Selling UCD: Getting buy-in and measuring the value of UX

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!Selling UCD Getting buy-in & measuring the value of UX

by Anna Dahlström | @annadahlstrom London, 26 Feb 2014

http://www.flickr.com/photos/dahlstroms/4411448782/

http://www.annadahlsrom.com

Just to be clear… this workshop is not about selling

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http://www.flickr.com/photos/triciawang/2776264432/sizes/l/in/photostream/

Image via Shutterstock

It’s about communication, collaboration & tangible ways to demonstrate + measure the value of UX

We all know that what we do adds value…

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http://www.flickr.com/photos/31878512@N06/4623931527

We recommend an approach & what to do


Convincing others isn’t always that easy

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http://www.flickr.com/photos/torbein/5121357362

The situations we may come across

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Not enough budget Brought in too late

Not enough time allocated

No budget allocated

The client doesn’t prioritise it

Not included in meetings

The company doesn’t prioritise it

Deliverables & timelines are promised without consulting us

No direct contact with the client

I just don’t know how to make it tangible

http://www.flickr.com/photos/ansik/205993142


“ It will create a better user experience and make customers happier.”

- Said by many UX people lost for words & tools to explain & demonstrate the value of UX

http://www.flickr.com/photos/jmsmith000/3169546564

…and we’re back where we started




No budget allocated








Tonight’s agenda1. Getting buy-in & why it matters

2. Approaches for getting buy-inExercise

3. How to measure the value & success of UCDExercise

4. Defining a UX metrics planExercise

5. Q & A

Break

1. Getting buy-in & why it matters


“ Any company that has not yet realised making the customer successful is the key to profit and survival is either delusional or on its way out of business.”

- Greg Nudelman,UXmatters article ‘Experience Partners: Giving Center Stage to Customer Delight’


Created using Wordle

But using our lingo doesn’t cut it


“ You need to understand where your peers in other disciplines are coming from and communicate the message of UX to them in terms they can understand.”

- Pabini Gabriel-Petit, UX Matters


The design team

Our closest allies who we’ll be doing

the work with

“The suits”

In charge of budgets, timings, internal & client

relationships

Finance & board

The actual decision makers with the key to

the budget

The client

Our closest point of contact & key

stakeholder

The client’s bosses

The ones who in the end make the

decision & allocate the budget

Who we work with

The design team

• Erhmm…UX what?

• What do you do?

• How does this affect me?

• How does this impact my role?

• Isn’t UX just common sense?

• Do we really need it?

“The suits”

• How does this impact our process?

• How much (more) does it cost?

• How does it impact timings?

• How do we incorporate it into the project plan?

• That sounds expensive

• How can we justify the cost?

• How can we sell it to clients?

Finance & board

• How do I know this will add value?

• How much value will it bring?

• Will it be worth the cost?

• How can we measure it?

The client

• What is UX?

• Do we need it?

• Isn’t that just common sense?

• Do we need to pay extra for it?

• How can I justify the additional time?

• How can I justify the additional cost?


• What impact does this have on the bottom line?

• How much is it going to cost me?

• What return will it bring compared to our other initiatives?

• Is this really a priority?

Some typical challenges

Challenges • Not understanding UX - what it is, how

you work with it and what it brings

• Not knowing when to involve UX people

• Not knowing where UX fits in the company process

• Seeing UX as an after thought

• Not allowing enough time or seeing the need to allocate time for UX activities

• Not seeing the need to spend budget on UX activities

• Not having clear data or reasons behind decision making

Opportunities • Create co-ownership & excitement

around UX

• Being invited to & involved in meetings

• Integrating UCD into the process and company

• Being involved from the start

• Ensuring the time & resources that are needed are given to you

• Ensuring clients approve budgets and proposed project outlines

• Help with prioritisation & design decisions as well as supporting ongoing iterations

2. Approaches for getting buy-in for UCD

How depends on who we work with

In the ideal world UX is embraced throughout the organisation

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http://www.flickr.com/photos/vpickering/7760186786

In many placeswe’re not there yet

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We need to assess the UX readiness of organisations & individuals

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http://www.flickr.com/photos/lendingmemo/11746255104

9 questions to assess UX readiness 1. How are products designed and developed today? Where can UX integrate?

