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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 future. See the video here: http://vimeo.com/44074477
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— “A Magazine Is an iPad That Does Not Work” from UserExperienceWorks
At a train station in Seoul, South Korea
valueIt makes money
How might we increase our sales volume without adding more stores?”
“
valueIt makes new money
systemsIntegrated and scalable
valueIt makes new money
systemsIntegrated and scalable
peopleIt’s useful + it just works
valueIt makes new money
systemsIntegrated and scalable
peopleIt’s useful + it just works
journeysA few sensible touchpoints
valueIt makes new money
systemsIntegrated and scalable
peopleIt’s useful + it just works
journeysA few sensible touchpointspropositionLow risk, big learning
valueIt makes money
systemsIntegrated and scalable
peopleIt’s useful + it just works
journeysA few sensible touchpointspropositionLow risk, big learning
Brandon Schauer@brandonschauer
The MX Outlook 2012
IN OUR HEARTS <3
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”
— photo by bcmacsac1
Interactions
Processes
Touchpoints
Systems
Experience
Inside-out
Interactions
Processes
Touchpoints
Systems
Experience
Outside-in
IN OUR BRAINS
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
Optimization New Service Development
New Market Development
DiversificationNEW CUSTOMERS
EXISTING CUSTOMERS
EXISTING CAPABILITIES
NEW CAPABILITIES
— riff off of the Ansoff Matrix, circa 1957
value
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
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
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.
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
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
THIS ISN’T A CINDERELLA STORY
Government doing itvalue
Government doing itvalue
Government doing itvalue
Government doing itvalue
Government doing itvalue
Government doing itvalue
Government doing itvalue
bit.ly/mxsnaptax MX
Mature businesses doing itvalue
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
DON’T CONFUSE BEING PASSIONATEWITH BEING RIGHT
the point
HAVE IMPACT
Brandon Schauer@brandonschauer
The MX Outlook 2012
Thanks!