and Feasibility provided by the product team Business Case Dashboard The product manager uses the dashboard to refine the business case by assessing its: Feature Request Timeline release month, cost, and ROI Impact on Customer Loyalty predictive models that indicate the effect on retention, conversion, and word of-mouth recommendations Financial Impact predictive models that indicate change in sales and revenue by year Business Case Review The product approval committee reviews the business case impact on customer loyalty, financial benefits, and technical feasibility. Once a business case is approved, it is granted funding and placed in the technology roadmap for the year. In some cases, the product manager continues to use the dashboard to monitor customer loyalty and revenue throughout the product development cycle. Impact of Key Influencer Status as a must have or a want to have Number of mentions Timespan of mentions Impact on the product s NPS Composition of the requesters (NPS and CLTV) Feature Request Timeline (Months) 1 11 Cost ROI Product Approval Committee Impact on Customer Loyalty Retention + 37% Conversion + 2.6% Recommendations + 16% Stage Gate Product Development Process Solution Investment and Feasibility A summary of the potential solution A feasibility assessment specifying the difficulty (available resources and expertise), cost, and time required Data is illustrative and does not reflect actual sales or revenue. Financial Impact Sales Revenue 2013 $467,878 $398,045 2014 $1,284,004 $1,189,677 2015 $1,024,067 $897,057 report back to customers The end results of the innovation project are communicated to the customer demonstrating Citrix s commitment to applying customer voice to product development.

Apply Insights to Innovation using vcab for product development Purpose: The boards are customer focus groups created to expedite the solution to a pressing business or product issue. These boards: Get a deeper understanding of customers challenges or needs Test product ideas or new features Collect insights/feedback on a specific product or feature throughout the product development process key takeaway: Assemble just-in-time customer advisory boards for high-priority projects Customer Insights develops a Virtual Customer Advisory Boards (VCAB) process to quickly establish custom-fit collaboration between customers and product development teams 11 Assemble the Board Members VCAB Process The Customer Journey Analyst is responsible for working with the stakeholder to: 1. Clarify the business purpose 2. Identify the relevant customer profile for the project s purpose 3. Develop a list of potential customer advisors and contact them 4. Make sure customer advisors (typically 10 15 people) sign NDAs VCAB Benefits Reduces planning time a pre-established process allows Customer Insights to quickly assemble the board. Avoids sample bias different customers are recruited for each advisory board, which ensures participants do not reflect a small sample of Citrix s customers. Ensures effectiveness a customer profile based on the project s purpose ensures participants can address the problem Facilitate the Meetings The Customer Journey Analyst and product development team: 1. Develop and ensure the content for the meetings is customer facing and relevant to the end-goal 2. Schedule the series of engagement meetings (typically one hour sessions each month, for six months) 3. Facilitate the meetings Enables rapid prototyping advisory boards have multiple interactions spread over six months. Teams can then gather information, make adjustments, and return for more feedback. Diminishes the time commitment advisory boards are virtual engagements (removing travel costs and reducing the time commitment to one-hour increments over six months). Close the Loop The Customer Journey Analyst works with the product development team to: 1. Ensure customers feedback is accurately represented and applied to the problem or product 2. Close the loop with the advisory board members on how their participation has affected Citrix business or product map Improves customer retention and loyalty reporting changes to the advisory board members: -- Validates the time customers spent on the project -- Demonstrates the importance of their voice -- Underlines Citrix s commitment to its customers

Approximately 45% of Citrix s customer driven business cases become new products or product features Customer Driven Innovation Business Cases Business Results.and Citrix has reduced the cost-per-lead for some segments by 30% Cost-Per-Lead, 2009 2012 (Indexed) 12 x 30% 0.7x 55% 45% Become a new product or feature 2009 Year 2012 case in point: remote meeting service After a customer-driven innovation is released Citrix tracks several metrics that measure its ROI. For example, after the launch of the new interface the firm saw: The number of deals lost, number of people mentioning the Ease of Use influencer, and cancellations associated with the influencer decrease Retention rates increase to match those predicted in the business case The product line s CLTV and NPS metrics associated with the influencer, and deals won increase Overall, Citrix s voice of the customer efforts have instilled a deeper understanding of what kinds of content prospects and customers prefer, ultimately creating a more engaging and personalized experience. Managing Director of Customer Insights, Citrix

13 Key Lessons Learned Profiled Company Perspective Establish the Customer Insights team as a service center, rather than as a mandate from above. This will increase buy-in, open up access to business units data, boost the use of Customer Insights work, and avoid territorial behavior by divisions with revenue targets. Ensure the Customer Insights team has access to companywide data. This allows the team to integrate cross-business insights, support decision-making at all levels of the business, and link customer feedback to measurable changes in customer behavior (such as increased revenue, retention, and loyalty). Keep an eye on the pace of change and periodically revisit segment personas to ensure they: --Reflect any recent changes in the segment --Acknowledge any emerging high-potential markets or end-users Let customers know how their feedback was used this is vital to effective customer engagement. It is imperative that the method of reporting aligns with the source of the customer insight. For example: --For insights gathered through surveys or multiple touch points, Citrix cites the feedback of its customers as the catalyst for a new feature or product in a public press release. - - If Citrix uses a Beta test group or Virtual Customer Advisory Board for a product idea, it (a) includes people who requested the feature in the test group, and (b) informs the group of the changes before a public announcement is made on its website or through a press release.

