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#frosmoX16
ROI of UX Yakup Bayrak | Founder, SHERPA
October 2016
#frosmoX16FROSMO X ROI OF UX
about.me/yakupI’m a full time family man
and a part time entrepreneur.
FROSMO X ROI OF UX #frosmoX16
Are we trying to sell water to a drowning man?
LET’S START WITH A QUESTION
ROI OF UX #frosmoX16
Let’s face it
We are living in the UX Myths era.
ROI OF UX #frosmoX16
Fears and misbeliefs fuel up the myths
ROI OF UX #frosmoX16
What if you are a project / product person?
FROSMO X ROI OF UX #frosmoX16
Project / Product People
UX confuses developers by adding new
requirements.
FROSMO X ROI OF UX #frosmoX16
Project / Product People
Usability guidelines might leak information.
FROSMO X ROI OF UX #frosmoX16
Project / Product People
Next generation UI previews
might stall current sales.
ROI OF UX #frosmoX16
What if you are a development person?
FROSMO X ROI OF UX #frosmoX16
Development People
All this UX stuff is impractical.
FROSMO X ROI OF UX #frosmoX16
Development People
It takes too much time to study users
and write specifications.
FROSMO X ROI OF UX #frosmoX16
Development People
We need to focus on coding.
FROSMO X ROI OF UX #frosmoX16
Development People
UX is a threat. They want to take the
creativity out of being a developer.
FROSMO X ROI OF UX #frosmoX16
Development People
Process = Bureaucracy = Bad
FROSMO X ROI OF UX #frosmoX16
Development People
All it takes to design a usable product
is intelligence & common sense.
ROI OF UX #frosmoX16
What if you are a QA person?
FROSMO X ROI OF UX #frosmoX16
Q&A People
UI bugs aren’t real bugs.
ROI OF UX #frosmoX16
What do we mean by UX and UX Designer?
ROI OF UX #frosmoX16
Let’s define
What do we mean by UX?
FROSMO X ROI OF UX #frosmoX16
FROSMO X ROI OF UX #frosmoX16
ROI OF UX #frosmoX16
Let’s accept
UX Designer is not the new Marvel character.
ROI OF UX #frosmoX16
UX Design should also follow a certain methodology, right?
FROSMO X ROI OF UX #frosmoX16
PLANNING ALPHA BETA GAField studies Task analysis
User cases Market analysis
Competitive evaluation Feature planning
Project plans & dev estimates Task flows
Documentation plans Heuristic evaluations
Information architecture Visualizations
Prototypes Testing prototypes
Design specs
Design refinement QA of UI
Usability testing Develop visual identity
UI walkthrough
Design refinement QA of UI
Usability testing Finalize visuals
Develop resource files Beta site visits
Documentation review UI walkthrough
Analyze support goals Site visits
Next cycle planning UI post-mortem Baseline studies
ROI OF UX #frosmoX16
We know, it’s sad, but today
Losers tell a cock-and-bull story about UX.
ROI OF UX #frosmoX16
Losers are
too busy for testing their ideas.
FROSMO X ROI OF UX #frosmoX16
ROI OF UX #frosmoX16
Losers
choose to rely on their gut feelings.
FROSMO X ROI OF UX #frosmoX16
ROI OF UX #frosmoX16
Losers
try to take the ownership of success.
FROSMO X ROI OF UX #frosmoX16
ROI OF UX #frosmoX16
Now, is the the time
for winners to take the lead.
ROI OF UX #frosmoX16
How do winners win?
ROI OF UX #frosmoX16
Winners
start with observing the user.
FROSMO X ROI OF UX #frosmoX16
FROSMO X ROI OF UX #frosmoX16
ROI OF UX #frosmoX16
Winners
invest in the user. Not in the buzz.
FROSMO X ROI OF UX #frosmoX16
#slackdown
ROI OF UX #frosmoX16
Winners
plan and measure the ROI of UX.
