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Presented to: Incorporated Guild for Intelligence -Based Commerce
D a t e : M o n d a y, D e c e m b e r 9 th, 2 0 1 3
purpose separates good, from great.

 what got you to
where you are, may
not be enough to get
you to where you
want to go

~ Marshall Gladwell
because if things were working, we wouldn’t be here
w hy d o y o u g et y o u r ‘ f i x ’ t h e r e ?

 a good place to start

a g o o d p l a c e to sta r t 









the industrial revolution kind of screwed us up

unique products or services are unicorns

we are incapable of explaining why

client, customer & consumer are not the same

emotions are basic: so get back to basics

how did we get here?
t h e e v o l u t i o n o f e co n o m i c v a l u e : 1 0 1

Commodities

Products

Services

Experience

 how we got here


“Any customer can have a car painted any color that he
wants so long as it is black".”
i n d u st r i a l r ev o l u t i o n d i d a m a z i n g t h i n g s 

production

ROI, etc.

costs

quality
you produce it, we will buy it. repeat.
n o
e m o t i o n 


problem is

unique pX and sX

h a v e y o u g o t a co m p e t i to r ?
a s fo r c h a n n e l ?
unique?


not sustainably
so

d o n ’ t g et i t w r o n g : n e e d p X a n d s X
does it do what it’s
supposed to do?

product

can I access it when,
and how I want?

service

does it connect to values,
emotions, desires?

life
so
 we are at a crossroads

w hy a s k w hy ?
w a nt s v e r s u s n e e d s .
fe a t u r e s v s . b e n e f i t s : a b a n k i n g exa m p l e .
feature is

 mortgage
 school
 car

@ 2.99, fixed term

loan @ variable rate

loan with PPI

 credit

card with loyalty points plan

benefit is

a

home.

 to

learn.

 transport.

 to

buy the iPad 3.

 small

business loan with an LofC

 to

follow a dream.

 RRSP

with matched contributions

 to

retire.

 to

help my kids go to school.

 to

travel the world.

 equities
 loan

& bonds via online portal

via an e-application

what we believe are experiences.

what are really experiences.
t h e c u sto m e r d i d n ’ t k n o w t h e y w a nte d 


I LOVE THIS
THING!!!
stev e a c t u a l l y s a i d 

but how?
sta r t s w i t h r et h i n k i n g o u r t h i n k i n g .
“Asking people why they choose you over another may provide
wonderful evidence of how they have rationalized the decisions,
but it does not shed much light on the true motivation for the
decision.
It’s not that people don’t know, it’s that they have trouble
explaining why they do what they do.
Decision- making and the ability to explain those decisions exist
in different parts of the brain.”
~ Simon Sinek, Start With Why.
k i n g sto n h o s p i ta l d i d i t 


 little

attention to patients views on running

 4,000



employees, 400+ staff

 horror

stories






patient & family centred care
 former patients & family
 directly engage with leadership
 all major decisions
34% hand washing rate, now at 97% +
about them

Waiting time visits:
 believed uncomfortable waiting room
 actual issue: waiting at all!
 analysis needed on why so long?
 poor time management systems
 double bookings
just ‘cause (we aren't wired that way)
prefrontal lobe
full- spectrum thinking
anticipatory + pro-active

neocortex
communication
creativity
adaptability

limbic system
emotions
long-term memory

reptilian brain
reactive
fight vs. flight
a u t h e nt i c r e l a t i o n s h i p s , a r e l o y a l r e l a t i o n s h i p s .
d o n ’ t ta ke my w o r d fo r i t 

y o u ’r e d o i n g o k m o m .
t h a n ks m o m
w hy l i v e t h e g o o d l i fe ?
i t ’s n o t a b o u t a d o l l 

c a n ’ t fo r g e t sta r b u c ks 


 a n d fo r t h e l e f t - b r a i n e r s 


 t h e r e ’s a f i n a n c i a l b u s i n e s s c a s e to o 

p r o f i t & p u r p o s e a r e i nte r d e p e n d e nt .
Based on 10 years of empirical research involving 50,000 brands, Millward Brown
and Jim Stengel developed the list of the world’s 50 fastest growing brands which built
the deepest relationships with customers and achieved the greatest financial growth
from 2001-2011. The study, which forms the backbone of GROW: How Ideals Power
Growth and Profit at the World’s Greatest Companies (Crown Business; December 27,
2011), establishes a cause and effect relationship between a brand’s ability to
serve a higher purpose and its financial performance. Notably, investment in
these companies – the Stengel 50 – over the past decade would have been 400% more
profitable than an investment in the S&P 500.
the ROI

t h e d i s co n n e c t b et w e e n p r o m i s e & d e l i v e r y
% Of CIOs And CMOs Who Listed Each Concern Among Their Top Five Priorities
54%
51%

