Customer Insights Quotes

Art isn't only a painting. Art is anything that's creative, passionate, and personal. And great art resonates with the viewer, not only with the creator. What makes someone an artist? I don't think is has anything to do with a paintbrush. There are painters who follow the numbers, or paint billboards, or work in a small village in China, painting reproductions. These folks, while swell people, aren't artists. On the other hand, Charlie Chaplin was an artist, beyond a doubt. So is Jonathan Ive, who designed the iPod. You can be an artists who works with oil paints or marble, sure. But there are artists who work with numbers, business models, and customer conversations. Art is about intent and communication, not substances. An artists is someone who uses bravery, insight, creativity, and boldness to challenge the status quo. And an artists takes it personally. That's why Bob Dylan is an artist, but an anonymous corporate hack who dreams up Pop 40 hits on the other side of the glass is merely a marketer. That's why Tony Hsieh, founder of Zappos, is an artists, while a boiler room of telemarketers is simply a scam. Tom Peters, corporate gadfly and writer, is an artists, even though his readers are businesspeople. He's an artists because he takes a stand, he takes the work personally, and he doesn't care if someone disagrees. His art is part of him, and he feels compelled to share it with you because it's important, not because he expects you to pay him for it. Art is a personal gift that changes the recipient. The medium doesn't matter. The intent does. Art is a personal act of courage, something one human does that creates change in another.

A bit of theory as we settle down for lunch: the waiter's treatment of Kitty is actually a kind of sandwich, with the bottom bread being the bored and slightly effete way he normally acts with customers, the middle being the crazed and abnormal way he feels around this famous nineteen-year-old girl, and the top bread being his attempt to contain and conceal this alien middle layer with some mode of behavior that at least approximates the bottom layer of boredom and effeteness that is his norm.

There is no better tool to bring you closer to your competitors than market research. So, keep your friends close and your competitors even closer with the help of market research.

Market research gives you enough time to learn from your competitors’ mistakes, take inspiration from their strengths, and exploit their weaknesses.

Good market research would have made you aware of the real picture at the right time, and maybe you would have been able to write a different future because of that.

Let market research be a permanent, ongoing part of your business strategy.

You don’t have to wait until you have a heart attack to understand the importance of a healthy lifestyle.

what sets the best suppliers apart is not the quality of their products, but the value of their insight—new ideas to help customers either make money or save money in ways they didn’t even know were possible.

Image perception makes a big difference. That's one of the things I tell entrepreneurs today. Fine, focus on products, focus on customers and all that good stuff - that's necessary. But the image that you project is also key. Don't forget that.

Break down your problem as much as you can, but don’t do it on the basis of your guesses. If you don’t know exactly what is wrong, use market research to break down your problem further and further until you reach the very point of your trouble.

Without solid insights gained through market research, any kind of marketing you do is like throwing your pamphlets at Times Square and hoping somebody will pick them up, read them, become interested, and get the product. That happens… just not so often.

Product management is about insights and judgment, both of which require a sharp mind. Hard work is also necessary, but for this job, it is not sufficient.

the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.

If you have no idea whether the problem is with your product, price, or something else, then it’s a good idea to start with a little research. It’s going to help you understand what the main problem is, or why people are not buying more of your products.

Unless they are off duty, no matter how wide it is, and even when it is sincere, a smile seems fake if the job description of the person who is smiling includes smiling.

What comes before determines what comes after,” Kellhus continued. “For the Dûnyain, there’s no higher principle.” “And just what comes before?” Cnaiür asked, trying to force a sneer. “For Men? History. Language. Passion. Custom. All these things determine what men say, think, and do. These are the hidden puppet-strings from which all men hang.” Shallow breath. A face freighted by unwanted insights. “And when the strings are seen . . .” “They may be seized.” In

Insight into customers’ needs is important, but it’s not enough. The essence of strategy and competitive advantage lies in the activities, in choosing to perform activities differently or to perform different activities from those of rivals. Each of the companies we’ve just described has done just that, tailoring their value chains to their value propositions.

The key to getting hired is to understand the narrative of the customer’s life in such rich detail that you are able to design a solution that far exceeds anything the customer themselves could have found words to request. In hindsight, breakthrough insights might seem obvious, but they rarely are. In fact, they’re fundamentally contrarian: you see something that others have missed.

The Lean Startup asks people to start measuring their productivity differently. Because startups often accidentally build something nobody wants, it doesn’t matter much if they do it on time and on budget. The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible. In other words, the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.

I should have known that Moti-Lal would figure it out. More than once, he’s told me selling gold requires an insight into human nature. He says you must be able to discern the intensity of a customer’s desire by looking into their eyes. That will tell you what to show, what to hold back, and how much the customer is willing to part with.

There is a lot of competition out there. If you don’t take care of your customers, somebody else is ready to take your place.

The customer is always right...even when they're wrong.

And finally there is the product development process that gives this book its name: working backwards from the desired customer experience.

Another of Jeff’s frequent exhortations to his small staff was that Amazon should always underpromise and overdeliver, to ensure that customer expectations were exceeded.

start by defining the customer experience, then iteratively work backwards from that point until the team achieves clarity of thought around what to build.

Identify your unique benefits. Develop commercial insight that challenges customers’ thinking. Package commercial insight in compelling messages that “lead to.” Equip reps to challenge customers.

Steve Jobs was known for the clarity of his insights about what customers wanted, but he was also known for his volatility with coworkers. Apple’s founder reportedly fired employees in the elevator and screamed at underperforming executives. Perhaps there is something endemic in the fast-paced technology business that causes this behavior, because such intensity is not exactly rare among its CEOs.

When you base your product strategy on technical insights, you avoid me-too products that simply deliver what customers are asking for. (Henry Ford: “If I had listened to customers, I would have gone out looking for faster horses.”)

