Darren Baird Head of Design

ANZ Group Innovation

Embracing Customer Insights with

Innovation Design

Many companies strive, aspire and organise to deliver exceptional customer experiences however fall short or underestimate the effort required. Focusing on digital transformation, we’ll step through the principles, process and people required to create and deliver exceptional customer experiences through focused execution.

Hello, my name is Darren and I’m honoured to be presenting to you today on the subject of customer insights driving innovation design.

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First, please allow me to introduce myself.

I’ve been at ANZ for a long time and have had a wonderful career that has spanned banking, technology and innovation.

There are a things that I have learned to love outside of my family and music. Things that I care deeply about and am fortunate enough to meld my passion with my work.

Innovation Design

Customer Insightsdrive

Many companies strive, aspire and organise to deliver exceptional customer experiences however fall short or underestimate the effort required. This presentation, focusing on digital transformation, will step through the principles, process and people required to create and deliver exceptional customer experiences through focussed design execution driven by customer insights.

There are three arguments I’d like to offer.

2005Let’s start by getting on the same page about where people spend their time.

As a way of engaging with business it’s increasingly clear that digital is important however it’s only just the beginning.

Does anyone remember what it was like at concerts prior to 2005? It was a lot like this.

2015

Now, it’s a lot like this…

By 2017 - 8 in 10 Australians will have a smartphone.

Does anyone know someone without a smartphone? Who are those 2 people?

The argument for digital as a focus is offered as the first insight. “Digital” is where our customers are, everyday. This doesn’t mean that our call centres or stores aren’t important, it’s means that our customers attention and expectations have

Since the late 90’s the promise of digital is that it’s going to free up the resources of the company as we all served ourselves through our PC’s or tablets or phones.

The reality is, people do want to self serve when it’s simple, however when it’s complicated they want to speak to a real person.

How do I know this? I’ve talked to a lot of ANZ’s customers and this is how they feel. I’ve also seen a lot more customers want the promise of self services through their apps and smart devices.

The final argument for digital is that the most successful and largest consumer companies are embracing digital and are defining the new world order.

Apple is the biggest company, by market capitalization, in the world. Apple accounts for about 3.5% of the weighting of the S.&P. 500 Apple accounted for 18% of the entire rise of the S.&P. 500 this year Apple iPhone sales are adding 1/4 to 1/3 of a percentage point to the annualized growth rate of the U.S. GDP, according to Michael Feroli, chief U.S. economist for JPMorgan Chase.

Giants of the modern world are not only deriving high shareholder returns, they are redefining categories.

And the CEO’s of these companies undertake symbolic and literal acts of customer focus.

Bezo’s leaves an empty seat at his leadership to remind his team of who the most important person is, the customer.

Why is it so hard?

So, there is a fundamental question that I’m sure many of you have asked.

Why is it so hard to create great customer experiences?

I have three fundamentals to offer.

At this point of the presentation I’d like to declare that I’m surfacing my professional opinion and observations, gather over the past 25 odd years.

Many leaders stress the importance of customer centricity however few, in my experience, live it.

How many CEO’s eat at their own restaurant chains or call their call centre to change their address?

Let me introduce Roger Corbett.

A few years ago I met Roger, when he was still the CEO of Woolworths. You may have strong feelings about Coles and Woolies however I wanted to share with you how he dealt with customer related matter.

Roger would randomly clear his diary and drive to one of his Woolies stores.

He’d do this to catch people doing things right. Congratulating a deli manager on

Here’s the second reason why it’s hard.

Customer centric companies happen as a result of what the company values.

It is my long held belief that structure follows strategy. It’s a form of a company putting it’s money where it’s mouth is.

if a company or division has put in place a Chief Customer Officer and empowered them to make decisions, influence spending etc, then it’s easier.

Which brings me to my final point on why it’s hard to create great customer experiences.

Large companies demand justification, and that is appropriate.

However, if it demands a powerpoint deck on how we are being customer centric, then I think there is a big problem.

One or two decks on a strategy, plan and results is fine.

