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UX = ROI: It's not just a myth

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User Experience has a direct impact on your bottom line, and it’s about time we start telling execs in their own language. I’m sure many of you spend a good amount of time evangelizing what it is that you do, and the value it adds. Over the past 15 years I’ve introduced User Experience to everyone from CEOs to developers — using storytelling, metrics, and case studies you can prove without a doubt the value that you bring.

In this talk I’ll explain what metrics to track, how to position your work, and stories where User Experience directly effected the bottom line.

Originally given at the Big Design Conference #bigd16

Published in: Design

UX = ROI: It's not just a myth

  1. 1. UX = ROIIT’S NOT JUST A MYTH
  2. 2. Jeremy Johnson VP of Customer Experience
  3. 3. • DIGITAL TRANSFORMATION • MOBILE SOLUTIONS • FLIGHT OPERATION CENTERS • CALL CENTER IMPROVEMENTS • RIDE SHARING OPERATIONS • INTERNET OF THINGS • E-COMMERCE • MOBILE RESPONSIVE WEB • RETAIL POINT-OF-SALE • AUTOMOTIVE UI • ANALYTICS DASHBOARDS • CRM SOLUTIONS • ERP SYSTEMS PROJECTS: INDUSTRIES: • AUTOMOTIVE • BANKING • CONSUMER • EDUCATION • ELECTRONICS • ENGINEERING • ENERGY • OIL AND GAS • FASHION • FINANCIAL (FINTECH) • FOOD AND BEVERAGE • GOVERNMENT • HEALTHCARE • INSURANCE • MANUFACTURING • REAL ESTATE • RETAIL • TECHNOLOGY • TELECOMMUNICATIONS • TRANSPORTATION
  4. 4. SAY HI!
  5. 5. I’ll be sharing this here: slideshare.net/jeremy
  6. 6. @jeremyjohnson
  7. 7. “Design has as much to do with art as a lobster has to do with a carrot cake. If you truly want a career as a designer, you are going to need to speak about someone’s business and organizational goals. You’re going to have to learn how to analyze data, you’re going to have to learn how measure effectiveness.” Mike Monteiro https://deardesignstudent.com/10-things-you-need-to-learn-in-design-school-if-you-re-tired-of-wasting-your-money-64aaa0bc3994#.lllumpsd2 —
  8. 8. “The phrase, “I don’t do marketing,” is spoken by many designers. I’ve probably said it myself. And I get it. It’s challenging, and difficult to quantify. It can also feel cheap—like a form of trickery. That doesn’t make it any less necessary, though. In fact, I say the vast majority of designers would be just fine if they never learned a line of code, and instead started thinking like marketers.” http://www.erickarjaluoto.com/blog/designers-should-learn-marketing/ — Eric Karjaluoto.
  9. 9. “Design may enhance performance but unless there are metrics to gauge that benefit, the difference it makes depends on conjecture and faith.” — Thomas Lockwood Thomas Walton https://www.amazon.com/gp/search?index=books&linkCode=qs&keywords=9781581156560
  10. 10. selling = evangelizing = explaining = marketing
  11. 11. 3%3%3% 10% 20% 61% Selling Directing Managing Doing Reading blogs Shopping for watches 
 “UX Designer”
  12. 12. Beginning: Selling to Developers & Product Owners Middle: Selling to Directors & VPs End Top: Selling to SVPs & CEOs
  13. 13. Your value = value of ux
  14. 14. Developers & Product Owners Directors & VPs SVPs & CEOs • Are you a threat to my job? • Will this slow me down? • Will this sabotage what I’m trying to do here? • Why should we involve customers/users? • Why should we prototype and test? • What is the ROI?
  15. 15. Designers are…
  16. 16. Designers are…
  17. 17. Designers are…for the guys…
  18. 18. Designers are…for the guys…
  19. 19. Designers are… for the millennials …
  20. 20. Designers are… for the millennials …
  21. 21. “89%of companies believes that customer experience will be their primary basis for competition by 2016, versus 36% four years ago.”
  22. 22. “We at Kleiner Perkins believe that design is a critical factor in launching a successful technology venture today.” - Design Partner, John Maeda http://www.kpcb.com/design/design-and-vc #DesignInTech
  23. 23. years to $1 Billion valuation
  24. 24. 43 design organizations have been acquired since 2004. Roughly half of which have been acquired within the last year. top VC-funded startups have designer co- founders. 
