How to increase customer satisfaction in agile
How to iterate on your product to increase customer satisfaction
By Humphrey Fredriksz
The last decade we have seen many brands being obsessed about customer centricity, user experience and customer first developments. Ever since Apple came with the superior user centered design, we have been convinced that customer centricity is a winning strategy for your business. But be careful, please don’t overdo it and forget that you are running a business.
To increase customer satisfaction the key is to focus on your most valuable customers, because you can easily get trapped in trying to solve all the problems of too many different customers. Especially when these customers aren’t generating any value for you. It can be a strategy to first focus on learning and finding your most valuable customers, but don’t wait too long with converting these customers into paying customers.
Similar to startups, as an entrepreneurial agile team, your investors are mostly interested in growth. The number one question they are asking ‘How many returning paying customers do you have now?”. In the next part of the blog I will walk you through the steps in how you can find this special group of customers and how you can win them for you. As an agile team you should be dreaming about this customer.
“By design a customer journey mapping, you make visual what the user pain points are and the effect it has. Up to the team to solve them“
Step one is to start with defining who your most valuable customer is. You can look at different metrics to define this. If your product is very mature you can look at their customer lifetime value (CLV), this is a sum of the value your customers will generate for your business during their lifetime. If your business isn’t that mature to calculate this, you can look at average order value or returning customers.
The key is to look at which customers generate the most margin for your business and have the potential to come back (more) often. When investing in acquisition you will calculate a ROI which tells you how much can spend to attract a new customer. The same applies for investing in software developments. Why would you spend more money on customers which will not generate a return of investment? So, calculate the ROI of features.
The second step is to understand how your current most valuable customers behaves. How do they solve their problems or where do they stop or drop off in their journey? By design a customer journey mapping, you make visual what the user pain points are and the effect it has. Up to the team to find solutions to solve this. You can do design sprints with the team, it’s a great way to find solutions fast.
Once you have a solution, you will have to test it. This must be a MVP which once you are testing with customers, will tell you if it’s working. Maybe you spent a lot of time thinking the solution would work, but while testing with real customers, it turns out not to be valuable at all. From a product management perspective, it’s important to take 2-4 iterations into account to really solve the problem.
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