THE TRADE-OFF MAPSimply Mapping All Customer Needs, Selections, and Experiences in a Market
Dr. Rod King
Inexpensively Leapfrogging the Competition
ALTERNATIVES: ………………Trade-off Quotient (TQ)= Pain/Delight= Inconvenience/Fidelity= Customer Exp. Quotient
SELECTION/ACTION: ………
DELIGHT-PAIN BALANCE Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
• Personalization (Identity/Character)
• Differentiation (Social Status/Cachet)
• Quality (Content/Performance)
DELIGHT (Fidelity)
• Complexity (Time)
• Inaccessibility/Unavailability
• Cost (Price)
PAIN (Inconvenience)
TOOL
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
MARKET (CUSTOMER MAIN DESIRED EXPERIENCE/INTENT/NEED/OBJECTIVE/JOB): …………………………………………………………………..……….
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
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. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
TRADE-OFF MAP for a Market(“Trade-off Equation” by Dr. Rod King: Trade-off Quotient = Pain/Delight = Customer Experience Quotient)
(-): PAIN
(+): DELIGHTDisruption Spot
Luxury Spot
Strategic Choice
High
Low
Low High
MARKET (CUSTOMER JOB): ………………………………….Period/Year: …………….…………………………………………..
Zero Trade-off(“What customers ultimately want:Free, Perfect, Now”)
VISUALLY MAKING BETTER DECISIONS
Visual decision-making relating to:• Hit Zone: SuperHit/Sweet Spot/Luxury Spot/Disruption Spot• Fidelity Belly: Oasis/Volcano/Green Ocean/No Man’s Land/Red Ocean
BENEFITS OF THE TRADE-OFF MAP(Trade-Off Analysis &
Decision-making)
PREDICTING ‘HITS’ & ‘FLOPS’
• Design goals for ‘Hit’ products/services• Competitive Degree of Trade-off• Competitive Value Quotient (VQ)• Evaluating Unique Value Propositions • Determining in what spot to invest
VISUAL COMPETITIVE STRATEGIES
• Fidelity Strategy for Value Chain• Inconvenience Strategy for Value Chain• SuperHit Strategy (“existing market”)• Zero Trade-off Strategy (“new or hybrid ecosystem; uncontested market”)
VISUALLY ANALYZING A MARKET
• Identifying gaps and non-customers• Patterns in the evolution of products, services, and business models/markets• Degree of Trade-off of product/service• Value Quotient of product/service
VISUAL BUSINESS MODEL INNOVATION
Redesigning business model/value chain:• SuperHit• Sweet Spot• Luxury Spot• Disruption Spot
VISUAL BUSINESS INTELLIGENCE/MNGT
• Self-monitoring & management of performance of product/service• Tracking and monitoring of competitors• Tracking push and pull effects of technological innovation & competition
IMPROVING CUSTOMER EXPERIENCES
• Maximizing customer fidelity (delight)• Minimizing inconvenience (pain)• Significantly reducing the Degree of Trade-off in products and services• Greatly increasing the Value Quotient
SIMPLIFYING COMPETITVE ANALYSIS
• Visual Benchmarking (Profiling)• Visual Positioning (Branding)• Competitive (Relative) Degree of Trade-off & Switching• Competitive Value Quotient
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
TRADE-OFF MAP Showing the Hit Zone & Fidelity Belly Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
PAIN: Inconvenience
DELIGHT:Fidelity
‘Hit’ Zone
Disruption Spot
Luxury Spot
Zero Trade-off(cf. “Wrecking-ball moment”)
Strategic Choice
High
Low
Low High
Fidelity Belly(Super-)convenience
MARKET (CUSTOMER JOB): ………………………………….Period/Year: …………….…………………………………………..
