Understanding and Improving Customer Focus How customer focus can help sustain and grow your organisation Module 3: Understanding Your Customers Last updated: February 2014
For more information and details on support available visit the clearinghouse website at www.communitydoor.org.au/SectorReadiness
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Understanding and Improving Customer Focus: Program Overview How do we market our services more effectively?
How do we build a sustainable business in a time of significant industry change?
How do we ensure our customers are satisfied?
How do we ensure we’re delivering the services our customers need?
How do we help customers choose the right provider for them?
These are just some of the questions posed by disability service providers as the National Disability Insurance Scheme (NDIS), one of the most significant social changes in recent Australian history, is introduced. For people with permanent and significant disability, their families and carers, the NDIS provides greater choice over the care and services they receive, and shifts purchasing power from the government to consumers. For disability providers, the NDIS will result in a move to a competitive open market. Providers will need to market their services and work hard to attract and retain clients. They will need to carefully balance the achievement of missional objectives, whilst ensuring the sustainability of their business. Disability providers are being supported to make this shift via a series of modules on Understanding and Improving Customer Focus as part of the Sector Readiness and Workforce Capacity Initiative. These modules will help providers gain insight into their clients’ needs and ensure that all aspects of the business (e.g. strategy, marketing, customer service, human resources, finance and operations) are aligned to deliver on this. The program includes the following four modules: Module
Description
Delivery
1 - Introduction to Customer Focus
Introduction and overview of the importance of customer focus in a competitive market environment
December 2013
2 - Customer Focus SelfAssessment
Understanding the current extent of customer focus in your organisation
December 2013
3 - Understanding Your Customers
Gathering deep insights into your customers, their needs and drivers
February 2014
4 - Developing Strategies to Build a CustomerFocused Organisation
Practical steps to help your organisation become customer-focused
March 2014
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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Module 3: Understanding Your Customers Module Objective Module 3 of the Customer Focus Program is designed to support disability service providers to develop a deeper understanding of current and target customers. Having completed a self-assessment of your organisation’s Customer Focus in Module 2, you will have developed a sense of which customers you have an opportunity to get to know better. This may be all of your customers, or a select group such as new customers that will interact with your organisation as a result of the NDIS. This module will equip you with techniques for getting to know your customers better to inform how to make your organisation more customer-focused.
Existing Customers Your existing customers make your business what it is today. Their experiences in dealing with your organisation are what define your reputation and make your business viable. A constant stream of feedback from existing customers is essential for the sustainability of any organisation. Meaningful customer interactions will ensure you are able to receive and interpret that feedback fully, and use it to inform your organisation’s future direction.
New Customers With the introduction of the NDIS, there is an opportunity for many providers to identify and target new customers. Meaningful interactions with these potential new customers are a fantastic way to learn about their needs and expectations. Once you build your understanding you will be well placed to assess your organisation’s readiness to offer new customers disability services. At the conclusion of this module, providers will have: • • • •
Identified at least one customer group they wish to understand better Become familiar with a range of techniques to develop a greater understanding of those customers Had at least one meaningful interaction with a customer group Reflected on those interactions and identified key learnings to inform business improvement opportunities
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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Mindset Before undertaking a process to build a deeper understanding of your customers, it is important that you adopt an appropriate frame of mind. As the adjacent diagram shows: 1. The customer has the most accurate perspective on their needs, wants, and the world they live in 2. The further away from the customer you are, the harder it is to stay in tune with their changing needs and expectations
3rdView(Customer(Wavelength™)) How)in)tune)with)your)customers) are)your)people?)
Customer)
Even those people in your organisation who deal with customers everyday, in a service delivery or sales context, have a different focus to someone seeking to develop a genuine understanding of a customer’s needs and expectations.
Support)Worker) Coordinator)
Back) Office)
Senior) Managers)
This video from the Cleveland Clinic reminds us of the importance of empathy in customer interactions (Available at: http://www.youtube.com/watch?v=cDDWvj_q-o8)
Process As per the model below there are four steps to planning and executing a meaningful interaction with customers and potential customers.
3rdView(Meaningful(Customer(Interac7on(Process™! Who are our most important (potential) customers?