Embracing Customer Insights with

Innovation Design

With digital in mind, let’s now turn to how to lead innovation design with customer insights.

3principles

1. Customers first and always

2. 80/20 principle of focus

3. Break legacy

At this point I’d like to introduce you to three principles that I have found to be universally applicable to customer experience and in my field, design.

what the organisation

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what customers

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The first should come as no surprise however it’s often rare to find in large organisations.

The first principle is: Customers first and always. Deliver what customers want, not what your organisation wants or what we think they want.

Many of you will live this however I’m sure know it’s hard to stick to.

This is largely because people want to help customers and help the business grow

This is Grow by ANZ and has been at the heart of my work for the past couple of years.

For ANZ customers, my vision was and is, that this app would only be about you. It will bring together all of your finances in one place, making life that little but easier. We tried to radically change the way you can invest or manage your super and everyday banking.

This was driven out of research we did years earlier on how customers felt about

80/20 principle of focus

The second principle is to help us focus and deliver value to our customers and business.

It’s called, the 20/80 rule. Find and focus on the 20% that addresses the needs of the 80%.

In the case of Grow, we chose to limit our focus on Banking, Shares and Super initially to get in market, learn and adapt. If we attempted to plug the whole bank in we’d still be working on it and no one who benefit or learn anything. We’re now

BREAK Legacy

Finally, the last principle is, break from legacy. This includes many things including systems, business models however most importantly, thinking.

Another way to think about this principle is, start with a beginners mind.

Many of us have preconceptions and experiences and they may be limiting.

The idea is best expressed by tiny piece of philosophy. We have the products and services today based on what we know and what we have assumed in their

from principles

to process

Let’s now move to how the process works, how insights drive design

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This is the innovation process we use and is modelled on IDEO’s way of operating.

IDEO on of the largest design companies in the world and openly share their trade secrets. Their differentiation is in their creativity and the people they attract.

I wanted to point out that post launch we use a direct line from all the available customer feedback collection points directly back into Customer insights … we try not to leap to solutions however truly understand the root cause of issues.

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Today we’ll zoom in on the insights led customer experience design

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The process for creating the best possible customer experience has five parts.

The first involves finding core insights then designing the solution based on those insights, then prototyping to test and learn, developing even deeper insights and finally delivering with complete focus on what will matter most to customers and your business. Typically this is called the customer value proposition, the specific benefits and features for the given context.

Behaviours

Underlying beliefs

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Observation

Let me focus on searching for core insights.

What I’m suggesting here is hard to do and creates incredible competitive advantage if done well.

Many companies research and deliver what customers say they want, or address pain points and whilst these are good things to do, they are incremental.

Research that can delve into what people believe and then do as a result is far

Contextual Inquiry

Reveals what people do, not just what they say they do…gives us insight to current behaviours and habits, processes and pain points.

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Investigate in as real a way as

you can.

Analysis process

Analysis helps us to understand the habits, behaviours, motivations and drivers of affluent customers and how they manage their finances.

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Dig until you find the core

beliefs.

Contextual Enquiry Use experts to synthesise.

Referring to the Grow case study we studied people who weren’t interested in getting into share investing. We deliberately didn’t focus on the needs of people who were active traders. We knew that people thought shares were important in their financial lives however very few took steps to act on their beliefs.

When we dug we found that there were emotional as well as assumed barriers in peoples minds. People thought shares are for wealthy people who have money to burn, people said that they felt they had no control over what happens with the investment, people believed that they needed special technical knowledge and that

Create clear emotional design objectives.

Design away all the assumed barriers.

In response, we designed a solution that showed people that buying shares could be as easy as buying songs, they could start with as little as $600 and that buying what you know is a great way to start investing.

Further, we removed the need to know codes and as much of the technical material we could.

Finally, we included education through video and text to illustrate how shares could support people with their goals to develop long term financial well being and even

To quickly learn, refine, fail and move forward, we prototype, test with real customers and repeat.

Prototypes ideally are simple models of your ideas and can be produced on the cheap. We’ve used Microsoft Powerpoint or even paper to convey concepts. Other companies create prototype stores or services even have created a prototype call centre experience using nothing more than a partition in the office.

