All you need to know about the Kano Model
The Kano Model is a way to understand what customers want from a product or service. Kano sorts customer needs into five categories based on how they impact satisfaction.
Key concepts important in using the Kano Model:
- Customer segments: Different customer groups that an organisation targets with products or services
- Kano categories. See below with an example of how these apply to a smartphone:
- Basic need: Things customers expect as a minimum requirement. If they’re missing, customers will not be happy. Example: making calls, sending texts, or accessing the internet
- Performance: Things that can make customers happier as they get better Example: battery life, charging time, storage
- Delighter: Things that may not be expected, but that bring delight and satisfaction Example: a pen for writing and drawing, innovative medical applications, ability to support virtual reality
- Indifferent: Things that have minimal to no impact on satisfaction Example: headphone ports, speaker volume
- Turn-offs: Things customers don’t like Example: Usage tracking which can be used for advertising purposes, a non-standard charger
The results
- Improved alignment of goals and objectives
- Increased accountability
- Comprehensive performance data that can enable improved strategic decision making
When to use it
When creating or refining existing products
Service Design
When designing or improving services
Competitive analysis
When comparing a product or service offering with competitors
Strengths
- Structured
- Customer-centric
- Supports prioritisation
- Industry agnostic
Weaknesses
- Can oversimplify customer needs
- Can be subjective
Helpful skills
Alternative tools
All you need to know about the Kano Model
The Kano Model is a way to understand what customers want from a product or service. Kano sorts customer needs into five categories based on how they impact satisfaction.
Key concepts important in using the Kano Model:
- Customer segments: Different customer groups that an organisation targets with products or services
- Kano categories. See below with an example of how these apply to a smartphone:
- Basic need: Things customers expect as a minimum requirement. If they’re missing, customers will not be happy. Example: making calls, sending texts, or accessing the internet
- Performance: Things that can make customers happier as they get better Example: battery life, charging time, storage
- Delighter: Things that may not be expected, but that bring delight and satisfaction Example: a pen for writing and drawing, innovative medical applications, ability to support virtual reality
- Indifferent: Things that have minimal to no impact on satisfaction Example: headphone ports, speaker volume
- Turn-offs: Things customers don’t like Example: Usage tracking which can be used for advertising purposes, a non-standard charger
When to use it
When creating or refining existing products
When designing or improving services
When designing or improving services
The results
- Improved alignment of goals and objectives
- Increased accountability
- Comprehensive performance data that can enable improved strategic decision making
Alternative tools
How to use it?
- Financial data, such as revenue, profitability, and cost structures.
- Customer-related metrics, including satisfaction, market share, and retention rates.
- Internal performance reports, such as process efficiency and innovation.
- Insights into employee satisfaction, skill development needs, and organizational culture.
Who to involve?
Step by step
|
1 |
Review the strategy |
Ensure everyone involved in developing the balanced scorecard understands the organisations strategy. |
|
2 |
Consider the four perspectives and how they relate to the business |
Financial Perspective: How well the organization is doing financially and if it's making money. Customer Perspective: How happy customers are with the organization's products or services. Internal Processes Perspective: How well things are running inside the organization. Learning and Growth Perspective: How much the organization is improving and learning to be better in the future. |
|
3 |
Define organisational objectives aligned to the four perspectives |
Brainstorm objectives that relate to achieving the strategy. A simple, yet effective format is SMART goals. Objectives should relate to at least one of the four perspectives.
Questions to prompt thinking include: Financial: How can we increase revenue and profitability? what cost reduction strategies can we implement? Customer: What are our customers needs and expectations? are there new markets or customer segments that could be targeted? Internal Processes: Which processes can be streamlined or improved to enhance efficiency? How can we ensure consistent quality and timely delivery of products/services? Learning and Growth: What skills and capabilities do our employees need to develop? How can we foster a culture of innovation and continuous improvement? |
|
4 |
Develop Performance Indicators |
Brainstorm specific measurements for each perspective that reflect progress toward objectives. Here is a guide to defining measurable and relevant metrics.
Consider the potential impacts (positive and negative) or introducing each metric. Ask questions like: ‘Is it easy to measure?’, ‘Does it show us what's happened in the past or what is likely to happen in the future?’, ‘What behaviours might it encourage or discourage?’ Decide which metrics to include. Benchmark current performance and set realistic targets. |
|
5 |
Define initiatives |
Consider what work is required to meet the targets and objectives.
Agree on key initiatives that will support the organisation to meet the targets and objectives. |
|
6 |
Communicate |
Organize the agreed objectives, metrics and targets into a balanced scorecard format.
Communicate strategic objectives and KPIs throughout the organization Here is a guide on how to effectively communicate strategy. |
|
7 |
Performance Evaluation & Adjustment |
Gather data on Key Performance Indicators (KPIs) to monitor progress.
Analyze the data to assess how well the organization is meeting its goals. Reflect on performance insights to determine if any initiatives need reviewing. |
How to use it?
- Financial data, such as revenue, profitability, and cost structures.
- Customer-related metrics, including satisfaction, market share, and retention rates.
- Internal performance reports, such as process efficiency and innovation.
- Insights into employee satisfaction, skill development needs, and organizational culture.
Who to involve?
Step by step
1
Review the strategy
Ensure everyone involved in developing the balanced scorecard understands the organisations strategy.
2
Financial Perspective: How well the organization is doing financially and if it’s making money.
Customer Perspective: How happy customers are with the organization’s products or services.
Internal Processes Perspective: How well things are running inside the organization.
Learning and Growth Perspective: How much the organization is improving and learning to be better in the future.
3
Define organisational objectives aligned to the four perspectives
Brainstorm objectives that relate to achieving the strategy. A simple, yet effective format is SMART goals. Objectives should relate to at least one of the four perspectives.
Questions to prompt thinking include:
Financial: How can we increase revenue and profitability? what cost reduction strategies can we implement?
Customer: What are our customers needs and expectations? are there new markets or customer segments that could be targeted?
Internal Processes: Which processes can be streamlined or improved to enhance efficiency? How can we ensure consistent quality and timely delivery of products/services?
Learning and Growth: What skills and capabilities do our employees need to develop? How can we foster a culture of innovation and continuous improvement?
4
Develop Performance Indicators
Brainstorm specific measurements for each perspective that reflect progress toward objectives. Here is a guide to defining measurable and relevant metrics.
Consider the potential impacts (positive and negative) or introducing each metric. Ask questions like: ‘Is it easy to measure?’, ‘Does it show us what’s happened in the past or what is likely to happen in the future?’, ‘What behaviours might it encourage or discourage?’
Decide which metrics to include.
Benchmark current performance and set realistic targets.
5
Define initiatives
6
Communicate
Organize the agreed objectives, metrics and targets into a balanced scorecard format.
Communicate strategic objectives and KPIs throughout the organization Here is a guide on how to effectively communicate strategy.
7
Performance Evaluation and Adjustment
Gather data on Key Performance Indicators (KPIs) to monitor progress.
Analyze the data to assess how well the organization is meeting its goals.
Reflect on performance insights to determine if any initiatives need reviewing.
Pro tips