The MX Outlook — MX Conference 2012

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2012 already looks like a promising ––yet rowdy––year for UX leadership. With greater awareness of UX comes greater expectations. Brandon’s MX Outlook frames the work and the opportunities in our near …

2012 already looks like a promising ––yet rowdy––year for UX leadership. With greater awareness of UX comes greater expectations. Brandon’s MX Outlook frames the work and the opportunities in our near future.

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  • 1. — “A Magazine Is an iPad That Does Not Work” from UserExperienceWorks
  • 2. At a train station in Seoul, South Korea
  • 3. value It makes money
  • 4. “How might we increase our sales volume without adding more stores?”
  • 5. value It makes new money systems Integrated and scalable
  • 6. value It makes new money systems Integrated and scalable people It’s useful + it just works
  • 7. value It makes new money systems Integrated and scalable people It’s useful + it just works journeys A few sensible touchpoints
  • 8. 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
  • 9. 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
  • 10. The MX Outlook 2012 Brandon Schauer @brandonschauer
  • 11. IN OUR HEARTS <3
  • 12. 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
  • 13. — photo by bcmacsac1
  • 14. Experience Interactions Touchpoints Processes Systems Inside-out
  • 15. Experience Interactions Touchpoints Processes Systems Outside-in
  • 16. IN OUR BRAINS
  • 17. 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
  • 18. 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
  • 19. 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
  • 20. 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
  • 21. 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
  • 22. 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
  • 23. 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
  • 24. THIS ISN’T A CINDERELLA STORY
  • 25. value Government doing it
  • 26. value Government doing it
  • 27. value Government doing it
  • 28. value Government doing it
  • 29. value Government doing it
  • 30. value Government doing it
  • 31. value Government doing it
  • 32. value Mature businesses doing it bit.ly/mxsnaptax MX
  • 33. 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
  • 34. the point DON’T CONFUSE BEING PASSIONATE WITH BEING RIGHT
  • 35. HAVE IMPACT
  • 36. The MX Outlook 2012 Brandon Schauer @brandonschauer
  • 37. Thanks!