The NPI process was deflating for morale. But figuring out how to “boost morale” is not Amazonian. Other companies have morale-boosting projects and groups with names like “Fun Club” and “Culture Committee.” They view morale as a problem to be solved by company-sponsored entertainment and social interaction. Amazon’s approach to morale was to attract world-class talent and create an environment in which they had maximum latitude to invent and build things to delight customers

Asiatic youths are flocking to Western colleges for the equipment of modern education. Our insight does not penetrate your culture deeply, but at least we are willing to learn. Some of my compatriots have adopted too much of your customs and too much of your etiquette, in the delusion that the acquisition of stiff collars and tall silk hats comprised the attainment of your civilisation. Pathetic and deplorable as such affectations are, they evince our willingness to approach the West on our knees.

The task of delighting customers is thus the job of everyone. It requires the efforts of everyone in the corporation—and beyond—to share insights and figure out ways to handle a challenge that is much more difficult than merely delivering a product or service.

It is useful for companies to look at AI through the lens of business capabilities rather than technologies. Broadly speaking, AI can support three important business needs: automating business processes, gaining insight through data analysis, and engaging with customers and employees.

The customer is also at the center of how we analyze and manage performance metrics. Our emphasis is on what we call controllable input metrics, rather than output metrics. Controllable input metrics (e.g., reducing internal costs so you can affordably lower product prices, adding new items for sale on the website, or reducing standard delivery time) measure the set of activities that, if done well, will yield the desired results, or output metrics (such as monthly revenue and stock price). We detail these metrics as well as how to discover and track them in chapter six.

We have an unshakeable conviction that the long-term interests of shareowners are perfectly aligned with the interests of customers.”2 In other words, while it’s true that shareholder value stems from growth in profit, Amazon believes that long-term growth is best produced by putting the customer first.

Our culture is four things: customer obsession instead of competitor obsession; willingness to think long term, with a longer investment horizon than most of our peers; eagerness to invent, which of course goes hand in hand with failure; and then, finally, taking professional pride in operational excellence.

Visionaries are that rare breed of people who have the insight to match up an emerging technology to a strategic opportunity, the temperament to translate that insight into a high-visibility, high-risk project, and the charisma to get the rest of their organization to buy into that project. They are the early adopters of high-tech products.

Better customer experience leads to more traffic. More traffic attracts more sellers seeking those buyers. More sellers lead to wider selection. Wider selection enhances customer experience, completing the circle. The cycle drives growth, which in turn lowers cost structure. Lower costs lead to lower prices, improving customer experience, and the flywheel spins faster.

This is a promising new source of insight that can supplement survey data but can’t replace it for the foreseeable future. That’s because the tools have a ways to go before they can accurately gauge sentiment about specific customer interactions as precisely and consistently as a survey. You should consider this option when your measurement program matures, but start out with the tried-and-true approach of fielding surveys.

Margaret Fuller, the leading antebellum female intellectual, even went so far as to suggest that the anti-slavery party ought to plead for women’s rights, too—because, like slaves, women were kept in bondage by civil law, custom, and patriarchal abuse.68 It was an emboldening insight. Elizabeth Cady, daughter of a prominent New York lawyer, had had fantasies when she was eleven years old of leading a life of scholarship and self-reliance.

Language had arrived from outer space and mated together lizards and monkeys or whatever until it had customized a host which could sustain it. That first person had been introduced to the complicated DNA sequence of proper nouns and compound verbs. Outside of language he didn't exist. There was no method to escape. To feel anything, anymore, required ever-increasing amounts of words. Great landfills and airlifts of words. It took a mountain of talk to achieve even the tiniest insight.

The problem of groupthink and individual ignorance besets not just ordinary voters and customers, but also presidents and CEOs. They may have at their disposal plenty of advisors and vast intelligence agencies, but this does not necessarily make things better. It is extremely hard to discover the truth when you are ruling the world. You are just far too busy. Most political chiefs and business moguls are forever on the run. Yet if you want to go deeply into any subject, you need a lot of time, and in particular you need the privilege of wasting time. You need to experiment with unproductive paths, to explore dead ends, to make space for doubts and boredom, and to allow little seeds of insight to slowly grow and blossom. If you cannot afford to waste time - you will never find the truth.

Entrepreneurship itself is an emergent system, where companies create the conditions for experimentation and learning to occur, often symbiotically with customers. In 1978, Eric von Hippel (my PhD advisor at MIT) pioneered the notion of user-driven innovation.10, 11 Back then, the conventional wisdom was that innovation only came from corporate, government, and university research-and-development labs. While some still believe this today, Eric's insight proved to be prescient in many areas, especially in the information age, as the widespread adoption of open-source software and Lean Startup methodologies have demonstrated.12 Twitter is a tangible example since three of the platform's most popular features—the @ reply, the # hashtag indexing, and retweet sharing—were all generated bottom-up by users.

What does it mean when customers don't take a deal? Does it mean that they didn't want the product as much as they did want the one they bought? Is a negative signal as strong as a positive one? Perhaps they like Champagne but already have a lot in stock. Maybe they just didn't see your e-mail newsletter that month. There are a lot of reasons why someone doesn't take an action, but there are few reasons why someone does. In other words, you should care about purchases, not non-purchases. The fancy way to say this is that there's an “asymmetry” in the data. The 1s are worth more than the 0s. If a customer matches another customer on three 1s, that's more important than matching some other customer on three 0s. What stinks though is that while the 1s are so important, there are very few of them in the data—hence, the term “sparse.

