The Value of User Experience (from Web 2.0 Expo Berlin 2008)

User
Experience
Oct 21, 2008 N. Nyman Oy niko@nnyman.com

My name is Niko Nyman, and I’ve run a tiny company for 11 years. We do Rich Internet
Application development. Meanwhile, I’ve co-written a book on social media and marketing,
in Finnish. You can read more about me on my blog: http://www.nnyman.com/personal/
about/

User
Experience

Why do I talk about user experience? Because I truly believe good experiences can make the
world a better place.
In the Web 2.0 Expo Tim O’Reilly urged people to “work on stu! that matters”. I believe bad,
meaningless experiences just won’t cut it.

Simply
Experience

I want to talk about the experiences of everyone: consumers, customers, employees,
competitors… people. How people who interact with your product, service or your company
experience those interactions.

1. What Experience
2. Experience design
3. Thinking about Experience
4. Evaluating Experiences
5. Value of Experience

ence is

So, what is experience?

Experience is

Subjective. PERIOD.

First of all, experience is completely subjective.

Experience is

small things


Experience is small things.
It’s a heart in my co!ee.

Experience is

a great movie


It’s seeing a great movie.

Experience is

a pleasant
surprise

A pleasant surprise is an experience.
It’s receiving an unexpected letter.
Stu! that triggers your emotions.

Experience is

a phone keypad
you can feel

Experience is tactile feedback, a phone keypad you can feel.
(Unlike my iPhone.)

Experience is

using your phone
for creating art

Experience is ﬁnding unexpected uses for common objects. It’s stu! that triggers your mind.
(This is a long exposure shot of drawing images in the air with the ﬂashlight of the previously
shown cheap Nokia phone.)

Experience is

BIG things


Experience is

memories


Experience is memories. This summer Club Unity, a club my friends have run for 12 years,
had an event on a small island in front of Helsinki. They took a photo of 400 party-goers on
the beach, then emailed the photo to each and every one. They made sure the night will not
be forgotten.

Experience is

learning


Experience is learning new skills.

Experience is

knowledge


Experience is knowledge. The capability to combine what you’ve learned in meaningful ways.

Experience is

life
experience


And experience is all this, accumulated over time.
It’s life experience.

disconnected
moments

The small moments you remember become more interesting and more memorable when you
see the connections between those experience moments.

disdis
connected
moments

The small moments you remember become more interesting and more memorable when you
see the connections between those experience moments.

Experience

A stream of disconnected, separate experiences, become a whole, continuously evolving
Experience.

longevity

This idea of connected experiences underlines how important it is for product experiences to
have longevity. The Wii is built on the experience of shared play. The experience is designed
to last and grow better by time.

wow!

The rollout experience of Sony PS3 was designed to provide a great ﬁrst impression by
wowing users with great specs and lists of features. I hear the games are not that great. How
long does the PS3 experience last?

BIG
PICTURE
A wholistic experience is about making sure the big picture…

small details

…is reinforced by the small details.

Apple store in San Francisco by tanakawho on Flickr

Can Experiences
be designed?


If to design is to “plan something with a speciﬁc intention”, then yes, experiences can be
designed. You cannot create a blueprint for how an experience will unfold, but you can take
measures to maintain the intent of providing a certain kind of experience through all you
do.

User
Experience design
is a mindset

Experience design is more a mindset than a ﬁeld of practice.
Experience design is not something you apply to a product, it’s how you create a product.

Everyone should work on creating the intended experiences. Together! Everyone not only can,
but will inﬂuence the experience of a company and their products. Everyone, from the
packaging warehouse to HR, not only the designers. Experiences are (or should be) part of
the company DNA.

management

Because everyone is involved, a company’s ability to create good experiences is a
management issue. You need managers who can make the hard decisions required to
enforce the intended experience materializes in the products.

human
resources

And it is a human resources issue. Personnel issue. Human issue. You need great
communications and true leadership.

culture

It is a culture issue. Employees need an environment that supports and guides them in
creating the experiences the company wants to provide.
You need a clear vision shared by all employees.
You need to empower the employees to act towards the vision.