 Up from 5 in 2015.9 25out of Design is 
 adding value. #DesignInTech
  25. 25. #DesignInTech
  26. 26. “The average lifespan of a company listed in the S&P 500 index of leading US companies has decreased by more than 50 years in the last century, from 67 years in the 1920s to just 15 years today, according to Professor Richard Foster from Yale University.” http://www.bbc.com/news/business-16611040
  27. 27. “BlackBerry is also well positioned for future growth. World Wide Worx MD Arthur Goldstuck recently revealed that 24 percent of consumers claim that their next handset will be a BlackBerry, well above the 3 percent for Apple’s iPhone.” 2011: http://mybroadband.co.za/news/cellular/19774-blackberry-vs-iphone-vs-android-in-south-africa.html
  28. 28. http://www.statista.com/statistics/263439/global-market-share-held-by-rim-smartphones/
  29. 29. 1:10:100“…from $1 invested in UX, you save $10 in fixing issues during development, and $100 if the product has been already released.” http://nearsoft.com/blog/how-to-make-100-for-every-dollar-you-invest-in-ux-3/
  30. 30. http://blogs.hbr.org/2014/04/design-can-drive-exceptional-returns-for-shareholders/
  31. 31. https://twitter.com/DesignUXUI/statuses/563738777596608513
  32. 32. https://vimeo.com/139025298
  33. 33. Many well-known companies have public stories how they involve users and customers early and often. Many times following customers home to get to the “why” that’s needed for deep customer understanding.
  34. 34. “Investing in user research is just about the only way to consistently generate a rich stream of data about customer needs and behaviors. As a designer, I can’t live without it. And as data about customers flows through your team, it informs product managers, engineers, and just about everyone else. It forms the foundation of intuitive designs, indispensable products, and successful companies. So what are you waiting for? Go listen to your customers!”
  35. 35. “The biggest ROI a brand can have from investments in design, is a rapidly growing, loyal and motivated customer base.” http://www.designthinkingnetwork.com/forum/topics/evaluating-designs-roi Jan-Erik Baars-
  36. 36. https://www.netpromoter.com/know/
  37. 37. UX = ROI “I WANT TO KNOW HOW…”
  38. 38. • Greater Cash Flow • Lower Costs • Faster Cash Flow • Intangible Capital (Innovation) https://issuu.com/anttipitkanen/docs/droi_measurabledesign_2012_issuu_en/1
  39. 39. https://issuu.com/anttipitkanen/docs/droi_measurabledesign_2012_issuu_en/1
  40. 40. TYPICAL WORKPLACE IMPROVEMENTSTYPICAL CONSUMER IMPROVEMENTS - CONVERSION - ONBOARDING - USAGE - LOYALTY - ENGAGMENT - REDUCED CALL CENTER TRAFFIC - DOWNLOADS - EFFICIENCY - PRODUCTIVITY - EASE OF USE - TIME TO TASK - SUCCESS RATE - ACCESS TO INFORMATION - IMPROVED OPERATIONAL EFFICIENCY - INCREASED SALES - REDUCED TRAINING
  41. 41. TYPICAL MARKETING BENEFITSTYPICAL DEVELOPMENT SAVINGS - HIGHER SCRUM TEAM VELOCITY - LESS DOCUMENTATION - REDUCED DEVELOPMENT COST - FOCUSED INNOVATION - REDUCED TIME TO MARKET - WELL DEFINED REQUIREMENTS - REDUCED RE-WORK - NPS - CUSTOMER INSIGHTS - MARKET PERCEPTION - MARKET SEGMENTATION - ANALYST RECEPTION - NEW PRODUCT CATEGORIES - DEEPER CUSTOMER UNDERSTANDING - UX SUPPORT IN AGILE TEAM - TARGETED CAMPAIGNS
  42. 42. ROI The project saved / made us money The project improved a metric I did a project
  43. 43. http://www.dtelepathy.com/blog/business/the-roi-of-ux-convert-the-skeptics-with-this-infographic
  44. 44. “Soon after implementing the change, StubHub realized a 2.6% increase in conversion rate, which resulted in millions of dollars in extra revenue. Today, the “Go Button” is on every event page on StubHub’s website.” http://info.usertesting.com/rs/usertesting/images/UserTesting_StubHub_Case_Study.pdf
  45. 45. Millions vs. 2.6%
  46. 46. “Soon after implementing the change, StubHub realized a 2.6% increase in conversion rate, which resulted in millions of dollars in extra revenue. Today, the “Go Button” is on every event page on StubHub’s website.” http://info.usertesting.com/rs/usertesting/images/UserTesting_StubHub_Case_Study.pdf
  47. 47. http://files.shareholder.com/downloads/ebay/2049302125x0x882672/742AC716-B4DB-40F8-83B0-793F0D6BDA5C/EBAY_2015_Annual_Report.pdf
  48. 48. “Our StubHub platform, the largest ticket marketplace in the U.S., accelerated year-over year with GMV of $3.6 billion growing 13% and revenue of $725 million up 15%. During the year, we made a number of product and experience enhancements to the StubHub platform, which we believe contributed to StubHub’s strength.”
