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Value-Based Prioritization

Kano Model

Kano Model

The Kano Model is a prioritization framework used to classify customer preferences into five categories: Must-be (basic features expected by customers), Performance (features that increase customer satisfaction linearly with performance), Delighters (features that significantly increase satisfaction if present, but don't cause dissatisfaction if absent), Indifferent (features that neither increase nor decrease satisfaction), and Reverse (features that cause dissatisfaction).

Best suited for consumer-focused products where customer satisfaction and product differentiation are critical. It's particularly useful in markets with high competition and diverse customer needs.

IMPLEMENTATION

  1. Identify Features: List potential features of the product or enhancements.

  2. Design a Survey: Create a survey asking customers to rate how they would feel if they had or did not have each feature, using the Kano questionnaire format.

  3. Conduct the Survey: Distribute the survey to a representative sample of customers.

  4. Analyze Results: Use the responses to classify each feature into the Kano categories.

  5. Prioritize Features: Prioritize features based on their potential to satisfy customer needs and differentiate the product in the market.

PROS

  • Customer-Centric: Focuses directly on customer needs and preferences.

  • Strategic Insights: Provides insights into what will satisfy and delight customers, helping to differentiate the product.

  • Dynamic: Reflects changing customer preferences over time as more data is collected.

CONS

  • Resource Intensive: Requires detailed survey preparation and customer engagement.

  • Subjectivity in Responses: Customer opinions can vary widely, affecting the clarity of the analysis.

  • Time-Consuming: Collecting and analyzing survey data can be time-consuming.

EFFORT

High

The Kano Model requires significant effort in survey design, execution, and analysis compared to simpler prioritization techniques.

CONFIDENCE

Moderate

Provides a good understanding of customer preferences but depends heavily on the quality and breadth of customer input.

ADAPTABILITY

Medium

While the model itself is static, the insights gained can help teams adapt feature development to changing customer expectations.

TIME CONSTRAINTS

Flexible

Best implemented when there is sufficient time to conduct thorough research and analysis without immediate development pressures.

TIPS

  1. Regular Updates: Regularly update the survey and reclassify features as customer preferences evolve.

  2. Comprehensive Sampling: Ensure the survey reaches a diverse and representative sample of the target market to get accurate insights.

  3. Integrate with Other Data: Combine Kano analysis with other data sources like market trends and competitive analysis for robust decision-making.

DESIRED OUTCOME

The desired outcome of the Kano Model is to identify which features will enhance customer satisfaction and loyalty, allowing for strategic prioritization that aligns with customer-driven value creation.

Fractional Executives

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