flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

The Kano Customer Satisfaction Model

Editor's Note: Take a look at our featured best practice, Pricing Strategy (38-slide PowerPoint presentation). Pricing Strategy is a core pillar of Marketing and Product Strategy. It is 1 of the 4 Ps of Marketing (also known as the Marketing Mix - Product, Price, Placement, and Promotion). As such, knowing how to properly price your product is extremely important to the commercial success and viability of [read more]

Also, if you are interested in becoming an expert on Strategy Development, take a look at Flevy's Strategy Development Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

So, you have a robust product roadmap, covering all product features from the most basic to the most innovative. Now, how did you prioritize these features? Did you prioritize things correctly?

customer_satisfactionWith limited resources, all organizations strive to prioritize those activities that drive the most value. This is particularly true in product development. Focusing on the right or wrong set of features can make or break your product (or even company).

The Kano Customer Satisfaction Model is a theory of product development and customer satisfaction developed by Professor Noriaki Kano. This framework provides a rational, structured approach to product development, offering tremendous insight into the product attributes that are perceived to be important to customers.

The Kano Customer Satisfaction Model focuses on differentiating product features, as opposed to focusing initially on customer needs.

To understand this model, first, we must define the concepts of Satisfaction and Functionality–the 2 dimensions that form the basis of the Kano Model.

Satisfaction

  • Our goal is to achieve Satisfaction.  In the Kano model, the Satisfaction dimension can be evaluated on a 5-level scale, that goes from total satisfaction (i.e. customer is “Delighted”) to total dissatisfaction (i.e. customer is “Frustrated”).

Functionality

  • Functionality represents how much of a given feature the customer receives, how well we’ve implemented it, or how much we’ve invested in its development.  This dimension ranges from no functionality at all to the best possible implementation.

Remember, there is a cost to developing functionality, which is why proper prioritization is so critical.

Kano classifies product features into 4 categories, driven by how customers react to the level of Functionality:

Performance

  • Sometimes also referred to as Linear or One-Dimensional, because the relationship between Satisfaction and Functionality is linear—i.e., as Functionality increases, so does Satisfaction.
  • Examples of Performance features include gas mileage (of your car), internet connection speed, laptop battery life.

Must-Be

  • Must-Be features a “must have” features—if our product doesn’t have them, the product will be considered incomplete
  • We must have these features, but they won’t make the customer satisfied nor dissatisfied.
  • Examples include: product receipts, apartment windows, hotel towels.

Attractive

  • These features, also called Exciters or Delighters, are unexpected features that produce a positive reaction—our reaction can range from mild delight to absolute mind-blown
  • An example could be the first you used a smartphone and were surprised by the ease of use

Indifferent

  • These are features that don’t make a real difference in our reaction to the product
  • We should avoid spending any time and effort developing these features
  • An example if thickness of wax coating on the milk carton—this may be key to the design and manufacturing of the carton, but customers are not even aware of the distinction

To better grasp what these categories represent, lets map these 4 categories against the axes of Satisfaction (y-axis) and Functionality (x-axis). See the diagram below.

kano_satisfaction

Here are the immediate take-aways:

  • As mentioned, Performance is a linear relationship between Functionality and Satisfaction.
  • For Attractive features, Satisfaction increases exponentially with added Functionality.
  • Conversely, Must-Be features are expected—thus at maximum Functionality, it reaches Neutral Satisfaction.
  • Lastly, with Indifferent features, we see level of Functionality has no impact on Satisfaction. Why develop these features at all? Remove them from the roadmap, as they will only waste our resources.

Kano also noted that, customers get spoiled over time, as they get used to features. Thus, features once deemed Attractive, over time become Performance features and eventually become Must-Be features.  This disenchantment is driven by many factors, including technology evolution and the emergence of competitors who all bring the same functionality as incumbents.  Therefore, any analysis done using this model is only a current snapshot. It needs to be updated regularly to keep up with changing customer expectations.

Are you a management consultant?  You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.

How do you product features map against Satisfaction and Functionality? What other insights can you gather from the Kano Customer Satisfaction Model?

You can download an editable PowerPoint about the Kano Customer Satisfaction Model here on the Flevy documents marketplace.

34-slide PowerPoint presentation
Product Lifecycle Analysis is an invaluable tool for developing a robust product marketing strategy. Marketers and strategists can use this analysis to predict sales growth, associated customer and competitor behaviors, and, in turn, devise the appropriate product marketing strategy. The Product [read more]

Want to Achieve Excellence in Strategy Development?

