UX = ROI: It's not just a myth

UX = ROIIT’S NOT JUST A MYTH

Jeremy Johnson
VP of Customer Experience

• 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

I’ll be sharing this here:
slideshare.net/jeremy

“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
—

“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.

“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

selling = evangelizing = explaining = marketing

3%3%3%
10%
20% 61%
Selling Directing Managing
Doing Reading blogs Shopping for watches
 
“UX Designer”

Beginning: Selling to Developers & Product Owners
Middle: Selling to Directors & VPs
End Top: Selling to SVPs & CEOs

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?

Designers are…for the guys…

Designers are…
for the millennials …

“89%of companies believes that customer experience
will be their primary basis for competition by
2016, versus 36% four years ago.”

“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

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

“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

“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

http://www.statista.com/statistics/263439/global-market-share-held-by-rim-smartphones/

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/

http://blogs.hbr.org/2014/04/design-can-drive-exceptional-returns-for-shareholders/

https://twitter.com/DesignUXUI/statuses/563738777596608513

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.

“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!”

“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-

https://www.netpromoter.com/know/

UX = ROI
“I WANT TO KNOW HOW…”

• Greater Cash Flow
• Lower Costs
• Faster Cash Flow
• Intangible Capital (Innovation)
https://issuu.com/anttipitkanen/docs/droi_measurabledesign_2012_issuu_en/1

https://issuu.com/anttipitkanen/docs/droi_measurabledesign_2012_issuu_en/1

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

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

ROI
The project saved / made us money
The project improved a metric
I did a project

http://www.dtelepathy.com/blog/business/the-roi-of-ux-convert-the-skeptics-with-this-infographic

“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

http://ﬁles.shareholder.com/downloads/ebay/2049302125x0x882672/742AC716-B4DB-40F8-83B0-793F0D6BDA5C/EBAY_2015_Annual_Report.pdf

“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.”

• They’re online only!
• 2.6% increase to sales = additional $93 million
• 2.6% increase to revenue = additional $18 million

“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.”

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

150,000% ROI(ROI = Net Proﬁt / Total Investment * 100)

“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

“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!)

http://humanfactors.com/coolstuff/roi.asp

http://humanfactors.com/coolstuff/roi_reduced_reliance_on_help_desks.asp

http://humanfactors.com/coolstuff/roi_reduced_reliance_on_help_desks.asp
$10k?$30k?

40 million computers a year…
5 million calls?

“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

For every call cut, that’s $10 saved.  
Self support anyone?
500k calls cut? Save $5 million.

https://www.outsource2india.com/callcenter-stafﬁng-calculator.asp#top
$55 million yearly

Shave 5mins oﬀ every call… Save $10 million dollars

The cost to improve < the return you get

Give me $1 million,  
and I’ll save you $10 million.

Shave time oﬀ
every call.
Reduce calls to the
call center.
ROI

“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)

“Moving your business to
eﬀective digital technologies…”

• “Going paperless”
• Moving to cloud based tools
• Connecting systems across businesses
• Adding sensors to equipment
Should = better experiences, more eﬃciency,
less manual processes…

https://gds.blog.gov.uk/2015/10/23/how-digital-and-technology-transformation-saved-1-7bn-last-year/

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/

More than £600 million of this year’s
£1.7 billion figure was through the
work done by GDS itself.

“…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/

https://uxmag.com/articles/calculating-the-roi-of-digital-prototyping

“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.”

“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).”

• 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

“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.”

https://www.continuuminnovation.com/en/what-we-do/case-studies/daisy-sour-cream-squeeze
in-home studies

prototyping

“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.”

Did it cannibalize sales or increase sales?
What was the increase to sales? Revenue?
Did it increase the overall share of the market?

“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.”

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
…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.

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.
…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.

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

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%

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

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…

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

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 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

“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/

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.

“Show me something cool…”

http://www.slideshare.net/fred.zimny/innovate-uk-design-in-innovationstrategy-2015-2019

“How does design add value”

“How does projekt202 add value”

from  
“I did this”  
to results!

“Why should
I keep you
around?”

UX = ROI: It's not just a myth

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