THE ULTIMATE GUIDE TO INTERNAL CUSTOMER DISCOVERY

Picture this: You’re sitting in your office, brimming with excitement about your latest idea to revolutionize how your company operates. You’ve spent weeks refining it, and you’re sure it’s going to change everything. Fast forward six months and your grand idea is gathering dust, unused and unloved by your colleagues. Sound familiar? Improving customer satisfaction should be the ultimate goal to ensure your ideas are embraced and implemented.

This scenario plays out in organizations worldwide every day. The culprit? A lack of internal customer discovery.



In this comprehensive guide, we’ll dive deep into the world of internal customer discovery - what it is, why it’s crucial, and how to do it effectively. We’ll explore real-world examples, practical tips, and strategies to ensure your next big idea doesn’t end up in the corporate graveyard. Gaining a deeper understanding of internal customers is essential to align your solutions with their needs and enhance overall success. Conducting thorough market research helps identify internal customer needs and preferences and ensures your solutions are well-targeted and effective.

What is Internal Customer Discovery?

Defining the Concept

At its core, internal customer discovery is the process of understanding the needs, pain points, and desires of your colleagues within your organization, much like identifying and understanding your own target market and customer segments. It’s about stepping out of your own shoes and into theirs, seeing the world from their perspective, and truly grasping what makes their work-life tick.

Considering prospective customers, or those who have not yet interacted with the product, can provide fresh perspectives during the customer discovery process.

The Four Phases of Customer Discovery

While our focus is on internal customer discovery, it’s worth noting that the concept originates from the startup world. Steve Blank, a Silicon Valley entrepreneur, popularized the idea of customer discovery as part of his Customer Development methodology. The four phases he outlined are:

1. State your hypotheses
2. Test your hypotheses
3. Test your product concept
4. Verify

It is crucial to conduct customer discovery interviews during these phases to gather valuable insights and continuously question assumptions.

We’ll adapt these phases for our internal focus throughout this guide.

Why It's Not Just for Startups

You might be thinking, "That's all well and good for startups, but we're an established company." Here's the thing: the principles of customer discovery are just as valuable - if not more so - within large organizations. In fact, they can be the key to breaking down silos, improving efficiency, and driving innovation from within.

The Importance of Internal Customer Discovery

Avoiding Costly Mistakes

Remember that dusty, unused idea we talked about earlier? That’s not just a blow to your ego - it’s a waste of valuable time and resources. Conduct customer interviews as part of your internal customer discovery to help you avoid these costly missteps by ensuring you’re solving real problems, not imagined ones.

Aligning with Organizational Goals

By understanding the needs of your internal customers, you can ensure that your initiatives align with broader organizational goals. This alignment is crucial for gaining support, securing resources, and, ultimately, succeeding in your endeavours.

Improving Collaboration and Communication

Internal customer discovery isn’t just about gathering information - it’s about building relationships. Through this process, you’ll open lines of communication across departments, fostering a more collaborative and innovative corporate culture. Additionally, using focus groups and virtual interviews can help gather diverse perspectives and improve communication.

How to Conduct Internal Customer Discovery

Now that we understand the what and why, let's dive into the how. We'll break this down into manageable steps, each crucial for successful internal customer discovery.

Step 1: Define Your Hypothesis

The Power of a Well-Formed Hypothesis

Every great discovery starts with a hypothesis. In the context of internal customer discovery, your hypothesis is your educated guess about a problem or opportunity within your organization.

Crafting Your Hypothesis

To create a strong hypothesis, ask yourself:

• What internal problem do I think needs addressing?
• Why is this important to the organization?
• Where in the organization is this issue most prevalent?
• When does this problem typically occur?
• How does it impact our work or results?
• What customer discovery questions can help validate this hypothesis?

Example Hypothesis

Let's say you work in the HR department of a large tech company. Your hypothesis might be:

"Our current onboarding process is too lengthy and complex, causing new hires to feel overwhelmed and reducing their initial productivity. Streamlining this process could improve new hire satisfaction and get them up to speed faster."