  49. 49. $3.6 billion & $725 million
  50. 50. “Soon after implementing the change, StubHub realized a 2.6% increase in conversion rate, which resulted in millions of dollars in extra revenue. Today, the “Go Button” is on every event page on StubHub’s website.” http://info.usertesting.com/rs/usertesting/images/UserTesting_StubHub_Case_Study.pdf
  51. 51. • They’re online only! • 2.6% increase to sales = additional $93 million • 2.6% increase to revenue = additional $18 million
  52. 52. “Through proper usability testing and user experience practices, we were able to identify key issues — and with some minor improvements increased sales by $93 million dollars over a single year.”
  53. 53. ROI
  54. 54. With the cost of the changes … the ROI was XX%. Team of 3 x $80k a year = $240k 5% of the year = $12,000 Cost $12,000 < $18,000,000
  55. 55. 150,000% ROI(ROI = Net Profit / Total Investment * 100)
  56. 56. “The results: The number of customers purchasing went up by 45%. The extra purchases resulted in an extra $15 million the first month. For the first year, the site saw an additional $300,000,000.” https://articles.uie.com/three_hund_million_button/?utm_source=visitorcentric
  57. 57. “Through proper usability testing and user experience practices, we were able to identify key issues — and with some minor improvements increased sales by almost $100 million dollars over a single year with less than $20k in investment.” increased revenue by $18 million (too low!) Had a 150,000% ROI (too high!)
  58. 58. workplace?
  59. 59. http://humanfactors.com/coolstuff/roi.asp
  60. 60. http://humanfactors.com/coolstuff/roi_reduced_reliance_on_help_desks.asp
  61. 61. http://humanfactors.com/coolstuff/roi_reduced_reliance_on_help_desks.asp $10k?$30k?
  62. 62. 40 million computers a year… 5 million calls?
  63. 63. “It depends on the length of the call, how much the call center pays each rep on average, how well that call center manages its staffing (a lot of overtime increases the average cost of the call). The call center I just worked at averaged about $4.50 per call, but I have worked at other call centers where it is over $10 per call, due to how long each call took (tech support).” https://www.quora.com/What-is-the-cost-of-an-average-call-center-call
  64. 64. For every call cut, that’s $10 saved. 
 Self support anyone? 500k calls cut? Save $5 million.
  65. 65. https://www.outsource2india.com/callcenter-staffing-calculator.asp#top $55 million yearly
  66. 66. Shave 5mins off every call… Save $10 million dollars
  67. 67. cost neutral
  68. 68. The cost to improve < the return you get
  69. 69. Shave 5mins off every call… Save $10 million dollars
  70. 70. Give me $1 million, 
 and I’ll save you $10 million.
  71. 71. Shave time off every call. Reduce calls to the call center. ROI
  72. 72. “Through understanding our customer’s needs via observational studies, we were able to prototype, design and launch an improved self support tool that reduced calls to the call center by 20% that saved over $10 million dollars the first year — at a ROI of 833%!” (ROI = $10,000,000 / $1,200,000 * 100)
  73. 73. digital transformation
  74. 74. “Moving your business to effective digital technologies…”
  75. 75. • “Going paperless” • Moving to cloud based tools • Connecting systems across businesses • Adding sensors to equipment Should = better experiences, more efficiency, less manual processes…
  76. 76. https://gds.blog.gov.uk/2015/10/23/how-digital-and-technology-transformation-saved-1-7bn-last-year/
  77. 77. We always start with user needs. We are agile. We work to a set of Design Principles that guide us in everything we do. We believe in working openly, because making things open makes them better. https://gds.blog.gov.uk/about/
  78. 78. More than £600 million of this year’s £1.7 billion figure was through the work done by GDS itself.
  79. 79. “…spend controls saved £391 million, encourage government teams to build better services for less, to disaggregate contracts, and build prototypes instead of writing long procurement documentation.” https://gds.blog.gov.uk/2015/10/23/how-digital-and-technology-transformation-saved-1-7bn-last-year/
  80. 80. https://uxmag.com/articles/calculating-the-roi-of-digital-prototyping
  81. 81. “Finance teams recognize that most products fail at an astonishing rate, and make projections accordingly. Making a financial case for digital prototyping must rest on the premise that any initiative that has an unpredictable outcome (i.e. there is a chance it can fail) is by definition an experiment.”
