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007 model
The 007 model assists organizations in enhancing products and services by focusing on desired outcomes and maximizing value. It emphasizes the importance of addressing specific business challenges, such as improving checkout conversion rates and revenue, through a structured approach of gathering data, creating measurable target outcomes, and exploring actionable options. Ultimately, the model advocates for continuous adaptation and improvement based on measured results and value creation.
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007 model
- 1. What is the007 model? The 007 model helps organizations improve their products and services by focusing attention on the desired outcomes and the options for maximizing value. © 007 model 1
- 2. A case study Oneof our clients, is a big e-commerce platform. The market is very competitive and they are slowly losing market share. They want to improve three business outcomes: 1. Increase revenue 2. Increase market share 3. Increase customer satisfaction © 007 model 2
- 3. We start withthe problem or opportunity © 007 model 3
- 4. The problems “Our customersare not buying enough of our products, causing us to lose revenue and market share” “Customers say our website is difficult to use, and hard to find what they want” © 007 model 4
- 5. We need tounderstand more © 007 model 5
- 6. Gather data We gatherinformation from customer service, speaking to the users of the website, and review the website analytics. 45% leave at checkout-shipping 29% leave at checkoutpayment Analysis – page load ` > 7 seconds page load = bounce rates of 85% 15% leave at checkoutconfirmation Analysis - users 11% proceed to checkoutcomplete “Site too slow” “Can’t pay” “Confusing” 11% total © 007 model 6
- 7. Discover – whatwe find out Only 11% of people who start the checkout process actually buy something. 85% of users abandon checkout when it takes more than 7 seconds to load. Customers call customer service as checkout is confusing and products are hard to find. © 007 model 7
- 8. Our insights 1. Peopledon’t buy when pages take too long to load 1. The checkout experience prevents people completing purchases © 007 model 8
- 9. Create target outcomes ©007 model 9
- 10. Make them measurable Outcomesare the desired results that deliver value. Examples • Increase revenue by 15% • Increase checkout conversion rates by 19% • Decrease time to create a report by 4 minutes © 007 model 10
- 11. Use target outcomesto improve practically anything Business outcomes Product outcomes Increase revenue by 15% Increase checkout conversion rates Process improvement Service outcomes Decrease time to approve new requests by 3 days Decrease cost to provision environments by 25% © 007 model 11
- 12. How to createa Target Outcome Give it a name in verb + noun phrase form Increase checkout conversion rates Baseline: 11% Target: 30% Set a baseline Set a target e.g. Currently only 11% of people complete checkout e.g. 30% of people complete checkout © 007 model 12
- 13. You can linkhigh level outcomes to lower levels - it’s fractal High level business outcomes Product and service outcomes Increase revenue Increase # successful purchases Increase payment options Increase customer satisfaction Improve site performance © 007 model 13
- 14. Create Options OptionA Option B Option C © 007 model 14
- 15. Options are theoutputs or actions we take to achieve the outcomes. Option Setup local datacenter Improve page load speed Option Improve the network Increase checkout conversion rates Option Cache page elements Decrease customer service complaints Option Redesign checkout experience Option Add payment options © 007 model 15
- 16. How to createan option Start with the Target Outcome Increase checkout conversion rates Brainstorm ideas that might help achieve the outcome Option Redesign checkout experience Option Improve page performance © 007 model 16
- 17. Work out howto measure progress Option Redesign checkout experience Decrease time to find products Measure options with target outcomes. Reduce customer service complaints © 007 model 17
- 18. You can linkoutcomes and options Decrease time to find products Option Increase revenue Option Redesign the checkout experience Fix pay.htm Reduce complaints Option Redesign search results Sell more products Increase customer satisfaction (NPS) Option Increase checkout conversion rates Option Setup local datacenter Option Improve page performance Decrease page load time Option Cache page elements Option Improve the network © 007 model 18
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- 20. Which options shouldwe do first? We can guess, or we can test with an experiment ? Option Decrease page load time Experiment Setup local datacenter Setup one server test with 1% of traffic Option Experiment Cache page elements Test caching elements on the payment page © 007 model 20
- 21. Visually track outcomes andoptions during delivery Outcomes Options In Progress Done Research Clickstream analysis Split test redesign Option Decrease page load time Research Redesign search results Decrease time to find products Research Setup local datacenter Datacenter split test Australia Option Research Research Cache page elements Test caching one page Trace route analysis Option © 007 model 21
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- 23. How much progress didwe make? Decrease time to find products Current: 5 minutes Option Baseline: Target: 7 minutes We saved 2 minutes < 3 minutes Redesign checkout process Reduce customer complaints Current: 190 calls per day Baseline: 250 calls per day Target: We reduced calls by 60 per day < 150 calls per day © 007 model 23
- 24. How did weimpact the next level target outcomes? Option Redesign the checkout experience Increase checkout conversion rates Current:1 7% Baseline: 11% Decrease time to find products Target:30 % Reduce customer complaints We made 6% improvement! © 007 model 24
- 25. How much value didwe create? Increase revenue Increase checkout conversion rates Each 1% improvement = $1.2 million 6% improvement = $7.2 million annually! © 007 model 25
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- 27. Choose to delivermore or discover new options Do we keep investing in this option or invest elsewhere? How much is it costing us for the return on our investment? © 007 model 27
- 28. Choose to delivermore or discover new options Deliver until you reach your target outcomes or it is costing more than the value returned compared to other options. © 007 model 28
- 29. The more youimprove your capabilities and learning, the faster you go Decrease deployment time Improve quality © 007 model 29
- 30. Continue to discoveroptions and deliver outcomes 007 style. © 007 model 30