ROI of UX (User Experience)- Making a Strong Business Case for UX

MAKING A STRONG BUSINESS CASE FOR THE ROI of UX 1 User experience (UX) activities can reduce development inefficiencies In IT organizations, speed is paramount. 1 STOP WASTED DEVELOPMENT TIME 3 FOCUS ON GETTING THE USER INTERFACE (UI) RIGHT 50% The User Interface (UI) of software is: UX helps define usability requirements up front, avoiding re-work. 47-66% 40% of project's of the total code 2 REDUCE DEVELOPMENT TIME development effort User involvement helps improve decision making and prioritize dev tasks.2 80% of the unforeseen fixes 33-50% required (the other 20% are bugs) Usability activities help you save making changes later on when it's too expensive or too late." No. of possible design alternatives Cost of Change Launch Requirements Phase Development Phase 2 ROl gains are well documented by studies. User acceptance and user adoption are critical. Projects fail without happy users. 10% 72% 2 of projects fail due to lack of user acceptance. 8 Cite effective user adoption as key (vs 16% Software functionality). In marketing organizations, customer loyalty, customer retention, engagement, satisfaction and intention to purchase are all critical.especially now on mobile. ВEFORE AFTER An ecommerce site where product pages were optimized for mobile saw: LOGO HERO BANNER 30 50% 70% CALL US CONTACT US % increase in sales HOME READ OUR BLOG VIEW OUR PRODUCTS 0 decrease in Bounce Rate CONSULT WITH US 5 increase in quantity of products sold Only 3% 67% of users are more likely to purchase from a mobile friendly site." of sites are both fast and responsive on mobile.10 86% of users favor apps over mobile sites (May 2014) 10 3 Understand the hidden ROI benefits of User Experience What user experience gives you 12 - Lower costs for customer acquisition. Defining Return on Investment - Lower support costs. Assessment technique (evaluate capital expenditures) - Increased retention. Financial decisions (measure performance, profitability etc) Assess companies rate of return - Increased market share, all of which makes for a healthier bottom line. Assess management effectiveness Multiple factors and decisions to weigh ROI =Estimate Hidden ROI comes from the result of an overall effort, many benefits of a UX effort are often unnoticed. Understanding Return on Investment Friedlob and Plewa (1996) 83% UX increases Key Performance Indicators (KPI's) by 6 4 Track the goals and metrics of User Centered Design Goals Measurements Ở Improve Performance Reduce number of user errors Increase ease of use Increase ease of learning Increase traffic/ audience size Increase number of return visitors when appropriate (retain users) O Increase Exposure Increase number of new visitors (attract users) Increase number of visits from search O Improve Credibility Increase user satisfaction Increase trust in the system Increase number of visits referral Reduce development costs Reduce development time Reduce maintenance costs Reduce Resource Burden Reduce redesign costs Decrease support costs Reduce training needed Reduce documentation costs E Increase Sales Increase transactions/ purchases Increase product sales 5 Proven ROI gains from User Experience Overall revenue/conversion boost 1 (loyalty) Lower support calls 2 (cost) Reduced development waste 5 (efficiency) Increase customer satisfaction (also B2B) Reduces the risk of building the 6 wrong thing! of executives thought that improving the user 93% experience was a top strategic priority.'T It's no wonder companies are prioritizing user experience User Experience has a long history of building brands. Jeff Bezos funded customer experience over advertising 100:0 in the first year and continues to invest heavily on optimizing the website user experience. amazon.com intui. Tom Proulx was a co-founder and first programmer of Intuit and a pioneer of usability testing in the 1980s. Google Founders Larry Page and Sergey Brin both attended usability classes at Stanford and continue to innovate heavily with UX today. Went from failure to $10B valuation- attributes it to user research "When we started talking to our customers and seeing how they used our service, it was the defining moment of success that turned the company around."- Mike Gebbia, Air BnB 22 airbnb 6 ROI of User Centered Design is often hidden. 3 Steps to User Centered Design- the industry and ISC standard methodology used to improve user interfaces and user experience. 1 Personas 2 Wireframing Rapid prototyping has become popular and for good reason. In one study:17 Many dev teams end up re-working because marketing changes their mind. 50% Without quality personas to base requirements on teams will lose out on up more accurate estimates for build time and cost to 80% 4X reduced requests for clarification by the development team the return 25% 16 reduced rework and bug fixes post-launch 3 Usability Testing 90% reduction in support Usability testing makes teams smarter by improving design decision making. costs after usability testing (MacAfee ProtectionPilot software).18 7 Companies who focus on User Experience even perform better financially UX leaders outperform their peers' 12 443% 6-Year Stock Performance of Customer Experence Leaders vs, Laggards vs. S&P 500 (2007-2012) -34% The Top 10 customer experience leaders outperformed the S&P with close to triple the returns, at a cumulative total of +43%. -34%- The Bottom 10 generated a negative cumulative total return of 8. The bottom line: Good User Experience is Good for Business 19 The Return: Every dollar invested in UX brings 100 dollars in return. 18 Spend 10% to gain 83% 11.5% ROI is essential to justifying Usability projects. of product development budgets are spent on average on UX. EXPERIENCE Qdynamics MAKING YOUR USERS SMILE www.ExperienceDynamics.com Sources 1. MITX (Massachusetts Innovation and Technology eXchange). (2009). ROI of UX panel discussion. 2. Institute of Electrical and Electronic Engineers (IEEE). (2005). http://spectrum.ieee.org/computing/software/why-software-fails 3. Bossert, James. (1990). Quality Function Deployment: The Practitioner's Approach. 4. Bias and Mayhew (1994). Cost-justifying usability. Boston, MA: Academic Press. 5. Soussan Djamasbi et. al. (2014). Designing for Success: Creating Business Value with Mobile User Experience (UX) 6. Nielsen, Jakob. (2008). Usability ROI Declining, But Still Strong. http://www.nngroup.com/articles/usability-roi-declining-but-still-strong/ 7. Forrester Research. (2008). Report: "Rich Internet Application Errors To Avoid". 8. NeoChange, Sandhill and the TSIA. (2009). Realizing Value in Enterprise Software. 9. Flurry Analytics. (2014). The Age of Living Mobile. http://www.slideshare.net/FlurryMobile/source14-the-age-of 10. Restive LLC. (2014). The State of the Mobile Web report. http://restive.io/insights/state-of-the-mobile-web-ee-Q1-2014.html 11. A study from Google conducted by Sterling Research and SmithGeiger. (2012). What Users Want Most From Mobile Sites Today. 12. Forrester Research. (2013). Customer Experience Index ranking and Watermark Consulting. 13. IEEE (2005) Ibid. 14. Experience Dynamics (2014). 5 Proven Gains from User Experience. https://www.experiencedynamics.com/training/seminars/5-proven-roi-gains-user-experience 15. Forrester Research. (2012). The State of Customer Experience. 16. Forrester Research. (2010). ROI of Personas. 17. Warfel, Todd Zaki. (2009). Prototyping: A Practitioner's Guide. 18. Strategic Data Consulting Special report. (2009). UX Business Impacts and ROI; 735 companies surveyed. 19. Forrester Research. (2013). Ibid. 20. Nielsen, Jakob. Ibid. 21. Strategic Data Consulting Special report. Ibid. 22. Gebbia, Mike. (2014). AirBnB. How design thinking transformed Airbnb from failing startup to billion-dollar business. FirstRoundCapital Video.