ama/aquent : the roi of user experience design

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

Thank you!

Willy Laiwillylai@willylai.comhttp://www.linkedin.com/in/willylai