The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol...

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The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International
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Page 1: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

The ROI of UsabilityHow User-Centered Design Supports your Agency

December 5, 2008

Spencer GerrolExecutive DirectorHuman Factors International

Page 2: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

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Page 3: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

Best Practices Review Scorecard

Usability Testing Success Rates

Navigation

Presentation

Content

Interaction

Page 4: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

Navigation Presentation Content Interaction

Boston

New York City

Page 5: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

Navigation Presentation Content Interaction

Page 6: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

Navigation Presentation Content Interaction

Page 7: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

Navigation Presentation Content Interaction

Page 8: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

Page 9: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

Visual Design Preference

InformationArchitecture

ConceptSketch

Wireframe Visual Mockups Prototype

Page 10: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

"Find a J ob" - Success Rate

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Page 11: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

User-Centered Design Methodology

Page 12: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

Why should we care about usability?

• 63% of software projects exceeded their development budgets because of

– frequent requests for changes by users– overlooked tasks and/or functionality– users lack of understanding of their own requirements– insufficient user-to-analyst communication and understanding

– i.e. because of a lack of customer-centered design methods

Lederer and Prassad, 1992. “Nine management guidelines for better cost estimating:” Communications of the ACM, 35(2), 51-59.

Page 13: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

How usability supports your agency

863 Projects Reviewed

Clients paid 10% for usability work.

Their ROI was:

• Sales/conversion 100%

• Traffic 150%

• Performance 161%

• Use of functions 202%

“It is common for usability efforts to result in a hundred percent or more increase in traffic or sales.” - Jakob Nielsen

Page 14: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

How usability supports your agency

• Wixon & Jones’ case study shows– an increased revenue in the usability-enhanced product by more

than 80% over the first release– the revenues of the usability-enhanced system were 60% higher

than projected– many customers cited usability as a key factor in buying the new

system

Page 15: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

How usability supports your agency

• Every $1 invested in usability returns between $2 and $100 (between 100% and 9,900% increase)

• 80% of software life cycle costs occur during the maintenance phase• 60% of that maintenance phase is due to re-work because user

requirements were not clear in the beginning

Pressman, R. S. (1992). Software engineering: A practitioner's approach. New York: McGraw Hill

Page 16: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

The earlier, the better…

Page 17: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

Hidden costs of shortcutting the process

Help Desk

Training

User/TaskAnalysis

UI Structure

Detailed Design

Implementation

Rush throughthese steps

Radical Product Revision

Discoverhidden costs

Page 18: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

Efficiency of investing in the full process

Reducedhidden costs

A smart investmentin Usability

Process

Training

Help Desk

Product Revision

User/TaskAnalysis

UI Structure

Detailed Design

Implementation

Page 19: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

Return on Investment Benefits

ROI Measurement CriteriaDecrease in # of calls to help desk # or %

Reduction in training # of days / hours reduced

Increase in usage # of people, # of sessions, or % increases

Savings of user’s time # of minutes / hours and / or multiplied by labor rate

Savings of programmer’s time # of minutes / hours and / or multiplied by labor rate

Error reduction # or % or resulting $$ amount if any

Increase in pages viewed # or % increase

Decrease in drop-off # of people or % reduction

Conversion rate # of visitors who buy or % increase

Average order value or net dollar per visitor

% increase in $$

Page 20: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

ROI – but government?

Drop-Off Reduction

60,000

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73% drop-off reduction

Saved 40,000 visitors and $6,000,000 per month

Page 21: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

ROI for Government

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Average Number of Support Calls Per day

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Page 22: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

ROI for Government

Training Reduction

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8 hours of training, reduced to 15 minutes = $365,000 saved/year

Page 23: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

ROI for Government

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The FAA now saves $2.2 million per year

Page 24: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

ROI for Government

• 2001 – Imposed standard• Cost to California = $64,000,000• • 2007 – Institutionalized standard• Cost to California = $8,000,000

• Savings across agencies : ~ $56M

ROI of Institutionalized Standard, CA

Page 25: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

First we must educate people on the process and the benefits…

Page 26: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

Headquarters 410 West LoweFairfield, IA 52556 Tel.: (800) 242-4480

(641) 472-4480 Fax: (641) 472-5412

Boston1050 Waltham Street, Suite 410Lexington, MA 02421Tel.: (781) 860-7200 Fax: (781) 860-7979

Baltimore930 South Wolfe StreetBaltimore MD 21231Phone: (410) 327-1012

Mumbai, IndiaUnit 7, Srishti Plaza, Next to Killick Nixxon,Off Saki-Vihar Road, Andheri (E),Mumbai 400072Tel.: +91 (22) 40170400Fax: +91 (22) 2847 5554

Bangalore, India310/6 HR Complex, 2nd Floor Koramangala, 5th BlockBangalore 560 095Tel.: +91 (80) 5150 7221/22/23Fax: +91 (80) 5150 7220

San Francisco235 Montgomery StreetSuite 810San Francisco, CA 94104Tel.: (415) 765-0962Fax: (415) 765-0961

London, UKWinchester House259-269 Old Marylebone RoadLondon NW1 5RA UKTel.: +44 (0) 20 7170 4164Fax: +44 (0) 20 7170 4161

China407, No. 555, Nanjing Road West Shanghai, China 200041Tel.: +86-21-52132046Fax: +86-21-52132062

Chicago8700 W. Bryn Mawr Avenue, Suite 800South Chicago, IL 60631-3507Tel.: (773) 714-2362Fax: (773) 714-4910

Minneapolis8400 Normandale Lake Blvd, Suite 920Minneapolis, MN 55437Tel.: (952) 820-4442Fax: (952) 921-2306

New York95 Morton StreetGround FloorNew York, NY 10014Tel.: (212) 905-3495

Pondicherry, IndiaAurelec Premises, PrayogashalaKuilapalayam VillageAuroville 605 101Tel.: +91 413 26232 95/96Fax: +91 413 2623297

Singapore51 Tras Street, #03-01,Singapore, 078990Tel.: +65 6220 6431Fax: +65 6220 6436

Thank You

Ed Frease [email protected]

Page 27: The ROI of Usability How User-Centered Design Supports your Agency December 5, 2008 Spencer Gerrol Executive Director Human Factors International.

About Human Factors International, Inc.

• Providing consulting and training since 1981• Largest User Experience company in the

world• Oldest User Experience company• Local proximity with a global reach

Sample Government Clients

Sample Clients