8/8/2010VOC for CRM Tutorial_oct2010.ppt1 of 23 VOC for CRM : How “Voice of the Customer” can Enhance Customer Relationship Management A Tutorial Prepared for ASQ Section October 2010

8/8/2010VOC for CRM Tutorial_oct2010.ppt2 of 23 Objectives Despite our best efforts to make Customers the focal point of our QMS, our efforts are usually reactive, not collaborative It is imperative that we:  Identify easy-to-use, practical & economic tools to: Allow Customer-facing employees to provide better service Collect data efficiently and unobtrusively for other teams to analyze  Also, employ the tools in order to … communicate complex ideas or programs to Customers help customers to arrive at ideal solutions Offer Customers the means to appreciate how well Motorola is serving them.

8/8/2010VOC for CRM Tutorial_oct2010.ppt3 of 23 Riding the Curves: 3 Phases of CRM Life Cycle

8/8/2010VOC for CRM Tutorial_oct2010.ppt4 of 23 Determining what the Customer REALLY wants “Discovery” Life Cycle Phase

8/8/2010VOC for CRM Tutorial_oct2010.ppt5 of 23 Direct Customer Feedback  Current Sources of Feedback Written Surveys [Annual perception, SI transaction, Service renewal] Executive Scorecards Repair/depot feedback cards  What do we need [in the future] ? Validation: before and after surveys  Before [are we assessing a need or dis-satisfier correctly?]  After [did we hit a “home run” with the solution?] Leading indicators of threats and opportunities Timely responses

8/8/2010VOC for CRM Tutorial_oct2010.ppt6 of 23 Content Analysis [CA] / KJ Imaging [KJI] When to Use: Collect all s, notes from Customer facing meetings & use CA programs to evaluate common verbiage hinting at Customer real needs Do for customers identified as “Trusted partner” from annual perception survey Benefits for CRM anticipating concerns and opportunities complimenting conventional feedback [surveys] How to Use: To covertly collect real needs through many diverse contributors Examples/Success Stories Pursuing with CBP/DHS Still investigating opportunities to use, costs to implement & benefits

8/8/2010VOC for CRM Tutorial_oct2010.ppt7 of 23 KJ Mapping How to Use: Taking those attributes or needs from CA/KJI & putting them in the context of clusters of opportunities When to Use: Before major proposals, to identify Customer “delighters” and things MOTO does extremely well Benefits for CRM Reinforces feeling of “partnership with Motorola” More efficient communication/ delivery of solutions (because we know what Customers REALLY want) Examples/Success Stories None currently; need a “beta”

8/8/2010VOC for CRM Tutorial_oct2010.ppt8 of 23 Kano Marketers, product developers & Customer support staff have long been challenged by the following questions:  Why do some products/services achieve dramatic success based on one or two exciting characteristics while others fail because the Customers' basic requirements aren't met?  Can we predict which features will delight or ‘bore’ Customers? For which features would we get the most "bang for our design, development & marketing buck?“ Upon which service features should we focus our advertising, promotion, sales and after-sales efforts?

8/8/2010VOC for CRM Tutorial_oct2010.ppt9 of 23 Considerations with Kano  “Delighting Customers” means: Consistently and efficiently delivering basic quality Listening to & delivering current needs [ “performance” quality] Anticipating the excitement opportunities... …& exploiting them!  As time passes, excitement devolves (sometimes quickly) to basic need  KANO requires a continuous, consistent process to gather, analyze & interpret excitement offerings  Discover “Customer-driven opportunities” by: Observing Customers Using technology & process engineering to improve performance Replacing or improving on key product features. Improving on where all competitors are doing poorly Lateral benchmarking

8/8/2010VOC for CRM Tutorial_oct2010.ppt10 of 23 What Can Kano Tell Us?  Focus R&D/product improvement $ on excitement features  Pick out features from the performance curve where we outperform competitors & ADVERTISE these! For Basic features, prove that our company outperforms competitors [give to sales, marketing…to constantly remind prospects & existing Customers] [model is notional]

8/8/2010VOC for CRM Tutorial_oct2010.ppt11 of 23 Making sure our Customers GET what they really want “Delivery” Life Cycle Phase

