Why user experience is more important than marketing

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Every time we run a breakfast briefing we get the same feedback – “I wish my boss was here!”
 
When Fly Buys asked us to speak at their national conference earlier this month, we saw the perfect opportunity to present a clear argument for why organisations need to treat the user experience as their number one priority. In other words, we think we’ve finally put together the presentation you’ve been asking for!
 
So grab your boss, come along and hear:
 
How widespread broadband, smart phones and social media is fracturing our attention and driving us to abandon traditional touchpoints (like stores and call centres) for emerging touchpoints (like Facebook and apps)
Why many consumers use more than one touchpoint to make a purchase, even though they are less satisfied as a result
How people are becoming less tolerant of poor service and why many organisations struggle to see it
How loyalty (not customer satisfaction or NPS) is the best predictor for revenue growth, and how you can increase it
The key to creating great user experiences – it’s Design with a capital D
Stories of New Zealand innovation – including more examples of real projects than you would have heard at any other Optimal Usability presentation
 
Even if you can’t get the boss to come and are already convinced about the importance of the user experience, it’ll be worthwhile attending to hear the latest user experience statistics from New Zealand, Europe and the US.

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Why user experience is more important than marketing

  1. Why userexperienceis moreimportantthanmarketingTrent MankelowOptimal Usability
  2. AIR NZ:“come to queensland why don’t cha!?”
  3. Nice site
  4. This portdouglas deal looks good
  5. Lookspromising. Ok, where next?
  6. Apparently I have touse the “fare finder”. That’s a bit weird
  7. Ok, I’ll plug insome random dates
  8. What the…?!
  9. Is this the same site?Where’s the hotel I was looking AT?
  10. Oh here it is – waydown the bottom
  11. hang on – why is it soexpensive? wasn’t the deal for $435 per person?
  12. Oh that’s right, it didsay something about “7 nights”. How do I change the dates?
  13. Oh well, start again.This time with 7 days instead of 10…
  14. It’s still not $435 per person! I can’t be bothered…
  15. Over $2B was spent on advertising in New Zealand in 2010Source: http://www.asa.co.nz/industry_turnover/media_turnover_with_explanatory_notes_2010%20final%20.pdf
  16. The bad news
  17. Our attention is fracturing
  18. Consumers decrease time with traditional touchpoints… Stores / branches •More than 1 in 4 UK adults claim that online product reviews have a major influence on their purchasing decisions 1 •Only 16% of Americans prefer to deal with a customer-service problem in person 2 TV •US online adults spend equal amounts of time – 13 hours a week – watching TV and being online 3 Other media •The percent of US online adults reading print newspaper has fallen from 81% in 2007 to 73% in 2010 31 TGI, June 2011 2 What’s wrong with customer service?’, Consumer Reports, July 2011 3 Forrester Research, 2010
  19. … and increase engagement with newer emerging ones: The Web •Online retail expenditure now accounts for 5.1% of all retail sales in New Zealand 4 •My Dad is the only one left in New Zealand who is not online Mobile •New Zealand’s mobile penetration is estimated to be 120% 6 •Within five years the number of users accessing the Web from mobile devices will surpass the number who access it from PCs 7 •Global shipments of smartphones and tablets surpassed shipments of desktop PCs and notebooks in Q4, 2010 8 Social networks •96% of Kiwi Internet users visited a Social Media site in May 2011 5 •34% of Kiwi shoppers follow an online shopping site on Facebook 44 Digital Media Research 2011, PwC and Frost & Sullivan 5 comScore State of The Internet with a Focus on New Zealand, July 20116 http://www.nbr.co.nz/opinion/what-2degrees-should-announce-tomorrow 7 http://www.wired.com/magazine/2010/08/ff_webrip/all/1 8 http://www.slideshare.net/kleinerperkins/kpcb-top-10-mobile-trends-feb-2011
  20. We live in a multichannel world
  21. Example: My TV Buying Experience
  22. I started myresearch onthe consumerwebsite…
  23. Found thecheapest priceusingpricespy…
  24. Bought the tvonline throughnoel leeeming…
  25. Your TV is ready to pick up!
  26. Went into thestore to pick itup…
  27. A new TV!!
  28. Websites Communications Physical environments Customer-facing staffMultipleorganisations,channels and Payment systemsinteractions,across time Packaging
  29. Pop quizWhat percentage of people cross atleast two channels when making apurchase? a) 15% b) 30% c) 50% d) 70%
  30. 70%Source: Profiling The Multichannel ConsumerHow Retailers Can Enable Multichannel Consumer BehaviorForrester Report July 29, 2009, By Patti Freeman Evans
  31. Consumers who gave channel or channel transition a 4 or 5 on a scale from 1 (not satisfied) to 5 (very satisfied): Bought in a store 82% Researched a product online and bought it in a store 61% Bought online 61% Researched a product in the store and bought it online 56%Source: http://www.retailtouchpoints.com/cross-channel-strategies/201-forrester-shoppers-show-cross-channel-eagerness-but-satisfaction-levels-slump-.html
  32. Consumers who gave channel or channel transition a 4 or 5 on a scale from 1 (not satisfied) to 5 (very satisfied): Most people use more than one channel, Bought in a store And are less 82% satisfied as a result Researched a product online and bought it in a store 61% Bought online 61% Researched a product in the store and bought it online 56%Source: http://www.retailtouchpoints.com/cross-channel-strategies/201-forrester-shoppers-show-cross-channel-eagerness-but-satisfaction-levels-slump-.html