This determination that nurturing should become exclusively a concern of women served to signify to both sexes that neither nurture nor womanhood was very important. But the assignment to women of a kind of work that was thought both onerous and trivial was only the beginning of their exploitation. As the persons exclusively in charge of the tasks of nurture, women often came into sole charge of the household budget; they became family purchasing agents. The time of the household barterer was past. Kitchens were now run on a cash economy. Women had become customers, a fact not long wasted on the salesmen, who saw that in these women they had customers of a new and most promising kind. The modern housewife was isolated from her husband, from her school-age children, and from other women. She was saddled with work from which much of the skill, hence much of the dignity, had been withdrawn, and which she herself was less and less able to consider important. She did not know what her husband did at work, or after work, and she knew that her life was passing in his regardlessness and in his absence. Such a woman was ripe for a sales talk: this was the great commercial insight of modern times. Such a woman must be told — or subtly made to understand — that she must not be a drudge, that she must not let her work affect her looks, that she must not become “unattractive,” that she must always be fresh, cheerful, young, shapely, and pretty. All her sexual and mortal fears would thus be given voice, and she would be made to reach for money. What was implied was always the question that a certain bank finally asked outright in a billboard advertisement: “Is your husband losing interest?

A few years ago, the British chocolate manufacturer Cadbury’s received a large number of customer complaints, claiming that they had changed the taste of their Dairy Milk brand. They were at first baffled, because the formulation hadn’t been altered for years. However, what they had done was change the shapes of the blocks you would break off a bar, rounding their corners. And smoother shapes taste sweeter. Truly. Nothing about perception is completely objective, even though we act as though it is. When we complain that a room is hot, there may be no point at which we agree about what ‘hot’ means; it may merely mean ‘a few degrees warmer than the room I was in previously, to which I have become acclimatised’. ‘Time flies when you are having fun’ is an early piece of psychophysical insight. To your watch, an hour always means exactly the same thing, regardless of whether you are drinking champagne or being waterboarded. However, to the human brain, the perception of time is more elastic.*

These include: the Bar Raiser hiring process that ensures that the company continues to acquire top talent; a bias for separable teams run by leaders with a singular focus that optimizes for speed of delivery and innovation; the use of written narratives instead of slide decks to ensure that deep understanding of complex issues drives well-informed decisions; a relentless focus on input metrics to ensure that teams work on activities that propel the business. And finally there is the product development process that gives this book its name: working backwards from the desired customer experience. Many of the business problems that Amazon faces are no different from those faced by every other company, small or large. The difference is how Amazon keeps coming up with uniquely Amazonian solutions to those problems. Taken together, these elements combine to form a way of thinking, managing, and working that we refer to as being Amazonian, a term that we coined for the purposes of this book. Both of us, Colin and Bill, were “in the room,” and—along with other senior leaders—we shaped and refined what it means to be Amazonian. We both worked extensively with Jeff and were actively involved in creating a number of Amazon’s most enduring successes (not to mention some of its notable flops) in what was the most invigorating professional experience of our lives.

In addition to his insight about making a positive difference, Peter Drucker had five other rules that are applicable for earning credibility. At first they may strike you as self-evident, even trite, but smarter people than I have had the same initial reaction and now are quoting them back to me on a regular basis. If you want to elevate your credibility, start by committing these Druckerisms to memory: Every decision in the world is made by the person who has the power to make the decision. Make peace with that. If we need to influence someone in order to make a positive difference, that person is our customer and we are a salesperson. Our customer does not need to buy; we need to sell. When we are trying to sell, our personal definition of value is far less important than our customer’s definition of value. We should focus on the areas where we can actually make a positive difference. Sell what we can sell and change what we can change. Let go of what we cannot sell or change. Each of these rules assumes that acquiring recognition and approval is a transactional exercise. Note the frequent reference to selling and customers. The implication is that we must sell our achievements and competence in order to have them recognized and appreciated by others. These Druckerisms not only endorse our need for approval, they emphasize that we can’t afford to be passive about it—not when our credibility is at stake.

Along the way to Seattle, he wrote his business plan. He identified several reasons why the book category was underserved and well suited to online commerce. He outlined how he could create a new and compelling experience for book-buying customers. To begin with, books were relatively lightweight and came in fairly uniform sizes, meaning they would be easy and inexpensive to warehouse, pack, and ship. Second, while more than 100 million books had been written and more than a million titles were in print in 1994, even a Barnes & Noble mega-bookstore could stock only tens of thousands of titles. An online bookstore, on the other hand, could offer not just the books that could fit in a brick-and-mortar store but any book in print. Third, there were two large book-distribution companies, Ingram and Baker & Taylor, that acted as intermediaries between publishers and retailers and maintained huge inventories in vast warehouses. They kept detailed electronic catalogs of books in print to make it easy for bookstores and libraries to order from them. Jeff realized that he could combine the infrastructure that Ingram and Baker & Taylor had created—warehouses full of books ready to be shipped, plus an electronic catalog of those books—with the growing infrastructure of the Web, making it possible for consumers to find and buy any book in print and get it shipped directly to their homes. Finally, the site could use technology to analyze the behavior of customers and create a unique, personalized experience for each one of them.

Different form, same function. Many companies that create blue oceans attract customers from other industries who use a product or service that performs the same function or bears the same core utility as the new one but takes a very different physical form. In the case of Ford’s Model T, Ford looked to the horse-drawn carriage. The horse-drawn carriage had the same core utility as the car: transportation for individuals and families. But it had a very different form: a live animal versus a machine. Ford effectively converted the majority of noncustomers of the auto industry, namely customers of horse-drawn carriages, into customers of its own blue ocean by pricing its Model T against horse-drawn carriages and not the cars of other automakers. In the case of the school lunch catering industry, raising this question led to an interesting insight. Suddenly those parents who make their children’s lunches came into the equation. For many children, parents had the same function: making their child’s lunch. But they had a very different form: mom or dad versus a lunch line in the cafeteria. Different form and function, same objective. Some companies lure customers from even further away. Cirque du Soleil, for example, has diverted customers from a wide range of evening activities. Its growth came in part through drawing people away from other activities that differed in both form and function. For example, bars and restaurants have few physical features in common with a circus. They also serve a distinct function by providing conversational and gastronomical pleasure, a very different experience from the visual entertainment that a circus offers. Yet despite these differences in form and function, people have the same objective in undertaking these three activities: to enjoy a night out.