43%

44%

30%
24%

Gaining Better Customer Insights

Getting Smarter About Using Social Media
And Digital Marketing Tech
CIOs

CMOs

Increasing The Use of Social Media
Monitoring And Response Tools
Source: Accenture, The CIO-CMO Disconnect, 2013
m a r ket i n g d o e s n o t l e a d c r m ? ? ?
% Of Respondents Who Affirmed Marketing Ownership Of Activity
76%
71%

73%

Feb-11

Feb-12

Feb-13

56%
53%

53%

41%

41%

38%

22%

Social Media

Lead Generation

CRM

24%
21%

Customer Service

Source: The CMO Survey, Highlights and Insights 2013
( n o p e , n o t T H O S E 3 c ’s )
t h e n e w 3 c ’s

consumer customer client
3 c ’s 
 n o t h o s e o n e ’s

Company

Competitor

Customer

Customer

Client

Consumer
s e m a nt i c s




A customer is the entity you directly exchange goods & services
with, for payment of some kind

while a consumer is the user of your goods & services and receive
benefit from them and,
a client is the entity with whom you develop a long term
relationship, that is not always characterized by a purchase.
that is where emotion resides?

 sta r t s w i t h ( s u r p r i s e ) p e o p l e 


 customer experience happens



 with the employee

“If you want your employees to drive
loyalty, you’ve got to give them the
wheel
”
(Bryan Pearson, CEO LoyaltyONE)
“If
you
create
an
environment where the
people truly participate, you
don’t need control. They
know what needs to be
done and they do it. And the
more that people will devote
themselves to your cause on
a voluntary basis, a willing
basis, the fewer hierarchies
and control mechanisms you
need.”
co m m a n d & co nt r o l : R I P

Boss

Assistant

Subordinate

Subordinate

Subordinate

release
j o h n ny, t h e b a g g e r

 a n d p r o c e s s a n d to o l s i m p o r ta nt to o 

ok. but how?
w h a t i s t h e b u s i n e s s m o d e l g e n e r a to r ?
t h e c a nv a s . y e a h . i t ’s . t h a t . s i m p l e .

Who are your key
vendors, suppliers, agen
cies?
What shouldn’t you be
doing?
What should you be?

What's the critical
path?
Why should I (the
customer) come to you?
note: may have multiple
customers, clients, cons
umers.
don’t try for unique.
make it authentic.

To be the best, what
would need to be true?

What must we have?
What do we need?
What can we live
without?

Volume or
personalized?
Margin or service?
Transactional 0r
repetitive?

Segmented? Mass?
Multi- brand?
Geographic? Socioeconomical? Immediate
return or long term
value?

Volume or
personalized?
Margin or service?
Transactional 0r
repetitive?

What’s our income now?
What’s the split?
What do we want it to be?
Which streams are going to
dry up, and are we ready?
customers are humans. humans have senses. ergo

mapping the brand
business design.
Learn



Feedback
Case studies




Design

Metrics
Document





Issue
Audience
Prioritize




Define metrics
Establish glossary

Research

Implement






Conceptualize
Define & plans
Tasks
Resources





Launch
Monitor & control
Close




Choose


Review issue &
objective



Review issue
Past attempts &
learnings

Ideate

Select ideas




Needs & motivations of
consumer
Generate ideas with

Prototype



Integrate & refine
Draft (a lot)