2. What is the company vision? Does it use the right words that make it receptive to a UX sell?

3. Who is working on design today? Where does it sit in the organization and who owns it?

4. Is there anyone at the strategic level championing UX currently?

5. Is there anyone at the product or project level championing UX currently?

6. What are their high profile products and services? What are they doing well? How could UX help? What UX learnings are there? How could you use these as stories that tell why UX is a good thing?

7. How can you help teams work better toward meeting a UX vision?

8. What does the company know about their customers today? How do they know it? How can you help them learn more? How can you compliment their current understanding?

9. What type of culture exists now? Is the organization engineering-centric, design-centric, sales-and-marketing-centric, or something else?

- By Paul Sherman, Daniel Szuc, and John Rhodes, UX Matters: Evangelizing UX Across an Entire Organization

Directive we take the leadership role & make decisions

Collaborative we advise & provide guidance but don’t decide

vs

UX maturity affects leadership style


Directive we take the leadership role & make decisions

Collaborative we advise & provide guidance but don’t decide

plus


“ You need to understand where your peers in other disciplines are coming from and communicate the message of UX to them in terms they can understand.”

- Pabini Gabriel-Petit, UX Matters


The design team “The suits” Finance & board The client The client’s bosses


• What do you do?
















• What is UX?

• Do we need it?










Don’t make ita personal matter

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http://www.flickr.com/photos/activars/6803363788

The design team

• Make them understand

• Show how you can help

• Adjust and fit in

• Create excitement around UX

• Make UX co-owned

“The suits”

• Educate & make it easy to explain

• Help with estimates & project plans

• Equip them with arguments & tools


Finance & board

• Educate & demonstrate the value of UX

• Be clear on how UX can be measured

• Give them numbers

• Explain limitations & dependencies

• Make them excited

The client

• Explain & educate on UX & the process

• Make them part of the UX process

• Tie in with business objectives & goals

• Help them justify costs & times

• Make them look good


• Demonstrate the value of UX to the business



!

Addressing the challenges

Involve & build shared understanding and ownership

IImage via Shutterstock

As well as give something tangible


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Time for the first exercise

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01Thinking back at your own experiences, discuss in groups the challenges that you normally face and some ways to address them.

1. What are the challenges you come across the most?

2. How would you handle them (differently) based on what we’ve discussed today?

HANDLING CHALLENGES


The situations we may come across




No budget allocated










• What do you do?
















• What is UX?

• Do we need it?











• Make them understand

• Show how you can help

• Adjust and fit in

• Create excitement around UX


• Educate & make it easy to explain

• Help with estimates & project plans

• Equip them with arguments & tools


• Educate & demonstrate the value of UX

• Be clear on how UX can be measured


• Explain limitations & dependencies

• Make them excited

• Explain & educate on UX & the process

• Make them part of the UX process


• Help them justify costs & times

• Make them look good

• Demonstrate the value of UX to the business



!

Addressing the challenges


01 HANDLING CHALLENGES

Thinking back at your own experiences, discuss in groups the challenges that you normally face and some ways to address them.

