Customer Dialogue Management

Presentation for the SDPMA By Bill Tuohig, Product Manager, Informative Inc. November 13, 2002

Agenda

Informative Overview What is Dialogue Management Customer Feedback and Product Management How Dialogue Management Works Lego Case Study Q&A

Agenda

Informative Overview What is Dialogue Management Customer Feedback and Product Management How Dialogue Management Works Lego Case Study Q&A

About Informative

Founded 1998, privately-held HQ in Brisbane, CA Offices in London, Singapore, Tokyo G2000 customer base Fast growing software firm: 207% ending Q3 55 employees

Overview

Informative provides a Dialogue Management System that enables companies to understand and respond in real time and on a continuous basis to the attitudes that are driving key customer behaviors impacting their business. Unlike traditional CRM, Business Intelligence, and Market Research applications Informatives patented Discovery Engine extracts actionable insights from customer beliefs and preferences by analyzing statements that customers make in their own words and quantifying support for each statement. This insight turns the Voice of the Customer into a strategic asset by ensuring faster and more accurate product offerings, services, marketing campaigns, and customer communications.

Customer Dialogue Solution

A combination of configurable applications and best practice methodologies to provide a tailored solution based on your business needs.

Customer Dialogue Solutions Dialogue Brand Marketing Dialogue Product Development

Dialogue eBusiness
Dialogue Customer Loyalty Informative Services Implementation Methodological

Support

Chosen By Industry Leading Marketers

Consumer Products Technology / Media

Financial Services

Pharmaceutical / Transportation

Agenda

Informative Overview What is Dialogue Management Customer Feedback and Product Management How Dialogue Management Works Lego Case Study Q&A

Fundamentals of Dialogue Management

Focus on the customer voice, or attitudinal information Different than business intelligence, CRM or Market Research Understand the WHO and WHY Qualitative richness with quantitative structure Focus on building relationships Two-way, respectful communication Initiated in both directions Internet efficiency, flexibility and cost-effectiveness Continuous or discrete Adaptive, real-time, scalable Used strategically to Impact customer attitudes and behaviors Creating value (product development) Communicating & Delivering value (promotion, distribution) Sustaining value (Training, service, support)

Key Concepts

Once a customer changes their behavior, it is too late to do anything about it (or very expensive) Change in attitude precedes change in behavior Previous behavior is often a poor indicator of future behavior Identifying the attitudes that drive targeted behaviors gives you a chance to address them before the change in the behavior People prefer to express an attitude through language (in ones own words) versus ticking off survey responses Knowing what happened is interesting knowing why it happened is actionable

Informative gives you attitudinal information that tells you the WHY behind the BUY

Informatives Dialogue Management

1.

Build advisory group of any key stakeholders - customers, partners, suppliers, employees using a light touch

2.

Configure the system & sessions to target key questions to your business
Interact with stakeholders via several environments survey, discussion board, multi-media Capture participant ideas, attitudes and opinions in their own words Capture preference information about those ideas via Informatives patented adaptive sampling algorithm Analyze these results to identify the most popular ideas by segment in real-time Use these insights to drive product development, marketing programs, process improvements, etc. Communicate back to the stakeholders what you are doing to address their needs and concerns

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Agenda

Informative Overview What is Dialogue Management Customer Feedback and Product Management How Dialogue Management Works Lego Case Study Q&A

Product Managers Dilemma

20 lbs. of requirements wont fit in a 10 lb. bag Temptation: put as much in as possible Never enough resources to build it all At the core of the issue

What do your customers really want?

There are many clues

Examples:

Stories in general media Syndicated research Competitive Sales force interactions Customer service records CRM systems Analysis of transactions Website behavior Etc. etc. etc.

but its often best to ASK them!

Research has limitations

Focus Groups In-Person Interviews Customer Forums User Groups Paper Surveys Phone Surveys Online Surveys Panel Research Etc.

Common Limitations: Slow Expensive Not adaptive Not projectible Not Engaging Intrusive One-way

How is Dialogue Management Different?

Two-way builds relationship Build advisory group of important stakeholders Provides attitudinal and quantitative information Is adaptive in real-time Use for continuous feedback and specific questions Provides real-time results Can be extrapolated Scalable via the Internet Cost-effective

Dialogue and the Product Lifecycle

Stage
Market Analysis Quantitative Analysis Strategic Planning Product Planning Promotional Commns Sales Tools Channel Support

Distinctive Competence Market Research Prospect Problems Tech Assessment Competitive Review

Dialogue Questions

Pragmatic Marketing

Market Sizing Sales Analysis Product Profitability Win/Loss Analysis

Business Case Buy, Build, or Partner Pricing Thought Leaders Innovation

Product Definition Positioning Sales Process Roll-out Process Product Contract Requirements Release Milestones

Advertising Press Speaking Engage Lead Gen Presentation Demos Print. Collateral Elect. Collateral

White Papers Cost Justification News Flash Compet. Write-up

Special calls Seminars & Trade Shows Corp Visits Phone Support

When you think of Co. X, what are they known for? What issues are not being met? How does my product compare to competitions?

