THE TRADE-OFF MAP: Simply Mapping All Customer Needs, Selections, and Experiences in a Market

Inexpensively Leapfrogging the Competition
THE TRADE-OFF MAPSimply Mapping All Customer Needs, Selections, and Experiences in a MarketDr. Rod King

DELIGHT-PAIN BALANCE Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
MARKET (CUSTOMER MAIN DESIRED EXPERIENCE/INTENT/NEED/OBJECTIVE/JOB): …………………………………………………………………..……….
DELIGHT (Fidelity)
PAIN (Inconvenience)
Quality (Content/Performance)
Cost (Price)
Differentiation (Social Status/Cachet)
Inaccessibility/Unavailability
Personalization (Identity/Character)
Complexity (Time)
TOOL
ALTERNATIVES: ………………
Trade-off Quotient (TQ)
= Pain/Delight
= Inconvenience/Fidelity
= Customer Exp. Quotient
SELECTION/ACTION: ………
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

TRADE-OFF PARADIGMFactors for Selecting Alternative Products, Services, and Business Models in a Market
Customer Experience Cycle: * Awareness * Order/Request * Purchase * Delivery/Storage * Main Usage * Supplementary/Complementary Usage & Context * Maintenance * Disposal

TRADE-OFF MAP for a Market(“Trade-off Equation” by Dr. Rod King: Trade-off Quotient = Pain/Delight = Customer Experience Quotient)
Zero Trade-off
(“What customers ultimately want:
Free, Perfect, Now”)
MARKET (CUSTOMER JOB): ………………………………….
Period/Year: …………….…………………………………………..
High
Luxury Spot
Disruption Spot
(+): DELIGHT
Low
Strategic Choice
Low
High
(-): PAIN

VISUALLY ANALYZING A MARKET
Identifying gaps and non-customers
Patterns in the evolution of products, services, and business models/markets
Degree of Trade-off of product/service
Value Quotient of product/service
IMPROVING CUSTOMER EXPERIENCES
Maximizing customer fidelity (delight)
Minimizing inconvenience (pain)
Significantly reducing the Degree of Trade-off in products and services
Greatly increasing the Value Quotient
SIMPLIFYING COMPETITVE ANALYSIS
Visual Benchmarking (Profiling)
Visual Positioning (Branding)
Competitive (Relative) Degree of Trade-off & Switching
Competitive Value Quotient
VISUALLY MAKING BETTER DECISIONS
Visual decision-making relating to:
Hit Zone: SuperHit/Sweet Spot/
Luxury Spot/Disruption Spot
Fidelity Belly: Oasis/Volcano/Green Ocean/No Man’s Land/Red Ocean
BENEFITS OF
THE TRADE-OFF MAP
(Trade-Off Analysis & Decision-making)
PREDICTING ‘HITS’ & ‘FLOPS’
Design goals for ‘Hit’ products/services
Competitive Degree of Trade-off
Competitive Value Quotient (VQ)
Evaluating Unique Value Propositions
Determining in what spot to invest
VISUAL COMPETITIVE STRATEGIES
Fidelity Strategy for Value Chain
Inconvenience Strategy for Value Chain
SuperHit Strategy (“existing market”)
Zero Trade-off Strategy (“new or hybrid ecosystem; uncontested market”)
VISUAL BUSINESS MODEL INNOVATION
Redesigning business model/value chain:
SuperHit
Sweet Spot
Luxury Spot
Disruption Spot
VISUAL BUSINESS INTELLIGENCE/MNGT
Self-monitoring & management of performance of product/service
Tracking and monitoring of competitors
Tracking push and pull effects of technological innovation & competition

TRADE-OFF MAP Showing the Hit Zone & Fidelity BellyStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
Zero Trade-off
(cf. “Wrecking-ball moment”)
‘Hit’ Zone
Period/Year: …………….…………………………………………..
High
Luxury Spot
Disruption Spot
DELIGHT:
Fidelity
Low
Strategic Choice
Fidelity Belly
(Super-)convenience
Low
High
PAIN: Inconvenience

