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Delightfully Awesome: Product Tank NYC 17-June-...

Delightfully Awesome: Product Tank NYC 17-June-2024

C. Todd Lombardo

June 18, 2024

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  1. Our mission is to foster collaboration and growth within local

    product management communities to drive innovation and excellence.
  2. October 7–9 Raleigh, NC REGISTER NOW! PENDO.IO/PENDOMONIUM/MTPCON/ → Enter “ProductTank”

    at checkout for exclusive ProductTank members’ discount ($699 → $549)
  3. Sponsor a ProductTank Local sponsors provide venues and/or food and

    beverage and keep these events free for participants! When you sponsor ProductTank, you’ll get face time at the event to showcase your product or service, or spotlight open product roles at your company. Scan the QR code with your phone to fill out our sponsorship form. SPONSORSHIP
  4. “When you create a hospitality-first culture, everything about your business

    improves—whether that means finding and retaining great talent, turning customers into raving fans, and increasing profitability. Will Guidara Former GM @ Eleven Madison Park Author of “Unreasonable Hospitality”
  5. When you create a delight-first culture, everything about your business

    improves—that applies to B2C, B2B, eCommerce, SaaS, startups, and enterprise.
  6. The business impact of delight Simple? Yes. Easy? No. ✓Stand

    out from competitors. ✓Turn customers into evangelists. ✓Boost customer loyalty and retention.
  7. Satis fi ed Unsatis fi ed Met Unmet Kano Model

    – Noriaki Kano et. al. EXPECTATIONS SATISFACTION
  8. Satis fi ed Unsatis fi ed Met Unmet Kano Model

    – Noriaki Kano et. al. EXPECTATIONS SATISFACTION Performance Needs – “Satis fi ers”
  9. Satis fi ed Unsatis fi ed Met Unmet Basic Needs

    — “Must Haves” Kano Model – Noriaki Kano et. al. EXPECTATIONS SATISFACTION Performance Needs – “Satis fi ers”
  10. Satis fi ed Unsatis fi ed Met Unmet Basic Needs

    — “Must Haves” Excitement needs — “Delighters” Kano Model – Noriaki Kano et. al. EXPECTATIONS SATISFACTION Performance Needs – “Satis fi ers”
  11. Satis fi ed Unsatis fi ed Met Unmet Kano Model

    EXPECTATIONS SATISFACTION What’s delightful today, can become a basic expectation tomorrow
  12. Expectation Confirmation Theory Customers have expectations, you have to meet

    them Expectations Product Performance Con fi rmation Satisfaction Oliver, 1980 Repurchase
  13. Expectation Confirmation Theory Customers have expectations, you have to meet

    them Oliver, 1980; Dabholkar, Shepherd & Thorpe, 2000; Hossain & Quaddus, 2012
  14. Expectation Confirmation Theory Customers have expectations, you have to meet

    them Preconceived Expectations Oliver, 1980; Dabholkar, Shepherd & Thorpe, 2000; Hossain & Quaddus, 2012
  15. Expectation Confirmation Theory Customers have expectations, you have to meet

    them Preconceived Expectations Product Interaction Oliver, 1980; Dabholkar, Shepherd & Thorpe, 2000; Hossain & Quaddus, 2012
  16. Expectation Confirmation Theory Customers have expectations, you have to meet

    them Preconceived Expectations Product Interaction Con fi rmation or Contradict Oliver, 1980; Dabholkar, Shepherd & Thorpe, 2000; Hossain & Quaddus, 2012
  17. Expectation Confirmation Theory Customers have expectations, you have to meet

    them Preconceived Expectations Product Interaction Con fi rmation or Contradict Cognitive Adjustment Oliver, 1980; Dabholkar, Shepherd & Thorpe, 2000; Hossain & Quaddus, 2012
  18. Expectation Confirmation Theory Customers have expectations, you have to meet

    them Preconceived Expectations Product Interaction Con fi rmation or Contradict Cognitive Adjustment Contradicted Unsatis fi ed 🙁 Oliver, 1980; Dabholkar, Shepherd & Thorpe, 2000; Hossain & Quaddus, 2012
  19. Expectation Confirmation Theory Customers have expectations, you have to meet

    them Preconceived Expectations Product Interaction Con fi rmation or Contradict Cognitive Adjustment Con fi rmed Satis fi ed 🙂 Contradicted Unsatis fi ed 🙁 Oliver, 1980; Dabholkar, Shepherd & Thorpe, 2000; Hossain & Quaddus, 2012
  20. Expectation Confirmation Theory Customers have expectations, you have to meet

    them BEAT Preconceived Expectations Product Interaction Con fi rmation or Contradict Cognitive Adjustment Con fi rmed Satis fi ed 🙂 Contradicted Unsatis fi ed 🙁 Surpassed Delighted 🤩 Oliver, 1980; Dabholkar, Shepherd & Thorpe, 2000; Hossain & Quaddus, 2012
  21. How did Cron stand out other calendar apps? It’s the

