Tuesday, October 31, 2006

Ethnographic Research at Intel

Linked from Experientia blog Putting People First is an article on how innovation is done at Intel these days "Making computing a people science". The article especially focuses on how Intel team of social scientists help to spur innovation that truly addresses customer needs.

Nothing really revolutionary in the model that is introduced in the article. It is basically a SET (Social, Economic, Technological) model, used to make sure design is considered from every point of view:
  • Social: Does the design address a need of customers or could create one?
  • Economic: Is the design viable financially?
  • Technological: Is the technology available to bring the design to reality?
But it is interesting to see that ethnographic research is applied, at it should, to any industry. The IT and software industries formerly based their processes on very strict sequential models and should definitely wake up to the call and get into their users' lives much more.

Slides on Mental Models

Below is a pretty nice presentation on mental models from Indi Young, a former AdaptivePath staff member (I found the link to this presentation from Karl Long's ExperienceCurve Blog). Mental models are key to understand the customer experience and identify patterns of behavior. They can be leveraged on to define the features of a product and how they should be organized for example.

Sunday, October 29, 2006

The haircut vending machine

I hate going to the hairdresser. I go there as rarely as I can. Usually I wait until more than 90% of my friends complain about my hair getting too messy before I actually go and get it cut. At that time, I cut as much as possible to make sure I won’t go back that soon. It is hard to compare a haircut and going to the dentist, but to me it is as hard to convince myself to go to either one… if there is no obvious urgent need or symptoms, I won’t go.

In terms of hairdresser, I am not loyal at all. I never had any outstanding experience that made me want to stick to a specific hairdresser. I want a simple cut, nothing fancy. So a good stylist does not make much of a difference. Most importantly I want to spend as little time as possible in the company of the hairdresser. The main things I look at when choosing a new hairdresser is price and convenience. That could be a short version of my persona, summarizing my behavior in relation to getting my haircut.

When walking in the streets of Hong Kong I ended up finding a hairdresser that directly addressed this type of personas. QB House is a Japanese chain that was created in 1996 and that instead on focusing on style, focuses on efficiency. On the door of the hairdresser, then rules are set:

  1. Get a HK$50 note ready
  2. Buy a ticket (no change given)
  3. Wait for your turn
  4. Explain the hairstylist what style you want
  5. The haircut lasts only 10 minutes

When searching on forums, it clearly appears that this concept does not rally all type of crowds. Many are reluctant to try, and it is true that in Hong Kong you can find countless cheap hairdressers that will induce more confidence by focusing more on style. But I can very well imagine the computer geeks in Akihabara district in Tokyo rush to that kind of quick hair salons, enjoying the very systematic process detailed in advance by the hairdresser. With a salon in Hong Kong just next to two major computer and game centers in Wan Chai, the concept can work very well. No need to please everybody.

Hong Kong people and the environment

Two weeks ago, I went to watch “The Inconvenient Truth”, the documentary on global warming based on the work of Al Gore. The figures in the movie were so striking that at that time I thought the movie should become a compulsory watch for everybody in Hong Kong. People had to realize what was happening to the Earth. But something struck me even more during that movie. A couple of local Hong Kong people stood up in the middle and left the theatre never to return. How was that possible? How could anybody be so indifferent about the future of the Earth?

I then started to tell my friends around that they had to watch the movie and that it was so important to realize that if habits are not changed there will be serious repercussions. But with movies like “The Devil Wears Prada” or “The Departed” the Hollywood remake of a Hong Kong blockbuster, there was little chance many people would go and watch this amazing documentary.

As I was reading “The Tipping Point” from Malcom Gladwell at that time, it got me thinking about the “stickiness” of the green message in general and why it seemed it received so little attention in Hong Kong. I thus decided to look into this issue by going at the EcoAsia Expo in Hong Kong organized by the Trade Development Council. On October 27th I took my notebook, my pens and my camera and went there to try to better understand the phenomenon. Why were people little interested in the future of the Earth around here? How could we get them to do more? Especially with a section of the expo on green consumer products, I was looking forward to see what products would affect consumers’ daily life and how they could be marketed.

The expo, targeted purely at buyers, did not have the kind of innovation I was looking for, but I still met some very interesting people and learnt more about what the government in Hong Kong is doing for the environment. As this post is already pretty long, I will detail some of these points in later posts on the topic. The most important thing I retain from the expo and the seminars that were held is a number: 1% to 2%. This is the objective the Hong Kong government has in terms of renewable energy by 2012. This means that by 2012, 1% to 2% of the energy produced and used in Hong Kong will be from renewable sources, like wind and solar power. To put this in perspective other numbers were shown at the expo. Tokyo has an objective of 20% renewable energy by 2020 and even more strikingly India today has a 5% renewable energy ratio. Way to go Hong Kong

If you are interested in Green Technologies, please do look at the following links:

Thursday, October 26, 2006

Starbucks in China

The news came in yesterday that Starbucks was buying out its local partner in China, thus taking control of around 60 shops in Beijing and Tianjin. The story can be read on BusinessWeek Online in their article "Starbucks Caffeinates Its China Growth Plan".

