A Forrester Study: The Total Economic Impact™ Of UserZoom

© 2018 FORRESTER. REPRODUCTION PROHIBITED.
The Total Economic Impact Of
UserZoom
May 29, 2018
Bijal Shah, UserZoom
Kuldeep Kelkar, UserZoom
Benjamin Brown, Forrester Consulting
Mary Luong, Cisco

Quick Housekeeping
• Control panel on the side of your screen if you
have any comments during the presentation
• Time at the end for Q&A
• Today’s webinar will be recorded for future
viewing
• All attendees will receive a copy of the
slides/recording
• Continue the discussion using #uzwebinar
Let’s make sure you’re all set up for the webinar!

3© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Source: The Total Economic Impact Of UserZoom, May 2018
Introductions
Benjamin Brown, Consultant, Total Economic Impact
Forrester Consulting
Mary Luong, Ph.D, UX Research Leader
Cisco
Kuldeep Kelkar, SVP of Global Professional Services
UserZoom

Agenda
› Introduction
› About UserZoom
› What is ‘Total Economic Impact’?
› Executive summary
› Customer journey
› Analysis
› What’s next for UX research?
› Question and answer
Please note:
This slide presentation is an abridged,
graphical, and complementary
representation of a case study.
For a full explanation of methodology
and details on model calculations,
please refer to the full case study (The
Total Economic Impact of UserZoom,
May 2018)

About UserZoom
Product overview

We help businesses get the insights they
need to deliver great experiences

The all-in-one solution for UX insights
UX RESEARCH
PLATFORM
STUDY
PARTICIPANTS
PROFESSIONAL
SERVICES

Source: The Total Economic Impact Of <Client> **Product**, Month Year
Desktop
Mac, Windows, Websites
Mobile
Apps, web. Phone, tablet
Prototype
Wireframes, mockups

Get the complete story behind your users’ experiences
UX METRICS USER VIDEOS

Get the complete story behind your users’ experiences
HEATMAPS & CLICKSTREAMS NPS & RATINGS

All of the research solutions you need, all in one place
Think-Out-Loud
Usability
Testing
Information
Architecture Testing
Make UX research part
of your design and
development sprints,
with the powerful
combination of user
videos and data
Define your information
architecture, test your
navigation and validate
that your taxonomy is
intuitive
Quantify the user
experience and leverage
statistically significant
data in your design and
development
recommendations
Continuously capture
insights and track user
behavior to make sure
that you’re providing the
most valuable
experience
User Experience
Measurement
Customer Feedback
Monitoring

Leverage our team of research experts
Our experienced team of UX professionals is here to help with end-to-end services
• Senior level researchers with
PHDs and published books
• 200+ years of combined UX
industry experience
• International researchers with
diverse backgrounds
• Hands-on, nurturing approach

Over half of the F100’s partner with UserZoom

What is TEI?
Background and methodology

The objective of the TEI framework is to identify all of
the factors that affect an investment decision
Benefits
Costs
Flexibility
Risks
Total
Economic
ImpactTM
(TEI)

Forrester took a multistep approach to evaluate the
impact of UserZoom
Start
Due
diligence
Customer
interviews
Create
composite
Create
financial model
Write case
study
Review and
finalize

Disclosures
The audience should be aware of the following:
› This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of
UserZoom, May 2018).
› The study is commissioned by UserZoom and delivered by the Forrester Consulting group.
› Forrester makes no assumptions as to the potential return on investment that other organizations will
receive. Forrester strongly advises that readers should use their own estimates within the framework
provided in the report to determine the appropriateness of an investment in UserZoom.
› UserZoom reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the
study and its findings and does not accept changes to the study that contradict Forrester’s findings or
obscure the meaning of the study.
› The customer names for the interviews were provided by UserZoom.
› Forrester does not endorse UserZoom.

