The MX Outlook — MX Conference 2012
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Transcript of The MX Outlook — MX Conference 2012
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— “A Magazine Is an iPad That Does Not Work” from UserExperienceWorks
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At a train station in Seoul, South Korea
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valueIt makes money
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How might we increase our sales volume without adding more stores?”
“
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valueIt makes new money
systemsIntegrated and scalable
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valueIt makes new money
systemsIntegrated and scalable
peopleIt’s useful + it just works
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valueIt makes new money
systemsIntegrated and scalable
peopleIt’s useful + it just works
journeysA few sensible touchpoints
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valueIt makes new money
systemsIntegrated and scalable
peopleIt’s useful + it just works
journeysA few sensible touchpointspropositionLow risk, big learning
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valueIt makes money
systemsIntegrated and scalable
peopleIt’s useful + it just works
journeysA few sensible touchpointspropositionLow risk, big learning
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Brandon Schauer@brandonschauer
The MX Outlook 2012
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IN OUR HEARTS <3
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362 firms
95% say they are “customer focused”
from “Closing the Delivery Gap” by Bain & Company
How many of these firms’ customers agree that they deliver a superior experience?
8%
80% say they deliver a “superior experience”
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— photo by bcmacsac1
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Interactions
Processes
Touchpoints
Systems
Experience
Inside-out
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Interactions
Processes
Touchpoints
Systems
Experience
Outside-in
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IN OUR BRAINS
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value
NEW CUSTOMERS
EXISTING CUSTOMERS
EXISTING CAPABILITIES
NEW CAPABILITIES
— riff off of the Ansoff Matrix, circa 1957
Optimization New Service Development
New Market Development
Diversification
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Optimization New Service Development
New Market Development
DiversificationNEW CUSTOMERS
EXISTING CUSTOMERS
EXISTING CAPABILITIES
NEW CAPABILITIES
— riff off of the Ansoff Matrix, circa 1957
value
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RETAIL STORE SALES
labor
marketing
overhead
location
profit
VIRTUAL STORE SALES
89¢for product
89¢for product
labor
marketing
overhead
location
profit
Where a dollar/won of sales goesvalue
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RETAIL STORE SALES
89¢for product
labor
marketing
overhead
location
profit
VIRTUAL STORE SALES
89¢for product
labor
marketing
overhead
location
profit
3% PROFIT MARGIN 7% PROFIT MARGIN
Where a dollar/won of sales goesvalue
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7% PROFIT MARGIN
RETAIL STORE SALES
89¢for product
labor
marketing
overhead
location
profit
VIRTUAL STORE SALES
89¢for product
labor
marketing
overhead
location
profit
3% PROFIT MARGIN
Where a dollar/won of sales goesvalue
UX managers can and should be tapping new sources of revenue by changing the economics.
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RETAIL STORE VIRTUAL STORE
The value virtual stores add
Stores
Customers/store
Average $/customer
100
500
$150
Stores
Customers/store
Average $/customer
25
200
$75
$225,000DAILY GROSS REVENUE
$26,250DAILY GROSS REVENUE
10%ADDITION
value
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RETAIL STORE VIRTUAL STORE
The value virtual stores add
$225,000DAILY GROSS REVENUE
$26,250DAILY GROSS REVENUE
PER EACH ADDITIONAL STORE$2,250
PER EACH ADDITIONAL STORE$1,050
value
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THIS ISN’T A CINDERELLA STORY
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Government doing itvalue
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Government doing itvalue
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Government doing itvalue
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Government doing itvalue
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Government doing itvalue
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Government doing itvalue
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Government doing itvalue
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bit.ly/mxsnaptax MX
Mature businesses doing itvalue
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New Market Development
Optimization New Service Development
New Market Development
Optimization
Diversification
value — Where should you be spending your time, your team’s time, your budget?
NEW CUSTOMERS
EXISTING CUSTOMERS
EXISTING CAPABILITIES
NEW CAPABILITIES
New Service Development
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DON’T CONFUSE BEING PASSIONATEWITH BEING RIGHT
the point
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HAVE IMPACT
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Brandon Schauer@brandonschauer
The MX Outlook 2012
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Thanks!