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Kano Model Summary: The KANO Model is a tool used to identify 5 categories of product features/services from a customer's perspective, to enable manufacturers and service providers to be competitive in the market. KANO Model Feature Categories Presence of the feature VOC Absence of the feature VOC Examples Basic Neutral Dissatisfaction 24hr. hot water supply at hotels Performance Satisfaction Dissatisfaction High Battery life in mobiles Excitement Extra Satisfaction Neutral Welcome drinks /complimentary chocolates at hotel check in Indifferent Neutral Neutral Material used in packing juices or milk, if the packets are durable and do not leak. Reverse Dissatisfaction Satisfaction Annoying Pop up help features in some software (*VOC-Voice of Customer) One important point to keep in mind is over time as the customers get used to an Excitement feature, the feature becomes more of an expectation and moves to become a Basic feature. In other words, a feature which was earlier not even expected, becomes a “must -have”. Earlier its absence would have been unnoticed, but now its absence causes dissatisfaction among the customers. Example: power steering in cars, camera feature in mobile phones. What would be your approach for putting these needs to good use? First, I would work towards developing the identified Basic and Performance features/services, so that it is maintained at a level where it continues to satisfy the customers. There should NOT be any decline in these features/services. Second, I would focus on developing the identified Excitement features. These would eventually transform to be “basic must – haves”. I would innovate new features /services which would continue to add the WOW factor. Third, I would work on cost optimization/cost cutting on the identified Indifferent features/services. Fourth, last but not the least, I would take the precaution of not overwhelming the customer with product features and services. More is not always great! The product features and services should be inline with the requirements of the target customers.