  82. 82. “Developing a product without user research is essentially one expensive experiment which, according to aforementioned industry benchmarks, has a 90% chance of not paying off (at least without modifications post-launch).”
  83. 83. • over 98% of driving tests are now booked online • 85% of self assessment filing is done through online channels • 12 million people have registered to vote using a new digital service £58 million cost < £600 million savings 1000%+ ROI
  84. 84. “The UK government saved £600 million in one year at a ROI of more than 1000% by digitally transforming a number of services to better serve its citizens across the UK.”
  85. 85. https://www.continuuminnovation.com/en/what-we-do/case-studies/daisy-sour-cream-squeeze in-home studies
  86. 86. https://www.continuuminnovation.com/en/what-we-do/case-studies/daisy-sour-cream-squeeze prototyping
  87. 87. https://www.continuuminnovation.com/en/what-we-do/case-studies/daisy-sour-cream-squeeze
  88. 88. “In the short time it has been on the market, Daisy Squeeze ranks among the top 10 sour cream items in sales. In a recent customer survey, 60% of Daisy Squeeze users said they would recommend the product to a friend—20% more than the average.” https://www.continuuminnovation.com/en/what-we-do/case-studies/daisy-sour-cream-squeeze
  89. 89. Did it cannibalize sales or increase sales? What was the increase to sales? Revenue? Did it increase the overall share of the market?
  90. 90. “Daisy increased [insert metric here] by using observational studies in people’s homes during dinner times and rapid prototyping to innovate on a new product that met the needs of modern consumers.”
  91. 91. Major Airline Flight Operations Launch projekt202 partnered on a relaunch of a critical flight operations system and during beta saw up to 15% improvement in on-time performance — which saved numerous hours over legacy systems. For an airline, hours equals millions of dollars in savings across a number of groups. — confidential — … millions of dollars in savings Millions Successful Launch in the Flight Operations Space Major Airline Flight Operations Launch — confidential — …applications delivering up to 15% improvement in on-time performance upto15% …upgrade across 6 applications 6 The problems were complex. A growing US airline with over 40,000 employees and 3,000 daily flights. A fleet of 700 aircraft carrying 100 million domestic and international passengers a year. Add a merger, an expanded network, and raised load factors. And, add two separate technology platforms. It all added up to one large and very complicated system. The design and development of a new Web-based optimization tools gave airline staff a powerful, central resource for tracking aircraft ground movements; managing gate assignments, restrictions and closures; reacting to and recovering from unexpected operational events; and more. With projekt202’s approach of iterative validation and continual interaction with the airline employees they got the dual benefit of making key improvements early and often, while keying in the employees to the upcoming improvements.
  92. 92. Major Airline Flight Operations Launch projekt202 partnered on a relaunch of a critical flight operations system and during beta saw up to 15% improvement in on-time performance — which saved numerous hours over legacy systems. For an airline, hours equals millions of dollars in savings across a number of groups. — confidential — …applications delivering up to 15% improvement in on-time performance upto15% …upgrade across 6 applications 6… millions of dollars in savings Millions Successful Launch in the Flight Operations Space Hit the ROI first! Scale of 
 problem solved. Project details. The problems were complex. A growing US airline with over 40,000 employees and 3,000 daily flights. A fleet of 700 aircraft carrying 100 million domestic and international passengers a year. Add a merger, an expanded network, and raised load factors. And, add two separate technology platforms. It all added up to one large and very complicated system. The design and development of a new Web-based optimization tools gave airline staff a powerful, central resource for tracking aircraft ground movements; managing gate assignments, restrictions and closures; reacting to and recovering from unexpected operational events; and more. With projekt202’s approach of iterative validation and continual interaction with the airline employees they got the dual benefit of making key improvements early and often, while keying in the employees to the upcoming improvements.
  93. 93. Kevin Green Digital Transformation Officer • What’s the per minute cost of a delayed flight to the airline? 
 $65.43 per airlines.org • What is the average length of a flight delay? 
 57 Minutes in 2014 per rita.dot.gov • What percentage of flights are delayed daily? 
 21% per rita.dot.gov • What’s the full cost of the delay per flight? 
 $3,729.51 • How many flights for this airline are there a day? 
 3,900 per website • What is the total daily cost of delays? 
 $3,054,468.69
  94. 94. $500k a day!
