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

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

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We are at the start of a revolution in customer experience innovation. This revolution is being led by the concept of "trade-off" which is increasingly getting more attention. Thanks to Kevin Maney's ...

We are at the start of a revolution in customer experience innovation. This revolution is being led by the concept of "trade-off" which is increasingly getting more attention. Thanks to Kevin Maney's new book, "Trade-Off: Why Some Things Catch On and Others Don't."

This presentation contains the background as well as a tool for mapping customer trade-offs as well as improving and innovating on customer experiences. The presentation includes ideas from Kevin Maney's "Trade-Off" book. This presentation also contains archetypal trade-off maps for examples in the Fidelity Belly as well as Hit Zone for products and services. Starbucks is featured as an example of a business that is currently in the Fidelity Belly.

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

    • 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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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
      MARKET (CUSTOMER JOB): ………………………………….
      Period/Year: …………….…………………………………………..
      High
      Luxury Spot
      Disruption Spot
      DELIGHT:
      Fidelity
      Low
      Strategic Choice
      Fidelity Belly
      (Super-)convenience
      Low
      High
      PAIN: Inconvenience
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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)
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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
      Characteristics & Strategies of
      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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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 ……………………….……….……………
      • Create/Procure ……………….…….……………
      • PAIN (Inconvenience) TACTICS:
      • Eliminate ……………………………………………
      - Reduce ……………………………..…..……………
      - Increase ……………………….……….……………
      • Create/Procure ……………….…….……………
      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’)
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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)
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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
      Characteristics & Strategies of
      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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • CUSTOMER NEEDS, SELECTIONS, AND EXPERIENCESStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
      Zero Trade-off-Experience
      (cf. “Wrecking-ball
      moment”)
      ‘Hit’ Zone
      MARKET (CUSTOMER JOB): ………………………………….
      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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • CATEGORIES OF CUSTOMER NEEDS, SELECTIONS, AND EXPERIENCESStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
      Zero Trade-off-Experience
      (cf. “Wrecking-ball moment”)
      ‘Hit’ Zone
      MARKET (CUSTOMER JOB): ………………………………….
      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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • TRADE-OFF MAP For Computing MarketPatterns in the Evolution of Computing Ecosystems
      Zero Trade-off
      (cf. “Wrecking-ball moment”)
      ‘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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • WHO?
      WHAT?
      WHERE?
      WHY?
      MARKET
      (CUSTOMER DESIRE/ NEED/JOB):
      WHEN?
      HOW MUCH?
      HOW?
      WHAT NEXT?
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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”
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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
      Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
    • 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