For fifteen years, John and Barbara Varian were furniture builders, living on a ranch in Parkfield, California, a tiny town where the welcome sign reads “Population 18.” The idea for a side business came about by accident after a group of horseback riding enthusiasts asked if they could pay a fee to ride on the ranch. They would need to eat, too—could John and Barbara do something about that? Yes, they could. In the fall of 2006, a devastating fire burned down most of their inventory, causing them to reevaluate the whole operation. Instead of rebuilding the furniture business (no pun intended), they decided to change course. “We had always loved horses,” Barbara said, “so we decided to see about having more groups pay to come to the ranch.” They built a bunkhouse and upgraded other buildings, putting together specific packages for riding groups that included all meals and activities. John and Barbara reopened as the V6 Ranch, situated on 20,000 acres exactly halfway between Los Angeles and San Francisco. Barbara’s story stood out to me because of something she said. I always ask business owners what they sell and why their customers buy from them, and the answers are often insightful in more ways than one. Many people answer the question directly—“We sell widgets, and people buy them because they need a widget”—but once in a while, I hear a more astute response. “We’re not selling horse rides,” Barbara said emphatically. “We’re offering freedom. Our work helps our guests escape, even if just for a moment in time, and be someone they may have never even considered before.” The difference is crucial. Most people who visit the V6 Ranch have day jobs and a limited number of vacation days. Why do they choose to visit a working ranch in a tiny town instead of jetting off to lie on a beach in Hawaii? The answer lies in the story and messaging behind John and Barbara’s offer. Helping their clients “escape and be someone else” is far more valuable than offering horse rides. Above all else, the V6 Ranch is selling happiness.

This generation grew up constantly reminded that they lived in the greatest country in the world, the land of the free, with liberty and justice for all its citizens. Yet, as they matured, members of this generation found a disturbing disparity between this popular American self-image and actual reality. They found that many people in this land—women and certain racial minorities—were, by law and custom, definitely not free. By the sixties the new generation was inspecting closely, and many were finding other disturbing aspects of the United States’ self-image—for instance, a blind patriotism that expected young people to go into a foreign land to fight a political war that had no clearly expressed purpose and no prospect of victory. Just as disturbing was the culture’s spiritual practice. The materialism of the previous four hundred years had pushed the mystery of life, and death, far into the background. Many found the churches and synagogues full of pompous and meaningless ritual. Attendance seemed more social than spiritual, and the members too restricted by a sense of how they might be perceived and judged by their onlooking peers. As the vision progressed, I could tell that the new generation’s tendency to analyze and judge arose from a deep-seated intuition that there was more to life than the old material reality took into account. The new generation sensed new spiritual meaning just beyond the horizon, and they began to explore other, lesser known religions and spiritual points of view. For the first time the Eastern religions were understood in great numbers, serving to validate the mass intuition that spiritual perception was an inner experience, a shift in awareness that changed forever one’s sense of identity and purpose. Similarly the Jewish Cabalist writings and the Western Christian mystics, such as Meister Eckehart and Teilhard de Chardin, provided other intriguing descriptions of a deeper spirituality. At the same time, information was surfacing from the human sciences—sociology, psychiatry, psychology, and anthropology—as well as from modern physics, that cast new light on the nature of human consciousness and creativity. This cumulation of thought, together with the perspective provided by the East, gradually began to crystallize into what was later called the Human Potential Movement, the emerging belief that human beings were presently actualizing only a small portion of their vast physical, psychological, and spiritual potential I watched as, over the course of several decades, this information and the spiritual experience it spawned grew into a critical mass of awareness, a leap in consciousness from which we began to formulate a new view of what living a human life was all about,

Start-up teams must fall in love with the market and customers, not with their product.

and monetizing their customers. These insights yield unique customer acquisition strategies that highlight this new approach to thinking about growth.  

We can also increase the perceived long term value by the way we describe our emails. Nowadays many businesses mention a newsletter on their website, but the phrase ‘newsletter’ doesn’t have any implied value in it. In fact the word ‘news’ is probably something you don’t want to hear from a potential supplier. Who cares whether Mary in accounts has had a birthday? What you would like to get is useful, valuable information. So instead of calling it an email newsletter, I call mine ‘client winning tips via email’. Or you could call it a ‘divorce survival bulletin’. Or ‘the cash flow accelerator emails’ or ‘tax cutting tips’. Each of these names implies some kind of value or outcome your potential subscribers will get from your emails. To come up with a good name, go back to your customer insight map for your ideal clients and look at the big problems, challenges, goals and aspirations your clients have. If you can name your emails to relate to those big goals and problems then they’re likely to see they’ll get value by subscribing to them.

Who Do You Want Your Customers to Become' was published... in 2012. Its essential insight is that innovation is an investment in the human capital, capabilities, and competencies of customers and clients. Business history gives great credence to this “human capital” model of innovation. For example, George Eastman didn't just invent cheap cameras and film; he created photographers. Steve Jobs didn't merely “reinvent” personal computing and mobile telephony; he reinvented how people physically touched and talked with their technologies. Successful innovators have a “vision of the customer future” that matters every bit as much as their product or service vision. By treating innovation as an investment in customer futures, organizations can make their customers more valuable. In other words, “Making Customers Better Makes Better Customers".

Who Do You Want Your Customers to Become was published... in 2012. Its essential insight is that innovation is an investment in the human capital, capabilities, and competencies of customers and clients. Business history gives great credence to this “human capital” model of innovation. For example, George Eastman didn't just invent cheap cameras and film; he created photographers. Steve Jobs didn't merely “reinvent” personal computing and mobile telephony; he reinvented how people physically touched and talked with their technologies. Successful innovators have a “vision of the customer future” that matters every bit as much as their product or service vision. By treating innovation as an investment in customer futures, organizations can make their customers more valuable. In other words, “Making Customers Better Makes Better Customers.