SUPERHIT
Google – Search (Knowledge)
Dell (Knowledge)
Amazon.com (Knowledge/Retail)
Swatch (Consumer Accessory)
SWEET SPOT
Cirque du Soleil (Entertainment)
Target (Retail)
Borders (Knowledge)
Barnes & Noble (Knowledge)
FedEx (Transportation – Packages)
Examples of
PRODUCTS/SERVICES
IN
THE HIT ZONE
(2009)
LUXURY SPOT
iPhone(Communication/Computing)
Disneyland (Entertainment)
Porsche (Transportation)
Singapore Airlines (Transportation)
Louis Vuitton(Fashion)
DISRUPTION SPOT
Southwest Airlines (Transportation)
Nintendo – Wii(Consumer Electronics)
Wal-Mart (Retailer); IKEA (Furniture)
YouTube (Knowledge – Media)
Netflix (Entertainment – Media)

AVAILABILITY/ACCESSIBILITY
Exclusive
Rare
COST (PRICE)
Expensive
Premium price
SOCIAL AURA & CACHET
High social aura and value
High social cachet
Cool/Creative/Rebellious
Hot/Unique
A “treat”
IDENTITY (‘CHARACTER’)
Unique/Not one of the crowd or masses
Rare
Special place and social context
Privileged/Elite/Cognoscenti
Characteristics & Strategies of
PRODUCTS/SERVICES
IN
QUALITY (CONTENT/PERFORMANCE)
Hard-to-beat level of fidelity
Business requires strong and unique core competence
Maintaining luxury spot is difficult due to disruptive technology and innovation
THE LUXURY SPOT
(“Super-fidelity”)
LOVE (LOYALTY/FUN)
Customers love product/service
Easily recognizable brand
Easily gains media attention
Great customer service
BUSINESS MODEL (SIMPLICITY)
Relies on niche or well-off customers
Customers are in the ‘short head’ of the customer spectrum (top of pyramid)
Higher profit margin
Big budget PR/advertising
NEED
Customers don’t really need to have (all features of) product/service
Customers can live without product/ service since it is not a ‘basic’ need

ACCESSIBILITY/AVAILABILITY
Relatively ubiquitous
Easy to access, get, and/or use
Wide coverage
COST (PRICE)
Inexpensive
Low price/Relatively cheap/Free
SOCIAL AURA & CACHET
Low or no social aura
Low or no social cachet
IDENTITY (‘CHARACTER’)
Usually has bland identity
Not special
Often involves commoditization
Common/the masses
PRODUCTS/SERVICES
IN
QUALITY (CONTENT/PERFORMANCE)
Good enough-quality; hybrid; prototype
Hard-to-beat level of convenience
Simple to use; focus is on core function
Many iterations for higher convenience
Requires disruptive technology/model
THE DISRUPTION SPOT
(“Super-convenience”)
LOVE (LOYALTY/FUN)
Customers habitually need product/ service especially at lowest price
Brand is not a darling of the media
Customers do not have strong loyalty to product/service
BUSINESS MODEL (SIMPLICITY)
Relies on mass market; word of mouth
Customers are in ‘long tail’ of customer spectrum (bottom of pyramid)
Lower profit margin
Requires economies of scale & high vol.
NEED
Customers desperately or daily need product/service
Customers can hardly live without product/service

TRADE-OFF STRATEGY For Luxury SpotStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
Name of Business: ………………………………………………………………………………………………….… Year: ……………………
Sector/Ecosystem/Industry: ………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
ELEMENTS OF TRADE-OFF STRATEGY FOR LUXURY SPOT-PRODUCT/SERVICE:
Trade-off (Value Chain) Strategy
DELIGHT (Fidelity) TACTICS:
Eliminate ……………………………………………
- Reduce ……………………………..…..……………
- Increase ……………………….……….……………
- Create/Procure ……………….…….……………
PAIN (Inconvenience) TACTICS:
Eliminate ……………………………………………
- Reduce ……………………………..…..……………
- Increase ……………………….……….……………
Create/Procure ……………….…….……………
Customer Value Proposition
High performance (brand) at exclusive price
Targeted Customer Segment(Interviewees)
Well-to-do customers in the ‘short head’
Customer Experience/Value Proposition: …………………………………………………………………………….…………………
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