Elicit feedback
Present a selection



constraints
Log





Identify stakeholders
Engage consumers
Thought leadership
so

purpose separates good, from great.
a g o o d p l a c e to e n d 









the industrial revolution kind of screwed us up

unique products or services are unicorns

we are incapable of explaining why

client, customer & consumer are not the same

emotions are basic: so get back to basics

p a r t i n g t h o u g ht s 

p a r t i n g t h o u g ht s 







changing the mindset is step one

get back to basics: would you care abut what you are doing?
leverage the tools, but do not idolize them
 they are only tools.
put a stake in the ground and stick to it
 but don’t flaunt it.
be authentic (don’t say you are).
t h e v a l u e o f t h e c u sto m e r.
“A customer is the most important
visitor on our premises. He is not

dependent on us. We are dependent
on him. He is not an interruption in
our work. He is the purpose of it. He

is not an outsider in our business. He
is part of it. We are not doing him a
favor by serving him. He is doing us a

favor by giving us an opportunity to
do so.”
Presented to: Incorporated Guild for Intelligence -Based Commerce
D a t e : M o n d a y, D e c e m b e r 9 th, 2 0 1 3

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The Customer Experience Disconnect

  • 1. Presented to: Incorporated Guild for Intelligence -Based Commerce D a t e : M o n d a y, D e c e m b e r 9 th, 2 0 1 3
  • 3. 
 what got you to where you are, may not be enough to get you to where you want to go
 ~ Marshall Gladwell
  • 4. because if things were working, we wouldn’t be here
  • 5. w hy d o y o u g et y o u r ‘ f i x ’ t h e r e ?
  • 6. 
 a good place to start

  • 7. a g o o d p l a c e to sta r t 
      the industrial revolution kind of screwed us up
 unique products or services are unicorns
 we are incapable of explaining why
 client, customer & consumer are not the same
 emotions are basic: so get back to basics

  • 8. how did we get here?
  • 9. t h e e v o l u t i o n o f e co n o m i c v a l u e : 1 0 1 Commodities Products Services Experience
  • 10. 
 how we got here
 “Any customer can have a car painted any color that he wants so long as it is black".”
  • 11. i n d u st r i a l r ev o l u t i o n d i d a m a z i n g t h i n g s 

  • 13. you produce it, we will buy it. repeat.
  • 14. n o e m o t i o n 
 problem is

  • 15. unique pX and sX

  • 16. h a v e y o u g o t a co m p e t i to r ?
  • 17. a s fo r c h a n n e l ? unique? 
not sustainably so

  • 18. d o n ’ t g et i t w r o n g : n e e d p X a n d s X does it do what it’s supposed to do? product can I access it when, and how I want? service does it connect to values, emotions, desires? life
  • 19. so
 we are at a crossroads

  • 20. w hy a s k w hy ?
  • 21. w a nt s v e r s u s n e e d s .
  • 22. fe a t u r e s v s . b e n e f i t s : a b a n k i n g exa m p l e . feature is
  mortgage  school  car @ 2.99, fixed term loan @ variable rate loan with PPI  credit card with loyalty points plan benefit is
 a home.  to learn.  transport.  to buy the iPad 3.  small business loan with an LofC  to follow a dream.  RRSP with matched contributions  to retire.  to help my kids go to school.  to travel the world.  equities  loan & bonds via online portal via an e-application what we believe are experiences. what are really experiences.
  • 23. t h e c u sto m e r d i d n ’ t k n o w t h e y w a nte d 
 I LOVE THIS THING!!!
  • 24. stev e a c t u a l l y s a i d 

  • 26. sta r t s w i t h r et h i n k i n g o u r t h i n k i n g .
  • 27. “Asking people why they choose you over another may provide wonderful evidence of how they have rationalized the decisions, but it does not shed much light on the true motivation for the decision. It’s not that people don’t know, it’s that they have trouble explaining why they do what they do. Decision- making and the ability to explain those decisions exist in different parts of the brain.” ~ Simon Sinek, Start With Why.
  • 28. k i n g sto n h o s p i ta l d i d i t 
  little attention to patients views on running  4,000  employees, 400+ staff  horror stories
    patient & family centred care  former patients & family  directly engage with leadership  all major decisions 34% hand washing rate, now at 97% + about them
 Waiting time visits:  believed uncomfortable waiting room  actual issue: waiting at all!  analysis needed on why so long?  poor time management systems  double bookings
  • 29. just ‘cause (we aren't wired that way)
  • 30. prefrontal lobe full- spectrum thinking anticipatory + pro-active neocortex communication creativity adaptability limbic system emotions long-term memory reptilian brain reactive fight vs. flight
  • 31. a u t h e nt i c r e l a t i o n s h i p s , a r e l o y a l r e l a t i o n s h i p s .
  • 32. d o n ’ t ta ke my w o r d fo r i t 

