the roi of user experience: consider, calculate & measure success
TRANSCRIPT
The ROI Of User Experience:Consider, Calculate & Measure Success
Featuring Dr. Susan Weinschenk & Alfonso de la Nuez
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• Time at the end for Q&A
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• Continue the discussion using #uzwebinar
Meet the Speakers
Dr. Susan WeinschenkBehavioral Scientist AKA “The Brain Lady”The Team W
Alfonso de la NuezCo-Founder and CEOUserZoom
Continue the discussion using #uzwebinar
Aka “The Brain Lady”@[email protected]
Sample ROI Calculation -- Conversion
• 100 visitors a day put an item in the shopping cart
• But 30% don’t complete because of a user experience problem
• You are losing 30 sales a day due to a UX issue
• @ $10 a purchase = $300 a day lost
• 300 x 365 = $109,500 a year lost
• It will take $50,000 fix the UX issue
• $109,500 - $50,000 = $59,500• It will take you 198 days, or
approximately 6.5 months to recoup your costs
Conversion at large online retailer
Approximately 10,000 abandonments of shopping cart each day. Average purchase -- $36 – potential loss of 360k each day.User testing to figure out the problem and then rework to fix -- $75kAbandonment reduced by approximately 25%2500 people a day purchasing average of $36 = 90k a day saved90k * 365 = $32,850,000 a year saved
ROI = Net profit / Investment (Net profit is Gross profit – expenses)
Conversion at large online retailer Approximately 10,000 abandonments of shopping cart each day. Average purchase -- $36 – potential loss of 360k each day.User testing to figure out the problem and then rework to fix -- $75kAbandonment reduced by approximately 25%2500 people a day purchasing average of $36 = 90k a day saved90k * 365 = $32,850,000 a year saved
ROI = (32,850,000 – 75,000)/ 75,000ROI = 32,775,000/75,000ROI = 437 or 43700%
You are on a team designing a software app.You think the plan for the navigation bar/information architecture is poor. You want to do a card sort to design it right before it goes into development.
Cost to do card sort = $5,000Cost to do re-work = $50,000 (this is the cost to fix it later if you don’t do the card sort – this is the amount you are saving)
Cost of re-work
Cost to do card sort = $5,000Cost to do re-work = $50,000 (this is the cost to fix it later if you don’t do the card sort – this is the amount you are saving)
ROI = (50k-5k)/5kROI = 45k/5kROI = 9 or 900%
Cost of re-work
My First ROI Calculation (circa 1994)• Software for bank tellers• 5000 users • Interface was hard to learn and hard to use -- poor user
experience• Assumptions: waste 5 seconds per transaction• 100 transactions per person per day• 5000 people x 100 transactions x 5 seconds = 2.5 M
seconds = 41,666 minutes = 694 hours• x $7/hour = $4,858 a day x 252 days = $1,224,216
That’s Not All!• Take training from 2 weeks to 2 days, saves $1000 in training costs
per new person• 10% turnover = 500 people a year x $1000 = $500,000 per year in
training • PLUS help desk -- reduce calls by half, save 300 calls per month x $10
per call = $3,000 a month = $36,000 per year• $1,224,216 + $500,000 + $36,000 = $1,760,216 in first year• Cost to fix: $500,000
ROI = (1,760216-500,000)/500,000ROI = 1,260,216/500,000ROI = 2.52 or 252%
To Calculate Your ROI1. Decide on your key indicators.2. Estimate lost opportunity, cost of having a
poor user experience, or money to be made with a fix.
3. Estimate the cost to research and fix the problem.
4. Do your ROI calculation: Net Profit/Investment
Well-Designed User Experiences:• Increase conversion• Save user time• Save developer time• Increase customer
satisfaction• Increase use of the
technology• Reduce training costs• Reduce calls to the help
desk• Increase self-service
Poll Question:
Which key indicator is the most important to you right now on your project(s)?
A. ConversionB. Saving users timeC. Saving developer time/avoiding costly reworkD. OtherE. I don’t know
Mistakes, Myths, Misconceptions1. There is The ROI Formula2. Use the metric you currently get data on3. If we don’t have hard data it’s not worth it4. It’s only worth it if there are millions at stake5. Fail to document assumptions6. If we aren’t sure we can measure it after then
we shouldn’t estimate it before7. You need just one metric, or 8. You need many metrics9. Fail to get input and buy-in from key
stakeholders10. I’m not good at math/this is too hard
Benefits/Why Do It1. Decide if it’s worth it to do UX stuff on
a particular project2. Decide which UX stuff to do on a
particular project3. Decide which projects have priority for
UX attention4. Forecast how many and what kinds of
UX staff you need 5. Convince others/justify existence
Next Steps:
• Try one out – pick a simple project and one key indicator to start.
• Email or call me if you get stuck• Ask for a workshop (remote or in-
person)
courses.theteamw.com
humantech.theteamw.com
An Inspirational Idea To Take With You…
Automated Usability TestingReduced costs,
Increased speed Increased efficiency
Higher ROI
● We see a WHOLE lot more testing being done
● Companies that were doing some testing, now do much more
● Companies that were never doing testing, now do it
● Software is helping automate the (tedious) process of testing
● Enabled companies to scale their research, do more with less
● Testing embedded in the design process (test early, often, quickly, cost-
effectively)
User Testing Automation
Less of this...
...and much more of this.
The FutureFast, in-the-wild, real-time, instant feedback & insights
On-the-go, multi-device, contextual
2016: UXers are busy people…
How can they cope with this high demand for testing needs?
The Automation of Testing
Other industries have gone ‘automated’
Customer SuccessMarketingCRM
http://cdn.chiefmartec.com/wp-content/uploads/2016/03/marketing_technology_landscape_2016_3000px.jpg
http://cdn.chiefmartec.com/wp-content/uploads/2016/03/marketing_technology_landscape_2016_3000px.jpg
Pure usability / UX testing vendors circled (many more not mentioned)
80% of the work will be handled by software
Cost-effective
“Imagine 1,000 such nuggets. Properly tagged, well defined, easily searched and found. Beats any report.”
Tomer Sharon
https://medium.com/@tsharon/the-atomic-unit-of-a-research-insight-7bf13ec8fabe#.zhiklvq58
Automation is helping us efficiently convert data into insights
Q&A Session
THANK YOU!Dr. Susan Weinschenk - @thebrainladyThe Team W, [email protected]
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