Executive summary
High-level findings

Customers identified key impacts:
› Increased productivity
› Increased capacity
› Reduced cost of research
› Increased breadth and depth of research
› Flexibility and agility

Forrester has determined the following three-year
impact from the UserZoom investment
ROI
537%
Return on investment
PAYBACK
<6 months
Payback period
NPV
$1.9M
Net present value

Three-year financial analysis
-$0.5 M
$0.5 M
$1.0 M
$1.5 M
$2.0 M
$2.5 M
Initial Year 1 Year 2 Year 3
Total costs
Total benefits
Cumulative net benefits

Customer Journey

› New initiatives for SaaS and research
› Needed to build/grow research capabilities
› Partner with experienced researchers
› Solution that could scale easily
› Partnered with UserZoom
› Gained buy-in from executives and product
teams; grew research team
Spotlight:
Cisco’s
Customer
Journey

Forrester interviewed 4 UserZoom customers
Cisco
Global IT Firm
American Business Services
$12B revenue
60K employees
Interviewees:
Senior Director, UX research
Principal, UX strategy and research
American Insurance Agency
$50B-75B revenue
50K employees
Interviewee:
User experience designer
$49B revenue
74K employees
Interviewee:
UX research leader
$1B-$5B revenue
2k employees
Interviewee:
Head of consumer analytics

Customers turned to UserZoom to strengthen and
grow their UX research practices
KEY DRIVERS
• Time-consuming, costly research
• Lacked capacity to meet demand
• Research too slow for Agile
• Struggled to conduct international
and benchmarking studies
• Sourcing participants was
expensive/time-consuming
• Needed to grow UX research
practice and prove value
SOLUTION REQUIREMENTS
• Comprehensive platform with
advanced capabilities
• Improve speed and productivity
• Partner with experienced
researchers to fill gaps and help
grow research practices
• Simplify participant sourcing and
reach broader audiences
KEY RESULTS
• Reduced the researcher labor
required for studies by over 80%
• Reduced participant sourcing costs by
68% with 4x more participants
• Increased the breadth, depth, and
speed of research
• Raised the profile of UX research and
gained buy-in from executives and
product teams

Analysis

Forrester created a composite organization
representative of customer interviewees
Multibillion Dollar
Global Technology
Enterprise 32
Lab studies conducted annually
before UserZoom
4 to 5
Researchers 102
Studies conducted annually
by Year 3 with UserZoom

The composite organization’s volume of research
RESEARCH CAPACITY YEAR 1 YEAR 2 YEAR 3
Number of studies in the lab 25 24 24
Number of studies in UserZoom 33 44 78
Total number of studies 58 68 102
Total number of researchers 4 4 5

Key Quantified
Benefits From
The UserZoom
Investment
Three-year total PV
benefit breakdown
$1.3M
$350.1K
$276.1K $286.8K
Lab research Benchmarking
research
International
research
Participant
sourcing

UserZoom made research more efficient
“Without UserZoom, it would require all our resources to run only a
couple of studies per year, and we wouldn’t be able to support any
other projects because we would be inefficient. It would jeopardize
our entire program.”
Sr. director, UX research, business services
“It takes triple the time to collect and analyze
study data without UserZoom.”
Principal, UX strategy and research, business services

UserZoom made research more efficient
“We started using IntelliZoom . . . Not only did it save us going
back and forth over email, it only took one to two days to get
enough participants instead of one to two weeks.”
User experience designer, insurance
“Our researchers could not handle the volume of research we
need without UserZoom, so we would have to turn to expensive
outsourcing deals to get the work done.”
Head of consumer analytics, information technology

Lab Research
› 80% labor reduction per study
• Lab studies typically required 260 hours of labor,
UserZoom studies required only 50 hours
› Studies formerly limited to 10-15 participants
could now include 30-200 respondents
› Removed physical limitations of the lab
preventing concurrent studies
› Better quantitative data with new capabilities
such as heat maps and click tracking
59%
$1,340,288
three-year
present value

Benchmarking Research
› Previously had to outsource benchmarking
research, $20K or higher per benchmark
• At six benchmarks per year, totaled to at least $120K
for a single product
› UserZoom made it possible to benchmark
internally – no more effort than a standard study
• With 50 hours of labor, only $3,750 per benchmark
• Copying the benchmark once created made
successive benchmarks even faster
16%
$350,077
three-year
present value