Below is a quote from the article that highlights the crucial difference that exists between running Starbucks in Western countries and running it in China:

"It's not just a drink in China. It's a destination. It's a place to be seen and a place to show how modern one is," adds Technomic Asia's Kedl. And with China's economy growing in double digits, there are likely to be lots more young urban and modern Chinese ready to sip java in a sleek new Starbucks.

People in China do not go to Starbucks because they like coffee. They do not go there because it is comfortable. Starbucks, just like trendy bars (but maybe appealing to a different crowd), is a place to be seen. Married women go there with their friends to chat and show off their apparel. Families spend the afternoon there reading newspapers proudly showing they can afford two kids despite the one child policy.

So of course, with wealth increasing that fast in China, more and more people will want to show off their newly acquired fortune. But at the same time the process will help create many more alternatives to sipping a coffee in a Starbucks to show off one's wealth. A main threat for Starbucks could be businesses that are more relevant to the culture of China elites. And then Starbucks had better hope that Chinese do actually like coffee... because its early lead could backfire and push it down the value chain.

Wednesday, October 25, 2006

Lost in Malls

In his book “Call of the Mall”, Paco Underhill talks at length about the way mall floor plans and directories are badly designed and make it hard for shoppers to find their way. In one of my expeditions to Mong Kok (most famous shopping district in Hong Kong) I was looking at the small booklets provided by Langham Place shopping mall to help shoppers find their way. These booklets could prove handy in a shopping mall that offers almost 600,000 sq. ft. of floor space and spans over 13 floors!

With my background and experience in usability, it was an opportunity to identify few flaws in the design of the booklet:

Aesthetics driven
The booklet is very nice to look at (the picture on the left presents a front and back view). Unfortunately as it is sitting on the stand at the entrance of the mall, the color difference between the front and the back and the labels “Shopping Guide” and “Dining Guide” lead shoppers to think that these are two entirely different booklets. Many pick two booklets up and only realize after some time that the two are actually the same.

Information Architecture
Another flaw is in the structure of the booklet. It is accordion or zig-zag folded and the title on each side (front and back) should represent what it contains. While holding the booklet on the “shopping guide” side, shoppers can browse a list of all the shops divided in subcategories, with no map of where they are. However on the other side, “dining guide”, the first two pages are dedicated to listing restaurants, while the rest is a series of floor plans to actually locate the shops. I can very well imagine the designer of this booklet thinking that there are too many shops and restaurants compared to the number of floor plans and deciding to group restaurants and floor plans together under a “Dining Guide” category so that the accordion fold CONCEPT would still work…

Not task-oriented
The last flaw of this booklet is that it was not designed with relevant tasks in mind. Shoppers might have two main tasks when taking the booklet. They may need an overview of all the shops available, or they may have a specific shop in mind and want to locate it. First, with subcategories like “The Spiral”, which is a specific location of the shopping mall, it makes it very hard for new shoppers, who do not know the mall’s jargon to get an overview. Second, shoppers who want to locate a specific shop have to look for the code of the shop first, figure out that floor plans are under dining guide and finally look up the shop on these plans; not the most straight-forward of tasks…

It is interesting to see that for an item like a guide to a shopping mall, design seems to take priority over usability.

Customer Experience is about Individuals!

There is a great speech from Malcom Gladwell, the author of bestsellers "Blink" and "The Tipping Point", that I think explains very well the need to consider customers as individuals. It thus complements nicely the concept that customer experience is about individuals as I highlighted in my last post on What is Customer Experience. It also highlights the need to use innovative techniques when researching customers to uncover needs that cannot be identified by direct questioning.

His talk on “what every business can learn from spaghetti sauce” was made during the TED (Technology, Entertainment and Design) 2004 event in Monterey. I know it is a bit old, but it is simply a great talk that can be watched over and over.

When watching this, we can wonder how ready the organizations we are working in or we are interacting with are to identify, understand and leverage differences among customers.

Tuesday, October 24, 2006

What is Customer Experience?

Not sexy enough for Asia?
Customer Experience is a term widely used in the US and in Europe. But when I try to explain the concept in Hong Kong where I reside, or in other Asian countries, people go: “Customer what?!”. It appears the concept is very hard to grasp here and very remote from the concepts that govern the market. It is true that in Hong Kong for example, Telecom companies only focus on acquiring new customers without caring at all about their current customers, who receive bad customer service, pay more expensive fees, … and as a result are not “current” for a very long time, as they switch from providers to providers.