! Vision
! Maintain intent

Experience Design is:
— creating a strong vision of intended experience
— creating the necessary practices to maintain the intent

Practical notes on
experience design

Mortality & User Experience - Slide (12) by ario j on Flickr


Every time someone handles a product, uses a service, talks to someone at a company, they
have an encounter with the company. Every encounter is an experience moment and builds
the overall experience about the company and their products.

No active interaction is needed: If I see a McDonalds sign, I will have an encounter with the
McDonalds brand, and it will a!ect the image of McDonalds I have in my head.

Most encounters with companies are forgettable, but some are remembered. The question is,
how will you be remembered?
If you had taken this photo, you might remember it was Emirates airlines that provided you
with the memories of this breathtaking view.

It is most important to identify the encounters that form the experience you’re creating for
people. You can call these encounters touchpoints, experience moments, service moments,
interactions... depending on where you come from and what ﬁeld you work in.

The next step is to link the encounters together, to understand the overall experience
you’re providing. Service designers talk about the customer journey, and what are the service
moments the customer goes through for a given service.

Hyundai in Finland has thought carefully about what is lacking in the Hyundai experience.
They ﬁgured people have a hard time justifying their choice, after they have made the
purchase. So, they actively provide the customers with rationale for choosing the brand.

Think of the full lifecycle of the product and all manifestations of the product and the
brand.

Be aware of your experiences: 1—What happened? 2—How did I react? What was my
subjective response? 3—Was the experience likely to be intentional/designed? 4—How does
this experience a!ect what I think of the provider of the experience (a company, for
instance)?

Be someone else. It takes great empathy to create a good experience. To create relevant
experiences, you have to Forget everything you know and design for others. Align with the
expected patience, level of interest, and depth of knowledge of your users. Talk in the users’
language.

Avoid sugar coating. If you think you’re helping yourself by putting lipstick on your product,
you’re setting up yourself for failure. You’re raising expectations, and you know you will fail
them. There are no shortcuts with experiences. Fix the problems, don’t hide them.

Think about design cues. Car manufacturers use design cues to maintain consistency in their
range of car models. Think how design cues could be applied to experiences provided by a
company. The idea, the intention remains, while the execution changes.

Virgin Atlantic doesn’t want to make their customer service sta! into service robots. They
want to make them into service experts. Providing the customer experience is not about
following a service manual to the letter, but making sure the customer has a good experience
every time.

I’ve already said this but: involve everyone. By getting everyone involved you will help make
sure the user expectations and the resulting experience are aligned. In practice, this could be
about making sure marketing and design and engineering are talking to each other.

experience
design

Realize that anything, even the smallest detail can be “experience designed”. My parents love
movies. They have a dvd player/projector, which instead of a pause button has a “co!ee
pause” button. The button pauses the movie and fades the screen white, illuminating the
room.

Experience design can be a strategic question, too. The Apple experience is arguably very
integrated, but teleoperators now control areas of the iPhone experience, providing sales and
service; they control many of the encounters users will have with the iPhone. How does Apple
manage this?

Apple store in San Francisco by tanakawho on Flickr

Evaluating
Experiences

How do you know you have created a good experience? How can you quantify the user
experience?


It’s a bit like asking “how much in love are you?”
You know you are, but just how much?

no. yes!
-3 -2 -1 1 2 3

You could create a poll asking quantiﬁable questions: is there enough holding hands? Does
he bring home ﬂowers often enough? Is there enough quality time spent together? Is there
enough time spent… between the sheets? You can do this, but does it tell you how much in
love you are?

Context / convenience
INCONVENIENT CONVENIENT

ATTRACTIVE
GOOD
EXPERIENCE

Taste GOOD
ENOUGH
/ appeal EXPERIENCE
UNATTRACTIVE

BAD
EXPERIENCE

Despite this, here’s my model. It has two axes: context, or convenience on the horizontal
axis, and taste, or appeal on the vertical axis (things that draw you onto something). Imagine
a dot in the center, then start moving it around according to how you feel about an
experience.