14 Frequently Asked Questions The following is a summary of the question-and-answer session with Tabitha Dunn, Managing Director of Customer Insights, during the Ask the Thought Leader Webcast conducted on 24 September 2013. To view the webcast, please click here QWas the Customer Insights (CI) group part of a larger initiative or a stand-alone effort? If it was a stand-alone initiative, how did you get senior management to support it? The development of the CI group was part of an expansive top-down initiative to improve the customer experience and provide a customerfocused design. The overall initiative was enacted because of an increasing awareness of the importance of knowing your customers. Though CI had buy-in at the most senior level, the development of the CI group started as a grassroots effort within one of Citrix s businesses. However, due to CI s success measured by impact and the increase in requests for their services the team expanded their scope to support the entire company. QWhat are some examples of listening posts? The customer journey provides the entire company with a common language and understanding of the customer experience at every stage of its interaction with Citrix. Citrix pinpointed key moments of interaction at each stage and established listening posts at those stages. For example, the CI team wanted to understand customers perceptions of brand and product awareness particularly as they got closer to the sale, so CI conducted a win/loss analysis to capture this information. Because Sales Operations runs win/loss analysis, CI played a supporting role in structuring the measurement system and ensuring the listening post captured wins and losses, and why. A second listening post was the recordings from customer support interactions; these recordings allowed CI to capture qualitative information on potential product needs and overall customer satisfaction. QWhat are the pros and cons of centralization? In other words, what is lost by not assigning a CI analyst to each product line? The guidebook itself covers the array of benefits of centralization, from specialized staff to a holistic perspective. That said, the two primary cons of centralization are: 1. The perception that the corporate team is telling the business units what to do 2. The risk that the members of a centralized team will be excluded from decision making It is therefore essential to clarify CI s supportive role to the business units. All product managers are familiar with the CI team and its ability to help them. CI carefully monitors the health of its relationship with the product teams and tracks how often product managers approach the CI team to build product business cases. If the product managers feel that they aren t getting traction on a potential product opportunity, but feel that the inputs of the CI team will help them get approval, it is evidence of a healthy partnership. QDid CI conduct any preliminary work to identify what type of information would make the customers real for the product teams? CI conducted ethnographic research, asked customers to blog about their daily experiences at work, conducted virtual customer advisory boards for products that didn t exist, and employed structured-task based research. These activities made clear the need for a wide array of tools like journey mapping, personas or segmentation, ethnographic research, NPS or any combination to capture feedback from customers and match the tool or tool set to the specific task.

15 Frequently Asked Questions (Continued) QBesides Net Promoter Score (NPS), what types of customer feedback mechanisms would get the same results? NPS is particularly useful for relationship analysis, but is most effective when paired with other measurement tools. Prior to finalizing a measurement approach, the Managing Director tested NPS to ensure it would deliver the kind of information CI was seeking. For example, if a customer rated Citrix a 7 on the NPS scale, could this number be translated into accurate projections of customer lifetime value and loyalty? In addition to NPS, CI tracks customer effort score, because effort assessments usually measured during customer experience engagements identify patterns in loyalty and likelihood to provide wordof-mouth endorsements. This particular mechanism is tricky, because a remarkable proportion of a customer s effort to get answers happens outside of direct interaction with Citrix s support staff (e.g., online FAQs or message boards about a particular product). In addition to customer effort analysis, customer satisfaction scores help gauge how a new feature or product meets a specific customer need. In summary, the main point is to ensure the mechanism used asks the right questions to provide the right information and keeps the number of questions to a minimum. QThe engagement and purchase cycle appears to capture customer emotional connections or decisions. What role does customer support have in these connections? The customer journey maps the engagement, purchase, and support cycle and looks at the emotional experience along the way. Customer support is one of the touch points in which customers proactively contact Citrix, so it is important to understand the amount of effort the customer puts into the process. It is also important to note that these encounters are usually emotional: if an issue is resolved quickly, the customer is usually happy (and conversely, a negative support experience could have dire implications for the customer s long-term loyalty). Shortly following a customer support interaction, the customer receives a NPS survey that includes quantitative ranking questions and a section for additional qualitative feedback. QWhat is the development investment for NPS? What other investments were required? The CI team considered hiring a vendor to manage its NPS program, but decided to create and manage its NPS program internally. The Managing Director of CI had previous experience in NPS, including practical knowledge on how to build a NPS program and make sure NPS was the appropriate tool for the customer base. For NPS to work well, it s important to have a survey platform that s doubles as a research platform and includes text analytics. The text analytics component was built by a vendor. Citrix invested in this additional capability so that the text analysis could evolve as the customer voice changed. For example, the program will initially look for requests by customers for feature X, but as that feature is rolled out in a new product, the text analysis starts to look for feedback on feature X rather than feature X requests.

