A Comprehensive Guide to Understanding kano analysis for Product Development

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In today’s highly competitive business landscape, understanding and meeting customer needs have become more critical than ever. Companies strive to create products and services that not only satisfy their customers but also delight them. 

In this article, we will delve into the concept of kano testing, its benefits, and how businesses can leverage it to stay ahead in their markets.

What is kano analysis?

Kano testing is a customer satisfaction model that classifies product attributes into five distinct categories based on how they influence customer satisfaction. Professor Noriaki Kano, a Japanese expert in quality management, introduced this concept in 1984. The central idea behind kano prioritization is that not all product features have the same impact on customer satisfaction, and understanding the different levels of impact is crucial for delivering value to customers effectively.

When to use kano analysis?

It is a valuable tool that can be used in various situations to gain insights into customer needs and preferences. Here are some scenarios where kano model template can be particularly helpful:

1. Product development and design

When developing a new product or improving an existing one, it  can guide decisions on which features to prioritize. By identifying basic needs, performance needs, and excitement needs, the development team can focus on creating a product that not only meets the fundamental requirements but also delivers an outstanding customer experience.

2. Service design

For service-based businesses, understanding customer preferences and expectations is crucial. Kano prioritization can help identify which aspects of the service are essential to customers (basic needs) and which elements can lead to positive surprises and delight (excitement needs). This information can then be used to design and deliver exceptional customer experiences.

3. Customer experience enhancement

Kano analysis template is beneficial for companies seeking to improve their overall customer experience. By identifying and addressing the factors that lead to customer satisfaction (performance needs) and delight (excitement needs), businesses can enhance their offerings and build stronger customer loyalty.

4. Market differentiation

In highly competitive markets, businesses need to differentiate their products or services to stand out. By uncovering exciting needs that competitors may not be addressing, companies can create unique selling points and gain a competitive advantage.

5. New market entry

When entering a new market or expanding into a different customer segment, understanding the specific needs and preferences of the target audience is crucial. It can provide insights into the expectations of the new customer base, helping companies tailor their offerings to meet those needs effectively.

What are the attributes of kano analysis?

Here are the five attributes of kano model template,

1. Basic attributes

These are fundamental features that customers expect as a minimum requirement for a product to be considered viable. These attributes are typically taken for granted, and their absence or failure to meet expectations results in significant customer dissatisfaction. 

However, their presence does not necessarily lead to increased satisfaction. Examples of basic attributes in a smartphone could include the ability to make phone calls, send messages, and connect to the internet.

2. Performance attributes

This directly correlates with customer satisfaction and is proportional to their level of fulfillment. Customers are more satisfied as the performance of these attributes increases. However, their absence does not create dissatisfaction to the same extent as basic attributes. Examples of performance attributes in a smartphone could be battery life, camera quality, and processing speed.

3. Excitement attributes

Excitement attributes, also known as delighters or WOW factors, are unexpected features that surprise and delight customers. Their presence significantly increases customer satisfaction, but their absence does not lead to dissatisfaction. 

These attributes often differentiate a product from its competitors and create a positive emotional response in customers. For a smartphone, an excitement attribute could be a novel, innovative camera feature or a unique user interface.

4. Indifferent attributes

These are neither good nor bad from the customers’ perspective. Their presence or absence has no significant impact on customer satisfaction. Customers are relatively indifferent to these attributes, and they do not influence their decision-making process. For example, the color of a smartphone’s packaging or the specific fonts used in the user manual might be indifferent attributes.

5. Reverse attributes

Reverse attributes, also known as “must-be-not” attributes, are features that, if present, lead to customer dissatisfaction. However, their absence does not necessarily result in higher satisfaction. These attributes represent characteristics that customers actively dislike or consider undesirable. An example of a reverse attribute in a smartphone could be excessive bloatware or intrusive advertisements.

