6. Kano Model - A Prioritization Framework

The Kano Model is a prioritization framework that focuses on the level of satisfaction and delight generated by different product features or initiatives for the end customer. Unlike frameworks such as ICE or RICE, the Kano Model emphasizes how well a feature or initiative meets customer expectations and whether it adds to their overall experience.

This model categorizes features into three main types:

1. Basic Needs: These are the essential features that customers expect. Failing to deliver these will result in dissatisfaction, but their presence does not necessarily delight the customer.
2. Performance Needs (Linear Satisfaction): These features provide value but are expected as part of the product. Customers may not be wowed, but they do notice if these features are missing or not on par with competitors.
3. Delighters: These are the “wow” factors that go beyond customer expectations. Delighters create a positive emotional response and significantly enhance the overall customer experience.

The Kano Model Matrix

The Kano Model uses a matrix with two key axes:

• X-axis: Represents the execution of a feature—whether it is done poorly or well.
• Y-axis: Represents the level of customer satisfaction, ranging from dissatisfaction to high satisfaction.

In this matrix:

• Basic Needs fall along a curve that shows a low to moderate increase in satisfaction, even if executed perfectly.
• Performance Needs follow a linear relationship where the better the feature is executed, the more customer satisfaction improves.
• Delighters create an exponential curve where even small improvements lead to significant jumps in customer satisfaction.

Examples of Kano Model in Action

Imagine you're staying at a hotel. You expect basic comforts like a bed, clean sheets, and working amenities. These are basic needs—you’d be unhappy without them, but having them does not make the stay extraordinary.

Now, imagine that each morning, the hotel delivers a complimentary, freshly baked cake to your room without you requesting it. This would be a delighter—an unexpected perk that elevates your experience.

A similar example in the digital world is the experience of hailing a taxi. Before services like Easy Taxi or Uber, people either waved for a taxi on the street or called a dispatch service. When Easy Taxi was introduced, it provided a delighter by making it significantly easier to get a ride through an app. Over time, however, the market became saturated with other apps, and this once innovative feature became a performance need—something customers now expect.

Even further, some features of services like Uber—such as offering water and snacks in the car—started as delighters. But over time, as customers grew accustomed to them, these features became part of the performance needs.

Applying the Kano Model to Product Development

The Kano Model can guide product teams in deciding whether to focus on features that differentiate them from competitors (delighters), maintain parity with competitors (performance needs), or meet the basic expectations of users (basic needs). It helps balance efforts between creating standout features and addressing core user expectations.

Example: White-Label Course Platform

Consider a hypothetical white-label platform for online courses with four potential initiatives:

1. Pix Payment Implementation
   In a scenario where Pix is newly launched, implementing it could be a delighter for customers. It shows innovation and keeps the product ahead of competitors. However, in a different context where Pix is widely used, this feature might become a performance need—customers expect it, but it no longer surprises them.

2. Email Marketing Scheduling
   This feature is likely a basic need, as most CRMs already offer the ability to schedule marketing emails. Failing to provide this would lead to customer dissatisfaction because it’s a standard feature in the market.

3. More Automation Triggers
   Adding more automation triggers is a performance need. Customers expect a level of flexibility in automation, and while it's not groundbreaking, it keeps the product competitive by matching existing offerings in the market.

4. Improved Home Screen Usability
   Improving usability is typically a performance need. Users expect a smooth experience, but it doesn’t necessarily wow them. It eliminates frustration and improves overall satisfaction, but it’s not likely to surprise or delight users.

Evolving Customer Expectations

One interesting aspect of the Kano Model is that features can move between categories over time. A delighter today can become a basic need tomorrow as the market evolves and competitors catch up. Product teams must stay aware of these shifts to ensure they continue delivering value in line with customer expectations.

For instance, in the case of Pix Payment, what begins as a delighter could eventually become a basic need as customers begin to expect every platform to offer Pix as a payment option.

Conclusion

The Kano Model helps product teams understand which features will most effectively improve customer satisfaction and which are simply required to maintain a competitive baseline. By focusing on a mix of basic needs, performance needs, and delighters, teams can prioritize features that not only keep them competitive but also create memorable, delightful user experiences.