Examples of PRODUCTS/SERVICES
INTHE HIT ZONE
(2009)
LUXURY SPOT
• iPhone (Communication/Computing)• Disneyland (Entertainment)• Porsche (Transportation)• Singapore Airlines (Transportation)• Louis Vuitton (Fashion)
DISRUPTION SPOT
• Southwest Airlines (Transportation)• Nintendo – Wii (Consumer Electronics)• Wal-Mart (Retailer); IKEA (Furniture)• YouTube (Knowledge – Media)• Netflix (Entertainment – Media)
SUPERHIT
• Google – Search (Knowledge)• Dell (Knowledge)• Amazon.com (Knowledge/Retail)• Swatch (Consumer Accessory)
SWEET SPOT
• Cirque du Soleil (Entertainment)• Target (Retail)• Borders (Knowledge)• Barnes & Noble (Knowledge)• FedEx (Transportation – Packages)
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
IDENTITY (‘CHARACTER’)
• Unique/Not one of the crowd or masses• Rare• Special place and social context• Privileged/Elite/Cognoscenti
Characteristics & Strategies of PRODUCTS/SERVICES
IN
QUALITY (CONTENT/PERFORMANCE)
• Hard-to-beat level of fidelity• Business requires strong and unique core competence• Maintaining luxury spot is difficult due to disruptive technology and innovation
LOVE (LOYALTY/FUN)
• Customers love product/service• Easily recognizable brand• Easily gains media attention• Great customer service
AVAILABILITY/ACCESSIBILITY
• Exclusive• Rare
BUSINESS MODEL (SIMPLICITY)
• Relies on niche or well-off customers• Customers are in the ‘short head’ of the customer spectrum (top of pyramid)• Higher profit margin• Big budget PR/advertising
NEED
• Customers don’t really need to have (all features of) product/service• Customers can live without product/ service since it is not a ‘basic’ need
COST (PRICE)
• Expensive• Premium price
SOCIAL AURA & CACHET
• High social aura and value• High social cachet• Cool/Creative/Rebellious• Hot/Unique• A “treat”
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
THE LUXURY SPOT(“Super-fidelity”)
IDENTITY (‘CHARACTER’)
• Usually has bland identity• Not special• Often involves commoditization• Common/the masses
Characteristics & Strategies of PRODUCTS/SERVICES
IN
QUALITY (CONTENT/PERFORMANCE)
• Good enough-quality; hybrid; prototype• Hard-to-beat level of convenience• Simple to use; focus is on core function• Many iterations for higher convenience• Requires disruptive technology/model
LOVE (LOYALTY/FUN)
• Customers habitually need product/ service especially at lowest price• Brand is not a darling of the media• Customers do not have strong loyalty to product/service
ACCESSIBILITY/AVAILABILITY
• Relatively ubiquitous• Easy to access, get, and/or use• Wide coverage
BUSINESS MODEL (SIMPLICITY)
• Relies on mass market; word of mouth• Customers are in ‘long tail’ of customer spectrum (bottom of pyramid)• Lower profit margin• Requires economies of scale & high vol.
NEED
• Customers desperately or daily need product/service• Customers can hardly live without product/service
COST (PRICE)
• Inexpensive• Low price/Relatively cheap/Free
SOCIAL AURA & CACHET
• Low or no social aura• Low or no social cachet
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
THE DISRUPTION SPOT(“Super-convenience”)
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
Customer Experience/Value Proposition: …………………………………………………………………………….…………………
TRADE-OFF STRATEGY For Luxury SpotStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
Name of Business: ………………………………………………………………………………………………….… Year: ……………………
Sector/Ecosystem/Industry: ………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
Quality (Content/ Performance)
Accessibility/Availa-bility
Cost (Price)
Social Aura/Cachet
Identity ('Character')
Simplicity
Love (Loyalty/Fun)
Need
0
5
10
Trade-Off Strategy for Typical Product/Service inLuxury Spot
Zero Trade-off Luxury Spot
ELEMENTS OF TRADE-OFF STRATEGY FOR LUXURY SPOT-PRODUCT/SERVICE:
Trade-off (Value Chain) Strategy• DELIGHT (Fidelity) TACTICS:- Eliminate ……………………………………………- Reduce ……………………………..…..……………- Increase ……………………….……….……………- Create/Procure ……………….…….……………