  33. Websites Communications Physical environments Customer-facing staffMore channels= more failurepoints Payment systems= more likelyto have a badexperience Packaging
  34. 64% of respondents had left a store because of poor service in the last 12 months. 67% had hung up on customer service without having their issue addressed.Source: What’s wrong with customer service?, Consumer Reports, July 2011
  35. 80% Many organisations have a blind spot when it comes to their customer experience 8% Companies that believe Companies whose they provide a superior customers agree propositionSource: http://www.bain.com/bainweb/PDFs/cms/Public/BB_Closing_delivery_gap.pdf
  36. The bad newsOur attention is fracturing acrosschannels, and many of us use more thanone channel to make a purchaseThose who use more than one channelare less satisfied, and less toleranttowards poor serviceAnd companies can’t see the blind spotsin their customer experience
  37. The good news
  38. Design is the key
  39. Design is not just what it looks like and feels like. Design is how it works. - Steve JobsSource: http://experiencematters.wordpress.com/2011/08/25/customer-experience-lessons-from-steve-jobs/
  40. Design isn’t just aboutmaking thingsbeautiful; it’s alsoabout making thingswork beautifully. - Roger Martin
  41. We need to design the entire experience:across interactions and across channels
  42. How do you “do” design? The uk design council looked at 11 world-leading companies and found their design processes mapped to 4 stages…
  43. Source: http://www.designcouncil.org.uk/about-design/How-designers-work/The-design-process/
  44. 1. DISCOVER
  45. 1. Who your users are2. Their goals3. Their characteristics4. Their context of use5. Existing usage
  46. FOCUSGROUPSARE aren’tenough
  47. More than 60% of participants testing a new kitchen applianceindicated that they were“likely” or “very likely” to buy it in the next 3 months.8 months later, only 12% had.
  48. Focus groupparticipants willtell you theydon’t like all thesex and violenceon tv. Yet whatdo we watch? Sexand violence.
  49. Observation is the key to the Discovery phase You have to go beyond what people say and watch what they do
  50. Field studies: Who users are, goals, characteristics, context
  51. On-street videos: Who users are, characteristics, goals
  52. In-lab user testing: Who users are, goals, characteristics
  53. Analytics: Existing usage
  54. Surveys: Who users are, characteristics, goals
  55. Eye tracking: Existing usage
  56. Customercomplaintinfo is whatdraws theeye!
  57. 2. DEFINE
  58. Customer journey maps
  59. Personas
  60. PERsonascan helpdrive thestrategy& design
  61. 3. DEVELOP
  62. Myth: thedesignprocess isnecessarilychaotic
  63. Myth: greatdesign ispart MAGIC
  64. TRUTH: greatdesign involvesusers early andoften, isiterative, and isparticipatory
  65. WEB
  66. STOREDESIGN
  67. mobile
  68. Contactcentre
  69. There is evenan isostandard forthis stuff!(ISO 13407)
  70. 4. DELIVER
  71. Sorry! This is where we’d normally show you all the sexy stuff we didwith the Air New Zealand Skycouch. Unfortunately we can’t put the photos online, so drop us a line if you’d like us to run you through them in person. trent@optimalusability.com
  72. Imagine if…
  73. Over $2B was spent onImproving the customer experience advertising in New Zealand in 2010
  74. Source: State of The Internet with a Focus on New Zealand - comScore , July 2011
  75. Advertising is the price you pay for having an unremarkable product or service. - Jeff BezosSource: http://blog.seattlepi.com/amazon/2009/05/28/amazons-jeff-bezos-on-kindle-advertising-and-being-green/
  76. And BE moreloyal…
  77. Loyalty is the best predictor of repurchase and growth…
  78. .. And reducing customer effort has the greatest impact on loyalty
  79. Consumers spend between 7 – 22% more with companies that they believe provide excellent customer service.Source: American Express Global Customer Service Barometer, May 2011
  80. Inconclusion
  81. World-class organisationsdon’t compete on service, products, technology or features. They compete on experience.
  82. Websites CommunicationsPhysical environmentsCustomer-facing staff Payment systems Packaging
  83. You are here
  84. 9 yearsexperience190clients19industries
  85. We love to design cross-channelcustomer experiences. Talk to us today trent@optimalusability.com Sign up to our newsletter at www.optimalusability.com!
  86. Image creditsSlide 1: http://www.kewlwallpapers.com/bulkupload/73/Animals/Bear%20Boxing.jpgSlide 4: http://www.imgbase.info/images/safe-wallpapers/photography/beach/18223_beach_tropical_palm_beach.jpgSlide 21: http://www.flickr.com/photos/jesse757/3094868007/sizes/l/in/photostreamSlide 30: http://www.dnzproperty.com/images/objectImages/highres_images/PMC-Noel-Leeming.jpgSlide 42: http://www.pollsb.com/photos/o/30630-key.jpgSlide 43: http://themoodbooster.net/wp-content/uploads/2011/10/Steve_Jobs_portrait_by_tumb.jpgSlide 44: http://www.phorecast.com/wp-content/images/dean_roger_martin.jpgSlide 50: http://www.msresearchinc.com/images/Focus%20Group.jpgSlide 52: http://errornotfound.files.wordpress.com/2011/06/true-blood-true-blood-7167238-1280-1024.jpgSlide 76: http://www.viruscomix.com/creativevitaerc.jpgSlide 77: http://www.alistapart.com/d/demystifying-design/demystifying-design.jpgSlide 91: http://img.scoop.co.nz/stories/images/1103/richardsimmons.jpgSlide 100: http://theasiacareertimes.com/wp-content/uploads/2011/07/bezos.jpgSlide 101: http://en.wikipedia.org/wiki/File:Line_at_Apple_Store_in_NYC.jpgSlide 102: http://theoatmeal.com/comics/customer_service

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