Driving Customer Experience for High Tech Products

With high-tech and consumer electronics companies focused on delivering a superior customer experience, it must be a great time for consumers of those products, right?  The answer is “yes” when those companies are focused on authentically delivering strong customer experience and “not so much” when dealing with companies who have embraced the mantra, but struggle on execution – both internally and across the product lifecycle.

Delivering a strong customer experience has benefits for the consumer – this should be obvious, but customer experience isn’t about driving customer satisfaction at the expense of product or company profitability; done right, it is about identification of consumer pain points, use of advanced analytics, and delivering an integrated approach across the product lifecycle.  Delivering strong customer experience should not be equated with higher costs.

Consider the problem

Certainly no product company sets out to deliver a poor customer experience, but consider the North American consumer who purchases a high-tech consumer electronic device (smartphone, tablet, laptop, TV, etc.).  Over the course of the product lifecycle, the consumer may end up dealing with,

  • The OEM who designed and built the device,
  • The retailer or channel partner who sold the device,
  • A 3rd party operating call centers or web sites for product registration and customer support,
  • Outsourced repair/ warranty provider for service requests

In this fragmented model, who should be responsible for delivering a strong and consistent customer experience, when each step in the process is focused on maximizing transactional margin, or minimizing costs?

Envision the opportunity

A Customer Experience approach that identifies consumer pain points throughout the product lifecycle, and focuses on an integrated and responsive approach to pre- and post-sales product support will generate higher product margins, reduce overall service costs, and increase customer satisfaction (as measured by CSAT, NPS, etc.).  The right solution brings a combination of process, technology, operations and analytics to bear on both direct and indirect metrics, some of which are identified here;

  • Manufacturing (quality, cost, feature trade-off, right components)
  • Product margins (inclusive of in-warranty and out-of-warranty product costs)
  • Customer interaction (First call resolution, Next best action)
  • Post-sales support (speed of resolution, service turn-around-time, analytics-based service options)
  • Customer lifetime value

Execution framework

Here then are a few of the areas where the participants in this value chain can focus to deliver a superior customer experience, integrated throughout the product lifecycle.

Product Support

  • What? Pre-sales product support, Product registration
  • Why? Ensure product is right fit for consumer, drive early engagement and product analytics, establish and communicate consumer entitlements
  • How? Omni channel product discovery, social media moderated product forums, product registration; leverage multi-channel operations (mobile, web, call center), product content, data analytics

Consumer Point of Need

  • What? Product support and knowledge-based diagnostics
  • Why? Focus on engaging the consumer at initial point of need, prioritizing First Call Resolution (FCR) over handle time or cost per minute; establish and clearly communicate Next Step when FCR is not possible
  • How? Create knowledge base that captures information across the value chain (including social networks, manufacturing, repair operations, etc.) to deliver “Current Best Answer” to the consumer.  Leverage current consumer (product registration) and product (remote access) data to improve product support.

Product Service Request

  • What? Create authorized service request for consumer (part replacement, repair, buyout/replace) with clear communication on consumer entitlement, next steps, and estimated turn-around-time
  • Why? Focus on execution of consumer entitlement and speed of resolution balanced with service option costs and consumer lifetime value potential
  • How? Verify consumer entitlement (in-warranty, out-of-warranty) or additional benefits consumer is eligible for based on tenure, known product defects, etc. Present consumer options that balance customer experience, cost, number of touches, speed of resolution. Use data analytics engine to integrate consumer entitlement, “Next Best Action”, OEM and Repair vendor information.

Service Analytics & Operations

  • What? Integrated product lifecycle data across product forecasts, sell-thru data, customer analytics, and repair data (initial returns, cost of repairs, etc.)
  • Why? Improve “Next Best Action” for product service requests, and reduce costs through improved parts forecasting, repair vs. buyout decisions, and inventory and last-time buy decisions
  • How? Highly integrated OEM manufacturing systems, channel and consumer analytics, and repair vendor data. Partner with service vendors for inside the four-walls optimization – inspection, warranty validation, repair, serialized tracking, cost and turn-around-time

Results

The right approach to delivering a strong customer experience for high tech products brings together a combination of customer-focus, technology, operations and analytics to deliver compelling results – to achieve these results, participants in the value chain will need to prioritize customer experience metrics over transactional metrics, continue to invest in analytics in and across the product lifecycle, and dedicate resources to deliver more consumer options & capture customer lifetime value.

My Year of Living Agile(y) - a Product Managers Parable

“We want you to be agile”.  Great.  My response to that was to whip out my stellar yoga “Tree” pose and say, “See, look how agile I am”.

Sadly, no one really wants to see my yoga poses at work; what we did want, however, was to re-build our legacy product platform, taking a Platform as a Service (PaaS) approach, deliver new features aimed at top-line growth, reduce OpEx, and significantly reduce our time to market for existing and new clients. 

Also, it would be nice if we could take a lean/ minimum viable product (MVP) approach, and begin to change the culture of the organization along the way.

Now my Tree pose is sounding better, isn’t it? 

Look, Agile has been around for quite a while, and there are lots of great reference materials to talk about the philosophy and the mechanics of executing Agile, and even how to embrace Large Scale Agile from the business or product side of an organization – one great book on that subject is by the guys at HP who used Agile to re-tool their core printer software.

However, as technology (software) becomes a larger and larger component of the products and services we consume, sitting closer to the “glass” our consumer customers interact with, as traditional product development and software development roles blend and blur, and as product lifecycles continue to shorten – the embrace of Agile across the business, product, and technology teams can be a differentiator between the product and companies that win vs. lose.

 Here are the lessons we learned (aka mistakes we made) – from a business leader/product development mindset – in our first year of a longer journey to embrace Agile to transform our legacy, non-extensible product platforms into a transformative PaaS that could support the long-term needs of the business. 

  • Use the smallest possible team you can. It needs to be a blend of business owners and software "doers", not managers.  Whatever number you come up with is still probably 30% larger than it needs to be,
  • To make your small team work, make sure your team is 100% dedicated, with product/ business owners who actually know the product/ capability/ features they are responsible for,
  • To get the right people in place, be willing to look outside the traditional “product” organization – your true product owners may sit in operations, engineering, sales, etc.
  • Embrace this as an opportunity to improve your working relationship with the technology/ software development team by 10X – find the best folks and make them part of the Agile teams that you assemble,
  • Accept at the outset that you will get it wrong - # of teams, size of teams, operating model, etc. Get your initial set-up mostly right, work it hard, but don’t hesitate to adjust any of the variables until you get to a model that works for your organization,
  • Give them the ball. Once your small team is assembled and aligned to the product objectives & KPI’s, allow them to be accountable and make the right decisions; resist process or roles that exist to funnel the requirements or manage the message,
  • Build broad capabilities quickly, focusing on speed to market and product enablement – instill a bias toward getting things “right enough” vs. building full functionality; use your short development cycles to auto correct,
  • Where this represents a significant departure for the business, ensure that you have the right leadership support and communication plans in place.

Learning these lessons the hard way, the Agile mindset helped us to embrace and pilot MVP concepts on a large scale, break down barriers across product, technology and operations, and re-assess where some of our true product assets lived and blueprint a new approach for the business.

FOOTNOTES FOR THE PICKY:  This is a very short overview of the approach we took, with very specific initial conditions and business goals – individual results may vary, but I hope this is helpful for those in similar circumstances.  I did not mention results, but they were impressive – across many traditional measures of product development – but especially in the “softer” metrics around organizing for success and creating significantly stronger partnerships across the company.