ATTRACTIVE

GOOD
EXPERIENCE
A few examples of what you could concentrate on to make an experience better on the
horizontal axis. Right is better, left is worse.

ATTRACTIVE

GOOD
EXPERIENCE
Implement only the absolutely necessary.
Complete on features vs. Only the right features.

GOOD
EXPERIENCE
Save users’ time. Waste of time vs. Time well spent.
The route planning service Reittiopas transforms sometimes complex public transportation
routes into a convenient and quick way to travel.

Let users be undecisive.
Permanent vs Undoable.
Dishwasher that can be paused or interrupted.

Fully Easy
detailed overview

ATTRACTIVE

GOOD
EXPERIENCE
Help users get started quickly.
Overwhelming with detail vs. o!ering an overview that is easy to grasp, and most
importantly, easy to start with.

Incom- Com-
patible patible

ATTRACTIVE

GOOD
EXPERIENCE
Play nice with other gizmos the user might be using.

Closed Open
system system

ATTRACTIVE

GOOD
EXPERIENCE
Let users ﬁnd creative uses. Be hackable, mashable, connectable. Build an API.

Complex
to Simple to
operate operate

ATTRACTIVE

GOOD
EXPERIENCE
Make it e!ortless to use.

In your Subtle
face

ATTRACTIVE

GOOD
EXPERIENCE
Be subtle. Don’t shout at the user. Make your service as invisible to the users as you can.

Has me Doesn’t
thinking make me
think

ATTRACTIVE

GOOD
EXPERIENCE
Don’t make me think.

Effort in
Effort in Benefit
Benefit out
out

ATTRACTIVE

GOOD
EXPERIENCE
Balance the e!ort and beneﬁt for the users.

Not the The right
right time time

ATTRACTIVE

GOOD
EXPERIENCE
Talk to the users only at the right time.
Don’t engage users at an inappropriate time.

The wrong The right
place place

ATTRACTIVE

GOOD
EXPERIENCE
Talk to the users only at the right place.
Engage users where they want to be engaged with your products.

INCONVENIENT

ATTRACTIVE
Taste / appeal

UNATTRACTIVE
BAD
EXPERIENC

A few tips to increase the appeal of experiences.

INCONVENIENT

ATTRACTIVE
Beautiful

UNATTRACTIVE
Ugly BAD
EXPERIENC

Make it prettier.
Everybody likes beauty, whatever it means to them.

INCONVENIENT

ATTRACTIVE
Interesting

UNATTRACTIVE
Boring BAD
EXPERIENC

Feed the users’ curiosity.

INCONVENIENT

ATTRACTIVE
Pleasant

UNATTRACTIVE
Unpleasant BAD
EXPERIENC

Act nice.
Unpleasant vs Pleasant.
Rude vs. Friendly.
Valid characteristics especially for service products.

INCONVENIENT

ATTRACTIVE
Compassionate

UNATTRACTIVE
Could not
care less BAD
EXPERIENC

Care about your users.
An attitude of “could not care less” vs. a compassionate attitude. Again valid for service. With
a little creativity, extendable to user interfaces too.

INCONVENIENT

ATTRACTIVENESS

ATTRACTIVE
UNATTRACTIVE
BAD
EXPERIENC

Not designed vs. designed. Hire a big name designer.
People buy plain co!ee mugs because they have been designed by someone whose name
they know. Who cares? Most people do! We’re drawn to “design”.

INCONVENIENT

ATTRACTIVENESS

ATTRACTIVE
UNATTRACTIVE
BAD
EXPERIENC

Get the right people to use it.
If Burberry doesn’t know what to do when the wrong people start using it, neither do I.

INCONVENIENT

ATTRACTIVENESS

ATTRACTIVE
UNATTRACTIVE
BAD
EXPERIENC

Bad reputation vs. Good reputation. Do everything you can to maintain your reputation.
These are two Finnish banks. The one on the left recently merged with Danske Bank and
screwed up everyone’s accounts for weeks. They tried to play it down at ﬁrst and lost
thousands of customers.

