InterContinental Hotels Group

Measuring Digital Return on ExperienceWhat We’ve Learned On Our Journey So Far

Emily LeahyManager, User Experience Strategy

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Problem

Large companies often make huge investments in large-scale redesigns where we change everything, making it hard to tell what worked, what didn’t, and we miss the opportunity to learn.

Time

Succ

ess

Redesign 1

Redesign for Responsive, Unique Brand Experiences

2012

2015

“…the only poster where the family was shown safely outside.”

Smoke Detectors Save Lives

Always a Strategist

4

What the VP thinks I do What my boss thinks I do What the rest of the UX team thinks I do

What I think I do What I actually doWhat Product Managers think I do

Emily Leahy

Manager, UX Strategy

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• Formally founded in 2003• Globally Based in Denham, UK• World’s largest hotel company (by

rooms)• 12 brands in over 100 countries

with over 4,942 hotels and more than 474,290 rooms

• 13 major dot coms• $1,858m total revenue

About IHG

UX Strategy Delegation

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And how do we do that at a company like IHG?

Time

Succ

ess

20122015

Redesign 1

Redesign for Responsive, UBE

Design updates in a year

KPI

Lift Home

Search Results Hotel

Details

Rooms & Rates

Payment

Problem

How do we get from here to there?

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Problem

One small exampleBefore

After

ResultPoints and Cash $

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Problem

One small exampleBefore

After

Result

Quick, change it back!

Points and Cash $

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Quiz Time!

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A.Change it back and hope that solves the problem without any unintended consequences.

Let’s try hope… again.

Quiz Time!

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B.Dig our heels in and point back to all the usability testing and analytics that supported the research-based design decision.

Hey, we used, “The Force!”

Quiz Time!

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C.Test the hypothesis, “Removing the rate preference dropdown decreased Points and Cash revenue,” before proceeding.

Search your feelings, you know it to be true

Quiz Time!

The Digital Return on Experience (ROX) program supports IHG’s Web Channel performance objectives by routinely conducting the practices required to design, implement, and manage digital customer experiences in a disciplined way.

Performance Practices

People & Processes

Performance

What we do with itDigital ROX

Program structure

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Tools help us focus on IHG’s business metrics and that “automate the mundane” and help us spot opportunities faster

Measurement

Performance

What matters to the business?

Web Channel Metrics

• Web Channel Revenue

• Loyalty Contribution

• Ancillary Revenue

• Brand Perception

• Digital Self Service

And of course, digital guest experience…

Performance

Our measurement universe

Scorecards Ad Hoc Analytics VoC Reports

+

Web Channel Checkout Revenue Revenue Contribution Average Daily RateRevenue Per Available RoomBooking Conversion Rate/FunnelWeb Rewards Club Enrollments  Credit Card Sign UpsBrand Perception GapSocial Brand/Web SentimentVisits vs. 2+ Page Visits Property page viewsCustomer escalations

+ =

Digital ROX KPIs, by Brand & Region

Global , Multi- Brand Data

Demand'KPI' Prior'Period'Performance' Current'Month' Trend' Score'Calcula8on' Score' Dimensional'Score' Health'Score'

A" Homepage"to"Room"Rate"Conversion" 4%" 5%" 6%" (5%74%)/(6%74%)*"100" 50"

Demand"Performance"Score"*"Dimension"Weight""78.5%x25%"

Demand"Dimensional"Score""+""Conversion"Dimensional"Score""+""SaLsfacLon"Dimensional"Score""+""Revenue"Dimensional"Score""24.11%"+"18.75%"+"19.58%"+"8.9%"

B" Homepage"to"Rewards"Club"Enroll"Conversion" 4%" 7%" 6%" (7%74%)/(6%74%)*"100" 150"

C" Search"Results"to"Room"Rate"Conversion" 4%" 6%" 6%" (6%74%/6%74%)"*"100" 100"

D" Search"Results"to"Rewards"Club"Conversion" 4%" 5%" 6%" (5%74%/6%74%)"*"100" 50"

E" Hotel"Details"to"Room"Rate"Conversion" 4%" 6%" 6%" (6%74%/6%74%)"*"100" 100"

F" Hotel"Details"to"Rewards"Club"Conversion" 4%*" 5%*" 4%*" (5%/4%)"*"100" 125"

G" Site"Exits"to"Chase"Enrollment"over"Site"Visits" 4%**" 4%**" 4%**" (1/1)*"100" 100"

Demand'Performance'Score' A+B+C+D+E+F+G/(#"KPIs"*"100)" 96.43%' 24.11%'

Conversion'KPI''

H" Room"Rate"to"Booking"ConfirmaLon"Conversion" 4%" 5%" 6%" (5%74%/6%74%)"*"100" 50" Conversion"Performance"Score""*"Dimension"Weight"I" Rewards"Club"Submission"Conversion" 4%" 6%" 6%" (6%74%/6%74%)"*"100" 100"

