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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  • 1. Inexpensively Leapfrogging the Competition
    THE TRADE-OFF MAPSimply Mapping All Customer Needs, Selections, and Experiences in a MarketDr. Rod King
  • 2. 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)
    • 3. Cost (Price)
    • 4. Differentiation (Social Status/Cachet)
    • 5. Inaccessibility/Unavailability
    • 6. Personalization (Identity/Character)
    • 7. 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
  • 8. 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
  • 9. 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
  • 10. VISUALLY ANALYZING A MARKET
    • Identifying gaps and non-customers
    • 11. Patterns in the evolution of products, services, and business models/markets
    • 12. Degree of Trade-off of product/service
    • 13. Value Quotient of product/service
    IMPROVING CUSTOMER EXPERIENCES
    • Maximizing customer fidelity (delight)
    • 14. Minimizing inconvenience (pain)
    • 15. Significantly reducing the Degree of Trade-off in products and services
    • 16. Greatly increasing the Value Quotient
    SIMPLIFYING COMPETITVE ANALYSIS
    • Visual Benchmarking (Profiling)
    • 17. Visual Positioning (Branding)
    • 18. Competitive (Relative) Degree of Trade-off & Switching
    • 19. 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
    • 20. Competitive Degree of Trade-off
    • 21. Competitive Value Quotient (VQ)
    • 22. Evaluating Unique Value Propositions
    • 23. Determining in what spot to invest
    VISUAL COMPETITIVE STRATEGIES
    • Fidelity Strategy for Value Chain
    • 24. Inconvenience Strategy for Value Chain
    • 25. SuperHit Strategy (“existing market”)
    • 26. Zero Trade-off Strategy (“new or hybrid ecosystem; uncontested market”)
    VISUAL BUSINESS MODEL INNOVATION
    Redesigning business model/value chain:
    VISUAL BUSINESS INTELLIGENCE/MNGT
    • Self-monitoring & management of performance of product/service
    • 30. Tracking and monitoring of competitors
    • 31. 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
  • 32. 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
  • 33. SUPERHIT
    • Google – Search (Knowledge)
    • 34. Dell (Knowledge)
    • 35. Amazon.com (Knowledge/Retail)
    • 36. Swatch (Consumer Accessory)
    SWEET SPOT
    • Cirque du Soleil (Entertainment)
    • 37. Target (Retail)
    • 38. Borders (Knowledge)
    • 39. Barnes & Noble (Knowledge)
    • 40. FedEx (Transportation – Packages)
    Examples of
    PRODUCTS/SERVICES
    IN
    THE HIT ZONE
    (2009)
    LUXURY SPOT
    • iPhone(Communication/Computing)
    • 41. Disneyland (Entertainment)
    • 42. Porsche (Transportation)
    • 43. Singapore Airlines (Transportation)
    • 44. Louis Vuitton(Fashion)
    DISRUPTION SPOT
    • Southwest Airlines (Transportation)
    • 45. Nintendo – Wii(Consumer Electronics)
    • 46. Wal-Mart (Retailer); IKEA (Furniture)
    • 47. YouTube (Knowledge – Media)
    • 48. Netflix (Entertainment – Media)
    Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
  • 49. AVAILABILITY/ACCESSIBILITY
    COST (PRICE)
    • Expensive
    • 51. Premium price
    SOCIAL AURA & CACHET
    • High social aura and value
    • 52. High social cachet
    • 53. Cool/Creative/Rebellious
    • 54. Hot/Unique
    • 55. A “treat”
    IDENTITY (‘CHARACTER’)
    • Unique/Not one of the crowd or masses
    • 56. Rare
    • 57. Special place and social context
    • 58. Privileged/Elite/Cognoscenti
    Characteristics & Strategies of
    PRODUCTS/SERVICES
    IN
    QUALITY (CONTENT/PERFORMANCE)
    • Hard-to-beat level of fidelity
    • 59. Business requires strong and unique core competence
    • 60. Maintaining luxury spot is difficult due to disruptive technology and innovation
    THE LUXURY SPOT
    (“Super-fidelity”)
    LOVE (LOYALTY/FUN)
    • Customers love product/service
    • 61. Easily recognizable brand
    • 62. Easily gains media attention
    • 63. Great customer service
    BUSINESS MODEL (SIMPLICITY)
    • Relies on niche or well-off customers
    • 64. Customers are in the ‘short head’ of the customer spectrum (top of pyramid)
    • 65. Higher profit margin
    • 66. Big budget PR/advertising
    NEED
    • Customers don’t really need to have (all features of) product/service
    • 67. 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
  • 68. ACCESSIBILITY/AVAILABILITY
    • Relatively ubiquitous
    • 69. Easy to access, get, and/or use
    • 70. Wide coverage
    COST (PRICE)
    • Inexpensive
    • 71. Low price/Relatively cheap/Free
    SOCIAL AURA & CACHET
    • Low or no social aura
    • 72. Low or no social cachet
    IDENTITY (‘CHARACTER’)
    • Usually has bland identity
    • 73. Not special
    • 74. Often involves commoditization
    • 75. Common/the masses
    Characteristics & Strategies of
    PRODUCTS/SERVICES
    IN
    QUALITY (CONTENT/PERFORMANCE)
    • Good enough-quality; hybrid; prototype
    • 76. Hard-to-beat level of convenience
    • 77. Simple to use; focus is on core function
    • 78. Many iterations for higher convenience
    • 79. Requires disruptive technology/model
    THE DISRUPTION SPOT
    (“Super-convenience”)
    LOVE (LOYALTY/FUN)
    • Customers habitually need product/ service especially at lowest price
    • 80. Brand is not a darling of the media
    • 81. Customers do not have strong loyalty to product/service
    BUSINESS MODEL (SIMPLICITY)
    • Relies on mass market; word of mouth
    • 82. Customers are in ‘long tail’ of customer spectrum (bottom of pyramid)
    • 83. Lower profit margin
    • 84. Requires economies of scale & high vol.