    “extra mile” design details • Three things that Raphael Schaad (founder of Cron) did to make it delightful: 1. Speed 2. Intuitiveness 3. Whimsical moments
  22. How did Cron stand out other calendar apps? It’s the

    “extra mile” design details • Three things that Raphael Schaad (founder of Cron) did to make it delightful: 1. Speed 2. Intuitiveness 3. Whimsical moments
  23. Additional Either / Or Believes delight is an additional, aspirational

    element Focused on delivering product that meets customers’ needs Considers delighters to be small in value, and in scope 🙂 Both / And Necessary Believes they must have both functional and delightful to win Focused on finding a solution that exceeds customers expectations Doesn’t consider “delighters” as a separate items 🤩 MINDSET A MINDSET B
  24. More than aesthetic …perceived poor performance of products causes negative

    emotions while satisfactory performance can lead to both positive and negative emotions. In creating both positive and negative emotions, functional aspects were more in fl uential than symbolic and aesthetic ones. Functionality Matters Sepahpour, et al. 2021
  25. Dan Kurzius Co-Founder and Chief Customer Officer, Mailchimp “When I

    talk to customers, I try to capture emotional moments (both delightful and frustrating ones) to help our teams see things from the customer’s perspective.”
  26. Measures of Delight Spoiler: There are no direct, objective measurements

    Use proxy measures! An indirect measure of a desired outcome which is strongly correlated to that outcome Examples: • Governments use Unemployment Rate as a proxy for economic health.
  27. Measures of Delight Spoiler: There are no direct, objective measurements

    Use proxy measures! An indirect measure of a desired outcome which is strongly correlated to that outcome Examples: • Governments use Unemployment Rate as a proxy for economic health. • Mailchimp measured number of Retweets and Replies to ‘Chimp Bucks” posted on Twitter (X) and Instagram.
  28. Measures of Delight Spoiler: There are no direct, objective measurements

    Use proxy measures! An indirect measure of a desired outcome which is strongly correlated to that outcome Examples: • Governments use Unemployment Rate as a proxy for economic health. • Mailchimp measured number of Retweets and Replies to ‘Chimp Bucks” posted on Twitter (X) and Instagram. • Wise used NPS: a user giving a score of 10 meant a signi fi cantly higher likelihood of telling a friend or colleague.
  29. When You Measure is Important as What Correlating with Norman’s

    Levels of Design Alonso García et. al, 2020
  30. When You Measure is Important as What Correlating with Norman’s

    Levels of Design Alonso García et. al, 2020 …it would be of interest for design teams and companies to use a tool that facilitates the continuous measurement of the three asymmetric levels established by Norman, during the design process, with special emphasis on the parameters and levels where the designer makes the most mistakes or those with the most demanding users.
  31. A Tale of Two Cultures Zappos vs Gilt Group Zappos

    Gilt Groupe Company Data Shares Yesterday’s Sales Top 10 Customer Quotes Recent Flash Sale Data
  32. A Tale of Two Cultures Zappos vs Gilt Group Zappos

    Gilt Groupe Company Data Shares Yesterday’s Sales Top 10 Customer Quotes Recent Flash Sale Data Employee Onboarding First two weeks every employee works in customer call center Standard employee onboarding
  33. A Tale of Two Cultures Zappos vs Gilt Group Zappos

    Gilt Groupe Company Data Shares Yesterday’s Sales Top 10 Customer Quotes Recent Flash Sale Data Employee Onboarding First two weeks every employee works in customer call center Standard employee onboarding Call Center No time limits per call Time limits per call
  34. A Tale of Two Cultures Zappos vs Gilt Group Zappos

    Gilt Groupe Company Data Shares Yesterday’s Sales Top 10 Customer Quotes Recent Flash Sale Data Employee Onboarding First two weeks every employee works in customer call center Standard employee onboarding Call Center No time limits per call Time limits per call End-to-End Experience Owned it 40% Direct, 60% Drop-Shipped
  35. A Tale of Two Cultures Zappos vs Gilt Group Zappos

