ama/aquent : the roi of user experience design
DESCRIPTION
Did you know that your users are only a click or tap away from leaving you for your competitors? In an ever-increasingly competitive environment, it's critical your users have a great experience each and every time they use your product. In this webcast, Willy Lai will share what he has learned over his 18 year UX career with PayPal, Intuit, eBay, AOL, and numerous start-ups in Silicon Valley.TRANSCRIPT
Did you know that your users are only a click or tap away from leaving you for your competitors? In an ever-increasingly competitive environment, it's critical your users have a great experience each and every time they use your product.
In this webcast, Willy Lai will share what he has learned over his 18 year UX career with PayPal, Intuit, eBay, AOL, and numerous start-ups in Silicon Valley.
The ROI of User Experience Design
The ROI of User Experience Design
Willy LaiOctober 2014Copyright © 2014 by Willy Lai
What I’ll Cover
Defining User Experience (UX) Design
The ROI of Bad UX Design
The ROI of Good UX Design
Designing Good UX
User Experience (UX)“a person’s perceptions and responses that result from the use or anticipated use of a product, system, or service.”International Organization for Standardization, ISO 9241-210
Design transitive verb1 : to create, fashion, execute, or construct according to plan : devise, contrive a: to conceive and plan out in the mind b: to have as a purpose: intend
c: to devise for a specific function or end3 archaic : to indicate with a distinctive mark, sign, or name 4 a : to make a drawing, pattern, or sketch of b : to draw the plans for
merriam-webster.com
User Experience Design
to devise for desired user perceptions and responses that result from the use or anticipated use of a product, system, or service
The ROI of Bad UX Design
“No design works unless it embodies ideas that are held common by the people for whom the object is intended.”
Adrian Forty
It takes only 1/20th of a second to decide if you like a website.(Source: Gitte Lindgaard, Gary Fernandes, Cathy Dudek, J. Brown, March 2006, Behavior and Information Technology: “Attention Web Designers: You have 50 milliseconds to make a good first impression!”)
70% of the customers abandoned purchases because of bad user experience. (Red Signal, Fireclick / Digital River, 2012)
80% of customers abandon a mobile site if they have a bad user experience.(Limelight Networks, Inc., 2011)
67% of users say that a poor Web site experience negatively affects their opinion of a brand.(Forrester, 2008, July 28 UI Customer Experience Online Survey)
Decreased conversionDecreased average order valueDecreased trafficDecreased revenuesDecreased market shareDecreased customer satisfactionDecreased customer loyaltyNegative brand perceptionIncreased time to marketIncreased development costsIncreased maintenance costsIncreased redesign costsIncreased customer service costs
Bad UX design is bad for business.
The ROI of Good UX Design
“Good design is good business.”
Thomas J. Watson Jr.
Increased conversionIncreased average order value Increased trafficIncreased revenuesIncreased market shareIncreased customer satisfactionIncreased customer loyaltyImproved brand perceptionDecreased time to marketDecreased development costsDecreased maintenance costsDecreased redesign costsDecreased customer service costs
Average ROI of usability redesign is 83%.(Nielsen Norman Group, 2008)
Every $1 invested in ease of use returns between $10 and 100.(IBM)
Up to 41% less abandonment rates than poorly designed sites. (Forrester “Best Practices in User Experience Design”, 2009)
A well-designed site can have up to a 200% higher visit-to-order conversion rate than a poorly designed site. And visit-to-lead conversion rates can be more than 400% higher on sites with a superior user experience. (Forrester “Best Practices in User Experience Design”, 2009)
15.8% fewer customers do business with competitors.(Source: Forrester “Best Practices in User Experience Design”, 2009)
Companies monetize loyal customers 2.4 times more than neutral customers. (Strategic Data Consulting, Special Report: UX Business impacts and ROI, 2009)
16.6% more customers are likely to recommend.(Source: Forrester, Best Practices in User Experience, 2009)
An investment portfolio formed in 2007 of select companies known for successful UX, outperformed market indices and generated 37% growth. (Strategic Data Consulting, Special Report: UX Business impacts and ROI, 2009)
Before After
potential increase for sign-up conversions
+118% conversions
Before After(Source: abtests.com)
+201% conversions
Before After(Source: visualwebsiteoptimizer.com)
+182% average order value, +114% revenues
Before After(Source: abtests.com)
Before After
+$500 million in revenues
(Source: GKF SirValUse, March 2013 )
Good UX design is good for business.
Designing Good UX
“I never design a building before I’ve seen the site and met the people who will be using it.”
Frank Lloyd Wright
Design is creative problem solving.
User Desirable Usable Useful
DesirableUsableUseful
PullTraditional Approach
Traditional development processes in which the end-users are given a “finished” software product that may not fit their needs.
User-Centered Design
A design process in which the end-users of a product are involved throughout the life cycle of the product, including the early-stages.
Users
Desirable,Usable,Useful
UX Design Problem (Opportunity)
Business Viable
Technology Feasible
UX Design Problem (Opportunity)
Users
Desirable,Usable,Useful
Sweet
Spot
Sweet
Spot
Users
Desirable,Usable,Useful
Sweet
Spot
Sweet
SpotNotFeasible
NotDesirable,
Usable,Useful
NotProfitable
Sweet
Spot
TechnologyBusiness
Users
Desirable,Usable,Useful
User Experience Design
(Jesse James Garrett, 2000 “Elements of User Experience”)
Strategy
Business GoalsIncrease sign-up conversionsIncrease sales conversionsIncreased product awarenessDecreased customer service callsIncrease retention rateRebranding
User NeedsImproved comprehension, ease of sign-upImproved ease of purchaseImproved discoverabilityImproved findabilityIncreased user engagementImproved brand perception
Scope
Concepts Business(importance)
Users (importance)
Technology(feasibility)
Comparison Chart 3 3 3
Pre-packaged Bundles 3 3 2
Fast Finder Dropdown 2 2 2
Personalization 2 2 1
Single log-in 1 2 1
Structure
Skeleton
Surface
Key Takeaways
Bad UX Design- bad for users AND business- helps your competition
Good UX Design- good for users AND business- competitive advantage- short-term and long-term value- more than skin deep
Designing Good UX- involve users early and often- isn’t just about users- target “sweet spot” of users, business & technology
