MEASURING the VOICE-OF-CUSTOMER in HEALTHCARE

Outcomes-Driven Customer Research:Creating Value Using

Problem Identification and Extraction (PIE™)

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Presenter

Robert-Jan EnzerinkPartner, Senior Consultant

renzerink@themarketechgroup.com

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In 45 minutes, you will learn …

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There can be a real problem with asking your potential customers “what do you want?”…

If you build a product based on what customer’s “say” is important…

In the end, it’s not about building what customers want,

it’s about building what they will buy!

….you design this

$1.50

….for which they say they are willing to pay...….but then they go and buy this?

$15.99

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… and what your customers are likely to buy, is a product that best helps them achieve their desired outcomes.

$79.99High versatilityLess safeGreatest functionalityNon-portable

$15.99Low versatilitySafeMinimal functionalityPortable

vs.

Your marketing research needs to uncover what is the customer’s job-to-be done - their desired outcome - to make the research valuable.

I need to be able to open these packages and medicine bottles

when I visit my patients.

“

”

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PIE™

So, how do I identify these desired outcomes...

Problem Identification & Extraction (PIE™)

... if my customers can’t even tell me?

(( ))

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What is PIE™?

Problem Identification & Extraction (PIE™)

PIE™ is a process that

helps Med-Tech vendors innovate by

understanding their customers’ desired outcomes and the

solutions that fit the challenges

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Why do I need to understand the problem?

o Solutions will only be valuable if developed for a problem that exists.

o The more painful the problem, the more valuable the solution.

o But, finding a customer’s pain isn’t as easy as asking them.

o Often, customers focus on solutions and benefits without articulating the real desired outcome.

TMTG PIE™ process extracts the most

painful problems and desired outcomes

with skilled queries and putting

respondents in trade-off scenarios and

real-life situations.

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For Example:

Customer Belief

Customers think they want a…

“Stated Benefit”

…but if the company continues to sell…

Desired Outcome

…they’re missing the point.

5mm Drill bit

FasterCheaper

Cleaner cut

Accurate 5mm hole

POC test

Faster result

More targeted patient therapy

New MRI/CT/US

Better image

Better diagnoses

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For Example:

Customer Belief

Customers think they want a…

“Stated Benefit”

…but if the company continues to sell…

5mm Drill bit

FasterCheaper

Cleaner cut

POC test

Faster result

New MRI/CT/US

Better image

Customer Focus

Desired Outcome

…they’re missing the point.

Accurate 5mm hole

More targeted patient therapy

Better diagnoses

Customer Desire

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How PIE™ Helps You

When you are able to accurately identify the most

painful problems and desired outcomes, then you

can focus on developing the most valuable

solutions.

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HOW PIE™ WORKS

Phase 1Perform qualitative and semi-quantitative VOC research to get the “lay of the land”.

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How PIE™ Works

→ Probe key issues facing customers today.

→ Collect and identify “20 problems” that can be improved today.

→ Assess differences by segment (e.g., customer, institutional, or behavioral segments).

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IDENTIFY each step and pain points of a process (pathway, surgery, workflow, patient journey, etc.)

Methodology: Use a variety of research methodologies

Therapy

Step 1 Step 2 Step 3 Step 4 Step 5

Identify each step and pain points

Nature Value

Qualitative and Observational

List of unmet needs and gaps in product usage vs. goals

o Collect direct or indirect cues of pain points o Collect behavioral / emotional / usage elements of

current product or process o Collect “out of the box” novel ways to identify and

describe the problem (desired outcome)

Phase

1

Understand the desired outcome(s)

Technique

•Observational Research•In-Depth Interviews•Dyads/Triads•Focus Groups•KOL Workshops

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Observational Research

Example 1: Rehab Knee Brace

Investigation of design improvements for a Rehab Brace

Background

Observational / Ethnographic Research

o Observe and document process steps

o Understand clinician, technician, and patient interactions with product

Methodology

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Example 1: Rehab Knee BraceObservational Research

A significant portion of time was spent preparing the brace to be placed on the patient.

Time is money. These straps and fasteners are a real time-suck.

Results/Findings

An effective ROM brace that is quick to initially apply postoperatively and easy to explain to the patient in the clinic.

Desired Outcomes

“ ”

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Investigation of user needs for improving [Imaging System] in developing market

Background

Focus Groupo 5 Why’s

Methodology

Focus Group: 5 ‘Why’s

Example 2: Imaging System

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Customers are focused on the business of imaging. Results/Findings

An [Imaging System] that allows me to operate my business efficiently with existing infrastructure.

Desired Outcomes

Focus Group: 5 ‘Why’s

Example 2: Imaging System

Power is very important because it is high cost and

[there’s a] shortage.

“

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Phase 2Field quantitative surveys

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How PIE™ Works

→ Continue Qualitative and Semi-Quantitative→ Design & Perform Web surveys...

→ MaxDiff→ Preference scales → Trade-off tasks

→ ...to identify, prioritize and QUANTIFY the real problems/pain points.

Therapy

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Step 1 Step 2 Step 3 Step 4 Step 5

Extract unmet needs at each step

Nature Value

Qualitative and declarative with or without semi-quant scoring (companion survey)

o Collect direct cues of pain pointso Identify the product mission (what is the desired

outcome?)o Quantify the findings (most/ least, must-have/

nice-to-have, etc.)o “5-why” or Fishbone Diagram root cause analysis

Quantitative online with ranking and scoring

o Statistically link customer importance scores to satisfaction level by product areas (by the ‘job to be done’)

o Quantify gaps and causes and needs o Importance vs. satisfaction

Articulate & Quantify desired outcome(s)

Methodology: Use a variety of research methodologies

Phase

1 & 2

Phase

2

IDENTIFY / EXTRACT CRITICAL PROBLEMS and DESIRED OUTCOMES for each step of the process

Technique

•Focused Conversation•In-Depth Interviews•Visual analogs•Process Mapping

•Max-Diff Analysis•Importance/Satisfaction•Trade-off testing

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Investigation of user needs for improving a [Diagnostic Product] in the USA

Background

KOL Workshopo Using an ORID “Focused Conversation” facilitation technique

Surveyo Max-Diff tool

Methodology

Focus Group: KOL Workshop + Survey

Example 3: Diagnostic Product

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Customers need most of all to have solutions to their business demands and profitability.