  • 33. y o u ’r e d o i n g o k m o m .
  • 34. t h a n ks m o m
  • 35. w hy l i v e t h e g o o d l i fe ?
  • 36. i t ’s n o t a b o u t a d o l l 

  • 37. c a n ’ t fo r g e t sta r b u c ks 

  • 38. 
 a n d fo r t h e l e f t - b r a i n e r s 

  • 39. 
 t h e r e ’s a f i n a n c i a l b u s i n e s s c a s e to o 

  • 40. p r o f i t & p u r p o s e a r e i nte r d e p e n d e nt . Based on 10 years of empirical research involving 50,000 brands, Millward Brown and Jim Stengel developed the list of the world’s 50 fastest growing brands which built the deepest relationships with customers and achieved the greatest financial growth from 2001-2011. The study, which forms the backbone of GROW: How Ideals Power Growth and Profit at the World’s Greatest Companies (Crown Business; December 27, 2011), establishes a cause and effect relationship between a brand’s ability to serve a higher purpose and its financial performance. Notably, investment in these companies – the Stengel 50 – over the past decade would have been 400% more profitable than an investment in the S&P 500.
  • 42. t h e d i s co n n e c t b et w e e n p r o m i s e & d e l i v e r y % Of CIOs And CMOs Who Listed Each Concern Among Their Top Five Priorities 54% 51% 43% 44% 30% 24% Gaining Better Customer Insights Getting Smarter About Using Social Media And Digital Marketing Tech CIOs CMOs Increasing The Use of Social Media Monitoring And Response Tools Source: Accenture, The CIO-CMO Disconnect, 2013
  • 43. m a r ket i n g d o e s n o t l e a d c r m ? ? ? % Of Respondents Who Affirmed Marketing Ownership Of Activity 76% 71% 73% Feb-11 Feb-12 Feb-13 56% 53% 53% 41% 41% 38% 22% Social Media Lead Generation CRM 24% 21% Customer Service Source: The CMO Survey, Highlights and Insights 2013
  • 44. ( n o p e , n o t T H O S E 3 c ’s )
  • 45. t h e n e w 3 c ’s consumer customer client
  • 46. 3 c ’s 
 n o t h o s e o n e ’s Company Competitor Customer Customer Client Consumer
  • 47. s e m a nt i c s    A customer is the entity you directly exchange goods & services with, for payment of some kind
 while a consumer is the user of your goods & services and receive benefit from them and, a client is the entity with whom you develop a long term relationship, that is not always characterized by a purchase.
  • 48. that is where emotion resides?
  • 49. 
 sta r t s w i t h ( s u r p r i s e ) p e o p l e 
 
 customer experience happens
 
 with the employee

  • 50. “If you want your employees to drive loyalty, you’ve got to give them the wheel
” (Bryan Pearson, CEO LoyaltyONE)
  • 51.
  • 52. “If you create an environment where the people truly participate, you don’t need control. They know what needs to be done and they do it. And the more that people will devote themselves to your cause on a voluntary basis, a willing basis, the fewer hierarchies and control mechanisms you need.”
  • 53. co m m a n d & co nt r o l : R I P Boss Assistant Subordinate Subordinate Subordinate release
  • 54. j o h n ny, t h e b a g g e r
  • 55. 
 a n d p r o c e s s a n d to o l s i m p o r ta nt to o 

  • 57. w h a t i s t h e b u s i n e s s m o d e l g e n e r a to r ?
  • 58. t h e c a nv a s . y e a h . i t ’s . t h a t . s i m p l e . Who are your key vendors, suppliers, agen cies? What shouldn’t you be doing? What should you be? What's the critical path? Why should I (the customer) come to you? note: may have multiple customers, clients, cons umers. don’t try for unique. make it authentic. To be the best, what would need to be true? What must we have? What do we need? What can we live without? Volume or personalized? Margin or service? Transactional 0r repetitive? Segmented? Mass? Multi- brand? Geographic? Socioeconomical? Immediate return or long term value? Volume or personalized? Margin or service? Transactional 0r repetitive? What’s our income now? What’s the split? What do we want it to be? Which streams are going to dry up, and are we ready?
  • 59. customers are humans. humans have senses. ergo