Conversion'Performance'Score' H+I/(#"KPIs"*"100)" 75%' 18.75%'

Sa8sfac8on'KPI''

J" Rate"Experience" 7" 8" 9" (877/977)"*"100" 50"

SaLsfacLon"Performance"Score"*"Dimension"Weight"

K" Purpose"of"Visit"CompleLon" 8" 10" 10" (1077/1077)"*100" 100"

L" Discovery" 6" 5" 6" (576/676)"*"100" 750"

M Relevancy" 7" 7.7" 7.5" (7.777/7.577)"*"100" 140"

N" Convenience" 6" 7.3" 7" (7.376/776)"*"100" 130"

O" Bobom"Line" 8" 8" 8.5" (878/8.578)"*"100" 0"

Sa8sfac8on'Performance'Score' (J+K+L+M+N+O)/(#"KPIs"*"100)" 78.33%' 19.58%'

Revenue'KPI''

P" Web"Channel"Checkout"Revenue" $75M" $80M" $90M" ($80M7$75M/$90M7$75M)"*"100" 33"Revenue"Performance"Score"*"Dimension"Weight"

Q" Number"of"Bookings" 120K" 100K" 150K" (100k7120K/150K7120K)"*"100" 767"

R" Revenue"per"Booking" $280" $520" $450" (5207280/4507280)"*"100" 141"

Revenue'Performance'Score' (P+Q+R)/(#"KPIs"*"100)" 35.6%' 8.9%' 71.34%'

Performance

The fancy math

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Performance

Where we’re going

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Performance

What we do with it

StrategyHypotheses Optimization Plans

Stakeholder Input Competitor Analysis Industry Trends

User Session Replays

3rd Party Research

Call Center Data

Vendor Vision / Recommendations

Usability Testing Findings

Site Analytics

Online Chat Log A/B Testing Small Enhancements

Winners

Okay, let’s get to work…

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Performance

What we do with it

Where should we start?

StrategyHypotheses Optimization Plans

Stakeholder Input Competitor Analysis Industry Trends

User Session Replays

3rd Party Research

Call Center Data

Vendor Vision / Recommendations

ROX Scorecard Metrics Usability Testing

Findings

Site Analytics

Online Chat Log A/B Testing Small Enhancements

Winners

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Performance

What this helped us do• Optimization plan for membership enrollment form

• Optimization plan for login

• A/B tests for booking conversion

• Strategy for key ancillary revenue projects

• Strategy for IHG.com

• And the list grows daily

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• Optimization plan for membership enrollment form

• Optimization plan for login

• A/B tests for booking conversion

• Strategy for key ancillary revenue projects

• Strategy for IHG.com

• And the list grows daily

Performance

What this helped us doIncreases Loyalty Contribution

Enables Digital Self Service

Increases Channel Revenue

Grows Ancillary Revenue

Improves Brand Perception

Builds a Sustainable Program

… But you said “routine” and “disciplined”

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Routines that keep us focused on our vision and achieving results that build buy-in.Practices

Practices

How do we get it all done?

5 weeks of website analysis of booking funnel lead to:•  4 Small Enhancements•  8 Online Test Ideas evolve to enhancements•  5+% Lift in funnel entry •  8-15% lift in each step of funnel•  24% increase in funnel conversion•  Leads to $8.6MM incremental/month once deployed to all

traffic•  +114,000 new bookings and +$51.6M Incremental

Revenue (6 mths after implementation)

12 Quick Wins*

Page Quick Win Approach Priority

All New CTA Button Verbiage, Color and Visual Treatment Test First 1

All Image/Content Refresh focus on benefits and brand Test First 1

Search Results Explain sister hotels in search results Test First 1

Room Rate More visibility of refining search options Test First 1

Room Rate Sense of Urgency Messaging Test First 1

Room Rate Minimize confusion and create differentiation of Best Flexible Rate/Deals by moving to bottom of page Test First 1

Guest Info Move Credit Card offer to bottom of page Test First 1

Guest Info Remove Learn More link Implement 1

All Targeted content for returning visitors Implement 2

Room Rate Default to Currency Selector to current country currency Implement 2

Guest Info Make Hotel Stay Summary easier to find and review Test First 2

Guest Info Edit Hotel Stay Summary On Page Implement 3

*Quick'wins'apply'to'the'current'state'of'the'desktop'website'for'Crowne'Plaza'

Practices

What to do when - high level

Heuristic Assessments & Design Exploration/Concepts

The$quarterly$and$monthly$feedback$loop$will$7e$into$an$orchestra7on$workflow$and$set$cadence$of$research,$analysis,$planning$and$execu7on$processes$

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Digital Health Scorecard

!!Staybridge,!Candlewood,!IC,!CP! !!Holiday!Inn!Family!Brands! !!IHG,!Indigo,!Hualuxe,!!!!Kimpton,!EVEN!Brand Site Experience Research

1:1 Usability Tests (Deep Dive)

Small Enhancements

Small Enhancements (AEM)

Online Testing

Quarterly!Brand!Summit!

