We are at the start of a revolution in customer experience innovation. This revolution is being led by the concept of "trade-off" which is increasingly getting more attention. Thanks to Kevin Maney's new book, "Trade-Off: Why Some Things Catch On and Others Don't." This presentation contains the background as well as a tool for mapping customer trade-offs as well as improving and innovating on customer experiences. The presentation includes ideas from Kevin Maney's "Trade-Off" book. This presentation also contains archetypal trade-off maps for examples in the Fidelity Belly as well as Hit Zone for products and services. Starbucks is featured as an example of a business that is currently in the Fidelity Belly.

1. Inexpensively Leapfrogging the Competition THE TRADE-OFF MAPSimply Mapping All Customer Needs, Selections, and Experiences in a MarketDr. Rod King

3. Cost (Price)

4. Differentiation (Social Status/Cachet)

5. Inaccessibility/Unavailability

6. Personalization (Identity/Character)

7. Complexity (Time)TOOL ALTERNATIVES: ……………… Trade-off Quotient (TQ) = Pain/Delight = Inconvenience/Fidelity = Customer Exp. Quotient SELECTION/ACTION: ……… Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

8. TRADE-OFF PARADIGMFactors for Selecting Alternative Products, Services, and Business Models in a Market Customer Experience Cycle: * Awareness * Order/Request * Purchase * Delivery/Storage * Main Usage * Supplementary/Complementary Usage & Context * Maintenance * Disposal Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

9. TRADE-OFF MAP for a Market(“Trade-off Equation” by Dr. Rod King: Trade-off Quotient = Pain/Delight = Customer Experience Quotient) Zero Trade-off (“What customers ultimately want: Free, Perfect, Now”) MARKET (CUSTOMER JOB): …………………………………. Period/Year: …………….………………………………………….. High Luxury Spot Disruption Spot (+): DELIGHT Low Strategic Choice Low High (-): PAIN Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

11. Patterns in the evolution of products, services, and business models/markets

12. Degree of Trade-off of product/service

14. Minimizing inconvenience (pain)

15. Significantly reducing the Degree of Trade-off in products and services

17. Visual Positioning (Branding)

18. Competitive (Relative) Degree of Trade-off & Switching

20. Competitive Degree of Trade-off

21. Competitive Value Quotient (VQ)

22. Evaluating Unique Value Propositions

24. Inconvenience Strategy for Value Chain

25. SuperHit Strategy (“existing market”)

27. Sweet Spot

28. Luxury Spot

30. Tracking and monitoring of competitors

31. Tracking push and pull effects of technological innovation & competitionCopyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

32. TRADE-OFF MAP Showing the Hit Zone & Fidelity BellyStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal Zero Trade-off (cf. “Wrecking-ball moment”) ‘Hit’ Zone MARKET (CUSTOMER JOB): …………………………………. Period/Year: …………….………………………………………….. High Luxury Spot Disruption Spot DELIGHT: Fidelity Low Strategic Choice Fidelity Belly (Super-)convenience Low High PAIN: Inconvenience Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

34. Dell (Knowledge)

35. Amazon.com (Knowledge/Retail)

37. Target (Retail)

38. Borders (Knowledge)

39. Barnes & Noble (Knowledge)

41. Disneyland (Entertainment)

42. Porsche (Transportation)

43. Singapore Airlines (Transportation)

45. Nintendo – Wii(Consumer Electronics)

46. Wal-Mart (Retailer); IKEA (Furniture)

47. YouTube (Knowledge – Media)

48. Netflix (Entertainment – Media)Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

52. High social cachet

53. Cool/Creative/Rebellious

54. Hot/Unique

56. Rare

57. Special place and social context

59. Business requires strong and unique core competence

61. Easily recognizable brand

62. Easily gains media attention

64. Customers are in the ‘short head’ of the customer spectrum (top of pyramid)

65. Higher profit margin

67. Customers can live without product/ service since it is not a ‘basic’ needCopyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

69. Easy to access, get, and/or use

73. Not special

74. Often involves commoditization

76. Hard-to-beat level of convenience

77. Simple to use; focus is on core function

78. Many iterations for higher convenience

80. Brand is not a darling of the media

82. Customers are in ‘long tail’ of customer spectrum (bottom of pyramid)

83. Lower profit margin

85. Customers can hardly live without product/serviceCopyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

91. PAIN (Inconvenience) TACTICS:

93. TRADE-OFF INTERACTION DIAGRAMInteraction of Factors Influencing Selection of a Product, Service, or Business Model Quality (Content/ Performance) Need Accessibility/ Availability CUSTOMER Love (Loyalty/Fun) Cost (Price) Social Aura/Cachet Simplicity Identity (‘Character’) Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