  • 61. business design. Learn   Feedback Case studies   Design Metrics Document    Issue Audience Prioritize   Define metrics Establish glossary Research Implement     Conceptualize Define & plans Tasks Resources    Launch Monitor & control Close   Choose  Review issue & objective  Review issue Past attempts & learnings Ideate Select ideas   Needs & motivations of consumer Generate ideas with Prototype   Integrate & refine Draft (a lot)   Elicit feedback Present a selection  constraints Log    Identify stakeholders Engage consumers Thought leadership
  • 63. purpose separates good, from great.
  • 64. a g o o d p l a c e to e n d 
      the industrial revolution kind of screwed us up
 unique products or services are unicorns
 we are incapable of explaining why
 client, customer & consumer are not the same
 emotions are basic: so get back to basics

  • 65. p a r t i n g t h o u g ht s 

  • 66. p a r t i n g t h o u g ht s 
      changing the mindset is step one
 get back to basics: would you care abut what you are doing? leverage the tools, but do not idolize them
 they are only tools. put a stake in the ground and stick to it
 but don’t flaunt it. be authentic (don’t say you are).
  • 67. t h e v a l u e o f t h e c u sto m e r. “A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.”
  • 68.
  • 69. Presented to: Incorporated Guild for Intelligence -Based Commerce D a t e : M o n d a y, D e c e m b e r 9 th, 2 0 1 3

Hinweis der Redaktion

  1. cause if it did, we wouldn’t be here
fact is, what used to work
 doesn’t work
 if you are after customer experience
why? customer experience is more than product or service.But let’s hold up for a moment.I have a question for you?
  2. everything is a derivative of the value derived here
 the development of a commodity to a (customer) experience yields numerous service, product development, consulting opportunities, thus creating secondary value in the support industries for the ultimate goal of consumption.basically: if no one uses it, don’t bother making it.
  3. The industrial revolution did amazing things for society:supported the development of middle classbrought basic services, such as water, affordable housing, balanced diet to a new segment of populationbroke the nobleman- peasant phenomenonbecame foundation for innovation at a scalable levelDid this by breakdown the manufacturing process into it’s most quantum of steps, allowing optimized production, lowering costs, enhancing quality, and (dramatically) increasing output.The increased supply, in the most basic of economic principles, brought prices down, and those made them affordable to more of the populous.In doing so, job creation was a by- product, increasing the income of many more people, and creating a manufacturing- consumer relationship that exists today: you produce it, we’ll buy it. produce more with the money we paid you. repeat.
  4. supported the development of middle classbrought basic services, such as water, affordable housing, balanced diet to a new segment of populationbroke the nobleman- peasant phenomenonbecame foundation for innovation at a scalable levelhealthcare accesseducation & training
  5. Did this by breakdown the manufacturing process into it’s most quantum of steps, allowing optimized production, lowering costs, enhancing quality, and (dramatically) increasing output.
  6. The increased supply, in the most basic of economic principles, brought prices down, and those made them affordable to more of the populous.In doing so, job creation was a by- product, increasing the income of many more people, and creating a manufacturing- consumer relationship that exists today: you produce it, we’ll buy it. produce more with the money we paid you. repeat.
  7. unique? possibly.but not sustainable.channel wars are like price wars
  8. product: does the “widget” do what it is supposed to do? does the phone work? does the bank card work? does my plane work?service: can I access the product by the channel I want, at the time I want?customer life: does the product doing what it is supposed to do, via the medium I wish to access it, help achieve my life experience goals?if yes, then I will be interested in what other products, via appropriate service channels can further help me achieve my life experiences
 and that is foundation for loyalty, which feeds not just share of wallet but the size of my wallet I am willing to share, and as such breeds advocation.
  9. Ford Model T: wanted a faster horse, with less maintenance costsSwiffer: I want to sweep and clean faster, with few stepsPirate Bay: I want to share music with other fans, particularly bootlegs, limited additions, rare covers, indie bands etc.wikipedia: I want reliable, updated information around anything and everything
 oh, and I don’t want to pay, I want continue to the communityKhan Academy: I want to educate the world, for free
  10. Steve Jobs said ”
 the customer doesn’t know what they want
”He never said they didn’t know what their pain and gain points were
The customer clarifies the need, its our job to develop the solution