FROSMO X ROI OF UX #frosmoX16
PLANNING ALPHA BETA GAField studies Task analysis
User cases Market analysis
Competitive evaluation Feature planning
Project plans & dev estimates Task flows
Documentation plans Heuristic evaluations
Information architecture Visualizations
Prototypes Testing prototypes
Design specs
Design refinement QA of UI
Usability testing Develop visual identity
UI walkthrough
Design refinement QA of UI
Usability testing Finalize visuals
Develop resource files Beta site visits
Documentation review UI walkthrough
Analyze support goals Site visits
Next cycle planning UI post-mortem Baseline studies
FROSMO X ROI OF UX #frosmoX16
PLANNING ALPHA BETA GA
HIGH ROI UI QA & USABILITY VALIDATION
ROI OF UX #frosmoX16
How can we calculate the ROI of UX?
ROI OF UX #frosmoX16
Don’t worry.
There’s a recipe for calculating the ROI of UX.
FROSMO X ROI OF UX #frosmoX16
www.humanfactors.com/coolstuff/roi_increased_conversion_rate.asp
ROI OF UX #frosmoX16
FROSMO X ROI OF UX #frosmoX16Actual Conversion Rate 10%
Target Conversion Rate 15%
Annual Revenue 1,000,000
Improvement Cost (UX) 100,000
Expected Project Life Time 3 years
Future Gain from Improvement [(1,000,000 x (15/10) ) - 1,000,000 ] * [(1+0.05)3 - 1] /0.05 – 100,000 (1+0.05)3 = 1,460,487
Total Gain from Improvement 1,460,487.50 / (1 + 0.05)3 = 1,261,624
Annual Gain from Improvement 1262305.53 / 3 = 420,541
Annual ROI 420,541 / 100,000 = 4 : 1
Total ROI 1,261,624 / 100,000 = 13 : 1
ROI OF UX #frosmoX16
How does it work?
Let’s demonstrate.
FROSMO X ROI OF UX #frosmoX16
Average kitchen renewal cycle
10 years
Average kitchen renewal cost
7,000 USD
Site UV # Jan 2013 according to
compete.com's
39,000 UV
US Market Sales Share in Global Sales
26% US Market
Share
Global UV calculated taking US Market stats into account
150.000 Global UV / Month
Share of visitors thinking of renewal in the next 10 years
3%
Monthly UV of visitors thinking of renewal in
the next 10 years
4,500 UV / Month
Those who abandoned the site due to bad UX
2,250 UV / Month
15,750,000 USD Loss / Month
Sorry but, that’s what is on the table
ROI OF UX #frosmoX16
If you can’t measure benefits,
you surely can’t improve them.
FROSMO X ROI OF UX #frosmoX16
WHAT SHOULD WE DO?
LOWER COSTSImprove Efficiency
INCREASE PROFIT
INCREASE MARKET SHARE
FROSMO X ROI OF UX #frosmoX16
INTERNAL FOCUS EXTERNAL FOCUSRisk Management
Increase Revenues Reduce Costs
Productivity Training Error Reduction Support Costs
Laser sharp focus is indispensable.
FROSMO X ROI OF UX #frosmoX16
FOCUS AREA METRICS
DEVELOPMENT(Risk Management)
(Time for changes) x (# changes) x (Developer pay)(x 100 if change is post ship)
DEVELOPMENT(Risk Management)
(Time for discussions) x (# times) x (# Employees) x (Pay rate) (x 100 if change is post ship)
SALES(Increase Revenue)
(Time spent explaining how the UI works) = (Time lost on selling product benefits) (Lost sales as potential by-product)
TECHNICAL SUPPORT(Lower costs)
(Time on call) x (# calls) x (Pay rate)
Let’s think about the internal focus for the ROI of UX.
FROSMO X ROI OF UX #frosmoX16
FOCUS AREA METRICS
USER PRODUCTIVITY (Time on task) x (# times) x (# Employees) x (Employee pay rate)
USER TRAINING (Time in training) x (# Employees) x (Employee pay rate)
USER ERROS(Time in error recovery) x (# times per day) x (# Employees) x ( Employee pay
rate)
IT SUPPORT (Time on call) x (# calls) x (Employee pay rate - Support)
Let’s think about the external focus for the ROI of UX.
ROI OF UX #frosmoX16
Let’s sum it all up.
ROI OF UX #frosmoX16
OK, we accept. As UX Designers,
we are not a new breed of new super heroes.
ROI OF UX #frosmoX16
But nor do we
try to sell water to drowning people.
#frosmoX16
If properly executed and measured,
UX returns on investment.
FROSMO X ROI OF UX
ROI OF UX #frosmoX16
Thank you for listening!
All rights reserved. © 2016