Step 2: Identify Internal Personas

Understanding Internal Stakeholders

Just as marketers create customer personas, you need to create internal stakeholder personas. These are detailed profiles of the different types of colleagues who are affected by or involved in the problem you're trying to solve.

Creating Your Personas

For each persona, consider:

• Which department do they work in?
• What are their main responsibilities?
• What are their goals and KPIs?
• What challenges do they face in their role?
• How might they interact with your proposed solution?

Example Personas

Continuing with our onboarding example, you might create personas like:

1. "New Hire Nancy": A recent graduate joining the marketing team, tech-savvy but new to corporate processes.
2. "Manager Mike": A mid-level manager in the sales department, responsible for getting new team members up to speed quickly.
3. "IT Ian": A member of the IT support team tasked with setting up accounts and equipment for new hires.

Step 3: Validate Your Hypothesis

The Art of Internal Interviews

This is where the rubber meets the road. It's time to test your hypothesis by talking to your internal customers.

Conducting Effective Customer Discovery Interviews

When conducting customer interviews to gain qualitative insights, especially when interviewing colleagues:

• Use open-ended questions to encourage detailed responses
• Including prospective customers in interviews can provide fresh, new perspectives
• Listen more than you talk
• Avoid leading questions or trying to “sell” your solution
• Dig deeper with follow-up questions
• Pay attention to non-verbal cues

Example Interview Questions

For our onboarding scenario, you might ask:

• "Walk me through your experience of your first week at the company."
• "What aspects of the onboarding process did you find most challenging?"
• "If you could change one thing about how we bring new hires on board, what would it be?"

Gathering Quantitative Data

While interviews provide valuable qualitative insights, don't forget to gather quantitative data as well. This might include:

• Time spent on various onboarding tasks
• New hire satisfaction scores
• Time to full productivity for new employees

Step 4: Analyze and Synthesize Your Findings

Making Sense of the Data

Now that you've gathered a wealth of information, it's time to make sense of it all.

Techniques for Analysis

Consider using techniques like:

• Affinity mapping to group similar insights and gain valuable insights from customer feedback
• Journey mapping to visualize the current process and uncover hidden customer needs
• Pain point prioritization to identify the most crucial issues and refine products/services iteratively

Additionally, conducting market research can uncover hidden opportunities and guide the analysis process by identifying customer needs and preferences, analyzing competitors, and assessing market trends and potential.

Example Valuable Insights

In our onboarding example, your analysis might reveal:

• New hires spend an average of 3 hours filling out paperwork on their first day
• 70% of new employees feel overwhelmed by the amount of information provided in the first week
• Managers report that it takes an average of 6 weeks for new hires to become fully productive

Step 5: Refine Your Solution Concept

From Insights to Ideas

Based on your findings, it's time to refine your initial concept into a solution that truly addresses the needs of your internal customers.

Brainstorming and Ideation

Gather a cross-functional team to brainstorm solutions. Encourage wild ideas and build on each other’s suggestions. Consider the needs of potential customers during brainstorming.

Example Solution Concept

For our onboarding scenario, a refined solution concept might be:

"A digital onboarding platform that spreads out information and tasks over the first month of employment, with personalized tracks for different roles and departments."

Step 6: Create a Minimum Viable Product (MVP)

The Power of Starting Small

Rather than trying to build a perfect solution right out of the gate, start with a Minimum Viable Product (MVP) - the simplest version of your solution that can still provide value and generate feedback.

Designing Your MVP

When creating your MVP:

• Focus on solving the most critical pain points
• Keep it simple and easy to use
• Build in ways to gather user feedback

Example MVP

In our onboarding example, an MVP might be:

A simple web-based platform with:

• A checklist of essential first-week tasks
• Links to key resources and training materials
• A feedback form for new hires to share their experiences

Step 7: Test and Iterate

The Importance of Continuous Improvement

Your MVP is not the end of the journey - it's just the beginning. Now, it's time to test it with real users and iterate based on their feedback.