    Gilt Groupe Company Data Shares Yesterday’s Sales Top 10 Customer Quotes Recent Flash Sale Data Employee Onboarding First two weeks every employee works in customer call center Standard employee onboarding Call Center No time limits per call Time limits per call End-to-End Experience Owned it 40% Direct, 60% Drop-Shipped Team Rotations Every week one member of the product team rotated into call center N/A
  36. A Tale of Two Cultures Zappos vs Gilt Group Zappos

    Gilt Groupe Company Data Shares Yesterday’s Sales Top 10 Customer Quotes Recent Flash Sale Data Employee Onboarding First two weeks every employee works in customer call center Standard employee onboarding Call Center No time limits per call Time limits per call End-to-End Experience Owned it 40% Direct, 60% Drop-Shipped Team Rotations Every week one member of the product team rotated into call center N/A Acquisition Price $807M (Amazon) $250M (Hudson Bay) $100M (Rue La La)
  37. How a DTC bike company turns millions into bike mechanics

    and brand evangelists • Canyon sells performance bicycles: Road, Mountain, Gravel, All disciplines • Cannot buy them in a bike store • They’re shipped directly to customers in a box • Once shipped, Canyon has no direct control over the customer experience • Customers have to assemble the bike Can you assemble a bicycle?
  38. In 2009, a $1000 Investment in… …which company would give

    the highest return in 10 years? • …Google would turn into $6,000 ten years later
  39. In 2009, a $1000 Investment in… …which company would give

    the highest return in 10 years? • …Google would turn into $6,000 ten years later • …Apple would turn into $15,000 ten years later
  40. In 2009, a $1000 Investment in… …which company would give

    the highest return in 10 years? • …Google would turn into $6,000 ten years later • …Apple would turn into $15,000 ten years later • …Amazon would turn into $29,000 ten years later
  41. In 2009, a $1000 Investment in… …which company would give

    the highest return in 10 years? • …Google would turn into $6,000 ten years later • …Apple would turn into $15,000 ten years later • …Amazon would turn into $29,000 ten years later
  42. In 2009, a $1000 Investment in… …which company would give

    the highest return in 10 years? • …Google would turn into $6,000 ten years later • …Apple would turn into $15,000 ten years later • …Amazon would turn into $29,000 ten years later •…Domino’s Pizza would return $47,000 in 2019.
  43. Engagement Multiplier • They were already capturing the data —

    for internal quality metrics • What if they surfaced it to customers? • Customers would post YouTube videos as they ordered and watched The Pizza Tracker
  44. Transparency + Data Drives Emotional Engagement • 2007 Online &

    Mobile ordering • 2008 Launched Pizza Tracker • 2009 Domino's ranked dead-last in a survey • 2009 Admitted their pizza sucked Double Down on Transparency QUANTITATIVE QUALITATIVE
  45. The Results? $12 Billion in Enterprise Value Added •From <15%

    of sales from online orders over 20% of sales •Boosted pro fi ts 23% because they spent $2 more per order •It wasn’t just the Pizza Tracker, the embracing of transparency and sharing the data, qual and quant, with customers in a humble manner is what drove their amazing turnaround.
  46. The Five Principles Use ‘em! Belief: Delight is a Differentiator

    Can you achieve a deep level of delight? Empathy: Get to Emotional Understanding How are you tracking delight?
  47. The Five Principles Use ‘em! Belief: Delight is a Differentiator

    Can you achieve a deep level of delight? Empathy: Get to Emotional Understanding How are you tracking delight? Team Culture: Influential Team Factors Which cultural norms need change?
  48. The Five Principles Use ‘em! Belief: Delight is a Differentiator

    Can you achieve a deep level of delight? Empathy: Get to Emotional Understanding How are you tracking delight? Team Culture: Influential Team Factors Which cultural norms need change? Holistic: Design Beyond Your Control What parts of the journey to consider?
  49. The Five Principles Use ‘em! Belief: Delight is a Differentiator

    Can you achieve a deep level of delight? Empathy: Get to Emotional Understanding How are you tracking delight? Team Culture: Influential Team Factors Which cultural norms need change? Holistic: Design Beyond Your Control What parts of the journey to consider? Data: Can Drive Emotions, Delight… and Success What data do you have?