Real-Life Examples of kano analysis

Let’s explore some real-life examples of how companies have used kano model survey to make strategic decisions and improve their offerings:

a) Apple and iPhone’s excitement needs

Apple’s iPhone has revolutionized the smartphone industry with its user-friendly design and innovative features. Through kano testing, Apple identified excitement needs, such as the integration of a high-resolution camera, Siri (voice assistant), and the App Store. These features delighted customers and contributed to the iPhone’s market success.

b) Amazon prime’s performance needs

Amazon Prime, the premium subscription service from Amazon, provides various benefits like fast shipping, exclusive access to content, and more. By analyzing customer feedback, Amazon realized that fast shipping and reliable delivery were critical performance needs, leading them to invest heavily in their logistics and delivery network.

Conducting kano analysis

To effectively utilize the kano survey template, businesses need to collect data from their target customers through surveys or interviews. The data should focus on customers’ preferences and attitudes toward specific product features. The analysis involves plotting the data points on a Kano graph to identify the category to which each attribute belongs.

1. Kano graph

A Kano graph is a two-dimensional chart used to visualize the customer responses for each attribute. The x-axis represents the level of fulfillment of the attribute, while the y-axis denotes the degree of customer satisfaction. The five categories—basic, performance, excitement, indifferent, and reverse—are represented on the graph. The data points are plotted based on the customers’ feedback.

2. Data collection

To collect data for the analysis, businesses can use various methods, including surveys, focus groups, or customer interviews. The survey questions should be designed to elicit responses regarding the customers’ expectations and preferences for each attribute. The data collected should include both qualitative feedback and quantitative ratings, allowing for a comprehensive analysis.

3. Categorizing attributes

Once the data is gathered, the next step is to categorize each attribute based on the Kano model. This involves plotting the data points on the Kano graph and analyzing the patterns to determine the category to which each attribute belongs. 

Attributes falling in the top-right quadrant are excitement attributes, while those in the top-left quadrant are performance attributes. Basic attributes are found in the bottom-right quadrant, indifferent attributes in the bottom-left quadrant, and reverse attributes are represented outside the graph area.

Leveraging kano analysis for business success

Kano testing offers several key benefits to businesses seeking to enhance their understanding of customer needs and improve their products or services:

1. Prioritizing product development

By categorizing attributes according to their impact on customer satisfaction, businesses can prioritize their product development efforts. Excitement attributes can be focused on to create differentiation and delight customers, while basic attributes must be ensured to avoid significant dissatisfaction.

2. Identifying red flags

Reverse attributes highlight potential pitfalls and areas of improvement. By identifying and addressing these attributes, businesses can avoid potential customer dissatisfaction and prevent damage to their brand reputation.

3. Strategic decision-making

kano analysis can guide businesses in making strategic decisions related to product design, marketing, and resource allocation. It helps companies invest resources in areas that will yield the highest return in terms of customer satisfaction and business success.

What are limitations and considerations of kano analysis?

While kano survey template is a powerful tool, there are some limitations and considerations that businesses should be aware of:

1. Cultural and demographic factors

Customer preferences and attitudes may vary based on cultural and demographic factors. Businesses need to consider these variations when interpreting the results of kano analysis and tailor their approach accordingly.

2. Context dependency

The classification of attributes in the Kano model can change depending on the context. For example, an attribute that is an excitement factor in one market might be considered a basic attribute in another.

3. Evolving customer needs

Customer preferences and needs evolve over time. Attributes that were once considered excitement factors might become basic attributes as customer expectations change. Therefore, regular updates and reevaluation of kano analysis are necessary.

4. Sample size and representation

The accuracy and reliability of kano analysis depend on the sample size and its representation of the target customer population. A large and diverse sample is crucial for obtaining meaningful insights.

Conclusion

In conclusion, kano analysis is a valuable tool for businesses to gain a deeper understanding of customer needs and preferences. By categorizing product attributes into basic, performance, excitement, indifferent, and reverse categories, businesses can prioritize their product development efforts, enhance customer satisfaction, and achieve market differentiation.

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