95. Hulu(Knowledge – Internet TV)

96. Music CDs (Entertainment)

97. Starbucks (Food/Entertainment)

99. Movie Theaters (Entertainment)

100. Blu-Ray (Entertainment – DVD Player)

102. Earthlink(Knowledge – Internet)

104. NHL – TV Broadcast (Entertainment)

106. Webvan(Food)

107. Kodal’s 1st Digital Camera (Knowledge)

108. Teledesic(Communications)

109. General Magic’s Telescript(Knowledge)Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

111. Technology is in up/down transition

113. Appeals to early adopters or fans

114. Difficult to use; less frequently used

116. Declining customer base

118. Low level or commoditized technology

119. Commodity; ‘bloody’ price wars

121. Difficult to use; less frequently used

122. Existing customers dislike product/ service and eventually stop using it

123. Mismatched technology: ahead of timeCopyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

124. CUSTOMER NEEDS, SELECTIONS, AND EXPERIENCESStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal Zero Trade-off-Experience (cf. “Wrecking-ball moment”) ‘Hit’ Zone MARKET (CUSTOMER JOB): …………………………………. Period/Year: …………….………………………………………….. High Fidelity SuperHit-Need/Experience Sweet Spot-Need/Experience Luxury Spot-Need/Experience Disruption Spot-Need/Experience DELIGHT: Fidelity Low Fidelity Fidelity Belly (Super-)convenience Inconvenience PAIN: Inconvenience Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

125. CATEGORIES OF CUSTOMER NEEDS, SELECTIONS, AND EXPERIENCESStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal Zero Trade-off-Experience (cf. “Wrecking-ball moment”) ‘Hit’ Zone MARKET (CUSTOMER JOB): …………………………………. Period/Year: …………….………………………………………….. High-end SuperHit-Need/Experience Sweet Spot-Need/Experience Luxury Spot-Need/Experience Disruption Spot-Need/Experience Oasis- Need/Experience Volcano- Need/Experience DELIGHT: Fidelity Low-end Green Ocean- Need/Experience No Man’s Land- Need/Experience Red Ocean- Need/Experience Fidelity Belly Convenience Inconvenience PAIN: Inconvenience Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

129. WHO? WHAT? WHERE? WHY? MARKET (CUSTOMER DESIRE/ NEED/JOB): WHEN? HOW MUCH? HOW? WHAT NEXT? Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

131. Fidelity vs. Inconvenience

132. Trade-off (Customer Experience) QuotientTRADE-OFF SWOT Collecting and comparing present and future trade-offs of competing products, services, and businesses TRADE-OFF MAP Simply organizing and making decisions for ‘hit’ products, services, and business models Observing patterns in the evolution of systems, subsystems, and environment SUITE OF TOOLS FOR VISUAL TRADE-OFF ANALYSIS & DECISION-MAKING TRADE-OFF SPECTRUM Easily organizing and making decisions for ‘hit’ products, services, and business models Designing competitive advantage strategies for ‘hits’ TRADE-OFF STRATEGY (RADAR) Redesigning a business model and strategy for a spot in the ‘Hit’ Zone Generating strategies and tactics for a redesigned value chain TRADE-OFF INTERACTION DIAGRAM Developing scenarios for the interaction between selection factors for alternative products, services, and/or business models TRADE-OFF PERF. DASHBOARD Monitoring the trade-off and performance of the value chain of a product, service, or business model as well as those of competitors Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

133. SUPER-FIDELITY OR SUPER-CONVENIENCE FIDELITY VS. CONVENIENCE FIDELITY MIRAGE FIDELITY BELLY THE 8 PILLARS OF THE FIDELITY SWAP CONCEPT (TRADE-OFF) WRECKING-BALL MOMENTS SOCIAL ACCELERANTS TECH EFFECT (INNOVATION) “HIT ZONE” Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

134. BRAND EQUITY PROFIT (REVENUE/COST) COMPETITIVE POSITION IN SECTOR CUSTOMER LOYALTY Higher Level Criteria for ASSESSING IMPACTS OF A BUSINESS STRATEGY CORE COMPETENCE (KNOWLEDGE) SHAREHOLDER VALUE STRATEGIIC FIT IN VALUE NETWORK ECOSYSTEM GROWTH/SUSTAINABLILITY Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net &http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing

135. REFERENCES Christensen, C.M. (1997) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press. Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press. King, R. (2009) Fractal Box Thinking: A Simple Visual Tool for Total Problem Solving and Innovation. Fresno, California: TOAD Publishing. Maney, K. (2009) Trade-Off. New York: Broadway Books. Verganti, R. (2009) Design-Driven Innovation. Boston: Harvard Business School (HBS) Press. Dr. Rod King Thought Leader, Speaker, Consultant, and Trainer on Trade-Off Mapping & Customer Experience Management rodkuhnking@sbcglobal.net & http://tradeoffmap.ning.com http://twitter.com/RodKuhnKing