Identifying

Customer Needs

Disclaimer:
All images such as logos, photos, etc. used in this presentation are the property of their
respective copyright owners and are used here for educational purposes only
Some material adapted from: Ulrich & Eppinger, Product Design and Development, 4th edition

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.1
 Identifying Customer Needs: 5 Steps
Input: Mission Statement
(from previous chapter)

1 2 3 4 5
Interpret Raw Establish the
Gather Raw Organize the Reflect on the
Data in Terms Relative
Data From Needs into a Results and
Of Customer Importance
Customers Hierarchy the Process
Needs of the Needs

Data Need Hierarchical Importance

Template Statements List Survey

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.2
 Step 1: Gather Raw Data from Customers: 1 of 5
Data Collection Methods

Method Description
Interviews 1-2 hour one-on-one interviews with key customers
Advantage: Quick, Inexpensive
Focus Groups 2 hour discussion with group of 8-12 customers
Advantage: Discussion may prompt new ideas
Observation Watch customer use product
Advantage: Readily shows product deficiencies
% of Needs
Identified 80%

60% Focus Groups

Comparison of Interviews: One-on-One
Effectiveness of 40%
Focus Groups
vs. Interviews 20%

# of Interviews 1 2 3 4 5 6 7 8 9 10
New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.3
 Step 1: Gather Raw Data from Customers: 2 of 5
Selecting Customers to Interview

Method Description
Extreme Users Target extreme users
- Customers using product at maximum capability
- Dependent on performance of product in some way
- Often able to articulate their emerging needs
- Frustrated with inadequacies of other products
- Using product in unusual way
- Modified product with new features
Leapfrog Competitors Can gain advantage over competitive products
Example Procter & Gamble Swiffer focus group
Product used for cleaning wood paneling on walls
Focus group found that
extreme users cleaned
their wood wall paneling
with Swiffer product

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.4
 Step 1: Gather Raw Data from Customers: 3 of 5
Interviewing Tips

Tip Description
Interview Guide Prepare ahead of time
- Why do you use the product?
- Walk us through a typical usage scenario
- How do you decide on a product?
- What do you like/ dislike about existing products?
- What improvements would you suggest?
Props Bring your product, competitors products, prototypes
Latent Needs Listen for needs not currently fulfilled by any product
(Such as Swiffer example)

Prepare an interview guide,

but feel free to explore
interesting topics brought up
by product user

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.5
 Step 1: Gather Raw Data from Customers: 4 of 5
Documenting Customer Interactions

Tip Description
Handwritten Notes Taking notes during conversation
- Easy, fast, customer usually does not mind
Audio Recording Using recorder to capture audio
- Time-consuming to transcribe into text
Video Recording Capture interaction using video device
- Useful to understand user environment
Still Photographs Record visual environment without video equipment
- Easy, but can not capture dynamic effects

Video recording is a
good way to capture
the user environment

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.6
 Step 1: Gather Raw Data from Customers: 5 of 5
Final Result: Customer Data Template

Category Customer Statement Interpreted Need

Typical Uses I drive screws to install Unit can be used for screws
electrical devices, like on electrical devices
outlets and switch covers.
Likes I like the pistol grip. Unit is comfortable to grip
Dislikes I want to lock it so I can User can apply torque
use it with a dead battery (!) manually to drive screw
Suggestions Would be nice if it could Unit can create a pilot hole
punch a pilot hole (!)

Example of
pistol-grip
electric screwdriver

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.7
 Step 2: Interpret Raw Data
Writing Good Need Statements
Category Customer Statement Need Statement - Right Need Statement - Wrong

What not How Put protective shields Battery protected from Unit contacts covered by
around battery contacts accidental shorting sliding plastic door

Specific I always drop it. Operates after dropping Unit is rugged

Positive not Negative I need to work outside Unit operates normally Unit not disabled by rain
in the rain in the rain

Product Attribute I want to recharge it Battery can be charged Cigarette lighter adaptor
with the cigarette lighter from cigarette lighter can recharge unit

Avoid Must I want to see how much Unit provides indication Unit should provide
juice is left in the battery of battery level Indication of battery level

Cigarette Lighter Battery Level Meter

Adaptor for
Recharging Battery

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.8
 Step 3: Organize Needs Into Hierarchy: 1 of 2
Tips on Organizing Needs into Hierarchical List
Tip Description
Wall Perform prioritization process on blank wall
Post-It Notes Record each need statement on card or Post-It note
Delete Redundancies Dispose of redundant need statements
Group Notes Group notes having similar need
- Organize by customer need, not technology
- Example: Energy needs, not Battery needs
Choose Label Select label to describe each group
Create Supergroups If necessary, group small groups into larger groups
- Consolidate to 20 groups max

Wall full of sticky notes

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.9
 Step 3: Organize Needs Into Hierarchy: 2 of 2
Hierarchical List of Primary & Secondary Needs
Label Customer Need and Priority: * (Low) - *** (High)
Unit has plenty of * Unit maintains power for several hours of heavy use
power to drive screws ** Unit able to drive screws into hardwood
Unit makes it easy to * Unit retains the screw before it is driven
start a screw *(!) Unit can be used to create a pilot hole
Unit feels good in *** Unit comfortable when user pushes on it
users hand * Unit balanced in the users hand
Unit easy to control *** User can easily resist twisting motion of unit
while turning screws **(!)User can control speed while turning a screw
Unit easy to set up * Unit easy to turn on
and use *(!)Unit provides ready access to bits and accessories

Abundance of
Screw-driving power
is a primary need

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.10
 Step 4: Establish Relative Importance of Needs
Survey: Customers Relative Importance of Needs
- Required to conduct design trade-offs
Importance: 1 5 Question
1 2 3 4 5 Screwdriver maintains power for several hours/charge
1 2 3 4 5 Screwdriver can drive screws into hardwood
1 2 3 4 5 Screwdriver can control speed while turning screw
1 2 3 4 5 Screwdriver has pleasant sound when in use
Ratings 1 - Feature undesirable
2 - Feature not important, but would not mind having it
3 - Feature nice to have, but not necessary
4 Feature highly desirable, but not critical
5 - Feature critical. Would not consider without it.

Typical Survey

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.11
 Step 5: Reflect on Results and Process
What are the Lessons Learned?

Topic Question
Interaction Have we interacted with customers in target market?
Latent Needs Did we capture latent needs, not just obvious ones?
Follow-Up Should we conduct follow-up interviews?
Key Customers Which customers should we contact during design?
Surprises What surprising needs did we discover?
Collaboration Did we engage everyone in our organization?
Improvement How might we improve our efforts in future?

Meet to discuss
the process

New Product Development Stephan Sorger 2010: www.stephansorger.com; Customer Needs 4.12