Replies to This Discussion

Permalink Reply by Jan-Erik Baars on May 24, 2011 at 11:22

Yep, that's what I meant with measuring things like customer loyalty (eg, with NPS)!

Customer ROI is what keeps the economic cycle going and nowadays is directly related to the design efforts (or better, effect) of a brand - it's correlated.

If you use customer journeys to map out the desired experience and use measurements like NPS to check if you are reaching this (which in the end should lead to increased customer loyalty) you can measure ROI. {Invest=provided experience, Return=increased customer loyalty}

Good area to observe such an approach: restaurants. What's the driving part for a restaurant experience, what will increase economic success and, as a restaurant owner, what kind of ROI would you like to measure.

If you can answer this for a restaurant, you can answer this for any company as well :-) 

• ▶ Reply

Network GuidePermalink Reply by Arne van Oosterom on May 24, 2011 at 11:34

yes... this is inspiring... NPS alone is just not enough... but complimented with context and journey mapping it's getting a lot more interesting :-)

 

 

• ▶ Reply

Permalink Reply by Jan-Erik Baars on May 24, 2011 at 11:38

agree, somebody should figure this out and make a service out of it ;-) let's have a coffee soon...

• ▶ Reply

Network GuidePermalink Reply by Arne van Oosterom on May 24, 2011 at 15:06

yes! :-)

• ▶ Reply

Permalink Reply by erik roscam abbing on May 24, 2011 at 17:54

Can you specify NPS to concern a certain specific part of the customer journey? So not 'would you recommend this service to a friend?' but 'would you recommend this specific part of the service to a friend?'. Because then you could make a hybrid NPS/customer journey framework that would provide you with customer centric desig nobjectives per stage of the journey!

• ▶ Reply

Permalink Reply by Jan-Erik Baars on May 24, 2011 at 18:02

That's possible, you have to design the program as such, which is done. NPS (and many likewise customer 'engagement' surveys) is using direct user feedback, with verbatim etc. Voice of the Customer is one of them.

This feedback could be enquired at many touch points and as such also be related to a customer journey (which is through touch points anyway)... so yes, I think it can be done.

Shall have some students work on this ;-)

• ▶ Reply

Network GuidePermalink Reply by Arne van Oosterom on May 24, 2011 at 18:22

Sounds like plan... it's all coming together ;-)

Permalink Reply by Maddy on May 24, 2011 at 23:36

@Jan : I like the analogy of having to observe restaurants to gain insight to the success of the process. 

True like Arne says that complementing ROI with customer journey mapping alone wouldn't suffice if I understand correct! 

 

By the way, coffee sounds great :D

• ▶ Reply

Permalink Reply by Maddy on May 24, 2011 at 23:33

Hi Arne :)

 

Definitely true fact that design has proven itself time over, on a personal note I think we need just more time to convince people of the feasibility of including design in business process.

 

My thoughts are with you Arne on having an inclusion of customer journey mapping as also an integral part of proving ROI of product design. And since 3M drives on consumption based experience as well as user experience it shouldn't be hopefully much of a hassle in trying to find a way about proving the value of design by demonstrating the ROI.

 

A question, is it possible that by assessing the functional and aesthetic design of a product against the market perception of the brand , an investment decision or the success of  product can be projected ? 

 

Awaiting your thoughts, Arne :)

• ▶ Reply

Network GuidePermalink Reply by Arne van Oosterom on May 25, 2011 at 16:17

An investment decision, the linear traditional way, is always guesswork, at leas a big part of it. We get better at guessing when we get experienced and when we launch a product/ service that looks like what the competition is doing. Then we use marketing, advertisement and design to push it ahead. Hoping someone notices it.

An investment decision based on a culture of trial and error (fail fast and lots) wil take a completely different approach or mindsett to investment who is investing what? Which KPI's, or emotional KPI's are used? In many ways I think ROI should be based on long term visions, now we only focus on short term. Investment becomes an ongoing process of experimentation and evolving offerings.

I understand we need to talk the language of the business, I need to do this everyday, but this should not lead us to keep repeating the same things over and over again. It is time for a new chapter. Learning another language, other tools, other ways of measuring will become very important in the near future. We need to find a real balance and integrate human values and meaning in the way we measure our success.

I firmly believe that companies who keep things the same will disappear and those who are able to evolve will survive. It's just the way nature works.

• ▶ Reply

Permalink Reply by Erik E. Bystrom on May 25, 2011 at 16:41

Hi Arne! I think everyone agrees that a more sustainable and long-term view of investments is the future of business, however it's not the necessarily the current rule. As I'm sure you know, an average manager (outside industries where the strategic value of design is already acknowledged at least) is often under pressure from both higher level managers and, where applicable, shareholders for shorter term and measurable financial returns. It's very important to understand that investors value your company based on your financial parameters and pretty much nothing else. This might be the wrong way to do it, but it's how the world works and it won't change rapidly. If a majority of shareholders/investors in a particular company would demand it, the way of measuring "returns" could change. That's the point and beauty of public stocks. Private companies may be easier to work with from this point of view (i.e. you might have less opportunistic investors). 

I'm not saying the current way many businesses work today is the "right" way, but you will often be measured on profit/loss of your product/service unless it's a marketing initiative that's not supposed to make money. Lack of financial profit means your product/service/pet project risks being cancelled. I think it's very important to understand that this is the reality many managers are facing today, and that you need to be able to satisfy the KPIs they are being measured against.

• ▶ Reply

Network GuidePermalink Reply by Arne van Oosterom on May 27, 2011 at 11:45

Hi Erik!

Good to see/ read you here :-)

 

Shareholders and investors are probably the most misused excuse not to change.

 

I know the business realities we are facing. But this should not be an excuse not to do things differently, to inspire and experiment. Big companies might be unable to be flexible, iterative and embrace change as the continues process it is. But they are feeling the necessity to change, and as this becomes more urgent they will either find a way to truly change towards a more people/ value orientated organization or disappear.

 

So we owe it to our clients and ourselves to develop new ways of defining and measuring success. We are all people living on a tiny planet trying to be happy and find meaning.

 

Like I said: Shareholders and investors are the most misused excuse not to change. Shareholders and investors are people too, they are stakeholders in the value-network but value is not just money, influence and status.

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• 4
• …
• 6
• Next ›
• Page