Dan Martell - July 03, 2017


The Kano Model Explained

Hosted by
Dan Martell
Mentioned
Kano Merv Sims
The 5 Reasons SaaS (Software-as-a-Service) Customers Churn 3 Inputs To a Great Product Roadmap

Episode Stats


Length

6 minutes

Words per minute

210.78

Word count

1,332

Sentence count

66

Harmful content

Misogyny

2

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

If you ve ever felt frustrated, have you ever created something new and your customers were like, meh? They didn t even notice? You spent all this time building a new feature, launching a new service, creating a better experience, and nobody cared? Or you feel like you re not growing enough, probably because you have a low net promoter score? In this episode, I m going to talk you through a model that can help you understand the needs of your customers and how to create a world where your customers come in and are excited about your product or service.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
00:00:00.000 If you grab 10 people and you're like,
00:00:01.760 show me your phones, it's like most people
00:00:03.900 don't have a password on their phone.
00:00:05.440 I'm curious how many of those people
00:00:07.100 probably don't have a password on their computer.
00:00:10.520 They're gonna get themselves in trouble.
00:00:12.680 It's called the attack vector, super nerdy.
00:00:22.080 How to excite and delight your customers in this video,
00:00:25.800 I wanna talk you through a model. 0.97
00:00:28.200 Because if you've ever felt frustrated,
00:00:29.760 Have you ever created something new
00:00:31.300 and your customers were like, meh?
00:00:33.060 They didn't even notice.
00:00:34.060 You spent all this time building a new feature,
00:00:36.060 launching a new service, creating a better experience
00:00:38.760 and nobody cared.
00:00:40.180 Or you feel like you're not growing enough,
00:00:42.240 probably because you have a low net promoter score.
00:00:45.580 If you don't know what an MPS score is,
00:00:46.640 you can go Google it.
00:00:47.820 But, you know, there's a world that you can create
00:00:50.540 where customers come in and are excited
00:00:52.880 and if you understand their needs, everything changes.
00:00:55.620 You know, recently I had a friend of mine,
00:00:57.420 Merv Sims speak at one of my events and the guy is literally
00:01:02.200 an encyclopedia for process improvement.
00:01:04.360 And throughout that talk he was sharing all these models for
00:01:07.500 kind of understanding the customer needs and how do you
00:01:09.800 deliver value and how to kind of focus on the right projects
00:01:12.500 at the right time and people kept asking him, it's like,
00:01:14.840 well how do you know what to create for your customer?
00:01:17.600 That's when he shared this really incredible framework
00:01:20.140 called the Kano Model and I want to share that with you
00:01:22.680 guys today.
00:01:23.680 The first part of it, if you think of it kind of like a tree,
00:01:26.420 You've got three areas in the first kind of,
00:01:29.220 well, maybe more like a funnel. 0.76
00:01:30.560 You have three things you need to focus on.
00:01:32.520 Number one is the needs of your customer, okay?
00:01:35.400 So the needs of your customer,
00:01:36.460 and they come down to three different areas.
00:01:38.100 First is the expected needs.
00:01:40.240 If I'm gonna buy a product or a service for somebody,
00:01:43.440 what are the expected features?
00:01:45.180 What are the expected characteristics of that service
00:01:48.580 so that you're at least on par with what the customers expect?
00:01:52.480 That's one.
00:01:53.320 Number two is the expressed needs.
00:01:55.780 So this is where, maybe through your customer service,
00:01:58.180 through your sales, through your agents on the floor,
00:02:00.660 they're talking to a customer and they're asking them,
00:02:02.620 like, what are some of your challenges?
00:02:03.960 How would you like those solved?
00:02:05.020 And they're starting to express their needs,
00:02:07.760 and maybe you look at your product or service
00:02:09.360 and you're like, I don't even solve those problems yet.
00:02:12.060 That's an opportunity for you to start
00:02:13.540 addressing the express needs.
00:02:15.160 And then the last one, which is the area I like spending
00:02:17.700 most of my time on, is the excite.
00:02:19.380 What are the things, maybe not even verbalize or express,
00:02:22.900 that can excite your customers
00:02:24.900 to really fall in love with your company.
00:02:27.100 So once you have those three, then you have two choices.
00:02:29.900 So this is the second step in the Kano model.
00:02:31.480 You have two choices.
00:02:32.740 One, you can either improve,
00:02:35.120 which is really taking what you have and enhancing it.
00:02:38.120 I call that an enhancement.
00:02:39.920 Typically, those suggestions come from your salespeople.
00:02:42.620 So this is something I deal with
00:02:44.120 with software companies all the time is,
00:02:46.160 you know, they're getting all this feedback
00:02:47.400 from their salespeople.
00:02:48.460 Here's what I suggest is those things that they suggest
