How Ebay Measured ROI

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How Ebay Measured ROI

  1. 1. Measuring Usability ROI at eBay Kelly Braun Manager, Usability Engineering eBay Design Labs TM
  2. 2. Getting Started <ul><li>It’s easy to see the costs </li></ul><ul><li>Demonstrating the value requires planning </li></ul><ul><ul><ul><li>What is important - Savings? Revenue? Both? </li></ul></ul></ul><ul><li>Need to gather baseline data </li></ul><ul><li>Need business data (usually company confidential) </li></ul>
  3. 3. Data needed <ul><li>ROI calculations </li></ul><ul><ul><li>Cost of diversion in missed revenue opportunities </li></ul></ul><ul><ul><li>Cost of answering users’ question </li></ul></ul><ul><li>Design insight </li></ul><ul><ul><li>Page statistics to find where users get diverted </li></ul></ul><ul><li>Success metrics: Post-design </li></ul><ul><ul><li>page statistics </li></ul></ul><ul><ul><li>increased revenue </li></ul></ul>
  4. 4. Sell Your Item Form (SYI)
  5. 5. SYI form <ul><li>Look at page statistics and see where people leave process </li></ul><ul><li>Estimate usability impact </li></ul><ul><li>Use data to gain insight for re-design </li></ul><ul><li>We assumed the complexity of the page was contributing to the drop out rate. </li></ul><ul><li>How much revenue could be generated if we reduced the drop off rate by 1%? </li></ul>
  6. 6. SYI Revenue increase calculations <ul><li>Reduce drop out by 1%  Increase # of listings by 1% </li></ul><ul><li>1.1 million listings per day  11,000 more listings per day. </li></ul><ul><li>Minimum listing fee = $0.30 </li></ul><ul><li>11,000 listings x $0.30 = $3,300 per day </li></ul><ul><li>Or </li></ul><ul><li>$1,204,500 in listing fees per year </li></ul>
  7. 7. Additional SYI ROI calculations <ul><li>Final Value Fees (FVF) </li></ul><ul><ul><li>All items that sell on eBay pay a final value fee (FVF) </li></ul></ul><ul><ul><li>11,000 more listings x item sold rate x average FVF </li></ul></ul><ul><li>Savings in Customer Support costs </li></ul>
  8. 8. SYI Usability Costs <ul><li>One usability engineer for 3 months (team input and testing) </li></ul><ul><li>Testing assistant for 2 weeks </li></ul><ul><li>Participant incentives </li></ul><ul><li>Additional UI design (1 week) to address usability issues and redesign. </li></ul>

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