What value to you How can we work get from using this better with product? partners? Why did you buy What new XYZ? products do you What factors will wish someone influence your would invent? decision to make a Who do you see purchase? as a leader in this space and why?

What features would you want and why? How would you improve this new product idea? What benefits would you expect to get? How do you about the sales process?

Which ad do you like better and why? What would you like for a loyalty program? What would you like to see/do on the website?

How does this product compare to competitive products? What more would you like/need to know to make a purchase decision? How would you improve the sales process?

What would you like to learn at tradeshow X? What would you improve for future tradeshows? How did you feel about your customer service experience and why?

Understand what your customer is thinking every step of the way!

Context for Dialoguing with Customers

Customer Feedback Destination Portal Online User Groups Proprietary Advisory Group/Panel Partner Relationship Program Investor Forum Customer Loyalty Programs Customer Satisfaction Tracking Customer Service Follow up Surveys Online Brainstorming Sessions Web-based Community Intranet Forum Trade Show Interaction Kiosks Website Feedback Mechanism

deployed according to the needs of the business.

Agenda

Informative Overview What is Dialogue Management Customer Feedback and Product Management How Dialogue Management Works Lego Case Study Q&A

Discovery Engine Concept

Imagine that all your customers told you in their own words the things they wanted to tell you about your product or service

With Informative you dont have to read all of these statements

With Informative you read these statements

Customer Portal

Acquire registered members Central access/management to sessions Provide feedback to members

Review, Select, and Enter comments

View sample comments from other participants (based on algorithm) Select ones you agree with And/or enter your own ideas or comments

Prioritization

Prioritize your choices

Adaptive Sampling
Focal questions use Informatives patented Adaptive Sampling process, combining rich qualitative attitudinal feedback with preferential quantitative information.

Participant submits concerns and beliefs in own words Informative samples initial opinion to collect quantitative information on each one and gives it a rank in the overall list

Informative breaks the list into pieces of manageable size

Informative manages the list via an adaptive sampling algorithm by preferentially sampling the ideas with the greatest support

Dialogue Management Tools

Maintain control over session data and leverage the real-time results.
Duplicates Management Real Time Graphical & Tabular Reports

Targeting & Personalization

Portal Configuration

Agenda

Informative Overview What is Dialogue Management Customer Feedback and Product Management How Dialogue Management Works Lego Case Study Q&A

LEGO Case Study

$1.3B manufacturer and retailer of toys Strong brand reputation for fanatical customer loyalty Customer dialogue is central to brand image Focused on driving top line by leveraging existing assets

Listening to Legos Customers

LEGO Legends Advisory Initiative

Investigate LEGO Direct sales opportunity for nostalgia sets Discover preferences and motivations for adults and children Gather and prioritize advice directly from and amongst advisors, in their own words

Understanding Legos Customers

Real-time response prioritization for two-way interaction with advisor community Insight utilized by product development, target marketing and communication for complete lifecycle execution management

Acting on Legos Customer Input

Brought back the Castle Series on Lego.com Promoted in Lego Magazine, You told us your favorite Lego set was

Pfizer: Employee Product Creation

Started with Internal Focus on employees Used New product idea generation

B2B: Salomon Smith Barney

Product/services feedback from partners and customers Product improvement ideas

Fannie Mae Customer Satisfaction

Jeff, Thank you for your input.

We continually strive to provide the highest level of service to our customers and would like to correct the problem. We value your business and would like to provide immediate help with your question or concern, a support rep will be contacting you shortly.

Real-time results are distributed across the business groups to provide a continuous monitoring of customer satisfaction

Recap / Q&A
Dialogue turns the voice of the customer into a strategic asset

Recruit your own advisors: Build an advisory team of key stakeholders, recruiting from website, email blasts, banners, existing databases, etc. Centralize customer feedback: Use the membership portal as a platform for all feedback from your customers (or partners, employees, vendors, etc.). Multiple ways to interact with your customers: Use Discovery Sessions, Discussion Boards, Quick Thoughts, Question of the day, etc., to understand your consumers. Build Relationship with key stakeholders: Use real-time reporting, targeting, and best-practices methodologies to build better relationships with your key constituencies while improving your business.

QUESTIONS?