INCONVENIENT

ATTRACTIVENESS

ATTRACTIVE
UNATTRACTIVE
BAD
EXPERIENC

Make it exclusive.
Too cheap vs. A!ordable.

INCONVENIENT

ATTRACTIVE
Trusted

UNATTRACTIVE
Not trusted BAD
EXPERIENC

Prove your trustworthiness.
Do you trust this product? Do you trust this company to deliver?

INCONVENIENT

ATTRACTIVE
Trusting

UNATTRACTIVE
Distrustful BAD
EXPERIENC

Trust your users.
Does the company trust you? Are you being treated as a thief or as a valued customer?

INCONVENIENT

Tested and

ATTRACTIVE
true

UNATTRACTIVE
Never
heard BAD
EXPERIENC

Let people know others use and enjoy your services too.
A product you’ve never heard of cannot have a bad reputation for you, but neither a good
one. We tend to trust tested and true products.

INCONVENIENT

ATTRACTIVE
Looks simple

UNATTRACTIVE
Looks complex BAD
EXPERIENC

Make it look simple.
This is about perceived complexity and simplicity. And looks can be deceiving.

INCONVENIENT

Seems to have

ATTRACTIVE
all I need

UNATTRACTIVE
Looks
inadequate BAD
EXPERIENC

Make it look like it does everything.
Again, the reality might be di!erent. And another problem is, people often overestimate what
they need, and get drawn to things that are more than they will every really need.

INCONVENIENT

ATTRACTIVE
Available

UNATTRACTIVE
Unavailable BAD
EXPERIENC

Make sure your product is available.
It baquot;es me how some music and small manufacturers’ prodcuts are often impossible to get.
We have this thing called the internet where anything is one google search away, you know.

INCONVENIENT

ATTRACTIVE
Cheap or free

UNATTRACTIVE
Too expensive BAD
EXPERIENC

Make it a!ordable.
Free samples. Buy two get third for free. Two for one. Coupons.
Free is attractive.

INCONVENIENT

The easy

ATTRACTIVE
choice

UNATTRACTIVE
One of
too many BAD
EXPERIENC

Be the ﬁrst choice.
Come ﬁrst in Google search. Get the best spot on the store shelf.

INCONVENIENT

ATTRACTIVE
Different

UNATTRACTIVE
Same BAD
EXPERIENC

Be di!erent.

INCONVENIENT

ATTRACTIVE
Safe

UNATTRACTIVE
Dangerous BAD
EXPERIENC

Be safe.
Be extreme.

INCONVENIENT

ATTRACTIVE
Dangerous

UNATTRACTIVE
Safe BAD
EXPERIENC

Be safe.
Be extreme.

INCONVENIENT

Has personal

ATTRACTIVE
meaning

UNATTRACTIVE
Meaningless BAD
EXPERIENC

Talk to people’s hearts, not their minds.


ATTRACTIVE
GOOD
EXPERIENCE

Taste / GOOD

appeal ENOUGH
EXPERIENCE
UNATTRACTIVE

BAD
EXPERIENCE

After plotting various characteristics on the graph, moving the imaginary dot around, you will
have ended somewhere on the graph. The graph is calibrated by the users expectations,
attitudes, previous knowledge, cultural background, etc. It’s completely subjective!

Why design
experiences?

What makes experiences so valuable in business.

The New Fred Meyer on Interstate on Lombard by lyzadanger on Flickr


It’s easier than ever to create new products.
There’s more competition than ever.

In fact, you can go to a website like alibaba.com to get anything manufactured in Asia,
quickly and cheaply.

The New Fred Meyer on Interstate on Lombard by lyzadanger on Flickr


A product with a Superior Experience stands out. Experience creates competitive advantage.
It’s not like the idea of experience as a di!erentiator is new.
Jerry Gregoire, chief information o#cer at Dell said…

“The customer
experience is the
next competitive
battleground.”
— Jerry Gregoire

1999
quot;The customer experience is the next competitive battleground.quot;
He said this in 1999.

