yakup bayrak, sherpa, roi of ux, 26.10.2016

#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.

http://about.me/yakup

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.


Fears and misbeliefs fuel up the myths


What if you are a project / product person?


Project / Product People

UX confuses developers by adding new

requirements.



Usability guidelines might leak information.



Next generation UI previews

might stall current sales.


What if you are a development person?


Development People

All this UX stuff is impractical.


Development People

It takes too much time to study users

and write specifications.


Development People

We need to focus on coding.


Development People

UX is a threat. They want to take the

creativity out of being a developer.


Development People

Process = Bureaucracy = Bad


Development People

All it takes to design a usable product

is intelligence & common sense.


What if you are a QA person?


Q&A People

UI bugs aren’t real bugs.


What do we mean by UX and UX Designer?


Let’s define

What do we mean by UX?


Let’s accept

UX Designer is not the new Marvel character.


UX Design should also follow a certain methodology, right?


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


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


We know, it’s sad, but today

Losers tell a cock-and-bull story about UX.


Losers are

too busy for testing their ideas.


Losers

choose to rely on their gut feelings.


Losers

try to take the ownership of success.


Now, is the the time

for winners to take the lead.


How do winners win?


Winners

start with observing the user.


Winners

invest in the user. Not in the buzz.


#slackdown


Winners

plan and measure the ROI of UX.


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


Usability testing Develop visual identity

UI walkthrough


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


PLANNING ALPHA BETA GA

HIGH ROI UI QA & USABILITY VALIDATION


How can we calculate the ROI of UX?


Don’t worry.

There’s a recipe for calculating the ROI of UX.


www.humanfactors.com/coolstuff/roi_increased_conversion_rate.asp


http://www.humanfactors.com/coolstuff/roi_increased_conversion_rate.asp

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


How does it work?

Let’s demonstrate.


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


If you can’t measure benefits,

you surely can’t improve them.


WHAT SHOULD WE DO?

LOWER COSTSImprove Efficiency

INCREASE PROFIT

INCREASE MARKET SHARE


INTERNAL FOCUS EXTERNAL FOCUSRisk Management

Increase Revenues Reduce Costs

Productivity Training Error Reduction Support Costs

Laser sharp focus is indispensable.


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.


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.


Let’s sum it all up.


OK, we accept. As UX Designers,

we are not a new breed of new super heroes.


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


Thank you for listening!

yakup bayrak, sherpa, roi of ux, 26.10.2016

Technology