How to Delight Your Customers A Nitipan Ratanasawadwat Assumption University of Thailand Origins of the Kano Model Noriaki Kano Professor at Tokyo Rika University International Consultant ID: 662445
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Kano’s Model of Customer SatisfactionHow to Delight Your Customers
A.
Nitipan
Ratanasawadwat
Assumption University of ThailandSlide2
Origins of the Kano ModelNoriaki Kano
Professor at Tokyo Rika University
International Consultant
Received individual Demming Prize in 1997Slide3
IntroductionProduct/service quality is main antecedent of customer satisfaction
(Cronin & Taylor 1992; Anderson & Sullivan 1993; Brady et al. 2002)
Important to find out how each attribute performance impacts on satisfaction
Prof. Kano pointed out that not all product/service attributes have same role in satisfying customer needsSlide4
Origins of the Kano ModelDeveloped foundation for an approach on “Attractive Quality Creation” commonly referred to as the “Kano Model”
Challenged traditional Customer Satisfaction Models that More is better, i.e. the more you perform on each service attribute the more satisfied the customers will
beSlide5
Origins of the Kano Model Proposed new Customer Satisfaction model (Kano Model)
Performance on product and service attributes is not equal in the eyes of the customers
Performance on certain categories attributes produces higher levels of satisfaction than
othersSlide6
IntroductionSeparate among satisfaction, dissatisfaction and delight since factors that dissatisfy and that delight are often different
(Rust,
Zahorik
& Keiningham 1994)Ex. If a customer approaches an ATM then finds it to be out of cash, the customer will likely be dissatisfied, but it is unlikely that finding an ATM stocked with cash would satisfy or delight the customer Slide7
Kano’s Model of Satisfaction Technique use to determine which influence the attributes of products and/or services have on customer satisfaction (Kano et al. 1984)Slide8
Kano’s Model of SatisfactionWhich products and services can be used to obtain a high level of customer satisfaction?
Which product features have a more than proportional influence on satisfaction
Which attributes are an absolute must in the eyes of the customer?Slide9
Kano’s Model of Satisfaction Product/service attributes can be classified into three groups
Basic attributes/
dissatisfiers
/Must-havePerformance/one-dimensional attributesExciting attributes/satisfiers/AttractiveSlide10
Basic Attributes/Dissatisfiers
Minimum required features that customer naturally expect from a product/service
Not able to elicit satisfaction but can produce dissatisfaction when not fulfilled
ex. Punctually and safety of airlineSlide11
Performance/One-dimensional AttributesProduce both satisfaction dissatisfaction depending on performance levels
satisfaction is proportional to the level of fulfillment of these attributes
ex
. Gasoline consumption of a car; lower consumption leads to higher customer satisfactionSlide12
Exciting Attributes/SatisfiersProduce satisfaction when delivered but cause no dissatisfaction if not delivered
High performance on these has a greater impact on overall satisfaction rather than low performance
ex
. (unexpected) promotional offersSlide13
Three-Factor Theory Slide14
Typical Research FrameworkSlide15
Kano’s Model Process
Identify the Voice of the Customer
Translate Voice of the Customer into Critical to Quality Characteristics (CTQs)
Rank the CTQs into three categories:Dissatisfier - Must
be’s
– Cost of Entry
Satisfier – More is better – Competitive
Delighter – Latent Need – Differentiator
Evaluate Current PerformanceSlide16
Kano ModelSlide17
Kano Model Procedure
Analyze &
Brainstorm
Research
Plot &
Diagram
Strategize
Research available data sources
Determine data collection strategy
Design data collection instruments
Collect and summarize
data
Analyze results from data collection
Brainstorm list of features and functionality
Develop Functional and Dysfunctional Questionnaire
Distribute Questionnaire
Develop Customer Requirement Matrix
Record Questionnaire results in Matrix and Summarize
Plot results on Kano Model
Determine Project selection
Product Development
Service Development
Identify Marketing StrategySlide18
1. ResearchMust Be’s
- Focus Groups, Lawsuits and Regulations, Buzz on Internet
Satisfiers
- Competitive Analysis, Interviews, Surveys, Search Logs, Usablity Testing, Customer ForumsDelighters - Field Research, Marketing/Branding Vision, Industrial Design, Packaging, Call Center Data, Site LogsSlide19
2. Analyze & Brainstorm
Analyze data from available sources
Brainstorm list of features and functionality
Determine type of requirements: Output Requirements Service RequirementsKano Model Requirements Survey
User Survey
“Functional form” vs. “Dysfunctional Form”
“How would you feel if the product
had
feature X?”
“How would you feel if the product
didn’t have
feature X?”
Kano Questionnaire Answers:
I like it.
I expect it.
I’m neutral.
I can tolerate it.
I dislike it.Slide20
Example: Requirements SurveySlide21
Example: Requirements QuestionnaireSlide22
Functional vs. Dysfunctional ComparisonSlide23
Functional vs. Dysfunctional Comparison
Basic AttributeSlide24
Functional vs. Dysfunctional Comparison
Performance AttributeSlide25
Functional vs. Dysfunctional Comparison
Exciting AttributeSlide26
Evaluation Customer Requirements
C.R.