Identify
Design
What is their perspective?
Conduct
What do we want to understand? How do we create the right forum?
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
Reflect
What did we learn?
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Customer Identification
Identify
Design
Conduct
Reflect
The first step is to ask yourself “Who really is our customer?”, and in so doing identify all of your organisation’s customer groups. This may include users of your services, their families, referrers, partners, and your people and functions internally. Now select the customer group you want to focus on. This may be your most valuable customer group (i.e. those people who benefit most from what you do), or a customer group you particularly want to understand better. Refer to you Customer Focus self-assessment from Module 2. How did you rate your organisation on the Customer Connection attributes (#5-8), especially #6? If you rated yourself ‘Sometimes’ or lower, it makes sense to focus on your ‘most valuable’ customer group, as a deeper understanding here represents the best opportunity to improve your business. If you rated your organisation ‘Often’ or ‘Always’ on attribute 6, you may go for an alterative customer group, such as potential new customers that may interact with your organisation as a result of the NDIS. In summary, the Customer Identification steps are: 1. Have a “Who is our customer?” conversation with a small (3 or 4), diverse team of people from your organisation, and capture on a whiteboard or large piece of paper all of your organisation’s key customer groups 2. Discuss and agree who your most valuable customer group is – those people whose experience determines your organisation’s success 3. Choose 1 or 2 customer groups to target with your ‘get to know you better’ interaction(s)
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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Design Your Interaction Using Empathy-Building Techniques
Identify
Design
Conduct
Reflect
Having selected the customer group(s) you want to get to know better, the next step is to design interactions to look at the world, and your organisation, from the customer’s perspective. There is a range of techniques for designing and executing a meaningful interaction with your chosen customer group. The key to each is the quality, or depth, of an interaction. Did it give you a meaningful insight into your customer that will inform opportunities to improve your organisation moving forward? 3 customer research techniques we recommend to Disability Service Providers are:
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Observation – watching your customers in their natural environment, and as they interact with your organisation
Depth Interviews – having a meaningful conversation with one or more customers where the emphasis is on listening, empathy and exploration
Focus Groups – Facilitating a conversation with a small group of your customers where you ask no more than 3 ‘seed’ questions to stimulate the discussion
A critical success factor for each of these techniques is identifying a suitable environment in which to conduct the interaction(s). The goal is to be able to interact with the customer in a place where they will be comfortable to be themselves and share their perspective with you through either conversation or observation.
Conduct the Interaction
Identify
Design
Conduct
Reflect
Once you have chosen a customer group, and a suitable interaction technique, you can commence your research. It is important that you conduct any research in a sensitive and ethical manner, for example, seeking permission before taking photographs and ensuring that any specific personal information remains confidential. An overview of how to conduct each technique is provided on the following pages.
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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Identify
Design
Conduct
Reflect
Customer research technique: Observation
When To Use
Use observation when you want to understand one or more customers holistically, beyond the normal reach of your organisation. What makes them tick? What are their needs and expectations? What meaning are they seeking in life? This approach is especially valuable when you want to take a fresh look at your customers, or for understanding potential new customers to your business.
How To Use
Find a way to observe your customers. Tagging along while they go about their day is valuable, as is observing them receiving services from your organisation. Before you commence the observation, develop an observation sheet to capture both quantitative and qualitative aspects of what you, and they, see, hear, smell, taste and feel.
Where To Use
Rather than creating an artificial environment, the aim is to observe the customers in their normal environment, so you can understand their drivers, objectives and reactions.
Time Required
Anywhere from an hour to a whole day (per observation). Each observation will be insightful. Start with one. Three is ideal.
Supporting Resources
Seven rules for observational research: how to watch people do stuff, Walt Dickie, Quirk’s Marketing Research Review (http://www.quirks.com/articles/a1997/19971208.aspx?searchID=915349043&sort=9)
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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Identify
Design
Conduct
Reflect
Customer research technique: Depth Interviews
When To Use
Use this technique to develop a deep understanding of an individual of interest. What are their personal drivers? What role does your organisation play in helping them to achieve their goals?