TRADE-OFF STRATEGY For Disruption SpotStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
Name of Business: ………………………………………………………………………………………………….… Year: ……………………
Sector/Ecosystem/Industry: ………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
ELEMENTS OF TRADE-OFF STRATEGY FOR DISRUPTION SPOT-PRODUCT/SERVICE:
Trade-off (Value Chain) Strategy
DELIGHT (Fidelity) TACTICS:
Eliminate ……………………………………………
- Reduce ……………………………..…..……………
- Increase ……………………….……….……………
PAIN (Inconvenience) TACTICS:
Eliminate ……………………………………………
- Reduce ……………………………..…..……………
- Increase ……………………….……….……………
Customer Value Proposition
Good enough-performance (quality) at a low price
Targeted Customer Segment(Interviewees)
The masses/customers in ‘long tail’
Customer Experience/Value Proposition: …………………………………………………………………………….…………………
Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://businessmodels.ning.com & http://twitter.com/RodKuhnKing

TRADE-OFF INTERACTION DIAGRAMInteraction of Factors Influencing Selection of a Product, Service, or Business Model
Quality
(Content/ Performance)
Need
Accessibility/
Availability
CUSTOMER
Love (Loyalty/Fun)
Cost (Price)
Social Aura/Cachet
Simplicity
Identity
(‘Character’)

OASIS
Segway(Transportation)
Hulu(Knowledge – Internet TV)
Music CDs (Entertainment)
Starbucks (Food/Entertainment)
Mariott Hotels (Hospitality)
VOLCANO
Amazon – Kindle (Knowledge)
Movie Theaters (Entertainment)
Blu-Ray (Entertainment – DVD Player)
Apple’s Newton – PDA (Knowledge – Computing)
Examples of
PRODUCTS/SERVICES
TRAPPED IN
THE FIDELITY BELLY
(2009)
NO MAN’S LAND
Traditional Newspapers (Knowledge)
Earthlink(Knowledge – Internet)
EarlyElectric Cars (Transportation)
GREEN OCEAN
Small independent bookstores (Knowledge)
NHL – TV Broadcast (Entertainment)
Special products/services or niches: kids (toys); elderly; disable
RED OCEAN
Yugo Car (Transportation)
Webvan(Food)
Kodal’s 1st Digital Camera (Knowledge)
Teledesic(Communications)
General Magic’s Telescript(Knowledge)

OASIS
Good enough to use
Technology is in up/down transition
Apathetic or disappointed customers: neither loved nor desperately needed product
VOLCANO
Expensive; Largely unavailable
Appeals to early adopters or fans
Difficult to use; less frequently used
Most customers are dissatisfied and looking for better alternatives
PRODUCTS/SERVICES
IN
THE FIDELITY BELLY
NO MAN’S LAND
Existing customers are dissatisfied and looking for better alternatives
Declining customer base
Obsolete or inappropriate technology
GREEN OCEAN
Less frequently used
Low level or commoditized technology
Commodity; ‘bloody’ price wars
Existing customers are dissatisfied; niche such as kids, elderly, and/or disable
RED OCEAN
Expensive; Largely unavailable
Difficult to use; less frequently used
Existing customers dislike product/ service and eventually stop using it
Mismatched technology: ahead of time

CUSTOMER NEEDS, SELECTIONS, AND EXPERIENCESStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
Zero Trade-off-Experience
(cf. “Wrecking-ball
moment”)
‘Hit’ Zone
Period/Year: …………….…………………………………………..
High Fidelity
SuperHit-Need/Experience
Sweet Spot-Need/Experience
Luxury Spot-Need/Experience
Disruption Spot-Need/Experience
DELIGHT:
Fidelity
Low Fidelity
Fidelity Belly
(Super-)convenience
Inconvenience
PAIN: Inconvenience

CATEGORIES OF CUSTOMER NEEDS, SELECTIONS, AND EXPERIENCESStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
Zero Trade-off-Experience
‘Hit’ Zone
Period/Year: …………….…………………………………………..
High-end
SuperHit-Need/Experience
Sweet Spot-Need/Experience
Luxury Spot-Need/Experience
Disruption Spot-Need/Experience
Oasis-
Need/Experience
Volcano- Need/Experience
DELIGHT:
Fidelity
Low-end
Green Ocean- Need/Experience
No Man’s Land- Need/Experience
Red Ocean- Need/Experience
Fidelity Belly
Convenience
Inconvenience
PAIN: Inconvenience

