ux = roi: it's not just a myth

UX = ROIIT’S NOT JUST A MYTH

Jeremy Johnson VP of Customer Experience

.com

We have a unique and established methodology for understanding people in

context — we reveal unmet needs — which drives everything we do. This leads

to a crisp, clear understanding of the customer which shapes the design and

development of new solutions and experiences.

With over 14 years perfecting our approach we have the experience, teams,

skills and scale to deliver sophisticated software solutions that improve any

and all touchpoints across the user journey.

We’re driving digital transformations

DRIVING RESULTSEXPERIENCE DRIVEN &

We’re working with some of the biggest and best organizations in the world,

helping transform their experience and technology:

— confidential —

Mercedes-Benz Financial Services, Capital One, Samsung Electronics,

The Container Store, Neiman Marcus and many more ...

• 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

projekt202 is the leader in applying experience strategy and

observational insights to the development of mobile, cloud, web

and workplace software. The company is actively redefining the

user experience (UX) and changing the ways people interact with

technology around the world. Recognized by industry analysts for

setting the standard for the way modern businesses develop

software, projekt202 builds emotionally rich, resonant solutions

that enable customers and end users to fully realize technology’s

potential in today’s connected world.

Customer Centric Software Development

Understanding the problem is harder and takes longer than designing a solution.”“

Product Director at Luke Wroblewski—

— confidential —

@jeremyjohnson slideshare.com/jeremy jeremyjohnsononline.com

“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

—

“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

I spend some amount of time…

As a UX Designer…

3%3%3%10%

20% 61%

Selling Directing ManagingDoing Reading blogs Shopping for watches

“UX Designer”

Beginning: Selling to Developers & Product Owners

Middle: Selling to Directors & VPs

Top: Selling to SVPs & CEOs

YOUR VALUE = VALUE OF UX

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

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…

Designers are… for the guys…

Designers are… for the millennials …

Explorers, using a scientific method — seeking to understand and provide context.

QUESTION

HYPOTHESIZE

EXPERIMENT

OBSERVE & RECORD

ANALYZE

SHARE RESULTS

1

2

3

4

5

6

SCIENTIFIC METHOD

QUESTION

EMPATHIZE

DEFINE

IDEATE

PROTOTYPE

TEST

1

2

3

4

5

6

DESIGN METHOD

Design is everywhere!

“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 Maedahttp://www.kpcb.com/design/design-and-vc

#DesignInTech

#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

design lead companies — years to $1 Billion valuation

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

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

https://vimeo.com/139025298

“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!”

“… due to poor requirements definition”

“…of projects scrapped, or end up being underwhelming”

“…in developer time spent on avoidable rework”

“$600 billion spent on digital projects, with billions wasted…”

30% UP TO

67% UP TO

50% UP TO

[CNBC — Tech spending isn’t all it’s cracked up to be] [usability.gov — Benefits of UCD][IAG — Business Analysis Benchmark Report]

http://www.cnbc.com/2015/10/30/technology-spending-isnt-all-its-cracked-up-to-be-study.html

https://www.usability.gov/what-and-why/benefits-of-ucd.html

https://www.iag.biz/business-analysis-benchmark-2009-report/

…I hear ya, but… where’s that ROI?

“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/

…I hear ya, but… where’s that ROI?

UX = ROI“I WANT TO KNOW HOW…”

Additional revenue via better experience which drive more customers & sales.

MORE REVENUE


Savings via improved processes, systems, via digital transformation.

REDUCED COSTS

Get to market with the right product or service faster, and hit the mark the 1st time.

TIME TO MARKET

Identify new concepts and revenue streams that leverage your brand in new services or products.

NEW CONCEPTS

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

AS A DESIGNER…


MORE REVENUE

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

IDEAS

CUSTOMER EXPERIENCE JOURNEY MAPS

PERSONAS

CONCEPT DESIGNS

USABILITY TESTING

WORKFLOW DIAGRAMS

PRIORITIZATION

CONTEXTUAL INQUIRIES

AFFINITY DIAGRAMS

KANO

SERVICE BLUEPRINTS

“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

Millions vs. 2.6%

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.”

$3.6 billion & $725 million

• They’re online only! • 2.6% increase to GMV = 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 GMV by $93 million

dollars over a single year.”

Team of 3 x $80k a year = $240k 5% of the year = $12,000

WITH THE COST OF THE CHANGES … THE ROI WAS XX%.

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 GMV 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!)


REDUCED COSTS

workplace

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

The cost to improve < the return you get

Shave 5mins off every call…SAVE $10 MILLION DOLLARS

cost neutral

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

ROIShave time off every call.