How To Use
Invite a representative from your chosen customer group to a 1:1 interview Work through a prepared list of 3-7 open questions, listening carefully and probing their responses. Avoid the temptation to respond to or judge what they say. Provide the interviewee with a range of methods for how to communicate their situation (e.g. telling their story, drawing pictures or building a timeline) Ensure you prepare a form prior to capture the interviewee’s responses. You can either take notes during the interview (ensuring not to disrupt the conversation), or make notes immediately afterwards.
Where To Use
Choose an environment where the customer is comfortable, relaxed and able to talk (e.g. their home, place of work, a coffee shop)
Time Required
1 – 2 hours (per interview). As with observation, start with one. If you can do three you’ll start to see patterns and themes emerging.
Supporting Resources
Sample Depth Interview Guide (Appendix 1)
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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Identify
Design
Conduct
Reflect
Customer research technique: Focus Groups
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When To Use
Focus groups are an ideal tool when you have certain aspects of your customer experience you are seeking to explore. While the discussion remains exploratory and open, you are directing the conversation through carefully chosen ‘seed’ questions (e.g. “What is another product or service you would value from our organisation?”)
How To Use
Invite a small, representative sample of your chosen customer group to a conversation with a stated objective of getting to know them better. Prepare by choosing three open questions to explore. Engage a facilitator to help guide the conversation and ensure that you hear from all the participants in the room. To capture the key points of the conversation it is useful to have an additional person on hand.
Where To Use
Select a venue suitable for an uninterrupted discussion (e.g. a large meeting room)
Time Required
1.5 – 2 hours (per focus group). One session is sufficient to get your first round of insights.
Supporting Resources
Sample Focus Group Facilitation Guide (Appendix 2)
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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Reflect
Identify
Design
Conduct
Reflect
The most important step in the process of understanding your customer is reflecting on your customer interaction and capturing the learnings. Having completed your self-assessment in Module 2 you will have developed an initial sense of how customer-focused your organisation is. Now that you’ve had one or more meaningful interactions with your customers, chances are you’ll want to update and refine your assessment. What did your customers say about their needs, and about your organisation’s ability to satisfy them? What did you expect to hear? What surprised you? The keys to reflecting effectively are: •
• • •
Design a template to capture your reflections before you conduct the interaction. Make sure you have a mix of set things you are looking for as well as open space for surprises and unexpected discoveries. Give yourself room to capture learnings visually as well as in words. Reflect and debrief as soon as possible after the interaction, while your thoughts are still fresh. Do so in a quiet place where you won’t be distracted. If more than one of you is involved in the interaction(s), make sure you debrief individually first before your reflections become mixed. If multiple interactions have been conducted, come together to discuss what you’ve learned, and look for key themes.
Next Steps From here the focus shifts to using the insights generated from your meaningful customer interaction(s) to develop strategies to build a customer-focused organisation. This is the focus of Module 4.
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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Appendix 1 – Sample Depth Interview Guide This sample interview guide has been developed to assist Disability Service Providers to plan and execute one or more depth interviews with customers. It is not intended to be exhaustive, but to provide a good starting point for a meaningful customer interaction.
Sample Guide Rapport Building (Sample Script) Thank you for your time. My name is … I am here on behalf of … to conduct an interview with you today. Through that interview I hope to some insight into you, your life, what’s important to you gain a better understanding of you and what is important to you. How is your day going so far? Are you comfortable talking here, or is there somewhere else you’d be more comfortable? Can I get you water / coffee / tea? I expect the interview will take approximately 1.5 hours. Is that OK with you? Are you OK to get started?
Formal Introduction / Consent Form (Script) Thank you for agreeing to participate in our research today. The questions we will ask you are completely confidential and your answers will not be used in any way other than to help us better understand our customers. You will remain anonymous and we will not associate your full name to anything we gather today as the result of our conversation. If you feel uncomfortable with any of the questions we ask, please feel free to decline to answer those questions. You do not have to share with us any information that you don’t feel comfortable sharing. This interview will be conversational and open-ended, so please feel free to say anything that comes to mind. We are interested in hearing your opinions and learning from your experiences, so please feel free to give us as much detail as you can.” If a consent form is required… We have a consent form here to be signed before we start. Please take a moment to read it and sign it if you are comfortable. Cross out anything you don’t agree with.
