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— “A Magazine Is an iPad That Does Not Work” from UserExperienceWorks
At a train station in
Seoul, South Korea
value

It makes money
“How might we
increase our sales
volume without
adding more
stores?”
value

It makes new money
systems

Integrated and scalable
value

It makes new money
systems

Integrated and scalable
people

It’s useful + it just works
value

It makes new money
systems

Integrated and scalable
people

It’s useful + it just works
journeys

A few sensible touchpoints
value

It makes new money
systems

Integrated and scalable
people

It’s useful + it just works
journeys

A few sensible touchpoints
proposition

Low risk, big learning
value

It makes money
systems

Integrated and scalable
people

It’s useful + it just works
journeys

A few sensible touchpoints
proposition

Low risk, big learning
The MX Outlook
2012

Brandon Schauer
@brandonschauer
IN OUR HEARTS <3
362 firms
95% say they are
“customer focused”
80% say they deliver a
“superior experience”

How many of these
firms’ customers agree
that they deliver a
superior experience?

8%
from “Closing the Delivery Gap” by Bain & Company
— photo by bcmacsac1
Experience
Interactions
Touchpoints
Processes

Systems

Inside-out
Experience
Interactions
Touchpoints
Processes

Systems

Outside-in
IN OUR BRAINS
value
EXISTING
CAPABILITIES

NEW
CAPABILITIES

EXISTING
CUSTOMERS

Optimization

New Service
Development

NEW
CUSTOMERS

New Market
Development

Diversification

— riff off of the Ansoff Matrix, circa 1957
value
EXISTING
CAPABILITIES

NEW
CAPABILITIES

EXISTING
CUSTOMERS

Optimization

New Service
Development

NEW
CUSTOMERS

New Market
Development

Diversification

— riff off of the Ansoff Matrix, circa 1957
value Where a dollar/won of sales goes

RETAIL STORE SALES

89¢

for product

VIRTUAL STORE SALES
labor
marketing
overhead

89¢

for product

labor
marketing
overhead

location

location

profit

profit
value Where a dollar/won of sales goes

RETAIL STORE SALES

89¢

for product

VIRTUAL STORE SALES
labor
marketing
overhead

89¢

for product

labor
marketing
overhead

location

3%

location

profit

profit

PROFIT MARGIN

7%

PROFIT MARGIN
value Where a dollar/won of sales goes

UX managers can and should be
RETAIL STORE SALES
tapping new sources of revenue by
VIRTUAL STORE SALES
labor
labor
changing the economics.

89¢

for product

marketing
overhead

89¢

for product

marketing
overhead

location

3%

location

profit

profit

PROFIT MARGIN

7%

PROFIT MARGIN
value The value virtual stores add

RETAIL STORE

VIRTUAL STORE

100 Stores

25 Stores

500 Customers/store
$150 Average $/customer

200 Customers/store
$75 Average $/customer

$225,000

$26,250

10%

DAILY GROSS REVENUE

DAILY GROSS REVENUE

ADDITION
value The value virtual stores add

RETAIL STORE

VIRTUAL STORE

$225,000

$26,250

DAILY GROSS REVENUE

DAILY GROSS REVENUE

$2,250

$1,050

PER EACH ADDITIONAL STORE

PER EACH ADDITIONAL STORE
THIS ISN’T A
CINDERELLA
STORY
value Government doing it
value Government doing it
value Government doing it
value Government doing it
value Government doing it
value Government doing it
value Government doing it
value Mature businesses doing it

bit.ly/mxsnaptax

MX
value — Where should you be spending your time, your team’s time, your budget?
EXISTING
CAPABILITIES

NEW
CAPABILITIES

EXISTING
CUSTOMERS

Optimization

New Service
Development

NEW
CUSTOMERS

New Market
Development

Diversification
the point

DON’T CONFUSE
BEING PASSIONATE
WITH BEING RIGHT
HAVE IMPACT
The MX Outlook
2012

Brandon Schauer
@brandonschauer
Thanks!

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The MX Outlook — MX Conference 2012