95%
agree
In fact, according to one study 95% of business leaders agree.

Perfection!

Good
experience

The problem I see is that most companies view their e!orts like this:
Good enough experience means basic usability requirements are met, service exists, etc.
Perfection is the extra mail “we’re working on”, ﬁnishing details etc.

Perfection!

Good
experience

Perfection!

Good
experience

This is how the users feel about the experience: Good enough means everything works
smoothly. Perfection is that everything works automatically, transparently, with zero e!ort,
and no waiting. It’s all about details!

Apple's worst product ever by albertus on Flickr

Growing dissatisfaction
with products

For this reason I think there is a growing dissatisfaction with products.
…which makes good experiences all the more important di!erentiator.The average user
experience of products hasn’t probably gotten worse, we've just got more intolerant of bad
experiences. Why?

Foobar Poster - The Internet by Sebastian Prooth on Flickr

EVERYTHING
NOW

We have become used to instant gratiﬁcation. We are used to having everything now. We’re
intolerant to waiting.

And You Thought Airline Food Was Bad... by jochenWolters on Flickr

SHARE(BAD)EXPERIENCES

We can now share experiences easier — especially bad ones.
The sharing of bad experiences fulﬁlls an important role in the evolution of mankind, helping
people avoid making the same mistakes someone else has made.

e il tempo passa...o forse no by confusedvision on Flickr

TIME
HAS BECOME
MORE VALUABLE

We’re intolerant of bad experiences because there’s simply too much to see, read, listen to —
too much to experience. Products compete for the time of people. Time has become more
valuable. Often the best experiences simply minimize needed attention.

Hotel Marqués De Riscal by brockleyboyo on Flickr
Apple's worst product ever by albertus

Growing SATISFACTION
with experiences

On the other hand, there’s a growing satisfaction with experiences. People are willing to
invest in experiences. And not only for Gehry designed hotels, but even the smallest
experiences which reduce e!ort.

Old people tell me that as people grow they ﬁnd more things to worry about — it can almost
feel like the world is breaking apart. Good experiences make daily existence easier, and
therefore are craved for. Trendwatching.com talks about “daily lubricants”.

Italy by Kazze on Flickr

SHARING makes
experiences more
valuable


We’re more satisﬁed with experiences because digital media has enabled us to share
experiences, without actually having to experience them together. Sharing is important
because sharing makes experiences more valuable.

by ~RAYMOND on Flickr


Like they say: you’ll always have Paris…


…but not those shoes you wore.

The funny thing about concentrating on experiences is that it doesn’t cost much, but the
returns can be huge.
- It’s just a mindset after all.

Cost of Cost of
creating a bad creating a good
experience experience

The cost of creating good experiences vs. the cost of creating bad experences are almost
equal. It takes virtually the same e!ort to create a good experience than a bad experience.
While you’re doing something, why not do it well?

Value of a bad Value of a good
experience experience

The value for the user is immensely di!erent. Your business model is how you translate the
value provided to users into proﬁt.

I’m not delusional about the power of experiences: Despite Apple’s superior focus on
experience, Nokia will still kick Apple’s ass in the mobile phone market when comparing
proﬁt. But in many industries the balance of power is di!erent.

experience lived up to their promises? chase. (See Figure 1)

FIG. 1: BUSINESS DYNAMICS ARE BETTER FOR CUSTOMER EXPERIENCE LEADERS
Customer experience index relative to industry average
First quartile Second quartile Third quartile Fourth quartile

Likelihood to consider
another purchase from 6.0%
provider compared to
industry average 2.1%

-3.0%

y Reluctance to switch
-8.9%
business away from 6.8%
or industry average 1.1%
mer
e
-4.0%

g.
Source: North American Technographics® customer experience online survey. Q3 2007 -11.2%

Research shows that there is a remarkably close correlation between good customer
experiences and customer loyalty. The customers of companies who provide good
experiences are more likely to buy again from the same provider, and more reluctant to
switch over to competitors.