THEME
1. CUSTOMER EXPLORATION (~20 mins)
CORE QUESTION
What is a typical day for you? What are the key things that determine if it’s a good day or a bad day?
PROBING QUESTIONS
Why is that? Is there a picture or image that captures your situation? Can you describe it or draw it for me?
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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THEME
2. ROLE OF CARE (~20 mins)
CORE QUESTION
What role does care play in your life? How important is care in helping you do the things you enjoy?
PROBING QUESTIONS
What’s the best part about the care you / your family member receives? What’s the worst part? Why?
THEME
3. PROVIDERS (~20 mins)
CORE QUESTION
What experiences have you had with disability service providers? Who have been the main providers?
PROBING QUESTIONS
How would you rate the care provided? Have you ever made the decision to change providers? What drove that?
THEME
4. THOUGHTS FOR THE FUTURE (~20 mins)
CORE QUESTION
Do you expect any changes in your relationship with care moving forward? Are you aware of the National Disability Insurance Scheme? Based on your current understanding, how will you be impacted?
PROBING QUESTIONS
Are there any other changes on the horizon that may impact you? What are your hopes for the future? What role will care play in helping you realise that future?
Close (Sample Script) Thanks very much for your time today. This conversation has provided me with valuable insights into your life, and your needs and expectations from disability services providers. I’ve really enjoyed the chat and very much appreciate you sharing with me.
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
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Appendix 2 – Sample Focus Group Facilitation Guide This sample focus group facilitation guide has been developed to assist Disability Service Providers to plan and execute a focus group conversation with customers. It is not intended to be exhaustive, but to provide a good starting point for a meaningful customer interaction.
Sample Guide Introduction • • •
Thank attendees for their time Explain the objective of the session Go around the room and invite all attendees to introduce themselves and answer some simple ‘check-in’ questions (e.g. what is your first name, how is your day going so far, what role does care play in your life)
‘Seed’ Questions Spend 30 minutes discussion each of 3 ‘seed’ questions as a group. Some examples might include: Question
Supporting probes
What’s it like to rely on disability service providers to get through a typical day / week / month?
• • • •
How do you feel about that? How do others feel? What is main determinate of your quality of life in that situation? What else is important?
What makes a good disability service provider?
• • • •
What makes a bad one? How do your providers stack up? Why? Have you provided them with that feedback? Why / why not? How did you go about it?
How will the NDIS impact the provision of disability services?
• • • •
How do you know? What else? How do you feel about that? How do you feel about having a choice of provider?
If you could talk directly to the head of your DSP, what would you say?
• • • •
Why would you say that? What else? How do you think they would react? Why? Do they listen to you now?
Close (Sample Script) Thanks very much for your time today. This conversation has provided us with valuable insights into our customers’ lives, needs and expectations. We’ve really enjoyed the discussion and very much appreciate you all sharing with us.
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
User Feedback & Further Assistance A module on improving customer focus would not be complete without a request for feedback from users. We would love to hear from disability service providers who have received and applied this information and are keen to share their experience. In particular we’re interested in • • •
How you have used this information? The outcomes you have achieved What has worked well, what can be improved and any questions you have.
If you require further assistance in your efforts to make your organisation more customer-focused, 3rdView Consulting are available to work directly with providers, outside of the scope of the Sector Readiness and Workforce Capacity Initiative. Any consulting services provided, and the associated costs are negotiated directly between the provider and 3rdView Consulting. 3rdView welcome the opportunity to have a conversation about your feedback or additional needs. Please call Marie-Claire Grady (0409 055 091) or Bartley Hassall (0459 844 158), or email
[email protected].
For more information and resources, visit the Sector Readiness and Workforce Capacity Initiative Clearinghouse: http://Communitydoor.org.au/SectorReadiness The Sector Readiness and Workforce Capacity Initiative is a collaboration between the Department of Communities, Child Safety and Disability Services, Health and Community Services Workforce Council, National Disability Services Queensland and the Southern Queensland Institute of TAFE. This resource has been developed by 3rdView Consulting Pty Ltd in consultation with National Disability Services Queensland.
© 3rdView Consulting Pty Ltd. This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.