Gain the knowledge and develop the expertise to become an expert in Strategy Development. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu

For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.

These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.

Learn about our Strategy Development Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources


29-slide PowerPoint presentation
Launching a new product or venturing into a new market is a significant endeavor. The Ultimate Go-To-Market (GTM) Strategy Framework, developed by seasoned consultants from BCG and EY, is your robust action plan ensuring a well-coordinated and potent market entry. This framework aids in [read more]


 
46-slide PowerPoint presentation
 
 
29-slide PowerPoint presentation

About David Tang

David Tang is an entrepreneur and management consultant. His current focus is Flevy, the marketplace for business best practices (e.g. frameworks & methodologies, presentation templates, financial models). Prior to Flevy, David worked as a management consultant for 8 years. His consulting experience spans corporate strategy, marketing, operations, change management, and IT; both domestic and international (EMEA + APAC). Industries served include Media & Entertainment, Telecommunications, Consumer Products/Retail, High-Tech, Life Sciences, and Business Services. You can connect with David here on LinkedIn.

, , ,



Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  

The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.
  


OUR CORE OFFERINGS
Flevy Marketplace: Top 100
· Strategy & Transformation
· Digital Transformation
· Operational Excellence
· Organization & Change
· Financial Models
· Consulting Frameworks
· PowerPoint Templates
FlevyPro (Subscription Service)
KPI Library
Streams (Functional Bundles)
Flevy Executive Learning (FEL)
PowerPoint Services

FREE Resources

About Flevy
Management Topics
Marcus (AI-Powered Consultant)
Partner Program
LinkedIn Influencer Marketing
FAQ / Terms / Privacy / Blog
Contact Us: support@flevy.com



CONNECT WITH US!
       
TOP 100 TRENDING TOPICS
Acquisition Strategy
Agile
Analytics
Artificial Intelligence
Balanced Scorecard
Best Practices
Big Data
Breakout Strategy
Business Continuity Planning
Business Plan Financial Model
Business Transformation
CMMI
COBIT
Change Management
Cloud
Communications Strategy
Company Financial Model
Competitive Advantage
Competitive Analysis
Consulting Frameworks
Continuous Improvement
Core Competencies
Corporate Culture
Cost Reduction Assessment
Customer Experience

BROWSE BY FUNCTION
Strategy, Transformation, & Innovation
Digital Transformation
Operational Excellence and LSS
Organization, Change, & HR
Management Consulting

Customer Journey
Customer Service
Cyber Security
Data Privacy
Decision Making
Digital Marketing Strategy
Digital Transformation
Digital Transformation Strategy
Due Diligence
ESG
Employee Engagement
Employee Training
Enterprise Architecture
Growth Strategy
HR Strategy
Hiring
Hoshin Kanri
ISO 27001
ITIL
Information Technology
Innovation Management
Integrated Financial Model
Kaizen
Kanban
Key Performance Indicators

ADDITIONAL RESOURCES
Business Strategy Frameworks
Case Studies
Consulting Training Guides
COVID-19 Trend Data
Digital Transformation
Financial Advising Services (FAS)

Knowledge Management
Leadership
Lean
Lean Manufacturing
Logistics
M&A (Mergers & Acquisitions)
Manufacturing
Market Research
Marketing Plan Development
Maturity Model
McKinsey PowerPoint
McKinsey Templates
Operational Excellence
Organizational Change
Organizational Design
Performance Management
Post-merger Integration
Pricing Strategy
Process Improvement
Process Maps
Procurement Strategy
Product Launch Strategy
Product Strategy
Project Management
Quality Management


Free Resources
KPI Library
Lean Management
Lean Six Sigma Training Guides
Marcus Insights
Operational Excellence

Real Estate
Remote Work
Restructuring
Risk Management
Robotic Process Automation
SWOT
SaaS
Sales
Scrum
Service Design
Six Sigma Project
Social Media Strategy
Strategic Planning
Strategic Thinking
Strategy Development
Supply Chain Analysis
Sustainability
Target Operating Model
Team Management
Total Productive Maintenance
Value Chain Analysis
Value Creation
Value Stream Mapping
Visual Workplace
Workplace Safety


Product Strategy
Small Business Owner
Startup Resources
Strategic Planning
Strategic Planning Process
Value Innovation Strategy


© 2012-2024 Copyright. Flevy LLC. All Rights Reserved.