Customer surveys and customer expectations PDS Problem Detection Study

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Customer surveys and customer expectationsPDSPr
oblem Detection Study
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• How many have heard of PDS?
• How many have done a PDS themselves?

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Thams Nyås Management AB

• 700 PDS studies during 20 years
• More than 20 outside Sweden
• 10 personnel studies

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Client profile

• Market leaders
• Focus on long term innovation and development
• Successful management

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DI 24 FEB 2001
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The PDS idea

• People are better at complaining than telling
  you what to do.
• If you ask consumers what they want they will
  seldom tell you anything new.

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The Method

• Advertising Agency BBDO, NY
• Reaction against traditional research

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Dog Food

• Traditional research
• Provide a balanced diet
• Give nuitrition
• Contain vitamins

• PDS
• Smells bad
• No chewing exercise
• Not available in different sizes

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PDS Problem Detection Study

• The PDS method identifies and ranks problems,
  needs and opportunities in market priority.

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Step one Preparation

• Pilot interviews with customers
• Problem area description

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Step two Problem identification

• 30 in-depth interviews with the target groups
• 20 interviews with the clients own staff
• Reviewing secondary data and past PDS studies
• Management visions and wish lists

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The questionnaire - PDS-part
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The questionnaire
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Step three Quantification

• Existing customers (1000)
• Potential customers (200)
• Lost customers (200)
• Own staff Answer the questionnaire as you think
  your customers will answer it
• Mailout in company envelopes. Introduction and
  thank you-letter by MD

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Step four Analysis

• All problems ranked in priority
• Problems clustered into action areas

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Step five Concept developments(How do we solve
the biggest problems?)

• Suggestions from the research institute
• Group discussions with the clients staff
• Task forces
• Quality circles

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Step six Control

• Quality measurements on the ten highest ranked
  problems every sixth months
• Customer loyalty every year

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New concepts

• Time killing (Scandic Hotels now Hilton)
• The airport as a shopping center (Copenhagen
  Airport)
• Flight information (Airport restaurants)
• Line busting (IKEA)
• Try clothes at home (HM)
• Low price sensoround system (Bang Olufsen)
• First non smoking airline (SAS)

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• The Company Petrol station-chain (Esso)
• The problem Cars often block your way so
  you cant reach the pump
• The solution New designed stations where single
  pumps are spread out as islands

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• The Company TV/Video rental
• The problem You cannot buy the TV/video you
  rent
• The solution Rent-and-buy

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• The Company Black Decker
• The problem The boxes often become ugly
  because buyers open them incorrectly
  when they want to look at the product
• The solution A. Constructing a box that easily
  can be opened and closed
• B. Boxes put in plastic film

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• The Company Union health centers
• The problem Medical staff too seldom visit the
  places where people work
• The solution Special uniforms that stood out,
  stickers that were put up after every
  field visit

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• The Company Insurance company
• The problem Customers were uncertain if their
  claim on damaged goods had been
  received
• The solution Prompt written reply that the claim
  had been received and an
  approximated handling time

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The biggest problems in the service industry
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Problems with daily operations

• General experience
• Long lines, out of stock, computer systems that
  are down, customers dont get what they pay for,
  waiting times on the phone

Insurance and bank Works fine
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Lack of information about what the company can
offer

• General experience
• Customers forget who offers what

Insurance and bank Tremendous sales
opportunity
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Obscure pricing or unclear offers

• General experience
• Companies try to conceal the real price or dont
  show it

Insurance and bank Much better than 5 years
ago
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New business opportunities or new services

• General experience
• New ways of charging, packaging or delivering
  the services

Insurance and bank Many opportunities, Look
outside the basic services, High margins
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Difficulties in choosing supplier

• General experience
• Constant offers from competition weaken existing
  relationships

Insurance and bank Increasing problem, More
creativity in customer contacts, Look for new
meeting places, Emotional or cosmetic solutions
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Availability

• General experience
• Easy to reach the company or contact person,
  parking etc.

Insurance and bank Works fine, Dont
overestimate the value of the Internet
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Bad company and product presentations

• General experience
• Does not give a good picture, no customer
  orientation, no advice Bang Olufsen success
  with overview leaflet

Insurance and bank Seldom a problem, Often
over ambitious,
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Taking care of loyal customers

• General experience
• Simple gifts are not enough, they want more than
  a small bribe

Insurance and bank Always a problem, Never
stop looking for solutions, The more loyal the
less happy, My big punishment in life is that I
am a loyal IKEA customer
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Competence and product knowledge of company
personnel

• General experience
• Customers want a discussion partner rather than
  a salesman only

Insurance and bank We seldom see any issues
nowadays
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The Invoice

• General experience
• Companies dont make use of the invoice as
  information carrier

Insurance and bank Much can be done, We did
a PDS on the invoice only for Statoil, Big cost
savings by invoice development
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• Is company management aware of their customers
  biggest problems?

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The management has no idea of the customers
biggest problems

• Out of 100 internal Guess the customers biggest
  problems competitions
• No manager has had more than 5 out of 10 correct
  answers
• The higher rank of the manager, the less correct
  answers

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Consequences

• You try to improve everything
• Money is split on many activities
• Advertising lacks edge

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One of the largest banks in Scandinavia

• 80 of their development projects had no support
  in the PDS top 50 ranking list.

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Litterature

• Dont guess
• (www.thams-nyas.com)
• Thriving on customer problems
• (robert_at_thams-nyas.com