Reduce calls to the call center.

“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)

digital transformation

“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.”


• 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 savings1000%+ 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.”


TIME TO MARKET

“…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.”


“I’m also hoping very much to see more validation of ideas. In other words, let’s stop just shipping features, crossing our fingers, and hoping they work. Let’s figure out how we can test whether we’re moving in the right direction before we commit six months and hundreds of thousands of dollars toward building something.

I also think that we’ll continue to see more teams using qualitative research in conjunction with quantitative data.”

http://blog.wootric.com/product-managers-stop-worrying-about-building-the-wrong-thing-on-schedule-a-qa-with-laura-klein/

- Laura Klein

Build Better Products: A Modern Approach to Building Successful User-Centered Products

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).”

“Remember that our higher order objective is to validate our ideas the fastest, cheapest way

possible. Actually building and launching a product idea is generally the slowest, most

expensive way to validate the idea.”http://svpg.com/dual-track-scrum/

Delivering software is more than just writing code — we’ve found that blended teams understand how design and development work together and are key to any successful project.

The right teams, with modern practices around design systems, prototypes, business context, automated testing, and modern architectures make us on average 40% faster than traditional development teams.

COLLABORATIVE TEAMSARE YOU MOVING FAST ENOUGH?

Benchmarked against offshore and internal teams, our blended teams

of strategist, designers and developers work together to understand

user needs, translate those needs to design and then blended with

developers, take that investment to launch.

40% FASTER

TRADITIONAL DEVELOPMENT TEAM

PROJEKT202 DEVELOPMENT TEAM

40% VELOCITY GAIN OVER PROJECT LAUNCH

• Pattern libraries / Design Systems

• Working with mock-ups and prototypes

• Design / Dev integration

• Rapid, just-in-time iteration

• Understand business context

• Work in many different stacks

• Devs do automated testing

• QA automation and device testing

• DevOps / CI / CD / Automated testing

• Modern architectures like Microservices,

REST, SPA, etc.

VS.

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/


NEW CONCEPTS

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.”


1. Did it cannibalize sales or increase sales?

2. What was the increase to sales? Revenue?

3. 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.”

Why are observations so powerful?

https://www.jeremyjohnsononline.com/presentations/

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.

IDEAS

CUSTOMER EXPERIENCE JOURNEY MAPS

PERSONAS

CONCEPT DESIGNS

USABILITY TESTING

WORKFLOW DIAGRAMS

PRIORITIZATION

CONTEXTUAL INQUIRIES

AFFINITY DIAGRAMS

KANO

SERVICE BLUEPRINTS

“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

Disruption + Surveys

A NOTE ABOUT

“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/

”“

“consumers claim…”

“People in everyday life don’t really know what they need—they just tell you what they *think* they want.

People don’t always do what they say, and they rarely know how they’ll act in the future.”

http://blog.invisionapp.com/dont-design-what-users-want/

asking vs. observed behavior

1. People will tell give you an aspirational view of themselves.

2. People are poor at predicting their future behavior.

3. Some behavior is sub-subconscious.

4. People are swayed from moment to moment by unexpected in influences.

5. People want to fit in.

Customer experience (Cx) professionals know that the rst step on

the path to delivering good experiences is doing research to

understand their customers. Yet many fail to recognize that it’s easy

to draw false conclusions — and that doing so is even more

dangerous than being ignorant. in this report, we warn Cx pros

about the most common pitfalls and explain how to adapt your

practices and mindset to avoid them — and get the insights you

need to succeed.

Build Real Customer Understanding How To Avoid Research Pitfalls And Achieve Insight Instead

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

up to 15% …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.

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

up to 15% …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 GreenDigital 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

http://rita.dot.gov

$500k a day!

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

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%

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!”

Design Systems

100 devs each save 2 hrs

per week =

$388,800 annual savings*

100 devs each save 30 min

per week =


100 devs each save 5 hrs

per week =


100 devs each save 1 hr

per week =


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 StallingsDirector 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


MORE REVENUE



REDUCED COSTS


TIME TO MARKET


NEW CONCEPTS

5 THINGSTO REMEMBER

ROI

Dig deeper

investment vs cost

from “I did this” to results!

cost neutral

if you can’t measure it…

“Why should I keep you around?”

I print the money.

thanks.

Jeremy Johnson VP of Customer Experience

www.jeremyjohnsononline.com

We wrote the book on helping businesses gain insight from their customers and users — insights that lead to effective, successful launches.

Designing Software for People: Application Development in the Experience Age

experience.projekt202.com