• PAIN (Inconvenience) TACTICS:- Eliminate ……………………………………………- Reduce ……………………………..…..……………- Increase ……………………….……….……………- Create/Procure ……………….…….……………
Customer Value PropositionHigh performance (brand) at exclusive price
Targeted Customer Segment (Interviewees)Well-to-do customers in the ‘short head’
Copyright 2009. Dr. Rod King. [email protected] & http://businessmodels.ning.com & http://twitter.com/RodKuhnKing
TRADE-OFF STRATEGY For Disruption SpotStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
Name of Business: ………………………………………………………………………………………………….… Year: ……………………
Sector/Ecosystem/Industry: ………………………………………………………………………………………………………………………
Mission/Vision: ……………………………..……………………………………………………………………………………….…………………
Quality (Content/ Performance)
Accessibility/Availa-bility
Cost (Price)
Social Aura/Cachet
Identity ('Character')
Simplicity
Love (Loyalty/Fun)
Need
0
5
10
Trade-Off Strategy for Typical Product/Service in Disruption Spot
Zero Trade-off Disruption Spot
ELEMENTS OF TRADE-OFF STRATEGY FOR DISRUPTION SPOT-PRODUCT/SERVICE:
Trade-off (Value Chain) Strategy• DELIGHT (Fidelity) TACTICS:- Eliminate ……………………………………………- Reduce ……………………………..…..……………- Increase ……………………….……….……………- Create/Procure ……………….…….……………
• PAIN (Inconvenience) TACTICS:- Eliminate ……………………………………………- Reduce ……………………………..…..……………- Increase ……………………….……….……………- Create/Procure ……………….…….……………
Customer Value PropositionGood enough-performance (quality) at a low price
Targeted Customer Segment (Interviewees)The masses/customers in ‘long tail’
Customer Experience/Value Proposition: …………………………………………………………………………….…………………
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
TRADE-OFF INTERACTION DIAGRAMInteraction of Factors Influencing Selection of a Product, Service, or Business Model
CUSTOMER
Quality(Content/
Performance)Accessibility/
Availability
Social Aura/Cachet
Need
Simplicity
Love (Loyalty/Fun) Cost (Price)
Identity(‘Character’)
Examples of PRODUCTS/SERVICES
TRAPPED INTHE FIDELITY BELLY
(2009)
NO MAN’S LAND
• Traditional Newspapers (Knowledge)• Earthlink (Knowledge – Internet)• Early Electric Cars (Transportation)
GREEN OCEAN
• Small independent bookstores (Knowledge)• NHL – TV Broadcast (Entertainment)• Special products/services or niches: kids (toys); elderly; disable
RED OCEAN
• Yugo Car (Transportation)• Webvan (Food)• Kodal’s 1st Digital Camera (Knowledge)• Teledesic (Communications)• General Magic’s Telescript (Knowledge)
OASIS
• Segway (Transportation)• Hulu (Knowledge – Internet TV)• Music CDs (Entertainment)• Starbucks (Food/Entertainment)• Mariott Hotels (Hospitality)
VOLCANO
• Amazon – Kindle (Knowledge)• Movie Theaters (Entertainment)• Blu-Ray (Entertainment – DVD Player)• Apple’s Newton – PDA (Knowledge – Computing)
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
Characteristics & Strategies of PRODUCTS/SERVICES
INTHE FIDELITY BELLY
NO MAN’S LAND
• Existing customers are dissatisfied and looking for better alternatives• Declining customer base• Obsolete or inappropriate technology
GREEN OCEAN
• Less frequently used• Low level or commoditized technology• Commodity; ‘bloody’ price wars• Existing customers are dissatisfied; niche such as kids, elderly, and/or disable
RED OCEAN
• Expensive; Largely unavailable• Difficult to use; less frequently used• Existing customers dislike product/ service and eventually stop using it• Mismatched technology: ahead of time
OASIS
• Good enough to use• Technology is in up/down transition• Apathetic or disappointed customers: neither loved nor desperately needed product
VOLCANO
• Expensive; Largely unavailable• Appeals to early adopters or fans• Difficult to use; less frequently used• Most customers are dissatisfied and looking for better alternatives
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
CUSTOMER NEEDS, SELECTIONS, AND EXPERIENCESStage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
PAIN: Inconvenience
DELIGHT:Fidelity
‘Hit’ Zone
Fidelity Belly(Super-)convenience
High Fidelity
Low Fidelity
Inconvenience
MARKET (CUSTOMER JOB): ………………………………….Period/Year: …………….…………………………………………..