TRADE-OFF MAP For Computing MarketPatterns in the Evolution of Computing Ecosystems
Zero Trade-off
‘Hit’ Zone
MARKET (CUSTOMER JOB): COMPUTING at Work/Home/Outdoors Period/Year: ……………………..
SuperHit –
Mobile/Handheld Computer
Internet
Sweet Spot –
Mini-Computer (Server)
Luxury Spot –
Mainframe/ Super-Computer
High-end
Disruption Spot –
Desktop Computer
Laptop Computer
Oasis –
Analog Mini-Computer
Volcano –
Analog Mainframe Computer
DELIGHT:
Fidelity
Green Ocean –
Calculator
No Man’s Land –
Slide Rule
Red Ocean –
Calculation (Log) Charts
Low-end
Fidelity Belly
Convenience
Inconvenience
PAIN: Inconvenience

WHO?
WHAT?
WHERE?
WHY?
MARKET
(CUSTOMER DESIRE/ NEED/JOB):
WHEN?
HOW MUCH?
HOW?
WHAT NEXT?

TRADE-OFF VOICE
Collecting information on total customer experience for designing ‘hit’ products, services, and business models
TRADE-OFF PARADIGM
Defining and describing factors of
trade-off or customer experience:
Delight vs. Pain
Fidelity vs. Inconvenience
Trade-off (Customer Experience) Quotient
TRADE-OFF SWOT
Collecting and comparing present and future trade-offs of competing products, services, and businesses
TRADE-OFF MAP
Simply organizing and making decisions for ‘hit’ products, services, and business models
Observing patterns in the evolution of systems, subsystems, and environment
SUITE OF TOOLS FOR
VISUAL TRADE-OFF ANALYSIS & DECISION-MAKING
TRADE-OFF SPECTRUM
Easily organizing and making decisions for ‘hit’ products, services, and business models
Designing competitive advantage strategies for ‘hits’
TRADE-OFF STRATEGY (RADAR)
Redesigning a business model and strategy for a spot in the ‘Hit’ Zone
Generating strategies and tactics for a redesigned value chain
TRADE-OFF INTERACTION DIAGRAM
Developing scenarios for the interaction between selection factors for alternative products, services, and/or business models
TRADE-OFF PERF. DASHBOARD
Monitoring the trade-off and performance of the value chain of a product, service, or business model as well as those of competitors

SUPER-FIDELITY OR SUPER-CONVENIENCE
FIDELITY VS. CONVENIENCE
FIDELITY MIRAGE
FIDELITY BELLY
THE 8 PILLARS OF
THE FIDELITY SWAP
CONCEPT
(TRADE-OFF)
WRECKING-BALL MOMENTS
SOCIAL ACCELERANTS
TECH EFFECT (INNOVATION)
“HIT ZONE”

BRAND EQUITY
PROFIT (REVENUE/COST)
COMPETITIVE POSITION IN SECTOR
CUSTOMER LOYALTY
Higher Level Criteria for
ASSESSING IMPACTS OF A BUSINESS STRATEGY
CORE COMPETENCE (KNOWLEDGE)
SHAREHOLDER VALUE
STRATEGIIC FIT IN VALUE NETWORK
ECOSYSTEM GROWTH/SUSTAINABLILITY

REFERENCES
Christensen, C.M. (1997) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press.
Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press.
King, R. (2009) Fractal Box Thinking: A Simple Visual Tool for Total Problem Solving and Innovation. Fresno, California: TOAD Publishing.
Maney, K. (2009) Trade-Off. New York: Broadway Books.
Verganti, R. (2009) Design-Driven Innovation. Boston: Harvard Business School (HBS) Press.
Dr. Rod King

Thought Leader, Speaker, Consultant, and Trainer on Trade-Off Mapping & Customer Experience Management
rodkuhnking@sbcglobal.net & http://tradeoffmap.ning.com
http://twitter.com/RodKuhnKing

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THE TRADE-OFF MAP: Simply Mapping All Customer Needs, Selections, and Experiences in a Market

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