16 Frequently Asked Questions (Continued) QWas there any resistance by the engineers on using the NPS dashboard? If so, how was it overcome? The following three things helped ensure the engineers would use the NPS dashboard: 1. Product managers, rather than the engineers, typically set the technology road map for the year. Product managers already tend to include customer needs and customer voice in their decisions on research priorities. 2. Citrix s engineers actually wanted to be connected to the customer. They felt far removed from the customers and got excited when a link was established between what they created and what customers said about it. 3. The ability of the dashboard to provide macro- and micro-level information, and to deliver it both qualitatively and quantitatively. For example, the NPS data can feature trends on a macro level, or deliver the correlation between feedback, features, and NPS. It also offers qualitative information and links to comments from the NPS feedback or recordings of customer calls. In this way, the dashboard caters to many learning styles and interests. QDo all product business cases now include information on customer retention and loyalty? If so, how are these quantified for new product ideas? All product business cases for pre-existing products or incremental innovation projects include a customer retention and loyalty assessment. When a product is new, it can be difficult to predict what the impact might be from a growth perspective. Instead, Citrix conducts extensive product testing for new products to baseline its potential, quantifies the feedback, and includes the findings in the opportunity assessment. The CI team also works with Citrix s user researchers, whose job is to ensure new products address a need; in many cases, the product teams know what the customers pain point is before they start developing a new idea. For additional information on customer-focused product development, please download the sample of GTM s Best Practice Guidebook Building a Customer-Centric Business Model. For more information on product development, please download the sample of GTM s Growth Process Toolkit New Product Development Accelerating Growth through Unbiased and Rigorous Early-Stage Product Evaluation. questions? If you have any questions regarding this webcast or the Growth Team Membership (GTM), e-mail us at GTMResearch@frost.com. To learn more about GTM visit us at www.gtm.frost.com or on Twitter @Frost_GTM.

17 Supporting Tools & Resources design matters initiative The Design Matters Initiative was rolled out in 2010. The initiative helped Citrix create a user-centric culture by teaching employees and customers about design and by training employees to incorporate VOC throughout the company s business processes. The Design Matters Initiative provides employee training, resources, techniques, and support focused on: 1. Achieving a deeper understanding of customer needs 2. Supporting cross-team and cross-functional collaboration throughout the development process 3. Teaching participants to create quick prototypes based on ideas, test them with customers, and integrate customer feedback into the end product Product Design Teams are responsible for the Design Matters Initiative. Each product designer works with 3 4 engineers to support customer feedback collection and product design and experience improvement. More than 2,500 employees worldwide have participated in the Design Thinking training. Design Matters Initiatives for Engineering/Product Development Three-in-a-Box Customer Engagements Purpose: identify customer needs and gain a deeper understanding of how customers use Citrix s products. These on-site customer visits are conducted by an individual from product design, product management, and engineering/product development (three individuals, hence three in-a-box ). Synergy Conference Labs Purpose: provide a collaborative environment for product teams and customers. Citrix includes a research lab at its annual customer day conferences (one in the Americas and one in Europe). The focus of the research lab varies each year but typically includes usability focus groups, prototype demonstrations, or discussions on current customer processes. Connect Event Purpose: engage employees, generate buy-in, and provide internal recognition for adherence to the Design Matters Initiative. During this annual design fair, the product design team nominates design heroes engineers that advocate and apply the principles of the Design Matters Initiative. The nominees receive a blue cape and award during the award ceremony.

18 Supporting Tools & Resources Customer Experience Survey Net Promoter Score (NPS) Citrix Survey Excerpt NPS Defined Citrix Customer Experience Survey DETRACTORS PASSIVES PROMOTERS How likely would you be to recommend our products to a friend or colleague? (0 is least likely, 10 is most likely) 0 1 2 3 4 5 6 7 8 9 10 Please give your reasons for the rating above. 0 1 2 3 4 5 6 7 8 9 10 Net Promoter Score = % Promoters % Detractors If you didn t rate us a 10, what could we do to improve our score? Net Promoter Score is founded on the idea that a company or its products performance can be assessed by how customers perceive it. This is measured by their willingness on a 11-point scale to recommend it to a peer or colleague. Accordingly all customers fall into one of three categories: 1. Promoters (rate 9 10): brand enthusiasts, who will continue to purchase products and proactively promote the brand 2. Passives (rate 7 8): satisfied customers, who will not proactively promote the brand and could defect to a competitor 3. Detractors (rate 0 6): unsatisfied customers, who will readily defect to competitors and damage the brand through negative word-of mouth The NPS is determined by the percent of promoters and the percent of detractors. Based on this information, Customer Insights (1) tracks each product s performance over time and (2) prioritizes customer feedback based on the source s NPS rating and potential impact.