The study looks at the Japanese student market and aims to better understand it by concentrating on age and gender insights of the market to ascertain trends, awareness and key features that will allow marketers to appreciate and reach out to these customers

Customer research is a tradeoff: deep insights on real needs from a tiny set of people, versus broad, reliable purchasing data from a wide range and large number of people. We need both. Designers understand what people really need. Marketing understands what people actually buy. These are not the same things, which is why both approaches are required: marketing and design researchers should work together in complementary teams.

The other important insight my research revealed was that the buyer’s decision to purchase is not made in response to the salesperson’s message after he has completed it, but rather throughout the salesperson’s message. Think about it like this: During the sale, potential customers are committing to or rejecting your ideas, statements of value, and recommendations. Then at the end of the sale, the results of this mental process are unveiled by whether they decide to purchase or not. In other words, though the buying decision may be revealed at the conclusion of the sale, it’s being cultivated throughout the entire sale.

Moreover, when you ask existing customers, “How can we make you happier?” their insights tend toward the familiar, such as “Offer me more for less.” But this focus almost always drives you to merely offer better solutions to your industry’s existing problem, keeping you trapped in the red ocean.

Moreover, Netflix produces exactly what it knows its customers want based on their past viewing habits, eliminating the waste of all those pilots, and only loses customers when they make a proactive decision to cancel their subscription. The more a person uses Netflix, the better Netflix gets at providing exactly what that person wants. And increasingly, what people want is the original content that is exclusive to Netflix. The legendary screenwriter William Goldman famously wrote of Hollywood, “Nobody knows anything.” To which Reed Hastings replies, “Netflix does.” And all this came about because Hastings had the insight and persistence to wait nearly a decade for Moore’s Law to turn his long-term vision from an impossible pipe dream into one of the most successful media companies in history. Moore’s Law has worked its magic many other times, enabling new technologies ranging from computer animation (Pixar) to online file storage (Dropbox) to smartphones (Apple). Each of those technologies followed the same path from pipe dream to world-conquering reality, all driven by Gordon Moore’s 1965 insight.

HOW TO ANSWER “WHY YOUR INDUSTRY SOLUTION?” Let’s stop and apply what we just learned to make sure you are demolishing competitors outside of your industry. What are some of the positive results your company, product, or service delivers that those outside of your industry cannot match? What are some of the problems that potential customers have experienced when they have chosen a solution outside of your industry? Once you have some evidence-based answers to the above questions, contemplate where you can incorporate these insights into your sales process.

Culture stems from founders, but it is best reflected in the trusted team the founders form to launch their venture. So ask that team: What do we care about? What do we believe? Who do we want to be? How do we want our company to act and make decisions? Then write down their responses. They will, in all likelihood, encompass the founders’ values, but embellish them with insights from the team’s different perspectives and experiences. Most companies neglect this. They become successful, and then decide they need to document their culture. The job falls to someone in the human resources or PR department who probably wasn’t a member of the founding team but who is expected to draft a mission statement that captures the essence of the place. The result is usually a set of corporate sayings that are full of “delighted” customers, “maximized” shareholder value, and “innovative” employees. The difference, though, between successful companies and unsuccessful ones is whether employees believe the words.

A technical insight is a new way of applying technology or design that either drives down the cost or increases the functions and usability of the product by a significant factor. The result is something that is better than the competition in a fundamental way. The improvement is often obvious; it doesn’t take a lot of marketing for customers to figure out that this product is different from everything else.

Fact: there are three phases every customer goes through with your brand. Most companies use only the first two of these (66%), when in fact there are actually three: the phase that starts before they buy, the phase that occurs during the sale (or during the use of your product or service) and the last (most overlooked) phase occurring after the sale.

The best way for marketing to “know the customer” now is to truly function as a knowledge center, iterating through efforts to connect with customers, optimizing for insight, seeking to create more meaningful relationships with customers by getting clearer and clearer about what different people value for different reasons.

I had the opportunity to edit this book for the author, and I have to say it is one of the best novels I have ever read. Tremendously insightful and full of all sorts of fascinating characters and surprise plot twists. Many plot threads that start out seemingly separate are eventually woven together into a stunning story and will cause you to reflect on the path your own life is taking and why. Highly recommended." - D. A. Cartier, Amazon customer

Promotion stocks came to the retailer ahead of the rest of the market. Also, they usually got an extra lot even after the end of the promotion Newly launched products came to the retailer first. The customers got more choice, faster, leading to favourable word-of-mouth publicity Local display and consumer sampling budgets were always directed liberally at the retailer Vendors ensured that no slow moving inventory was stuck in the retailer’s stores; they wanted nothing to choke the pipeline The retailer also received the best in-class margin from the distributor If some items were in short supply, the vendor would ensure the retailer was the last one to go out of stock In effect, the consumers found more products, fresher stocks and more promotions in the retailer’s stores compared to the general market. This wasn’t something actively created by either the vendors or the retailer, but was a byproduct of good trading practices. Just one move based on a trading community insight— everyone has less money in the bank than needed — hurled the retailer into a virtuous growth cycle, with all the vendors pushing in one direction, with them. Most people in the business would not give a second look at changing these trading practices. If the payment norm is eight days why modify it? Surely the wholesalers, too, know what they’re letting themselves in for? And the vast volumes offered by organised retail should offset the stress of extending credit. Isn’t that how it works? One retailer managed to peep behind the curtain of wholesaler business practices and understood what a boon more money in the bank was to the trade. And look at the gains they reaped for this seemingly insignificant insight!

When I am talking to entrepreneurs, I always say base your business on deep customer insights, the way naukri was formed.

