The ROI of UX


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Reading Room Singapore organized a breakfast event in September on User Experience.

Our speaker, Tom Voirol who is also our Global Head of UX in Reading Room, explored other ways in which organisations can benefit from a user-centric approach. For more information of the event, go to:

Published in: Internet, Business, Technology

The ROI of UX

  1. 1. The ROI of UX
 How to prove the value of 
 investing in user experience
 Tom Voirol, Global Head of User Engagement!
  2. 2. User Experience Design defined! “An approach to shaping the entirety of a user’s experience with a product, service, or organisation with the goal of making it intuitive, effective, efficient, positive and meaningful.” - me
  3. 3. What is ROI?! ROI = Gains − Cost Cost
  4. 4. Why talk about ROI?!
  5. 5. Why talk about ROI?!
  6. 6. IBM: Cost-justifying Ease of Use! “Every dollar invested in ease of use returns $10 to $100”
  7. 7. What ROI?! R O I Return Investment
  8. 8. Investment?
  9. 9. What constitutes UXD?!
  10. 10. For what outcome?! Give people what they need Influence people’s behaviour
  11. 11. As opposed to what?!
  12. 12. Or even worse…!
  13. 13. How IT sees your users!
  14. 14. How you should see your users!
  15. 15. Where IT sees your users!
  16. 16. Where you should see your users!
  17. 17. Where you should see your users!
  18. 18. Return?
  19. 19. What ROI?! R O I Revenue?
  20. 20. A story…!
  21. 21. Teehan & Lax UX Fund!
  22. 22. But maybe…! …you’re not in the revenue business …you don’t have a revenue problem
  23. 23. What ROI?! R O I Revenue Return
  24. 24. Non-revenue forms of return! Save costs Save time / increase productivity Change behaviour Share of voice Cost of doing business
  25. 25. Save costs! Reduced customer support costs Reduced internal support costs Reduced project costs
  26. 26. Reduced internal support costs! ”Hidden support costs for coworkers helping others is estimated to between $6,000 and $15,000 each year for every computer” 
 Bulkeley, W. M. “Study finds hidden costs of computing.” 
 The Wall Street Journal, 2 Nov. 1992
  27. 27. Reduced project costs! = =
  28. 28. Save time / increase productivity! Your time Your users’ time GOMS model
  29. 29. GOMS! Goals, Operators, Methods, and Selection rules!
  30. 30. Change behaviour! If it’s easier/smoother/more fun, they’re more likely to do it Gamification Website metrics (preferably goal conversion)
  31. 31. Gamification!
  32. 32. Gamification!
  33. 33. How much will your website metrics improve?!
  34. 34. Share of voice! Social media PR Leading to awareness, appreciation, advocacy and ultimately action à revenue
  35. 35. Zappos! A service company that happens to sell shoes •  Free shipping both ways •  365-day return policy •  Fast fulfilment, expedited delivery •  24/7 1-800 number on every page •  Fast, friendly & expert customer service
  36. 36. Success! Year one turnover: A few thousand $ Year two: $1.6m Year eight: $1,000m Acquired by Amazon for $1.2bn
  37. 37. Cost of doing business! Competitive pressure Customer expectations The ROI of common sense
  38. 38. Competitive pressure!
  39. 39. Customer expectations!
  40. 40. Basic attributes! Users expect these. Singapore Airlines •  gets me where I want to go •  is on time •  doesn’t crash Hygiene factors - leave it out and all other efforts will be in vain.
  41. 41. Performance attributes! The more/better, the happier users will be. Singapore Airlines •  gives me more legroom •  provides better food •  has friendlier service You can improve satisfaction by investing in these.
  42. 42. Delight attributes! Unexpected, over-delivering, out of the ordinary Singapore Airlines •  provides inflight Wi-Fi •  hands out noise-cancelling headphones •  picks you up at home with a limo As they get copied by the competition, they become performance attributes, then basic attributes.
  43. 43. The ROI of common sense! “What’s the ROI of putting your pants on in the morning?” “It’s hard to measure, but there are negative consequences for not doing it”