2170 Mills Avenue

Menlo Park, CA 94025

Valuing Customers and their Value to Your Company

04/12/23

About Vision & Execution

• Founded in 1999 by Patrina Mack

• Expertise in the software, telecom, Internet, financial services, and packaged goods industries

• Focus, Facts, InsightTM Methodology

• Virtual organization that enables the fluid development of focused teams to meet client needs.

What we’ll discuss today

• Importance of customers to creating value for companies

• How customer research can be used to uncover real customer needs that create purchase demand

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Guy got it wrong…

"Ask customers what they want and the result is me-too products that perpetually trail industry leaders"

- Guy Kawasaki, former Apple Computer executive and notorious 'Angel'

04/12/23

Research Terms

• Primary research: data collected specifically for the purpose of a given project

• Secondary research: previously collected/published data that can add clarity to a different project

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Why Involve Customers?

• To identify unmet needs that new products can address

• To validate assumptions about business opportunities

• To focus resources

• To reduce cost/time to market

• To build good will/loyalty

Ultimately, to reduce or eliminate risk

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When to Use Market Research

• Solicit or test new

product ideas

• Test and prioritize

product features• Test product names

• Test positioning

• Test pricing

• Test packaging

Ideation & Preliminary Investigation

Development & Testing/Validation

Market Launch

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Talking to the Right People

• Be sure you are talking/listening to representatives of your target audience– demographics– industry– role– need– experience level

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Using the Right Tools

• Ethnographic Research• Qualitative Research

– In-person interviews

– Focus groups

– Customer panels

– Web-based survey

• Quantitative Research– Telephone interviews/

surveys

– Paper survey/Web-based survey

• Market Trial– Usability testing

Disruptive New Product Category

Validating Execution

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Primary Research Tips

• Use the right technique for the stage you’re at

• Thoroughly define respondent profile - either before you field the research or as a result of your research

• Make sure you’re asking the right questions in the right context

• Allow time to test instrument(s)• Don’t be afraid to ‘just do it’!

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Primary Research - Success Factors

• Asking the right questions– in the context of a problem that URGENTLY needs to

be solved– in the context of a purchase decision using an actual

price point or price range

• Talking to right people– people who intend to or are likely to buy

• Using the right tools at the right time

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After Internet Time….Now What?• Selected slides from the research study:

After Internet Time: 5 New Realities for Product Development in the Internet Economy

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The Role of the Customer

What sources do you use to gather, validate and/or prioritize features?

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Total Respondents Introduced products faster Increased market share 25%+

Prospect DrivenInternally Driven Customer/Industry Data Driven User Driven

Heaviest use of customer input is prospect driven

Weakest use of customer input is user driven

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The Role of the Customer

• Top 5 resources used by companies who met or exceeded revenue projections for more than half of their products: – Participating in sales calls

– Pilot programs

– Cost/benefit analysis

– Focus groups/qualitative research

– Prototype evaluations

to make decisions about product priorities

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The Role of the Customer

Application of Customer Segmentation

0%5%

10%15%20%25%30%35% Segments for

which yourcompanydevelopsspecific productsor servicesSegments whichinfluence featureprioritization

Best Customers Partners Industry Segments

Least likely to develop products/prioritize features for most

profitable customers

0%

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Prioritizing Investments

“At some point companies must invest as much in improving product architectures, testing and process control as they do in

generating new features, sales and additions to the product portfolio.”

Competing On Internet Time, Cusumano and Yoffie

04/12/23

Questions?

Patrina MackManaging Partner

Vision & Execution650 233 0256

www.visionandexecution.com