The concept of Customer Experience appears also a lot less sexy than Design or Innovation, and as a result receives a lot less attention. The two latter concepts feel quantifiable and concrete. Companies who claim that they can design great products and that they can be innovative now open every day. It would be interesting to count the percentage of companies, which display the word “innovation” or any of its variation on its homepage. Unfortunately for companies in Hong Kong, and potentially Asia, who follow the Design and Innovation wave, they do not realize that without understanding customer experience, there is no “innovation” as it is defined today in Western markets or as IDEO is implementing it.

Tentative definition

In this post, I will try to add my few cents to define customer experience and highlight the points that are crucial when building an efficient customer experience management structure. Here is how I would define customer experience:


“Customer experience is a measure of how well a company performs at any of its touch-points in relation to its customers’ (and prospective customers’) expectations."

I put this definition is the graph below:

It is about emotions!

When considering customer experience, the very first thing to do is to acknowledge that customers are people. A customer cannot be put into a labeled box or market segment and expected to stay there for the rest of his or her relationship with the company. Customers are individuals and we should say customers are changing individuals.

Several factors influence customers. Some uncontrolled factors will affect their perception and expectations of a company. For example outside information like blogs or reports can have positive or negative effects. The customers’ present need is also changing depending on his or her state of mind, the environment, and much more. Apart from uncontrolled elements, the company has a way to regulate expectations using its value proposition communicated through advertising for example. Finally and most importantly, customers’ expectations are regulated by their past experience with a company.

It is about small things!

Focusing on customer experience also necessitates the realization that small things matter. Customer experience will be impacted by things like the tone of voice of a sales person, the weather outside a shop, the blog that a customer read before purchasing a product, the argument that a customer had with his or her daughter the day before, the way the support staff at a competitor’s store handled a problem, etc.

Of course it is impossible to address all these. In the end, the company that succeeds is the one that is able to identify these “small things” and allow enough flexibility in its processes to adapt to them. Some small things may appear insignificant or may even relate to unconscious needs of customers, but they still play a very important part in exceeding customers’ expectations.

It is a virtuous circle!

Experience is not built in one day. Experience is built over time and taking a snapshot at a precise moment may not be enough to understand the whole picture. When looking at customers, companies should look at the interactions they have over time and how these interactions lead to a positive or negative experience. While a negative experience may lead to a customer breaking the relationship all in all with the company, a positive experience does not mean that customers’ expectations will be higher the next time they interact with the company. Yes, they will demand the same level of care, but their expectations will not increase indefinitely.

It actually appears that with time, as discussed in the book “Married to the Brand” written by William J. Mc Ewen (Gallup Press), customers who had a long term relationship with the company are actually less demanding than new customers. This fact even reinforces the need to focus on current customers and exceeding their expectations to keep them longer rather than targeting higher and higher customer acquisition rates.

This post is a first try at communicating about the concept of customer experience and future post will hopefully relate to this definition and highlight examples of how it translates into reality.

Thursday, October 19, 2006

Speech-to-speech Translation

In news dated October 12th, 2006 IBM announced that the US Army will use its new speech-to-speech translation software in Iraq to support troops on the ground. The difference with this speech recognition software is that it can process and translate free speech instead of predefined sentences.

This opens up great opportunities, and could change the way people communicate if the technology is really proven to be efficient. The software is also available to translate between English and Mandarin... not a bad idea with the Olympic games coming up. IBM has a
demo video of this on its Web site.

It would be interesting to see the system in real and play with it. The demo only includes very simple sentences that I guess any recognition software could process. Pretty exciting anyway to see that finally this type of software is commercially viable... at least for the US Army.

Wednesday, October 11, 2006

Riding the YouTube Wave

Google has acquired YouTube for USD 1.65 billion. Not bad a price for buying an online video sharing platform that has no business model whatsoever. Anyway, it will be interesting to see how Google can turn this to its advantage. Here are some related articles from BusinessWeek Online: This morning chatting with a friend we thought that combining the power of YouTube and the China market could only work. We started our venture... our quest to develop the winning online video sharing Web site in China.

For now... we have a logo:
;o)

What else do we need?
- A Web site
- An audience (10,000,000 should do it)
- Wait for the Chinese government to allow free flow of information
- A business plan (an empty blank page should do it)
- Strong marketing (with that logo, half is done)

YouTube Beware...

Sunday, October 08, 2006

Clear Concept

While walking around Mong Kok, which is one of the main shopping area in Hong Kong, here is a picture of a shop that stood out from the rest thanks to its "multiple concepts approach". For me the name "3-concepts" really worked well. I wanted to know more.