Results/Findings

...a product and vendor that helps to operate the business efficiently by providing near-100% uptime and high throughput with high diagnostic reliability.

Desired Outcomes

Focus Group: KOL Workshop + Survey

Example 3: Diagnostic Product

If there is no frequent application training, only a small part of the [product] capability is used. Consulting, training and working with humans that actually use the machine on a long-term basis will create real value!

Operational efficiency is an important aspect because we first have to serve our patients. “

”“

”Marketing is still looking at specs rather than patient outcomes.“

”

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Which of the following are the most and least problematic for your MRI department?

MOST PROBLEMATIC LEAST PROBLEMATIC

Workflow ⃝

⃝ Image quality

⃝ Physician referrals ⃝

MOST IMPORTANT LEAST IMPORTANT

Increasing patient throughput

⃝

⃝ Improving image quality

⃝ Increasing Physicianreferrals

⃝

Which of the following are the most and least important for your MRI department?

Focus Group: KOL Workshop + Survey

Example 3: Diagnostic Product

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Focus Group: KOL Workshop + Survey

Example 3: Diagnostic Product

Customers are focused on business demands and profitability.

Results/Findings

A product and vendor that helps me to operate my business efficiently by giving me near-100% uptime and high throughput with high diagnostic reliability.

Desired Outcomes

Most Important

Least Important

Least Problematic Most Problematic

Image Quality

Increasing Physician Referrals

WorkflowThe Innovation Opportunities

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Study to determine optimal pricing and launch timing for a new hospital product

Background

In-Depth Interviewso Moderated interviews to elicit current pain points

and desired outcomes to inform survey design

Surveyo Using conjoint tool and a simulator model allows quantification of how

well potential options deliver the desired outcomes to your customers

Methodology

IDIs + Survey

Example 4: Hospital Product

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IDIs + Survey

Example 4: Hospital Product

Brand Brand A Brand B Brand C

Upgrade Guarantee Plan S/W only Not Included S/W & H/W

Time to Commercial Availability 6 months 6 months Available Now

Service Levels Service Only Service with Parts None

Product Feature #1 Fast Slow Fastest

Product Feature #2 High Low Low

IT Architecture Hardware Hardware Web-based

Payment Model Purchase Lease Lease

Total Networked Equipment Price

$160K for all units ($40K per unit)

$2.3K per month($30K per unit purchase

price equivalent for 5 years of operation at 6% discount

rate)

$3.9K per month($50K per unit purchase

price equivalent for 5 years of operation at 6%

discount rate)

Total Price of Service Plan $6K for all units ($1K per unit)

$4K per month($900 per unit)

$5K per month($1.2K per unit)

⃝ ⃝ ⃝

Please select the product that you most prefer. Assume everything about the 3 products is identical EXCEPT for those differences presented in each scenario.

Choose the product you most prefer by clicking on of the buttons below.

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o Customers did not perceive value the same as the companyo Using conjoint and a simulator quantified how well potential

solutions delivered the desired outcomes to customers

Results/Findings

Two segments had different desired outcomes:o “We need to be able to do X with a pricing scheme that

fits our business model”o “We need to be able to do X for our very large patient

population so our staff doesn’t have to spend so much time....”

Desired Outcomes

IDIs + Survey

Example 4: Hospital Product

68.0%

14.4%

5.6%

9.6%

2.5%

Long Run Unit Share – NEW PRODUCT ONLY

New Client Product

Competitor #1 Legacy Product

Competitor #1 New Product

Competitor #2 Legacy Product

Competitor #2 New Product

32.8%

41.1%

10.4%

4.0%

9.3%2.4%

Long Run Unit Share – OPTIMIZED PRODUCT PORTFOLIO

Client New Product

Client Legacy Product

Competitor #1 Legacy Product

Competitor #1 New Product

Competitor #2 Legacy Product

Competitor #2 New Product

74%68%

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IDENTIFICATION of DESIRED OUTCOMES guides the high-value solutions that customers desire and are willing to buy

Desired Outcome

VALUE

Price

Utility

WTP

PIE™ investigation identifies the “Innovation Opportunities”:

These opportunities are the desired outcomes that customers value...and for which they are willing to pay a premium

= =

Using PIE™ technique:o Extract customers’ desired outcomes o Provide strategic guidance for

specific solutionso Quantify the value of these solutions

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You’ve just seen an overview of how a PIE™ process helps you make better business decisions

Understand which solutions have real value (can best achieve desired outcomes = speed, consistency, outputs) and quantify the price premium

Develop, Sell, & Pitch the right product at the right price

Articulate user’s desired outcomes to guide development and create better business models

Gathering user’s needs, problems, desired outcomes1

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Remember these three things:

1. Desired Outcomes are consistent. Technology (solutions) are dynamic.

2. Customers DO know what they want... in terms of desired outcomes; yet, they often cannot articulate solutions.

3. Successful products are those that help customers perfectly achieve their desired outcomes.

Actually, 4 things:

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Remember these three four things:

4. Properly using these methodologies to capture customers’ desired outcomes is not easy. It is a learned skill.

Train your team members to be (or hire): Methodology Experts

Objective Observational Experts

Process- and Metrics-oriented Experts

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