  95. 95. projekt202 helped reduce returns of a remote control for a technology accessories company by reducing the set-up time by 90%, and store returns to 1% turning around a poorly- performing product. This was a departure from metrics that showed customers were returning products at a rate of 30% because of a set up time that took over three hours. Through our observational understanding of customers needs in the home we were able to enhance the experience to match those needs — combined with an updated experience design, key metrics were greatly improved. After the improvements the product won numerous industry awards. Rethinking the Experience … reduced the set-up time by 90% 90% …. reduced store returns to 1% 1%
  96. 96. Radically Improving Sales projekt202 helped this national event ticket retailer double revenues by increasing conversion rate by 54% with a relaunch of an improved purchase path. With over $5 billion in sales, and over 100k events, every step of the digital experience matters for this national event ticket retailer. projekt202 worked to improve the retailer’s digital channel — their web, mobile, and tablet interfaces resolving key barriers within the buyer’s journey. … conversion rate was increased by 54% 54%… results doubling revenues. 2x … over 100k events 100k
  97. 97. The active trading platform we designed for a large financial services company in San Francisco delivered the highest net promoter score (NPS) at launch of any product in the company portfolio to date. The stakes were extremely high — active traders are a very profitable and engaged segment for them. The research and design approach informing the new user experience were so transformative the company created a professionally directed video to tell the research, design and test story and it became a key part of their go to market strategy and is on their site today highlighting projekt202’s unique approach. Experience Strategy & Redesign Stock Trading Platform …highest NPS at launch…
  98. 98. projekt202 helped this international retailer get to 1.5 million loyalty customers in just over six months. With half their of sales now coming from these loyalty members — this was a game changer. With over 70 locations in the US and shipping to customers in more than 96 countries, retailer engaged projekt202 to help pilot and launch this new loyalty program across their stores to better serve customers, and gather a deeper understanding of their shopping behavior. The first launch was a pilot program for customers to enroll in the loyalty program or retrieve member information at the register. projekt202 was able to roll out this solution across a subset of locations using an Apple iPad with a custom developed point-of-sale solution. After a successful pilot, this solution was then further developed and launched across all stores at the point-of-sale. projekt202 was able to extend the program online with a companion website with extended functionality. … 1.5 million loyalty customers 1.5m … half of sales coming from these loyalty members 1/2 … in just six months 6mo Major Retailer Loyalty Program Launch
  99. 99. Drastically improving self-service A leading financial services firm managing over 1 Trillion dollars for institutional clients and competing in a market of 7,000+ Registered Investment Advisors (RIA’s) determined their digital self-service channel was significantly underserving their RIA partners. RIA’s are making over 1 Million calls to the call center annually due to overly complex, confusing and error prone online tools. The firm asked projekt202 for help and the early results are encouraging. The first digital self-serve enhancement pilot is returning far greater adoption/ participation rates than planned (60% using it versus the 35% planned), and utilization of the online tool suite has spiked from a barely-used 1% before the enhancements to over 50% by the pilot users. projekt202 helped the firm make sense of the digital experience by determining how to clearly present over 200 online forms and to make the necessary actions associated with the key forms far more straightforward and efficient, thereby lowering error rates. … clearly present over 200 online forms 200… adoption, exceeding the expected 35% 60% … increase of online tools 50% “…the [projekt202] strategy for the design and product is working!”
  100. 100. Design Systems
  101. 101. 100 devs each save 2 hrs per week = $388,800 annual savings* 100 devs each save 30 min per week = $97,200 annual savings* 100 devs each save 5 hrs per week = $972,000 annual savings* 100 devs each save 1 hr per week = $194,400 annual savings* Time saved when art direction isn’t needed Time saved from rework Time saved when components are compatible Time saved when assets are accessible $1,652,400 annual savings or 21.25%time saved yearly Heath Stallings Director of User Experience at projekt202
  102. 102. “52% reductions in calls due to account recovery — $560k support cost reduction in one year!” Dawn Ressel Experience Design Manager, Intuit http://2016.enterpriseux.net/program/
  103. 103. ROI The project saved / made us money The project improved a metric I did a project When selling to the top, start at the top.
  104. 104. “Show me something cool…”
  105. 105. http://www.slideshare.net/fred.zimny/innovate-uk-design-in-innovationstrategy-2015-2019
  106. 106. “How does design add value”
  107. 107. https://issuu.com/anttipitkanen/docs/droi_measurabledesign_2012_issuu_en/1
  108. 108. “How does projekt202 add value”
  109. 109. ROI
  110. 110. 5 things
  111. 111. Dig deeper
  112. 112. cost neutral
  113. 113. from 
 “I did this” 
 to results!
  114. 114. investment vs cost
  115. 115. if you can’t measure it…
  116. 116. “Why should I keep you around?”
  117. 117. I print the money.
  118. 118. thanks.
  119. 119. Jeremy Johnson VP of Customer Experience

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