1. What are the challenges you come across the most?

2. How would you handle them (differently) based on what we’ve discussed today?

10 minutes


3. How to measure the value & success of UCD


“ If you can’t measure it you can’t manage it.” - Steve Fleming, HFI Connect


What we do isn’t guess work


Understanding the broader picture

From Adaptive Path - The Anatomy of an Experience Map http://www.adaptivepath.com/ideas/the-anatomy-of-an-experience-map/

http://www.adaptivepath.com/ideas/the-anatomy-of-an-experience-map/

From UX lady - Experience maps, user journeys and more… www.ux-lady.com/experience-maps-user-journey-and-more-exp-map-layou

http://www.ux-lady.com/experience-maps-user-journey-and-more-exp-map-layou

Awareness

Identify key points for experience goals Hy

giene

Feel

good

Delig

ht

Consideration Purchase Post purchase

The site knows me & what I

want

UX Matters ‘Communicating the UX Value Proposition - http://uxmag.com/articles/communicating-the-ux-value-proposition

http://uxmag.com/articles/communicating-the-ux-value-proposition

Knowing if Understanding why Demonstrating how Repeat or iterate

Measuring UX isn’t an exact science


framework for measuring UX initiatives

mechanism for understanding & guiding where to apply it

+

Start of a project During the design process End of the design process After the project …and ongoing

Creating a UX metrics plan: 1. Define your criteria 2. Define the method 3. Define the tools


Know what you can measure

Money earned Money saved Non-monetary results


Metrics we’ll look at • Conversion rates

• Average revenue per customer

• Support costs

• User performance

• Net promoter score

01 Conversion rate What it is about


“ Conversion might measure the number of sales on an ecommerce Web site in comparison to the number of visits, the number of product requests customers submit on a bank Web site, or the number of new registrations for a paid service.”

- Yury Vetrov, UX MattersHow to Calculate the ROI of UX Using Metrics


02 Average revenue per user What it is about


“ For both subscription-based applications and services and those that use a freemium model and rely on regular user participation, the average revenue per user (ARPU) metric is highly important.”



03 Support costs What it is about


“ Any commercial product presents post-sales liabilities to your clients. First among these is the cost of providing support services.”



04 User performanceWhat it is about


“ When users work with a product on a regular basis and repeatedly perform the same operations day after day, optimizing these operations is always beneficial.”



05 Net promoter scoreWhat it is about


“ It is based on the fundamental premise that customers can be divided into three groups - Promoters, Passives, Detractors [and] empirical research has shown that there is a striking correlation between the customer grouping and actual behaviour – repeat purchase and referral patters - over time.”

- Bernard MarrA Single Measure of Business Success?


5 mins break


02UX VALUE PROPOSITION

Your company are in discussions about doing a re-design of a big retail website. The main objectives are to increase conversions (sales), provide a customised experience, and decrease the number of customer support calls and emails the company receives.

1. Using UX Matters’ framework, define and map the UX value proposition


UX Matters ‘Communicating the UX Value Proposition - http://uxmag.com/articles/communicating-the-ux-value-proposition

http://uxmag.com/articles/communicating-the-ux-value-proposition

From UX lady - Experience maps, user journeys and more… www.ux-lady.com/experience-maps-user-journey-and-more-exp-map-layou

http://www.ux-lady.com/experience-maps-user-journey-and-more-exp-map-layou

Awareness


giene

Feel

good

Delig

ht



want


02UX VALUE PROPOSITION

Your company are in discussions about doing a re-design of a big retail website. The main objectives are to increase conversions (sales), provide a customised experience, and decrease the number of customer support calls and emails the company receives.

1. Using UX Matters framework, define and map the UX value proposition

20 minutes


4. Defining a UX metrics plan

Creating a UX metrics plan: 1. Define your criteria 2. Define the method 3. Define the tools

Money earned Money saved Non-monetary results




• Support costs



What it means When to use it How to use it

The good, the bad & how to validate it

Step 1: starting metricWhere you are now & what you’ll be comparing againstStep 2: target metricWhat you need, or where you want to/ need get toStep 3: validating & applying conversion ratesUnderstanding limitations, dependencies & influencing factors

01 Conversion rate What it is about


“ Conversion might measure the number of sales on an ecommerce Web site in comparison to the number of visits, the number of product requests customers submit on a bank Web site, or the number of new registrations for a paid service..”