    NEED
    • Customers desperately or daily need product/service
    • 85. Customers can hardly live without product/service
    Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
  • 86. 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:
    • 87. Eliminate ……………………………………………
    - Reduce ……………………………..…..……………
    - Increase ……………………….……….……………
    - Create/Procure ……………….…….……………
    • PAIN (Inconvenience) TACTICS:
    • 88. 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
  • 89. 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:
    • 90. Eliminate ……………………………………………
    - Reduce ……………………………..…..……………
    - Increase ……………………….……….……………
    • Create/Procure ……………….…….……………
    • 91. PAIN (Inconvenience) TACTICS:
    • 92. 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
  • 93. 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
  • 94. OASIS
    • Segway(Transportation)
    • 95. Hulu(Knowledge – Internet TV)
    • 96. Music CDs (Entertainment)
    • 97. Starbucks (Food/Entertainment)
    • 98. Mariott Hotels (Hospitality)
    VOLCANO
    • Amazon – Kindle (Knowledge)
    • 99. Movie Theaters (Entertainment)
    • 100. Blu-Ray (Entertainment – DVD Player)
    • 101. Apple’s Newton – PDA (Knowledge – Computing)
    Examples of
    PRODUCTS/SERVICES
    TRAPPED IN
    THE FIDELITY BELLY
    (2009)
    NO MAN’S LAND
    • Traditional Newspapers (Knowledge)
    • 102. Earthlink(Knowledge – Internet)
    • 103. EarlyElectric Cars (Transportation)
    GREEN OCEAN
    • Small independent bookstores (Knowledge)
    • 104. NHL – TV Broadcast (Entertainment)
    • 105. Special products/services or niches: kids (toys); elderly; disable
    RED OCEAN
    • Yugo Car (Transportation)
    • 106. Webvan(Food)
    • 107. Kodal’s 1st Digital Camera (Knowledge)
    • 108. Teledesic(Communications)
    • 109. General Magic’s Telescript(Knowledge)
    Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
  • 110. OASIS
    • Good enough to use
    • 111. Technology is in up/down transition
    • 112. Apathetic or disappointed customers: neither loved nor desperately needed product
    VOLCANO
    • Expensive; Largely unavailable
    • 113. Appeals to early adopters or fans
    • 114. Difficult to use; less frequently used
    • 115. 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
    • 116. Declining customer base
    • 117. Obsolete or inappropriate technology
    GREEN OCEAN
    • Less frequently used
    • 118. Low level or commoditized technology
    • 119. Commodity; ‘bloody’ price wars
    • 120. Existing customers are dissatisfied; niche such as kids, elderly, and/or disable
    RED OCEAN
    • Expensive; Largely unavailable
    • 121. Difficult to use; less frequently used
    • 122. Existing customers dislike product/ service and eventually stop using it
    • 123. Mismatched technology: ahead of time
    Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
  • 124. 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
  • 125. 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
  • 126. 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
    • 127. Internet
    Sweet Spot –
    • Mini-Computer (Server)
    Luxury Spot –
    • Mainframe/ Super-Computer
    High-end
    Disruption Spot –
    • Desktop Computer
    • 128. 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
  • 129. 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
  • 130. 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
    • 131. Fidelity vs. Inconvenience
    • 132. 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
  • 133. 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
  • 134. 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
  • 135. 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