One of the classic Relationship Builder modifications to a great teaching pitch is to pull the “who we are and what we do” slides from the back of the pitch deck (where they belong in a proper teaching pitch) and put them in the front of the deck. Relationship Builders feel the need to establish credibility up front by throwing around company size and factoids and engaging in some high-profile customer name-dropping. They are uncomfortable leading with insight and letting their insights establish credibility for them.

One company that manufactured resins used in exterior paints discovered this firsthand. By researching the needs of commercial painting contractors—a key customer segment—the company learned that labor constituted the lion’s share of contractors’ costs, while paint made up just 15% of costs. Armed with this insight, the resin maker emphasized that its product dried so fast that contractors could apply two coats in one day—substantially lowering labor costs. Customers snapped up the product—and happily shelled out a 40% price premium for it. Three

One of the worst disconnects of a business software development effort is seen in the gap between domain experts and software developers. Generally speaking, true domain experts are focused on delivering business value. On the other hand, software developers are typically drawn to technology and technical solutions to business problems. It’s not that software developers have wrong motivations; it’s just what tends to grab their attention. Even when software developers engage with domain experts, the collaboration is largely at a surface level, and the software that gets developed often results in a translation/mapping between how the business thinks and operates and how the software developer interprets that. The resulting software generally does not reflect a recognizable realization of the mental model of the domain experts, or perhaps it does so only partially. Over time this disconnect becomes costly. The translation of domain knowledge into software is lost as developers transition to other projects or leave the company. A different, yet related problem is when one or more domain experts do not agree with each other. This tends to happen because each expert has more or less experience in the specific domain being modeled, or they are simply experts in related but different areas. It’s also common for multiple “domain experts” to have no expertise in a given domain, where they are more of a business analyst, yet they are expected to bring insightful direction to discussions. When this situation goes unchecked, it results in blurred rather than crisp mental models, which lead to conflicting software models. Worse still is when the technical approach to software development actually wrongly changes the way the business functions. While a different scenario, it is well known that enterprise resource planning (ERP) software will often change the overall business operations of an organization to fit the way the ERP functions. The total cost of owning the ERP cannot be fully calculated in terms of license and maintenance fees. The reorganization and disruption to the business can be far more costly than either of those two tangible factors. A similar dynamic is at play as your software development teams interpret what the business needs into what the newly developed software actually does. This can be both costly and disruptive to the business, its customers, and its partners. Furthermore, this technical interpretation is both unnecessary and avoidable with the use of proven software development techniques. The solution is a key investment.

They need to rediscover what made them successful in the first place: consumer insight, customer knowledge, innovation and brand-building. The adoption of open-innovation strategies by majors such as Nestlé and P&G is a reflection of their need to ramp up innovation speed and capabilities.

When employees trust the leadership, they become brand ambassadors and in turn cause progressive change in their families, society, and environment. The return on investment to business is automatic, with greater productivity, business growth, and inspired customers.” Contrast

In our high-tech world today, there are unlimited ways with which you can search for people, places, and events to connect you with like-minded people. Food enthusiasts? There are local cooking classes. Gardening fans? There are flower shows and garden expos. Kids in school? Join the PTA and get involved. There are clubs and groups for almost any interest these days and venturing out to make those connections is a powerful way to expand your insights, your network, and even your business.

Don't spend a dime on medical device marketing until you have solid customer insights.

So what counts as a ‘commercial insight’? Some examples include: BEST PRACTICES: Customers often want to know about best practices from other regions. For instance, being able to explain to an Australian-based buyer that businesses in the US or UK are solving a similar problem with a new solution that is deemed to be the current best practice is often highly valued, as it could provide a newer (or better) solution than the one the buyer had previously considered. EMERGING TRENDS: Being able to share the latest trends concerning your sector can empower buyers to make educated decisions about investments, particularly when it comes to the longevity of different solutions or how developments in adjacent industries could disrupt the business. INVESTMENT RISK: In mature markets, business buyers often become very risk averse as they don’t want to be held responsible for having a negative impact on growth numbers. Many sales people steer clear of talking about risk with their customers, because they worry about turning a buyer off making a purchase decision. However, while highlighting a risk to your customer could mean that you lose a sale, putting the customer’s best interests ahead of your own will ultimately position you as a trusted adviser. Additionally, because many sales people take the opposite approach – they sell the customer on the value while carefully avoiding any mention of the possible downside, only for the risk to raise its ugly head after the purchase – this helps you stand out as a person of integrity in a field where integrity is seen to be lacking. CASE STUDIES: Unique customer case studies and stories not only build your credibility and the credibility of your offering, they help develop a rapport between you and your customer. In the same way that comedians curate a long list of jokes, anecdotes and stories that they can roll out at any given moment, you should also become the curator of unique stories and case studies that your customers value because they can’t easily find these on Google.

Instead, what sets the best suppliers apart is not the quality of their products, but the value of their insight—new ideas to help customers either make money or save money in ways they didn’t even know were possible.

better customer experience, like trade show booths, big teams, and splashy marketing campaigns. Amazon Music and Prime Video are examples of how we kept our investment manageable for many years by being frugal: keeping the team small, staying focused on improving the customer experience, limiting our marketing spend, and managing the P&L carefully. Once we had a clear product plan and vision for how these products could become billion-dollar businesses that would delight tens, even hundreds of millions of consumers, we invested big. Patience and carefully managed investment over many years can pay off greatly. Invention

The fact that we entered as total beginners and emerged as industry leaders is in no small part a result of our adherence to being Amazonian in our principles and our way of thinking, including thinking big, thinking long-term, being obsessed with customers, being willing to be misunderstood for long periods of time, and being frugal—principles that few companies are capable of maintaining in the face of quarterly reporting requirements and the daily gyrations of the stock market.