!!Staybridge,!Candlewood,!IC,!CP! !!Holiday!Inn!Family!Brands!

Monthly!Performance!Review!Quick Win Analysis

& Design Explorations

Practices

What to do when - details26#Usability#Studies#Per#Year#•  Remote&Global&Studies&with&Deep&Dive&1:1&Modera9on&&5#Brand#Summit’s#Per#Year#•  Summit&1:&Candlewood,&Staybridge,&IC,&Crowne&Plaza&•  Summit&2:&Holiday&Inn&Family&Brands&•  Summit&3:&IHG,&Hualuxe,&Indigo,&Even&•  Summit&4:&Candlewood,&Staybridge,&IC,&Crowne&Plaza&•  Summit&5:&Holiday&Inn&Family&Brands&&12#Performance#Reviews#Per#Year#•  2&(4&to&5&Week)&Quick&Wins&Analysis&Per&Brand&

45#@#57#Online#Tests#Per#Year##•  (3&Test&Running&Concurrently&(6&–&9&Week&Test&Cycles)&&24#Small#Enhancements#Releases#Per#Year#•  24&(2&Week&Sprints)&–&383&Story&Points&(3&Developers)&•  12&(4&Week&Sprint)&–&420&Story&Points&(3&Developers)&&24#AEM#Small#Enhancements#Release#Per#Year#•  24&(2&Week&Sprints)&–&256&Story&Points&(2&Developers)&•  12&(4&Week&Sprint)&–&280&Story&Points&(2&Developers)&&

A#set#orchestraHon#calendar#that#extends#12#months#out#will#drive#increase#producHvity#

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Increase bandwidth in key areas including design, research, and project management while promoting changes that make us more efficient and effective.

People & Processes

People & Processes

Where we want to be

DXD#Director#

Performance*Strategy* Performance*Design*Studio*

Op,miza,on#Lead#(Mgr)#

Op,miza,on#Analyst# Interac,ve##Project#Manager#(Mgr)##Studio#Manager#(Mgr)# +2#

New#

Small*Enhancements*&*Online*Tes:ng* Brand*Campaigns* GSM*&*Brand*Priori:es*

#####Hybrid#x3# #####Copywriter#x2#

#####Designer#x5#

####UEA#+#Hybrid#x6#

#####Designer/AD#x7#

#####Content#########Str/Sp#x5#

#####Copywriter#x1#

DXD*PEOPLE*COUNT*CHANGE*38****!****44*

CX#Strategy#Lead#(Mgr)#

Experience#Researcher#

+#Research#Vendor#

+2#New#

#####Hybrid#x2# +2#New#

SLT#Sponsor#DXD*

########Experience#Lead#(Mgr)#–#Ryan,#John,#Mike,#Kim#

Ideal UX Team

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People & Processes

Many hands make light workArea Allies

Measurement Analytics Team, Brand Teams, Product Managers, Testing & Optimization

Quarterly Brand Summits Product Management, Testing & Optimization, Mobile, Ent.Content Strategy

Monthly Performance Reviews Product Management, Testing & Optimization, Small Enhancements

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People & Processes

From our perspective

Design Documentation Ticketing Post-Launch Ticketing

Design Direction Design Prototype

Ticketing

Post-Launch Optimization

Launch

Core Documentation

Design Support

Currently

Proposed

High-level design process

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People & Process

From the organization’s perspective

Idea% Project%Charter% Crea.ve%Brief%Crea.ve%Concepts%

AEM%Specs%%&%AX%Wires%

Wireframes%&%Annota.ons%

Visual%Design%

Solu.on%Needs%Document%

Sprint%0%%…%

Defini.on% Solu.on%Design%

Implementa.on%

DXD% DXD% DXD%

C.Ops%

W%D%

GT%

DXD%P%M%Biz%Stakeholder%

Prototype%Tes.ng%

DXD%

Sprint%1% Sprint%X%

Automate the mundane

Results Orientation

Build the ROX “Brand”

Performance Practices

People & Processes

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What we’ve learned

A journey we are on1. You’ll always be a rebel, but the old

ways exist for a reason

2. Be clear and repeat often why you’re asking for change (sometimes you’re even reminding yourself)

3. Use challenging moments as a way to show why a different approach is necessary

4. Establish routines as early as possible

5. Find allies within your organization

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Questions

emily.leahy@ihg.com