Good experiences win customers’ hearts. At most extreme cases, good experiences create
customers who love you. The advertising agency Saatchi & Saatchi talk about lovemarks,
companies and products that transcend brands.

Experience

Remarkable experiences leave a mark — whether the experience is remarkably good, or
remarkably bad. These memories are mind-share, essentially brand equity, the capital of
brands.

I have a dream…

I dream of a day when products fullﬁll my needs without a glitch, when I am being served
swiftly, compassionately and with understanding, by humans and computers alike. Not
because I’m a designer and I like good experiences but because good experiences make the
world a better place.

I have a dream…

Good experiences help us do more good. Good experiences help us feel better about what
we’re doing. Good experiences free us to spend more time on the important things and less
on the mundane. Don’t make another useless fully ajaxed web2.0 product. Make the future
better.

Thank you.
N. Nyman Oy
Niko Nyman
niko@nnyman.com

www.nnyman.com

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N. Nyman Oy
2222523978/ Niko Nyman
niko@nnyman.com

http://www.flickr.com/photos/ www.nnyman.com
8388956@N06/1123806188/

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Mine!

Stolen (it’s promotion for the movie, you know:
check out Wall-E, I hear it’s great)

http://www.flickr.com/photos/mikewade/
2532758930/

I have no idea where this came from.

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Probably stole this one too.
Thank you.
N. Nyman Oy
Niko Nyman
niko@nnyman.com

http://www.flickr.com/photos/andystoll/ www.nnyman.com
2394547280/

www.clubunity.org

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Thank you.
N. Nyman Oy
Niko Nyman
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Nicked from netcarshow.com

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Mine!
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www.reittiopas.com
Thank you.
N. Nyman Oy
Niko Nyman
niko@nnyman.com

Ok ok, I stole this one too from Google. www.nnyman.com
Actually all of these:

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N. Nyman Oy
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www.nnyman.com
www.altabikes.no

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www.nnyman.com
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From Apple press photo library

From Nokia press photo library

S4B STRATEGY FOR
BUSINESS ISSUE 29 Summer 2008

Roll the credits
The next competitive
BATTLEGROUND?
With customer experience receiving more attention than
ever before, we explore the impact on the bottom line.

The basic concept of customer experience The bottom line
is now widely understood. In sectors as diverse The latest studies suggest that customer
as local government, retail and financial experience has rightly become a priority.

Thank you.
services, there is an agreement that func- According to Forrester Research, there is a
tionality and price are no longer enough. remarkably close correlation between good
Instead, organisations are beginning to focus customer experience and customer loyalty.
on improving all of the interactions that Forrester’s Customer Experience Index
customers have with them. (CxPi) ranks 112 US firms for their ability to
It is a trend that was discernible back in deliver a good customer experience. Signifi-
2003, when Beyond Philosophy found that cantly, customers of the firms in the top
71% of business leaders saw customer expe- quartile were 6% more likely to make addi-
rience as the next competitive battleground. tional purchases than the industry average.
By 2005, 95% had come round to this view. Customers of those in the bottom quartile
So have investments in improving customer were 8.9% less likely to make another pur-
experience lived up to their promises? chase. (See Figure 1)

FIG. 1: BUSINESS DYNAMICS ARE BETTER FOR CUSTOMER EXPERIENCE LEADERS
Customer experience index relative to industry average
First quartile Second quartile Third quartile Fourth quartile

Likelihood to consider

Fujitsu Strategy For Business, issue 29 Summer 2008
another purchase from 6.0%

N. Nyman Oy
industry average 2.1%

-3.0%
Very few senior

Niko Nyman
executives regularly Reluctance to switch
-8.9%
6.8%
interact with their business away from
customers or monitor industry average 1.1%
the quality of customer
interactions to make

niko@nnyman.com
-4.0%
sure the situation is
genuinely improving.
Source: North American Technographics® customer experience online survey. Q3 2007 -11.2%

01

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The Value of User Experience (from Web 2.0 Expo Berlin 2008)

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