A
E
O
R
Q
I
Total
Grade
1
3
6
14
23
O
2
5
6
11
1
23
O
3
6
1
4
1
11
23
I
4
13
10
23
E
5
11
1
2
9
23
A
Customer
Requirement is
:
A: Attractive R: Reverse Q: Questionable Result
E: Expected O: One Dimensional I: IndifferentSlide27
3. Plot & DiagramSlide28
Kano Model & QFDSlide29
4. Strategize
Project Selection
Lean Six Sigma
Design for Six SigmaOrganizational StrategyDissatisfier – Must
be’s
– Cost of Entry
Satisfier – More is better – Competitive
Delighter – Latent Need – DifferentiatorSlide30
ApplicationBreak into TeamsSelect Team Leader
Select Scribe
Select Presenter
Scenario – You work for a Hotel chain and your company is trying to identify Voice of the Customer information to improve Hotel performance.Instructions:Brainstorm important characteristics you expect when staying at a Hotel
Identify whether they are a Must be, Expected or a Delighter from a Business Client perspective and from a vacationer perspective
Add in what the current performance is for the HotelSlide31
Example ResultsSlide32
DebriefAnalysisStrategy RecommendationsSlide33
Summary of Kano ModelAnalyze and rank the voice of the customer dataDevelop into CategoriesDissatisfier – Must be’s – Cost of Entry
Satisfier – More is better – Competitive
Delighter – Latent Need – Differentiator
Identify and implement strategySlide34
Questions?Slide35
ReferencesWalder, D., (1993). Kano’s model for understanding customer-defined quality. Center For Quality of Management Journal, 39, 65 – 69.Jacobs, R., (1997). Evaluating customer satisfaction with media products and services. European Media Management Journal, 32, 11 – 18.Ungvari, S., (1999). Adding the third dimension to auqlity.
Triz Journal, 40,
31 – 35.
Sauerwein, E., Bailom, F., Matzler, K., & Hinterhuber, H. (1996). The kano model: How to delight your customers. International Working Seminar on Production Economics, 19, 313 - 327Zultner, R.E. & Mazur, G. H. ( 2006). The Kano Model: Recent Developments. The eighteenth symposium on Quality Function Deployment.Slide36
36Dimensions of Quality
Performance
ReliabilityConvenience and AccessibilityFeaturesEmpathy
Conformance to
Standards
Serviceability
Durability
Aesthetics
Consistency
Assurance
Responsiveness
Perceived QualitySlide37
37
Dimensions of Quality
( 1 of 6)
PERFORMANCE:
How
well the output does what it is supposed to do.
RELIABILITY:
probability of operating for specific time and conditions of useSlide38
38
Dimensions of Quality
(2 of 6)
CONVENIENCE and ACCESSIBILITY: How
easy it is for a customer to use the product or service.
FEATURES:
The
characteristics of the output that exceed the output’s basic functions.Slide39
39EMPATHY: The
demonstration of caring and individual attention to customers.
CONFORMANCE:
The degree to which an output meets specifications or requirements.
Dimensions of Quality
(3 of 6)Slide40
40
SERVICEABILITY:
How
easy it is for you or the customer to fix the output with minimum downtime or cost.DURABILITY:
How
long the output lasts.
AESTHETICS:
How
a product looks, feels, tastes, etc.
Dimensions of Quality
(4 of 6)Slide41
41CONSISTENCY:
The
degree to which the performance changes over time.
ASSURANCE: The knowledge and courtesy of the employees and their ability to elicit trust and confidence;
The ability of the output (and its provider) to function as promised
Dimensions of Quality
(5 of 6)Slide42
42
RESPONSIVENESS:
Willingness
and ability of employees to help customers and provide proper services.PERCEIVED
QUALITY:
The
relative
quality level of the output in the eyes of the customers.
Dimensions of Quality
(6 of 6)Slide43
43When is there too much Quality
The cost of quality
erodes the profit
The quality is too far exceeding customer expectationsRational turns to IrrationalSlide44
44
Importance of Customer Satisfaction and Loyalty
“Satisfaction is an attitude; loyalty is a behavior”
Loyal customers spend more, are willing to
pay higher prices
, refer
new clients
, and are
less costly
to do business with.
It costs
five times more
to find a new customer than to keep an existing one
happySlide45
45Measuring Customer Satisfaction
Discover customer perceptions of business effectiveness
Compare company’s performance relative to competitors
Identify areas for improvementTrack trends to determine if changes result in improvementsSlide46
46
Difficulties with Customer Satisfaction Measurement
Poor measurement schemes
Failure to identify appropriate quality dimensionsFailure to weight dimensions appropriately
Lack of comparison with leading competitors
Failure to measure potential and former customers
Confusing loyalty with satisfactionSlide47
47
Creative Problem Solving
Mess Finding
– identify symptoms
Fact Finding
– gather data; operational definitions
Problem Finding
– find the root cause
Idea Finding
– brainstorming
Solution Finding
– evaluate ideas and proposals
Implementation
– make the solution work