The key point here is that our first idea is often not our best therefore it’s important to obtain the views of the most important critic, the customer, as early as possible.

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James Claire Jason

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For Grow, we carefully selected people to gain as much as we could from testing. We recruited people afford of shares and even those who loved them as experienced traders. We did this to understand the polarised responses that we could expect from the market.

Through the customers eyes we could see where we did well and where we needed to focus.

We learned that most people found the experience approachable and there were

Usability and desirability

Customer recommendations

Great evidence

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Prototyping and testing leads to some key outputs which I’m happy to share with you.

The Customer testing report evaluates the usability through the system usability score and desirability through the net promoter score. Further, you gather recommendations for improvements that are customer generated or observed. Finally, you get great evidence of the customers emotional response to the product, captured in video clips.

Up next

Focussed Execution

Let’s now turn to the final stage of insight led innovation design. Execution with focus.

YES NO The key to improving customer experiences for large established matrix operated businesses is small amounts of change, frequently and then occasionally, throwing it all out and starting again.

That’s my view anyway.

It’s rare that we get a clean piece of paper so this is why I’m advocating that the last step is focusing on a particular aspect, delivering and then gauging the feedback and taking the next step.

Customer Value Proposition

Minimum Lovable Product

From there, you can create a customer value proposition and minimum loveable product. The first of these is a clear statement of why a customer will engage with your product and the second is for your project, to maintain its focus on the minimum set of features that will deliver the customer value proposition and engage customers and make them happy to tell their friends about you.

SHIPPED

The true test of your product is in the hands of the consumer.

A prototype test will take you some way to proving your ideas however it’s only when it lands in the market does the true test begin. Focussing on shipping your product is my key message here.

I’d love to share all the outcomes and data I have on Grow however I can say it’s seeing good success.

words + pictures

I thought I’d conclude with sharing with you the hardest part of doing customer led design.

The hardest part is finding the right kind of people however I have learned a thing or two.

PRODUCT MANAGER UX DESIGNER

Makes sure the product is developed in the right direction.

Coordinates work across different teams.

Maintains proper communication across teams.

Manages budgets and stakeholders.

Designs the product with the customer in mind.

Applies science and art to the design of the product.

Studies the customer

Experiments and optimises the product.

First, you need two kinds of people. Those who can analyse and synthesis and those who can illustrate.

Joined together these people can help uncover the customer insights and give responses a visual form that can then be translated into requirements for your projects.

These skills are highly available in the market. They are typically business analysts, researchers and graphic, web and app designers.

A T T I T U D E1 20 20 209 21 4 5 = 100%+ + + + + + + Now the hard bit when it comes to people.

You need people who live for customers, are curious and are practical.

Far too many people want to fix everything all at once and I’m afraid that this just simply doesn’t work.

The key is to find passionate people who are practical and business minded.

If I have seen further than others, it is by standing upon the shoulders of giants.

Isaac Newton

Finally, my last piece of advice is to lead these people to re-use as much as they can. This may seem at odds with the principle of breaking legacy however it’s not. It’s about being selective and choosing what to discard and what to keep.

Lead them to leverage existing capabilities if they are able to be tweaked and avoid the trap of declaring everything is broken and we need to start again.

Referring back to the case study I’ve shared with you today, Grow by ANZ leveraged existing services, with some investment, rather than starting again. This

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Begin and influence

Let’s wrap up.

First, start with what you have right in front of you and adopt the process of insights, prototype then build in your business.

If you create great outcomes your influence will grow over time.

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Begin and influence

Find allies and like minds

Two, find the people in your organisation who think like you.

Increasingly design thinking is becoming more prevalent and you may be surprised at the power of the connections you can create.

By declaring this is what you’re about, the organisation is bound to listen.

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Begin and influence

Find allies and like minds

Never give up

Finally, never give up.

In my organisation I’ve found it takes 2 years to take a powerful insight into a marketable product that can improve peoples lives.

If the idea is worth it, stay the course, your customers are counting on you.

thanks for listening, I hope this was of value to you