  11. Dr. Brian Goldman
  12. PC:J&J (You’re Doing OK):http://youtu.be/yotq4zr0dRc<object width="1280" height="720"><param name="movie" value="http://www.youtube.com/v/yotq4zr0dRc?version=3&hl=en_US&rel=0"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/yotq4zr0dRc?version=3&hl=en_US&rel=0" type="application/x-shockwave-flash" width="1280" height="720" allowscriptaccess="always" allowfullscreen="true"></embed></object>
  13. $400 dollars on non- product purchasesit’s a dollspas, movie theatres, dinner, concerts
 etc.not about a doll, it’s about the parent experience
  14. Starbucks exampleleverage the right product-right channel (twitter)right purpose- to give your friend a coffee at the holiday season
 180,000$ in sales since October.
  15. A modest increase in customer experience can result in a gain over three years of up to $382 million for US companies and up to ÂŁ263 million for UK firms, depending on the industry.
  16. Kenichi Ohmae (Ken-e-chi Omae)The CorporationThe CustomerThe CompetitorsConsumer is the person(s) with whom the transaction is established. They use the product/ service. They are looking for product experience.Client is the person(s) with whom the relationship is established. They want you to understand/ predict their needs. They are looking for service experience.Customer is the person(s) with whom the objective is established. They are looking for customer experience.
  17. Provide the boundaries, not the rules, of what an experience can be, that aligns to what you want to be to your customers. Those boundaries allow your staff to make their own decisions as to what is a desired customer (and what is not), and what they can do to help them.
  18. $2k to each employee to discretionarily spend on cXBound by Ritz guidelines12 service valuesCredo3 steps of service..
  19. command + control is based on need for a centralized control of piece- meal operationsdo you know why board rooms and closed space offices were invented?about inspire, ring- fence, release
  20. KEY PARTNERS- there’s are the organizations, vendors, partners, suppliers, agencies, consultancies, funders, etc. your need to existKEY ACTIVITIES- what needs to happen to produce a widget, what is the critical path?KEY RESOURCES- what is needed to perform (2) KEY ACTIVITIESCOST STRUCUTRE- what are the costs of (3) KEY RESOURCESVALUE PROPOSITION- what is your authentic proposition to your customers (don’t bother with unique)CUSTOMER RELATIONSHIPS- are you after a lot of customers with low touch, fewer customers with deeper relationships, or both (it is possible, though not easier)CUSTOMER SEGMENTS- do you have a homogenize customer, client and consumer base? different segments require different models, strategies and engagementsCHANNELS- digital, physical, home, office, come to you, come to them
REVENUE STREAMS- how do cover (4) COST STRUCUTRE
  21. DefineDecide what issue you are trying to resolve.Agree on who the audience is.Prioritize this project in terms of urgency.Determine what will make this project successful.Establish a glossary of terms.ResearchReview the history of the issue; remember any existing obstacles.Collect examples of other attempts to solve the same issue.Note the project supporters, investors, and critics.Talk to your end-users, that brings you the most fruitful ideas for later design.Take into account thought leaders' opinions.IdeationIdentify the needs and motivations of your end-users.Generate as many ideas as possible to serve these identified needs.Log your brainstorming session.Do not judge or debate ideas.During brainstorming, have one conversation at a time.PrototypeCombine, expand, and refine ideas.Create multiple drafts.Seek feedback from a diverse group of people, include your end users.Present a selection of ideas to the client.Reserve judgement and maintain neutrality.Create and present actual working prototype(s)ChooseReview the objective.Set aside emotion and ownership of ideas.Avoid consensus thinking.Remember: the most practical solution isn't always the best.Select the powerful ideas.ImplementMake task descriptions.Plan tasks.Determine resources.Assign tasks.Execute.Deliver to client.LearnGather feedback from the consumer.Determine if the solution met its goals.Discuss what could be improved.Measure success; collect data.Document.