There’s another familiar lesson in this graph: output metrics—the data we graphed above—are far poorer indicators of trend causes than input metrics. It turned out in this case that the cause of our decelerating growth was a reduction in the rate of acquiring new customers—but nothing in these graphs gives any clue to that cause. With a sizable existing business, if you only pay attention to the output metric “revenue,” you typically won’t see the effects of new customer deceleration for quite some time. However, if you look at input metrics instead—things like “new customers,” “new customer revenue,” and “existing customer revenue”—you will detect the signal much earlier, and with a much clearer call to action.

Tools for click-mapping We often use Crazy Egg, Hotjar, and Clicktale, and several A/B testing tools that include similar functionality. Alternatives include Fullstory, Inspectlet, Decibel Insight, Jaco, Lucky Orange, MouseStats, Ptengine, and userTrack.

Tools for form analytics Options for form analytics include Clicktale, Hotjar, Formisimo, Decibel Insight, SessionCam, and Inspectlet.

The biggest missed opportunity in development is that organizations don’t think about their customers as valuable, productive assets in the delivery of a service, but as anonymous consumers of products.

Prescriptive sellers like these sell with conviction. They provide clear, insightful recommendations to their customers and in many ways are able to create intoxicating certainty around the buying process. They bring the future to their customers and make it easy for them to buy.

Six Simple Listening Tips Here are six simple tips for not only practicing good listening in your customer conversations but also for creating a high-impact customer experience by showing them that you’re engaged. 1. Don’t speak: This is easy to say but sometimes hard to do. You simply cannot listen if you’re speaking or poised on the edge of interrupting the other person. So what should you do? Just shut up and pay attention to what your customer is saying. 2. Make eye contact: Since a majority of our communication is non-verbal, looking at a person is one of the best ways to clearly demonstrate focus and attention. Even when you’re on a video call, customers can often tell (by the way your eyes dart around) if you’re looking at them on the screen or if you are distracted. Keep that gaze locked! (But a nice, friendly gaze… not a creepy one.) 3. Use visual/auditory cues: Smiling, nodding, and appearing pensive are all great ways to communicate understanding and acknowledgment. Even small auditory cues like the occasional “yes” or “uh-huh” can show your customer that you’re following along. 4. Write things down: Writing things down not only helps you remember key pieces of information later on, but it also demonstrates to the customer that you’re interested enough in their insights to memorialize them in writing. But what if they can’t see you taking notes, for example, on a phone or video call? No problem. Just tell them you are! After your customer finishes telling you something, simply pause for a moment and say “I’m just writing this down” to produce the same effect. 5. Recap: Nothing illustrates great attention to detail like repeating back or summarizing the insights the customer shared with you. This is especially powerful when the insights were shared earlier in the conversation. For extra impact, quote them directly using their exact words, prefaced by the phrase “What I heard you say was… ” Echoing someone’s exact words is a powerful and scientifically proven persuasive technique (we’ll be exploring this tactic in more detail as it relates to handling customer objections in chapter 7). 6. Ask good follow-up questions: When a customer answers your question, resist the temptation to say, “That’s great” or “Awesome!” and then move on to the next question. Asking killer follow-up questions like “Tell me more about that,” “Can you give me an example?” or “How long has that been going on?” is a great way to demonstrate your interest in the customer’s perspective and leave the call with high-impact insights. In fact, when it comes to addressing customer objections, a study by Gong.io found that top performers ask follow-up questions 54 percent of the time, versus 31 percent for average performers.6

We would get those insights a lot of the time by visiting customers, which is the best. Because we want to see their of office, who sits next to them, if they’re in a cubicle, what’s in their cubicle, what do they have printed out that’s hung on the wall, what does their browser look like, what are their favorites, what’s on their desktop? You just really want to understand, as a researcher, what are they doing? What does their day look like? And the reason why I care so much about that is because rarely do you get that information when you ask someone a pointed question about features or functions or things that they need. A lot of the times we found that the information we were getting when we asked customers directly was kind of aspirational: It was things that they thought that they wanted or that they dreamed of, but when we looked at what they actually did each day, in most cases it had zero overlap. So we learned way more by having those interviews and watching what they were doing, and seeing their daily practice, and seeing how they had to go through ve different apps to do something, or download something into Excel. Excel was gold for us. It’s always been for me, building the kind software that I do. As soon as I see a customer or prospect use Excel, I know we’re onto something. That’s where they’re doing something that we can help them do more efficiently. But it’s something that almost no customer is going to tell you about. Because it’s so boring to tell someone that: “I download this, I export this, I put it in Excel, and I sort it this way, and I do that, then I put it here, then I do this, then I re-upload it here, then I put it in PowerPoint ...

At its heart, ecosystem strategy is about partner alignment. Customer insight and great execution are the necessary but no longer sufficient drivers of success. As delivering your value propositions has become more dependent on collaboration, finding ways to align your partners has moved to center stage. In industries, working with partners meant mastering supply chains and distribution channels—everyone understood their role and position. In ecosystems, the challenge is aligning critical partners whose vision of who-does-what may vary dramatically from your own.

Consider, though, how the insight sessions, industry updates, and briefings for the CEO and CFO before the analyst calls will help meet the customer's business needs and will also link to the objective of building relationships with the CEO and CFO over the next six months; likewise, the coaching sessions and prep before the board meetings will cement the partner's relationship with the CFO even further. Meeting with the CEO and CFO before analyst calls to brief them on issues that they might need to discuss will give the partner the opportunity to provide essential information when they need it the most, creating a dependency on the partner and cementing his relationship as a trusted adviser to the company's leadership team. People are often focused on trying to get their customers to like them. I always advise my clients that it is nice if your customers like you, but essential that they need you. You want to include negotiable issues that position you to create this type of dependency.

there is typically one connection between these successful business plans. Simply put, the successful business plans contained deep insights into the prospective customers. And the ones that failed did not.

