Four examples of Typical SIMALTO Grid Types

 (1) A product with clearly defined option prices e.g. Personal Computers

Features

Options

Hard Drive

1 GB

0

2 GB

100

4 GB

300

6 GB

450

Memory RAM

16 MB

0

32 MB

80

48 MB

150

64 MB

200

Video Conferencing

Not possible

0

Static pictures

200

6 frames/sec

300

20 frames/sec

400

On Site Service Response Time

48 hours

0

24 hours

50

4 hours

200

Screen Size

15 inch

0

17 inch

50

19 inch

100

21 inch

200

Telephone Handset

No

0

Yes

50

 Noise

20% more than now  -20

As now

0

20% less than now   20

50% less than now   60

             

The figures in each box show what could be actual dollar values.  So changing from 1 GB hard disc to 2 GB costs an extra $100, but moving from 1 GB to 6 GB costs $450.  Because this questionnaire probed relative spend, changing from the zero cost boxed cells, the actual total price of this computer was not required to be shown.  (It could be stated offline, e.g. consider a basic $800 PC defined as the cell options with zero prices).  

If a respondent was asked to ‘spend’ $200 enhancing this start position, he might improve to 2 GB and a 19-inch screen.  If asked to ‘spend’ an extra $300 he might further improve screen size to 21 inches (an extra $100 on top of what he already has done to achieve a 19 inch screen) and go to 48 MB RAM and 24 hour response time.  He would then be typically asked if he would actually spend these $200 and $300 upgrading the basic PC, or if not, what proportion of these amounts would he spend for these enhancements.

(2)        A Service/Product Mix with Relative Costed Options, e.g. in flight experience in the economy cabin

Features

Options

Welcome from Cabin Crew

No welcome

0

Automatic – same for all 

1

Individual – not same for all

3

Personalised – using your name

5

Leg Room

As is

0

1 inch more

10

2 inches more

15

3 inches more

18

Quality of Main Meal

Very basic

0

Good quality some

 fresh fruit/veg     3

Excellent quality

6

Duty Free Service

None

0

Limited range

1

Wide range

3

Telephones for Passenger Use

None

0

2 telephones only

on whole plane     4

1 telephone per set

of 2 or 3 seats     12

                         

Respondents show their priorities as for example 1, but are not asked if they would actually spend money on the improvements since competitive pressure means ABC airline probably cannot increase its prices relative to competition.  Rather it wants to find out if passengers would be more loyal if it made some of these investments, and if so which should it make.  

Note that adding 1 inch more leg room (implying possibly taking out 1 whole row of seats in the aircraft) costs more than improving to an excellent quality meal and a wide range of duty free availability, rather than the basic levels of both these features.

 (3)        A Pure Service Interface, e.g. Car servicing

Features

Options

Completing Repair When Originally Promised

Sometimes extra ½ day required

0

Usually have wait 1-2 hours

1

Usually wait

30 mins

2

Always ready when promised

5

Ready ahead of time

10

Understanding Customer Needs

Not seem to care

0

Listens superficially only

1

Makes effort to understand

2

Always understand

4

Explanation of Changes

None

 

0

Usually incomplete or unclear

1

Somewhat difficult to understand

2

Clear and complete explanation

3

Contact When Additional Service/ Repair is Needed

Never call, proceed on their own

0

Call for major repairs only

1

Call for all extra repairs needed

3

Ease of Obtaining Appointment

At least 1 week in advance

0

Within same week

1

For next day

3

Same day usually possible

5

For this type of SIMALTO project, costs do differ between the options, but they can be difficult to identify exactly – what is the cost of staff training which encourage a friendly positive response from the telephonist rather than an obviously bored repetitive response?  Costs therefore tend to have narrower ranges than in the previous grids – maybe simply reflecting easy, medium, very difficult things to accomplish as 1, 2, 4 points say.  

However the mere attempt to cost this grid can be informative to the client for its own sake.  Benchmarking customer perceptions, finding their priorities and tracking perceptions of key positions over time are the main applications of this type of grid, together with predicting ROI from alternative investment scenarios the client could initiate.

(4)        Defining Option Packages to Enhance Use of An Existing Product, e.g. Bank account/cards

Features

Options

Cash Withdrawal Charge

$2.00

0

$1.50

1

$1.00

2

Free

4

Interest on Credit Balance

None

0

1%

2

2%

4

3%

6

4%

8

Discounted Travel Insurance

None

0

Self only

1

Self and family

4

Air Miles For Use

None

0

1 mile for $5

2

1 mile for $3

4

Card Protection – Cancels All Cards If Stolen

No

0

Yes, at $15 per year

2

Yes, free

6

Maximum Daily ATM Cash

$500

0

$1000

1

$2000

2

Up to credit limit

3

Free Purchase Protection

No

0

100 days for up to $2000

1

100 days for up to $25000

3

Ticket Service – 24 Hour Notice to Book Sports, Theatre, Etc.

No

0

Yes – with $2 booking fee

2

Option grids such as this are often used to find “packages” to enhance loyalty of existing customers, or entice rival brand users.  Besides finding customer priorities for different options – either singly or in combination (frequent travellers may like the “travel package” e.g. no foreign exchange charges, lost card replacement, hotel bookings, etc.) such grids may often be linked with a payment price for various bundles of benefit.  

So questions are asked “how likely would be to take up your 20 point package if it cost, say, $7 a month, $5 a month, $3 a month extra”.  Similarly for the 40-point package.  Then “gold star” and “platinum star” packs might be developed.  This type of application is increasingly being used by companies offering essentially commodity-type products, e.g. Utilities.

 See later sections on Customer Satisfaction and Product Development