Gathering Feedback

Consider using:

• User testing sessions
• Surveys
• Usage analytics

Additionally, customer feedback surveys can be an effective way to gather direct feedback on assumptions about user preferences and product strategies. Tools like SurveyMonkey or Typeform can be utilized to collect this feedback and confirm or challenge your product strategies.

Example Iterations

Based on feedback, you might:

• Add a chat feature for new hires to reach HR easily
• Create video tutorials for complex processes
• Implement a buddy system pairing new hires with experienced employees

Step 8: Scale Your Solution

From Pilot to Full Implementation

Once you've refined your solution through testing and iteration, it's time to scale it across the organization.

Strategies for Scaling

Consider:

• A phased rollout, starting with one department and expanding
• Creating champions in each department to drive adoption
• Developing comprehensive training materials

Additionally, it is crucial to consider target customer segments when scaling to ensure effective personalization, resource allocation, and market penetration.

Example Scaling Plan

For our onboarding solution:

1. Pilot with the marketing department for 3 months
2. Expand to sales and customer service in Q2
3. Full company rollout by the end of the year

Common Pitfalls and How to Avoid Them

Assuming You Know the Answer

It's easy to fall into the trap of thinking you already know what your colleagues need. Always approach internal customer discovery with an open mind and a willingness to be surprised.

Ignoring Qualitative Data

While numbers are important, don’t discount the value proposition of stories and

Failing to Follow Through

Internal customer discovery doesn't end when you launch your solution. Continually gather feedback and be prepared to make ongoing improvements.

Tools and Techniques for Effective Internal Customer Discovery

Survey Tools

Tools like SurveyMonkey or Google Forms can help you gather quantitative data quickly and easily.

Interview Recording and Transcription

Consider using tools like Otter.ai to record and take remote interviews and transcribe interviews, making it easier to analyze the content later.

Data Visualization

Tools like Tableau or even Excel can help you create compelling visualizations of your data, making it easier to spot trends and share insights with stakeholders.

Case Studies: Internal Customer Discovery in Action

Case Study 1: Improving Internal Communication at a Global Manufacturing Company

Problem: Employees across different departments and countries were struggling to collaborate effectively.

Discovery Process:

• Conducted 50+ interviews across all levels and locations
• Analyzed email patterns and meeting schedules
• Created journey maps of typical cross-department projects

Solution: Implemented a new collaboration platform with built-in translation features and asynchronous video messaging.

Result: 30% reduction in email volume, 25% increase in cross-department collaboration, and improved employee satisfaction scores.

Case Study 2: Streamlining Expense Reporting at a Consulting Firm

Problem: Consultants were spending hours each month on tedious expense reports, reducing billable hours.

Discovery Process:

• Shadowed consultants during travel and expense submission
• Analyzed time spent on expense reporting across the firm
• Conducted a competitive analysis of expense management solutions

Solution: Implemented a mobile app for real-time expense tracking and automated report generation.

Result: 70% reduction in time spent on expense reports, leading to an estimated $2 million annual increase in billable hours.

Frequently Asked Questions

What is the first question to explore during customer discovery?

The first and most crucial question to explore is: "What problem are we trying to solve?" This question helps you focus your efforts and ensures you're addressing a real need rather than a perceived one.

How do you write a customer discovery?

Writing a customer discovery plan involves:

1. Clearly stating your hypothesis
2. Identifying your internal stakeholders or personas
3. Outlining your research methods (interviews, surveys, etc.)
4. Defining your timeline and resources
5. Establishing how you'll measure success

How long should the customer discovery process take?

The duration can vary widely depending on the complexity of the problem and the size of your organization. However, aim to move quickly - a good rule of thumb is to complete initial discovery within 4-6 weeks.

Conclusion: Embracing a Culture of Internal Customer Discovery

Internal customer discovery isn't just a one-time exercise - it's a mindset and a crucial part of fostering an innovative, employee-centric culture. By consistently seeking to understand and address the needs of your colleagues, you'll not only improve processes and productivity but also create a more engaged and satisfied workforce.



Remember, every great solution starts with a deep understanding of the problem. So, before you jump into your next big idea, take the time to discover what your internal customers truly need. Your colleagues - and your organization as a whole - will thank you for it.