01 Conversion rate The formula

number of people who complete [task] / number of site visitors * 100% = conversion rate (%)

!

01 Conversion rate What it requires

An understanding of: 1. The process you’re trying to measure e.g. the purchase 2. The actions a customer must take 3. Insights from analytics & data 4. Barriers and pain points in current flow 5. How UX initiatives can support or improve it

01 Conversion rate What it involves

Step 1: starting conversion rate The current conversion rate, or that of competitorsStep 2: target conversion rate What you need, or where you want to/ need get toStep 3: validating & applying conversion ratesRealistic & accurate numbers, Comparing against other costs & ways to drive conversions, Other factors that may impact, Test viable design options

02 Average revenue per user What it is about


“ For both subscription-based applications and services and those that use a freemium model and rely on regular user participation, the average revenue per user (ARPU) metric is highly important.”



02 Average revenue per user The formula

revenue from paid services / number of subscribing users = ARPU (£) per month

02 Average revenue per user What it requires

An understanding of: 1. How customers are currently using the products 2. Their needs, behaviour, motivations & barriers (quantitative) 3. Analytics insights of current usage 4. Data on registered paying customers & total revenues 5. The business model & what impact changes would have 6. Design & UX changes that would lead to achieving your target

02 Average revenue per user What it involves

Step 1: starting ARPUDefine the standard time period e.g. month, average revenue for that time period & average subscribersStep 2: target ARPUWhat you need, or where you want to get to & by whenStep 3: validating & applying ARPUGradual growth, Other business activities & initiatives that impact ARPU, Customer satisfaction vs. increasing ARPU

02 Average revenue per user The formula

revenue from paid services / number of subscribing users = ARPU (£) per month

!

(ARPU per month #1 * number of registered users in month #1) + … + (ARPU per month ## * number of registered users

in month ##) = ARPU per year

03 Support costs What it is about


“ Any commercial product presents post-sales liabilities to your clients. First among these is the cost of providing support services.”



03 Support costs The formula

total support expenses / number of registered users = support cost per user (£)

03 Support costs What it requires

An understanding of: 1. Current support costs 2. Barriers or problem areas in the customer experience 3. Qualitative understanding of what lies behind it 4. Data & analytics of current support costs & usage 5. How UX and design initiatives can address these 6. Context of the savings

03 Support costs What it involves

Step 1: starting support cost Time frame & what support costs are per user at the momentStep 2: target support cost Where you need to get to, or the decrease you estimate UX initiatives can result inStep 3: validating & applying support costsTime it will take (instant vs. gradual), Other parameters that influence the need for support & support costs, Savings compared to investments, Total savings over time

03 Support costs The formula

total support expenses / number of registered users = support cost per user (£)

!

decrease in support cost per user for activity #1 + decrease in support cost per user for activity #2 = target

support cost per user (£) !

(economy per month #1 * number of registered users in month #1) + … + (economy per month ## * number of

registered users in month ##) = economy per year

04 User performanceWhat it is about


“ When users work with a product on a regular basis and repeatedly perform the same operations day after day, optimizing these operations is always beneficial.”



04 User performanceThe formula

time to execute operation #1 !

04 User performanceWhat it requires

An understanding of: 1. Costs related to an employee 2. Understanding of carrying out the task & its context 3. Usability issues with carrying out the task 4. Technical or legal constraints for current task flow 5. Ripple effect implications

04 User performanceWhat it involves

Step 1: starting performance rate Time to execute task, cost per time unit, e.g. minuteStep 2: target performance rate What you need, or where you want to get to & by whenStep 3: validating & applying performance rateAccurate average time calculations, Implication of achieving the target, What’s required to achieve the target, Time frame (instant vs. gradual ), Comparing against other initiatives (savings vs. investment), External factors,

04 User performanceThe formula

time to execute operation #1 !

employee cost per month / (hours per month * 60 minutes) = cost (£) per minute of employees work

!

time to execute operation #1 * cost (£) per minute of employees work = cost to execute task

!

cost of UX initiative / (number of employees * cost (£) per minute of employees work) = time saving needed per month to cover cost

of UX initiative

05 Net promoter scoreWhat it is about


“ It is based on the fundamental premise that customers can be divided into three groups - Promoters, Passives, Detractors [and] empirical research has shown that there is a striking correlation between the customer grouping and actual behaviour – repeat purchase and referral patters - over time..”