8/8/2010VOC for CRM Tutorial_oct2010.ppt12 of 23 “House of Quality” Topography Performance Targets [for “how’s”] 9 Customer “WANTs” 1 HOW’s Product Characteristics Measurable Satisfy WANT’s 3 Want’s Vs How’s Correlates Customer’s ‘Needs’ with HOW the Standard can met the Standard 4 “How’s” Correlation Matrix 7 Absolute Importance Ratings 5 2b Importance [of WANT’s ] 8 Direction of Improvement [for “how’s”] Competitive Market Analysis 2a VOC VOP Technical Competitive Analysis 6

8/8/2010VOC for CRM Tutorial_oct2010.ppt13 of 23 House of Quality (example*) * - The actual HOQ must be jointly developed Done for USPS in 2007

8/8/2010VOC for CRM Tutorial_oct2010.ppt14 of 23 QFD Flow of Activities until Final Deployment” Analyze Critical Processes HOQ How’s What’s QA Tools FMECA Check Sheets SPC Charts Scripts; mistake- proofing Quality Assurance Matrix Process Planning Matrix [PPM] VSM FMEA Operations/ Financial Analysis Flow Charts Pugh Concept Selection [QAM] VOC Critical Success Factors Tests Inspection points, audits What’s

8/8/2010VOC for CRM Tutorial_oct2010.ppt15 of 23 Allocating How’s from HOQ to PPM (example*) Focus on these 3 "how's" since they have the highest Absolute Importance #'s. Continue analysis to Process Planning Matrix. Extract from HOQ Process Planning Matrix [PPM] Take "How's" from HOQ & Transpose to "What's" of PPM * - The actual HOQ & PPM must be jointly developed

8/8/2010VOC for CRM Tutorial_oct2010.ppt16 of 23 Transactional Outcome Analysis [TOA] How to Use: To support strategic planning At a tactical level, determine bottlenecks in processes and possible outcomes of Customers at decision points in the process When to Use: When extreme, out of the box thinking is needed When concrete data for forecasting is not available, but… …the impacts of not acting can be predicted with some degree of accuracy Benefits for CRM A tailor-able model to show product team & strategic planners, the effect of proper timing of release, upgrades and new products Provides concrete examples of how Motorola wishes to partner Examples/Success Stories 2011 USFGMD strategic planning

8/8/2010VOC for CRM Tutorial_oct2010.ppt17 of 23 Example of TOA [for USFGMD ‘practical sales forecasting model’]

8/8/2010VOC for CRM Tutorial_oct2010.ppt18 of 23 Anticipating & delivering on what the Customer REALLY wants “Dedication” Life Cycle Phase

8/8/2010VOC for CRM Tutorial_oct2010.ppt19 of 23 Failure Modes & Effects Analysis [FMEA] How to Use: Determine failure modes & effects; Prioritize risks and determine how to mitigate them. Communicate unique use cases to the product developers When to Use: When true SMEs are available… …to communicate our understanding of Customer’s operating profile, hazards and severity and probability related to each. …to put unique Customer required functionalities in the context of missions & risks involved; and how good communications can mitigate these Benefits for CRM Foster true partnering; free flow of communications with the Customer Assure proper priority is put on product features & support requirements Examples/Success Stories Customs and Border Protection

8/8/2010VOC for CRM Tutorial_oct2010.ppt20 of 23 P-FMEA (1 of 2) [“As-Is” view]

8/8/2010VOC for CRM Tutorial_oct2010.ppt21 of 23 P-FMEA (2 of 2) [“To Be” view]

8/8/2010VOC for CRM Tutorial_oct2010.ppt22 of 23 Conclusions  We may get feedback, but do we know how to use it?  Are we reactive? If so how does that effect CRM?  CRM is a life time commitment Actually, it’s a life cycle commitment Remember the “3 D’s”  ‘ determining’  ‘delivering’  ‘dedicating ’  Recognize that LSS tools have value outside of continuous process improvement… … but you must use imagination!

8/8/2010VOC for CRM Tutorial_oct2010.ppt23 of 23 For Additional information, contact: John Weisz, SSBB, CQE, CRE