the mx outlook — mx conference 2012

— “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!