It is actually a simple clothing shop and here is the concept they have (written in smaller fonts below the shop name): "Represents either tri-chromatic or neutral, cohering extravaganza paraphrasis together similarly".

A brand always benefits from a clear concept or mission statement. After reading this the shop had lost me as a potential customer. But of course I do not belong to the target audience of this shop. The target audience, young local Hong Kong girls, would not read the smaller captions and just memorize that there was English there, which in itself is a mark of quality.

Obviously in Hong Kong English is not the first language and it is always interesting to see the role that it plays in building customers' perception. Somehow, whatever is written, there has to be English. English role goes beyond making sure non-Chinese speakers can find their way around town...

Thursday, October 05, 2006

When you are not sure... better be general!

A picture taken in a local ParknShop in Hong Kong. This is the leading supermarket here...

After six years living here, I have learnt that you should never ask what your Chinese dish is made of... but at least when I buy ingredients, I'd like a bit more details...


;o)

21 + 3 = 24, 24 + 3 = ...

I have that picture for a long time on my computer. Finally I can post it!


Let's zoom a little on one specific day schedule (all are the same)


A very nice poster from Hong Kong i-Cable company that was displayed during the Germany 2006 World Cup in selected restaurants. This is a provider of cable TV and Internet in Hong Kong. They are losing market share at light speed to broadband competitor Now (PCCW). Although this poster is a very small detail, it may shed light on a much bigger problem overall...

I wonder if some people waited until 27pm to see the game...

Where is the exit?


Everybody knows how an Ikea store works. You follow the arrows – the only path available. First you will go through different kinds of rooms designed with a mix of Ikea furniture and accessories, feeling tempted by how nice these look put together. Next to these rooms you will browse through the complete line of furniture offered by the store. After some time, the accessories section will start with maybe bathroom, kitchen, lighting, etc. one after the other. The formula is a real success.

But what happens when a customer who does not know the concept enters?

That’s what I observed the other day in one of the Ikea store in Hong Kong (Causeway Bay). After some time browsing through the products I turned as I heard: “How the hell do we get out of that thing!” A mother and her daughter were running around shouting and cursing. Maybe they had gotten inside just to take a quick look and now they were like imprisoned not knowing how to escape. Remember the movie “Cube”? Intrigued, and always on the look-out for consumer stories, I followed them as they were going through their struggle.

They continued running around the shop shouting (and for sure not looking at the products). Finally finding a shop assistant, they asked: “Where is the closest exit please?” Then the shop assistant had the best answer to calm down the ladies: “It is pretty far you know…” and then just let them continue their journey along the dreadful arrows. The two poor customers were fuming and just continued to follow the arrows until they finally reached the exit.

The interesting thing about this is that the shop has actually two floors. The store has a first basement floor with all the furniture and then another floor below with basically all the accessories. At the time the ladies were already looking for the exit, they were on the first floor somewhere in the middle. It would have taken only a short time to escape by turning around and heading to the entrance. But with the layout of the store maybe, and with these arrows everywhere, both the ladies and the shop assistant did not even think about this solution. Somehow they had to move forward.

In a way, it means the store is really well designed, as the clear aim of Ikea is to get customers to go through the whole store every time. Nevertheless in this instance this lead only to more frustration for our two ladies; especially when they reached the escalator to go down to the second floor. At this point there was only a glass to separate them from an escalator going up, the exit and the much looked after day light, and they had no choice but to go further down… quite sadistic in a way, no?

In the end these two may not be returning customers… at least not in for while.

Where did I put my memory card?

Nowadays, smaller is better, but does small become TOO small at some point?

The newest memory cards, called microSD, are barely the size of your fingertip and can hold roughly as much memory as its older brother, the miniSD. Now, that’s technological innovation for sure. It is really impressive to see the progress that is made in memory storage devices these days. Progress that is necessary when we see the diet mobile phones, mp3 players and other portable devices are going through right now. It is the race to know who will be the thinnest. One day it is Motorola and then Samsung fights back. Who’s next? We may wonder when the first association against mobile phone anorexia will be created…

To be frank, when my friend pulled out her Samsung X828 out of her jean back pocket the other day, I was stunned. Thinner really looks cooler! If we can have less bulky and lighter phones we are happier right?

Nevertheless when I see microSD cards I cannot help but wonder if these guys did not go a bit too far. I mean, how do you handle such a small piece of hardware? How many people will inadvertently drop their memory card in their coffee cup or lose them somewhere around the house? Memory cards are meant to be moved from one device to another. In such situation, small may at some point become TOO small.

The product feels and looks cool, but usage is what matters in the end. The early buzz may change into frustration when consumers are faced with difficulties actually handling the thing… just wondering.