In the last post, we discussed the tradeoff of exposing personal data to garner more personalized user experiences. In Part 2, we will discover a model for the point of equilibrium: the intersection where user experience is the most optimized, given the amount of data the user is willing to make available.
Those like myself with backgrounds in economics love a good chart (don’t we all?), and will be familiar with the concept of equilibrium—the point where supply meets demand that dictates at what price and quantity a particular product will get sold. One could imagine a somewhat analogous model for the user experience vs. user cost—primarily regarding privacy, as other product-specific variables like latency or battery life factor into UX—as more personal data is made available to a company. Both will increase but follow different curves, and there is a point of equilibrium where they meet. That is, an optimal user experience given how much data someone is willing to expose. Beyond this point, someone will opt not to make any more data available, or even stop using a product entirely. Before this point, a better experience can be provided by collecting and utilizing more data. Since most companies want to provide the best experience and collect as much data as possible, they should aim to be at this point of equilibrium for each user.
The specific model will of course change for each individual and product, but in many instances a generalized one may look something like this:
Some initial observations:
Stay tuned for Part 3, where we will outline ways that technologists and marketers can maximize user experience, minimize user cost, and push out the point of equilibrium as far as possible
As Exponential’s Director of Product Management, Tom Bash is responsible for leading product management, external go-to-market strategy and internal operations for Exponential’s engagement product suite. He is responsible for the ongoing development and success of Exponential’s video, mobile and platform products, including VDX and EDGE.
Prior to this role, Tom led all mobile product initiatives at Exponential. Prior to his roles at the company, Tom was the first product manager at mobile location-based gaming startup Booyah, which included working on multiple top 10 App Store launches, and building a business intelligence platform on top of Hadoop. Before that, he was a consultant, conducting financial and economic analysis and market research for Fortune 500 companies.
Tom holds a BA in Business Administration with a focus in Finance from the University of Washington. He is based in Exponential's headquarters in Emeryville, CA.
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