00:02:52.020 makes for a faster horse.
00:02:53.660 And those are important, and those are the expected needs
00:02:55.860 and the expressed needs of your customer,
00:02:57.400 so you need to incorporate that into your product roadmap.
00:03:00.200 But the other option you have is to innovate,
00:03:02.460 and this is where I think it comes from the internal team.
00:03:04.900 So you have improve or innovate.
00:03:07.440 So once you've got those three needs,
00:03:09.040 the express, the expect, and the excite,
00:03:11.580 those move down into two options you have,
00:03:14.180 innovate or improve.
00:03:15.480 I think the improve comes from your salespeople,
00:03:18.520 the innovate comes from the internal team,
00:03:20.480 your idea on future of the market, where it's going.
00:03:23.380 And if you improve and really deliver
00:03:25.960 on the needs of your customer,
00:03:27.020 then you have one primary outcome.
00:03:28.620 That's the third phase, which is growth.
00:03:31.420 I mean, think about it.
00:03:32.520 The number one characteristics of a company's
00:03:35.460 predictable future growth is what's called
00:03:38.060 the Net Promoter Score, the NPS score,
00:03:40.300 which really just asks, after somebody transacts
00:03:42.540 with your business or engages with your product,
00:03:44.540 how likely are they to recommend your product
00:03:46.780 to a friend or family or colleague?
00:03:48.980 And their answer is 100% what's gonna drive people
00:03:52.720 to share on social media, to grab their friends in headlocks.
00:03:55.820 Do you remember Twitter?
00:03:56.980 Like, nobody taught somebody how to use Twitter.
00:03:59.520 Twitter didn't have a tutorial video on their site.
00:04:02.260 The way they grew is people that got it, okay?
00:04:05.660 I might have been those early adopters, 2008, I got it.
00:04:08.860 I literally sat down with my family members,
00:04:11.200 my friends that were more advanced, more early adopters
00:04:13.600 and said, here's how you use it, right?
00:04:16.380 They not only did things that I expected, maybe I expressed,
00:04:20.060 but they also added features that excited me,
00:04:22.760 that showed me the world was gonna be different
00:04:24.620 in using this product.
00:04:25.460 And they obviously improved the product.
00:04:27.760 I mean, okay, today you could argue
00:04:29.120 maybe they haven't kept up to that.
00:04:30.600 But maybe they need to watch this video
00:04:32.300 so that they can understand the three needs of the customer.
00:04:35.900 And they innovated and they added features.
00:04:38.000 Most people forget in the early days of Twitter,
00:04:39.560 it was SMS and it was updates on IM Chat.
00:04:42.440 There was no web interface, mobile devices.
00:04:45.900 They literally, it was a text message and or you updated
00:04:49.000 your status on your chat software you use.
00:04:52.400 But those are the three phases of the Kano model.
00:04:54.780 Number one is understand their expectations
00:04:56.780 around their needs and those are expressed,
00:04:59.140 excite and, express and expected.
00:05:03.420 And then two is what do you do with all this feedback
00:05:06.220 and really you've got two options,
00:05:07.380 improve or innovate and then finally if you do those things
00:05:11.100 you grow through an incredible customer experience
00:05:13.960 where they start telling everybody about it
00:05:15.560 and you measure that through the net promoter score.
00:05:17.860 And here's a tip, if you wanna have some fun with this,
00:05:20.760 is be sure to take some time to shock it off.
00:05:22.740 See, the beauty of thinking about how do I do something
00:05:26.040 unique for my customers, you don't have to do it
00:05:27.380 for all of them.
00:05:28.440 You can literally, and this is what I do,
00:05:30.440 is you can take one hour a week and you could
00:05:33.140 call your customer and say, hey, I'm the CEO
00:05:35.180 and I just wanted to call and say thanks for your business.
00:05:37.120 Or you could do a parcel drop.
00:05:39.360 You can do something super unique and creative
00:05:40.980 like a gift and drop it.
00:05:42.260 You can do handwritten notes.
00:05:43.320 I've been on the receiving end of many of those
00:05:44.920 and I've done, I remember when we started Clarity,
00:05:47.120 we did about 1,200 handwritten thank you notes
00:05:49.560 for all of our first 1,200 customers who did paid calls.
00:05:53.660 Shock and awe, just take the opportunity to be creative,
00:05:55.960 have some fun with it, and really take your experience
00:05:59.160 to the next level by understanding your customer needs.
00:06:01.700 As for usual, I wanna challenge you to live a bigger life
00:06:04.100 and a bigger business, and I'll see you next Monday.
00:06:06.400 If you like this video, be sure to subscribe to my channel
00:06:08.180 for other tips on how to start and grow your business.
00:06:10.120 I'd also invite you to join my newsletter
00:06:12.120 for free entrepreneurial training videos
00:06:13.620 and other community contests.
00:06:15.260 If you want to get going, I got two more videos queued up for you.
00:06:18.160 I'll see you next week.