Tapping into Hidden Customer Needs Professor Keith Goffin Steve Macaulay Organisations are constantly looking for a product that will really sweep the market, that will really meet customers’ needs and really gets hold of the voice of the customer and match it exactly with an aspirational product that people say, yes, this is for me. Now let’s explore this a bit more. Professor Keith Goffin, you are a Professor of Innovation, lots of knowledge and insight into the voice of the customer; what have you got to say about this, Keith? Keith Goffin You might be somewhat surprised to hear this, Steve, but quite often we are saying to companies, now, ignore the voice of the customer because that whole idea that emerged essentially in the 80s of going to customers, surveys, focus groups and asking what they want in a way has been shown to be not very effective. Direct questions – customers struggle to articulate what they really want– and what we are finding these days is that there are a whole range of new techniques, which in combination together get under the surface, they get beyond the superficial customer looks at today’s product and says I essentially would like it a bit faster, a bit cheaper, a bit lighter. They talk about today’s products, incremental improvements to them. If you are really trying to come up with breakthrough products, to get through to a breakthrough product you have got to identify some customers’ hidden needs and they can’t tell you that in response to standard questions and in taking part in focus groups. There are other approaches needed. Steve Macaulay So how do you get inside people’s heads? Keith Goffin Well what you do need is to use various methods in combination and we tend to take things like contextual interviews – that is, interviewing people in their own homes or in the places where they use products and services – observing them, videoing them. Doing detailed systematic analysis of what you see on those videos, what you hear on those videos. We also use techniques like repertory grid analysis from psychology; lead user, where you get some of the most demanding users together and what we do is we use these in combination. Each of the techniques gives you another piece of the puzzle to understand what the customer wants, which is very different to what they are actually going to tell you they would like. Steve Macaulay Give me some examples where this has really worked. Professor Keith Goffin Keith Goffin A number of examples on that – Miele the German vacuum cleaner company has been very successful at understanding the needs of customers for vacuum cleaners, particularly on the segment of people with allergies. What do they need? They have to clean more often. They have come up with a product where there is an actual dust level indicator – it is like a traffic light which tells you whether the floor you are cleaning is clean enough to stop you getting your allergy. That was the product that came out of this type of research. No customer said I would like a vacuum cleaner with a dust level indicator, driven by electro static principles – that wasn’t what they said, but they observed people using vacuum cleaners of those who had allergies and realised that this was one of the needs. That is the type of thing that will come from B to C – business to consumer – but also B to B situations. There are lots of examples where these help. Steve Macaulay So is this set of techniques very common at the moment? Keith Goffin Occasionally people use one, but the real power comes from using a full combination of these techniques; and whether you would get to that is actually very seldom. So it is emerging – leading organisations are starting to get interested in this, learning how to use the different methods, use them in combination, but using a full set in combination is very unusual at the moment, Steve. Steve Macaulay So Keith, a final comment then that sums up the attitude to listening to customers, to really getting a breakthrough product. Keith Goffin Well if your organisation is aiming to produce a breakthrough product, the real message is then you are going to have to take the time and effort to use these types of techniques. If your organisation wants to come up with something different then it is well, well worth your organisation investing in training your people in their techniques, using them in combination and getting these insights into customers’ hidden needs. Steve Macaulay And I guess that might be quite a challenge, but worth it. Thank you, Keith. Keith Goffin Thank you, Steve. Page 2