Disruption Spot-Need/Experience
SuperHit-Need/Experience
Sweet Spot-Need/Experience
Luxury Spot-Need/Experienc
e
Zero Trade-off-Experience(cf. “Wrecking-ball moment”)
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
PAIN: Inconvenience
DELIGHT:Fidelity
‘Hit’ Zone
Convenience Inconvenience
High-end
Low-end
Disruption Spot-Need/Experience
SuperHit-Need/Experience
Green Ocean- Need/Experience
Oasis-Need/Experience
Sweet Spot-Need/Experience
No Man’s Land- Need/Experience
Volcano- Need/Experience
Luxury Spot-Need/Experienc
e
Red Ocean- Need/Experience
Fidelity Belly
MARKET (CUSTOMER JOB): ………………………………….Period/Year: …………….…………………………………………..
CATEGORIES OF CUSTOMER NEEDS, SELECTIONS, AND EXPERIENCES Stage of Customer Experience Cycle: Adoption/Usage/Maintenance/Disposal
Zero Trade-off-Experience(cf. “Wrecking-ball moment”)
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
TRADE-OFF MAP For Computing MarketPatterns in the Evolution of Computing Ecosystems
PAIN: Inconvenience
DELIGHT:Fidelity
‘Hit’ Zone
Convenience Inconvenience
High-end
Low-end
Disruption Spot –• Desktop Computer• Laptop Computer
SuperHit –• Mobile/Handheld
Computer• Internet
Green Ocean –• Calculator
Oasis –• Analog Mini-
Computer
Sweet Spot –• Mini-Computer
(Server)
No Man’s Land –• Slide Rule
Volcano –• Analog Mainframe
Computer
Luxury Spot –• Mainframe/
Super-Computer
Red Ocean –• Calculation (Log)
Charts
Fidelity Belly
Zero Trade-off(cf. “Wrecking-ball moment”)
MARKET (CUSTOMER JOB): COMPUTING at Work/Home/Outdoors Period/Year: ……………………..
WHY?
MARKET(CUSTOMER DESIRE/
NEED/JOB):
WHEN?
HOW MUCH?
WHO?
HOW? WHAT NEXT?
WHAT? WHERE?
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
TRADE-OFF MAP
Simply organizing and making decisions for ‘hit’ products, services, and business modelsObserving 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 modelsDesigning 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 VOICE
Collecting information on total customer experience for designing ‘hit’ products, services, and business models
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
TRADE-OFF PARADIGM
Defining and describing factors of trade-off or customer experience: • Delight vs. Pain• Fidelity vs. Inconvenience• Trade-off (Customer Experience) Quotient
TRADE-OFF SWOT
Collecting and comparing present and future trade-offs of competing products, services, and businesses
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
FIDELITY BELLY
THE 8 PILLARS OFTHE FIDELITY SWAP
CONCEPT (TRADE-OFF)
WRECKING-BALL MOMENTS
SOCIAL ACCELERANTS
SUPER-FIDELITY OR SUPER-CONVENIENCE
TECH EFFECT (INNOVATION) “HIT ZONE”
FIDELITY VS. CONVENIENCE FIDELITY MIRAGE
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
CUSTOMER LOYALTY
Higher Level Criteria forASSESSING IMPACTS OF A
BUSINESS STRATEGY
CORE COMPETENCE (KNOWLEDGE)
SHAREHOLDER VALUE
BRAND EQUITY
STRATEGIIC FIT IN VALUE NETWORK ECOSYSTEM GROWTH/SUSTAINABLILITY
PROFIT (REVENUE/COST) COMPETITIVE POSITION IN SECTOR
Copyright 2009. Dr. Rod King. [email protected] & http://tradeoffmap.ning.com & http://twitter.com/RodKuhnKing
1. Christensen, C.M. (1997) The Innovator’s Dilemma. Boston: Harvard Business School (HBS) Press.
2. Kim, W.C.; Mauborgne, R. (2005) Blue Ocean Strategy. Boston: Harvard Business School (HBS) Press.
3. King, R. (2009) Fractal Box Thinking: A Simple Visual Tool for Total Problem Solving and Innovation. Fresno, California: TOAD Publishing.
4. Maney, K. (2009) Trade-Off. New York: Broadway Books.
5. 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
[email protected] & http://tradeoffmap.ning.comhttp://twitter.com/RodKuhnKing
REFERENCES