Kano analysis is a method used to identify and categorize customer needs. These categories are then considered when analyzing potential opportunities for improvement. Kano is often used when collecting the voice of the customer to categorize and prioritize all forms of customer feedback. It can be used in conjunction with QFD as well as in Six Sigma implementations.
Kano analysis allows to understand how a product or service feature (an existing or potential) influences customer satisfaction. This allows to gain a thorough understanding of the needs of customers and be able to respond appropriately. Kano analysis can also be helpful to show how customer needs are constantly changing as time goes on.
Kano assigns five groups of features to products and services. This is basically done based on what customers say is important and how they value these features. The results of collecting the voice of the customer information can then be presented in a Kano diagram. The Kano diagram has two axes: customer satisfaction and feature presence (or the degree of feature implementation).
These five groups of features are:
Conducting a Kano Analysis
The following steps explain how to conduct a Kano analysis:
- With your team, define the purpose of the Kano analysis exercise.
- Brainstorm all possible product or service features.
- Brainstorm everything that can be done to delight customers.
- Classify the collected features into the Kano categories. Get customers to do the classification where possible.
- Think of ways to improve customer satisfaction and retention (ensure your have the basic features, ensure you provide the best possible performance, and ensure you are delighting your customers from time to time).
- Agree on the actions you need to take to improve the current situation.
The following example illustrates how we can use the Kano model to analyze customer satisfaction for the economy class in an airline company. First, the team has brainstormed all possible service features and classified them into the three main Kano groups.
Then, the team has added the customer satisfaction information based on previously conducted surveys.
The same information has been presented graphically in a Kano diagram. The numerical values of the satisfaction information were used.
Customer needs and expectations change over time. This requires us to revise and update the Kano model from time to time. The features that are considered delighters today are the must be of tomorrow.
The challenge with identifying delighters is that even customer will not be able to express what features would delight them as they have not experienced them yet.