- Bernard MarrA Single Measure of Business Success?


05 Net promoter scoreThe score

How likely is it that you would recommend [Company X] to a friend or colleague? (1 - 9)

• Promoters (score 9–10) = loyal enthusiasts who will keep buying and refer others, fuelling growth.

• Passives (score 7–8) = satisfied but unenthusiastic customers who are vulnerable to competitive offerings.

• Detractors (score 0–6) = unhappy customers who can damage your brand and impede growth through negative word-of-mouth.

05 Net promoter scoreWhat it requires

An understanding of: 1. Going beyond the numbers 2. Combining NPS with financials - customer profitability 3. Look further than existing customers !

05 Net promoter scoreWhat it involves

Step 1: starting NPSCombining qualitative methods with quantitativeStep 2: target NPSBased on business objectives or compared to competitorsStep 3: validating & applying NPSUnderstanding what lies behind the score, Know what can move a customer from one group to another, Combine with customer profitability & other metrics, Look at non-customers

05 Net promoter scoreThe formula

% of promoters - % of detractors = Net Promoter Score


03UX METRICS PLAN

Your company has given a rough cost estimate for the re-design of the retail website but the client struggles to justify the cost to his manager. Both you and the client know the redesign is needed but the big boss needs numbers. Consider money earned, money saved and non-monetary results and how metrics can support the objectives of the redesign.

1. How could metrics help justify the cost before the project begins?

2. What UX metrics would you recommend for the project as a whole?When do you recommend using them and why?





• Support costs



Step 1: starting metricWhere you are now & what you’ll be comparing againstStep 2: target metricWhat you need, or where you want to/ need get toStep 3: validating & applying conversion ratesUnderstanding limitations, dependencies & influencing factors


03UX METRICS PLAN

Your company has given a rough cost estimate for the re-design of the retail website but the client struggles to justify the cost to his manager. Both you and the client know the redesign is needed but the big boss needs numbers. Consider money earned, money saved and non-monetary results and how metrics can support the objectives of the redesign.

1. How could metrics help justify the cost before the project begins?

2. What UX metrics would you recommend for the project as a whole?When do you recommend using them and why?

20 minutes



04 Conversion rate

We know the re-design of purchase flow on it own is going to cost £10,000.

- 10 out of 100 customers currently convert - An average basket size is £40- There are 10,000 visitors per day - They want to increase revenues to £10,000 per day

1. Based on a realistic target conversion rate how many new customers would the client need to make up the cost?

2. How long would it take to reach this goal?

10 minutes


Conversion rate The formula

number of people who complete [task] / number of site visitors * 100% = conversion (%)

!

www.flickr.com/photos/martinteschner/4569495912

A few final words...

Measuring UX isn’t an exact science


It needs to be seen in conjunction with insights…


…the experience & business as a whole



Awareness


giene

Feel

good

Delig

ht



want

…& tied with experience goals & business objectives


Understanding those we work with & how we communicate with them go a long way

www.flickr.com/photos/martinteschner/4569495912

If clients (or someone else) don’t get it,there is generally something to be improved in how we work with them & present our work

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Any questions?


Thank you@annadahlstrom | [email protected] www.annadahlstrom.com

mailto:[email protected]

Selling UCD: Getting buy-in and measuring the value of UX

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Transcript of Selling UCD: Getting buy-in and measuring the value of UX