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The roi of good user experience SDC 2013

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This presentation was given at SDC 2013. It is a summary of figures for ROI of UX , but most of all an explanation why ROI is totally out of scope when disussing "why UX".

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The roi of good user experience SDC 2013

  1. 1. ROI of UX
  2. 2. Hi! My name is Ingrid • BSC Systems Engineering • Usability evangelist 1995 • inUse agency 2002 • 2005: BIM evangelist (Business Impact MappingIngrid Domingues and Management)ingrid.domingues@inuse.se
  3. 3. The investors’ idea
  4. 4. 42 (14) %2011 Chaos report from Standish group
  5. 5. 49(57) 9(29)
  6. 6. Why?1. Weak definition of requirements2. Poor communication3. Stakeholders lack commitment
  7. 7. Why UX is the solutionUX is a proccess where1. Requirements evolve from high level to detail2. Visual, interactive design suggetstions are communicated3. Evaluations, walk-trought and other teqniquies enhances stakeholders understanding
  8. 8. Sucessful UX activities• Stakeholder interviews• Observe users• First design the most important flows• Test in use, early and continously• Follow patterns for detailing design
  9. 9. 3 areas for ROI of UX 1. Efficiency (task oriented) solutions 2. Commercial solutions 3. Project and Maintenance
  10. 10. ROI types – task oriented• Increased efficiency• Shorter time to learn• Decreased user errors• Decreased costs for user support
  11. 11. ROI : Decreased user errors
  12. 12. ROI : Decreased cost for user support”Hidden support costs for coworkershelping others is estimated to between6000 to 15000 dollar each yearfor every computer” Bulkeley 1992
  13. 13. ROI types – commercial• Increased customer satisfaction and strengthened brand• Increased sales • Existing customers buy more when visiting the site • More and returning customers• Decreased customer support costs
  14. 14. ROI : increased sales “One study estimated that improving the customer experience increases the number of buyers by 40% and increase order size by 10%.” Creative Good, 2000
  15. 15. ROI : customer support costs Clean, Cutting-Edge UI Design Cuts McAfees Support Calls by 90% Software CEO, 2004
  16. 16. ROI from UX – project & maintenance• Savings gained from making changes earlier in the design process• Clear and focused requirements, less time spent on guessing• Reduced costs for support• Less time spent on discussing bad design alternatives• Reduced costs for maintenance
  17. 17. ROI: Less time spent on discussing bad design alternatives 4700 190 Apply established patterns for interaction eg ”the moment of seduction”
  18. 18. ROI : reduced time (cost) for maintenanceSolutions that follows a clear pattern for UI issaving money.The User Interface of software is: – 47‐66% of a project’s total code – 80% of the unforeseen fixes required (the other 20% are bugs)
  19. 19. “The average business metrics improvementafter a usability redesign is now 83%.This is substantially less than 6 years ago(135%), but ROI remains high becauseusability is still cheap relative to gains.” Jacob Nielsen, 2008
  20. 20. ROI of UX
  21. 21. 1 Based on a fatal misconceptionManagers think that design is extra work,therefore they need to find out if it`s worth it.“…whether design is necessary or affordable arequite beside the point: design is inevitable.The alternative to good design is bad design,not no design at all” Douglas Martin Book Design
  22. 22. 2 Not applicable in the formal senseROI is a quantitative financial approach andfocus on values that are forseen an easilymeasured.UX is about finding new ways of helping peopledo what they want in smarter ways, andchanging peoples behavioirs.The UXdesign process is itself a way ofchanging business.
  23. 23. 3 Managers seldom check the result70% do not have a structured follow up onther IT investments Öhrlings PWC 2007
  24. 24. This is what really matters 1. Knowing what to do 2. Producing good design 3. Managing sucess
  25. 25. BUX1. Knowing what to do2. Producing good design3. Managing sucess
  26. 26. BUX1. Knowing what to do2. Producing good design3. Managing sucess
  27. 27. Business Impact Map
  28. 28. Customer journey
  29. 29. Satisfaction I find more than expected • • Related content Persona pages I get what I want • Suggestions based on previous use of the service ”The focused” TARGET FOR I find what I want • FIRST RELEASE Good search functionality = • - Suggestive search - Easy text input (Box) Effective browse - Latest content displayed on top Hard to find/Can’t find Not available • The content is not in the service Time Use Grow
  30. 30. We’re drowning!!inUse helped a customer prioritize CR:s, based on a Business Impact Map.Savings: 1/3 of all incoming CR could be neglected 1,5 year of development time
  31. 31. BUX1. Knowing what to do2. Producing good design3. Managing sucess
  32. 32. User needs means business
  33. 33. Business needs gives the framework Average tip +12% “The $144,146,165 Button” = 694 520 000 SEK May 13, 2012
  34. 34. Good design is emotional
  35. 35. BUX1. Knowing what to do2. Producing good design3. Managing sucess
  36. 36. Business Impact Management1. Know what to do2. Start with the most important flows3. Know what to test = the things that users evaluate = the product capaibilities that serves their needs.4. Feed back to managers by progress measured in fulfillment of user needs, not only time and costs.
  37. 37. A/B & multi-variate tests
  38. 38. B Knowing what to do Producing good designU Managing sucessX