We have an unshakeable conviction that the long-term interests of shareowners are perfectly aligned with the interests of customers.”2 In other words, while it’s true that shareholder value stems from growth in profit, Amazon believes that long-term growth is best produced by putting the customer first. If you held this conviction, what kind of company would you build? In a talk at the 2018 Air, Space and Cyber Conference, Jeff described Amazon this way: “Our culture is four things: customer obsession instead of competitor obsession; willingness to think long term, with a longer investment horizon than most of our peers; eagerness to invent, which of course goes hand in hand with failure; and then, finally, taking professional pride in operational excellence.” That

Though it’s unclear whether Jeff knew about Charlie’s idea before sending out his directive to launch a free shipping program in October, it doesn’t really matter—the story is noteworthy for a couple of reasons. First, customer-focused ideas come from all areas within Amazon. Many companies have the “business people” tell the “technical people” what to build. There’s little discussion back and forth, and the teams stay in their own lanes. Amazon is not like this at all. It’s everyone’s job to obsess over customers and think of inventive ways to delight them.

minimum viable ecosystem (MVE) means something else. It is not targeted at exploring consumer demand. Rather, it is targeted at aligning the partners that you need to build your value architecture and to deliver your value proposition (which, to be sure, itself must be selected on the basis of deep customer insight). The MVE is less about prototyping and more about attracting and aligning. It provides the foundation that you can use to attract an initial subset of partners, which serves to attract the second subset, then the third, and so on.

After the launch, as we monitored the response, we had another surprise. Some of our biggest customers were not affiliates and not outsiders of any kind. They were Amazon software engineers. They found Amazon Web Services easier to use than some of our existing internal software tools they had been working with to build amazon.com. At this point there was little doubt that web services were going to become a new way of building things.

The Working Backwards process is all about starting from the customer perspective and following a step-by-step process where you question assumptions relentlessly until you have a complete understanding of what you want to build. It’s about seeking truth. Sometimes the Working Backwards process can uncover some surprising truths. Some companies, in a rush to get a project to market, ignore that truth and keep building according to the original plan. In their attachment to the modest gains of that plan, they motivate the team to pursue it aggressively, only to realize much later that there was a much bigger gain to be had if they’d taken the time to question their own assumptions. The cost of changing course in the PR/FAQ writing stage is much lower than after you’ve launched and have an operating business to manage. The Working Backwards process tends to save you from the expensive proposition of making a significant course change after you’ve launched your product.

Structured methods for learning Method Uses Useful for Organizational climate and employee satisfaction surveys Learning about culture and morale. Many organizations do such surveys regularly, and a database may already be available. If not, consider setting up a regular survey of employee perceptions. Useful for managers at all levels if the analysis is available specifically for your unit or group. Usefulness depends on the granularity of the collection and analysis. This also assumes the survey instrument is a good one and the data have been collected carefully and analyzed rigorously. Structured sets of interviews with slices of the organization or unit Identifying shared and divergent perceptions of opportunities and problems. You can interview people at the same level in different departments (a horizontal slice) or bore down through multiple levels (a vertical slice). Whichever dimension you choose, ask everybody the same questions, and look for similarities and differences in people’s responses. Most useful for managers leading groups of people from different functional backgrounds. Can be useful at lower levels if the unit is experiencing significant problems. Focus groups Probing issues that preoccupy key groups of employees, such as morale issues among frontline production or service workers. Gathering groups of people who work together also lets you see how they interact and identify who displays leadership. Fostering discussion promotes deeper insight. Most useful for managers of large groups of people who perform a similar function, such as sales managers or plant managers. Can be useful for senior managers as a way of getting quick insights into the perceptions of key employee constituencies. Analysis of critical past decisions Illuminating decision-making patterns and sources of power and influence. Select an important recent decision, and look into how it was made. Who exerted influence at each stage? Talk with the people involved, probe their perceptions, and note what is and is not said. Most useful for higher-level managers of business units or project groups. Process analysis Examining interactions among departments or functions and assessing the efficiency of a process. Select an important process, such as delivery of products to customers or distributors, and assign a cross-functional group to chart the process and identify bottlenecks and problems. Most useful for managers of units or groups in which the work of multiple functional specialties must be integrated. Can be useful for lower-level managers as a way of understanding how their groups fit into larger processes. Plant and market tours Learning firsthand from people close to the product. Plant tours let you meet production personnel informally and listen to their concerns. Meetings with sales and production staff help you assess technical capabilities. Market tours can introduce you to customers, whose comments can reveal problems and opportunities. Most useful for managers of business units. Pilot projects Gaining deep insight into technical capabilities, culture, and politics. Although these insights are not the primary purpose of pilot projects, you can learn a lot from how the organization or group responds to your pilot initiatives. Useful for managers at all levels. The size of the pilot projects and their impact will increase as you rise through the organization.

It is worth noting here that, at Amazon, even the most senior executives review the full WBR deck of metrics, including all the inputs and outputs. Metrics—as well as anecdotes about the customer experience—are the area where the leadership principle Dive Deep is most clearly demonstrated by senior leaders. They carefully examine the trends and changes in the metrics; audit incidents, failures, and customer anecdotes; and consider whether the input metrics should be updated in some way to improve the outputs.

Throughout the development of these projects, we adhered to Amazon’s distinctive management practices. Above all, they are examples of Amazonian long-term thinking, customer obsession, willingness to invent, and operational excellence. Throughout, we were stubborn on the vision and flexible on the details.

the simplest and best distillation is still that of founder Jeff Bezos (hereafter referred to as Jeff): “We have an unshakeable conviction that the long-term interests of shareowners are perfectly aligned with the interests of customers.”2 In other words, while it’s true that shareholder value stems from growth in profit, Amazon believes that long-term growth is best produced by putting the customer first.

Jeff described Amazon this way: “Our culture is four things: customer obsession instead of competitor obsession; willingness to think long term, with a longer investment horizon than most of our peers; eagerness to invent, which of course goes hand in hand with failure; and then, finally, taking professional pride in operational excellence.