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June 2000 Volume 1.11



"Merge like a zip"
(Part One)

by Rodger Gallagher

Determining what to include in a Customer Value Questionaire

Every day the producer of a news web site such as cnn.com must decide the content of the home page. Which news stories are important enough to be included on the home page as a link, and which ones are important enough to justify a full story? And of the full stories, which ones are so important that they require an accompanying photo, sound clip or video clip? The producer is faced with a dilemma if there are more important stories that need to go on the home page than there is space on the page to accommodate them. The home page could be made longer or wider to accommodate the extra news items, but then web visitors would have to scroll down or across the page to see the extra items, and they might not scroll down right to the bottom. If the producer decides to make the page a bit longer to accommodate some really interesting news items, there is a practical limit to the length of a home page. If material is to be excluded, this means that the producer must also decide which stories are not important enough to even appear on the home page as a link. The producer decides what is included on the home page and what is excluded on the basis of what items are important in terms of news and what items will be interesting for the visitors. The producer needs to merge these requirements like a zip and make sure the zip is the right length. Similar decisions and actions must be made when designing a Customer Value survey.

Customer needs and business requirements
When designing a survey that accurately measures the value that businesses deliver to customers, it is critical to consider both the purchase criteria that business people believe are important for their customers, and the criteria that the customers themselves say are the most important. If we simply listed all of the criteria that both customers and business people told us were important, then it would be easy to write a survey that would take an hour to complete. We know from practical experience that most people are happy to take part in a 10 to 15 minute survey. When the length of a survey goes up to 20 minutes people start to complain about its length, and some drop out of the survey before it is completed. If a survey increases to 25 minutes in length then few people are willing to complete it, unless it is on a specialist subject that they are passionate about, such as luxury cars. So for practical purposes the maximum length of a survey should be about 15 minutes. The zip must be the right length.

It is important to talk to people in a business about customer needs for two reasons. Firstly, people inside a business interact with customers, and know what is important to the customer from within the business looking out to the customer. Managers in the business can also provide insight on any new products and services that the business might be deploying in the future, so these can be taken account of in the survey design. The business people who are experts in specific products or services are known as subject matter experts. They might be marketing people responsible for a specific product, or customer service people with day-to-day contact with customers. It is not necessary to obtain input from all of these people, but it is important to capture the views of a sufficient cross section to reveal the different business processes and customer needs that exist in different regions and markets. Experience confirms that these differ widely according to managerial style and local conditions.

Secondly, the views of people inside a company need to be captured so they are included in the Customer Value project. The most difficult part of any Customer Value project is getting people in the business to take action once the Customer Value information is made available. We find that in Customer Value projects where a good cross section of employees has been involved in the early stages, there is always greater urgency and drive to begin using the information for business gain. Once we have the entire view of customer needs from inside the business, we construct a conceptual waterfall of the major steps for the customer-facing business processes that deliver products and services.

The next step in determining customer needs is to gather the views of the customers themselves. This is carried out by a qualitative market researcher, skilled in the Customer Value approach, using the conceptual waterfall process as a framework for populating with the needs of the customers. With this step we begin to close the zip so customer and business views are merged. (Part 2 of "Merge like a zip" will be in the next issue.)

PHONES AND OTHER STUFF

Raglan Dealers is the sort of second hand shop that has a bit of everything- junk, second hand furniture, collectables and the odd antique. It is at 21 Bow St in Raglan, New Zealand. I like to look at the assortment of old radios along the back wall. One is a little mantle radio in a white plastic case. This was the same radio that my brother and I grew up with, on the middle of the dressing table between our beds. I remember the dial with two semi-circular bands, one with the New Zealand stations and the other with some of the more powerful Australian stations. When the reception was good we very excitedly listened to 2UE from Sydney, but most of the time we listened to Auckland stations carrying programs like Randy Stone, the reporter who covered the Nightbeat for the Daily. At the end of each episode Randy used to say, "Coffee, boy." I used to think it must be good being a reporter and being able to ask for a cup of coffee at your desk. Eventually I worked out that what Randy was saying was, "Copyboy" which made more sense, but made me decide not to be a reporter.We have made a few 'finds' in Raglan Dealers. One of the most interesting is a plate made by Crown Lynn potteries which has a map of central Auckland, New Zealand on it as the design. What makes it really interesting is that the map shows the location of all major hotels of the period. Based on the streets and the hotels shown, the plate is circa 1965. Why did somebody get this plate made with a map of Auckland's hotels?But our best find so far has been an Ericsson skeletal phone like the one in the photo above. The one we found isn't quite as smart as the one in the photo, but it is pretty good order. The crank, magneto, and all of the working parts are made of brass and exposed. Ericsson started making these phones in 1892, delivering a gold version to the Kremlin in 1903 for Tsar Nicholas II. The phone was used in New Zealand, Australia, South Africa, and most European countries.

Regards,


Rodger Gallagher

 

 

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