International Research
› Previously, international research was
expensive and time consuming – at an average
of $53,000 per international study:
• Extensive planning and coordination (520 hours)
• Travel costs (conservative estimate of $4K)
• Third-party support (conservative estimate of $10K)
• Lab closure as researchers were on the road
› Conducting remote international research with
UserZoom slashed costs to $5,625 per study.
12%
$276,135
three-year
present value

Participant Sourcing
› Sourcing costs and incentives for a lab
participant generally cost $200 to $300 each
• Lab studies included 12 to 15 participants on average
• Typically 1-hour long sessions
› UserZoom participant credits were $20-$25 each
• Customers also used their own panels or site intercept
• Specialized participants required multiple credits; some
general participants required only ½ a credit.
• Typically 15-minute sessions
› Participant cost decreased by 68% from $3,750
to $1,200 per study at 15 hours of testing time
13%
$286,797
three-year
present value

Costs include
licensing,
professional
services, and
internal labor
› UserZoom license and professional services
of $330K over three years.
• Varies by number of provisioned users, number of
concurrent studies, and advanced feature access.
• 4 increasing to 5 provisioned users
• 560 hours of professional services
• Participant costs modeled in Benefit #4.
› Internal labor valued at $24K.
• 80 hours for proof-of-concept and implementation
• 104 hours testing/rollout in Year 1; 26 hours continuing
testing/feature deployment in Year 2 and Year 3
• 12 hours initial training
• 4 hours annual continual learningLicense and Professional
Services, $329.6K
Internal Labor,
$24.2K
$353,856
three-year
total costs PV

TEI analyses also includes flexibility and risk factors
IMPACT RISK
Business/technology needs may not be met by
investment in UserZoom, resulting in lower benefits.
•Number of studies completed annually
•Usage of benchmarking and
international testing
•Number of researchers and their fully
loaded salary
•Internal capacity and expertise
•Specialization of participants
IMPLEMENTATION RISK
Proposed investment in UserZoom may deviate from
expected requirements, resulting in higher costs.
•Number of provisioned users
•Number of concurrent studies
•Internal researcher expertise
•Specific types of studies and the
complexity of those capabilities.

Incorporated
research into agile
processes
Improved audience
segmentation
Improved scope
and statistical
significance
UserZoom enabled more and better research

Raised the profile of
user research
internally
Democratized user
research to product
managers and designers
Improved employee
experience of
researchers
UserZoom strengthened research teams

Moderated remote
testing – online and as
the lab’s backbone
Integrate with third-party
platforms for enhanced
analytics
Accelerate
participant sourcing
with IntelliZoom
Customers aimed to leverage newer capabilities

Three-year model summary results
ROI
537%
NPV
$1.9 million
Payback
<6 months
-$0.5 M
$0.5 M
$1.0 M
$1.5 M
$2.0 M
$2.5 M
Initial Year 1 Year 2 Year 3
Cash
flows
Total costs
Total benefits
Cumulative net benefits

What’s Next For UX Research?
UserZoom helped customers take the next step

How do you track the business impact of research?
Step 1: Prove that product teams acted based on research findings
Step 2: Track whether these product improvements moved the
needle for the business’s key performance indicators (KPIs).
› UserZoom helped customers begin this journey
• Platform enables customers to develop and track KPIs
• Increased quantity of research + increased quality of research could lead to
more/better product improvements

Prove that product teams are taking action, then
determine the right metrics and start tracking
› Sample KPIs
• Time on task or success rate
• Net Promoter Score (NPS)1
• Customer satisfaction
› Sample business KPIs
• Increased conversion rate or average order value
• Improved customer retention or reduced churn
• Reduced customer support inquiries and costs
• Reduced rework for design/development
1Net Promoter and NPS are
registered service marks, and Net
Promoter Score is a service mark, of
Bain & Company, Inc., Satmetrix
Systems, Inc., and Fred Reichheld.

Consider composite metrics
› Combine business metrics (e.g. conversion rate) with customer-
focused metrics (e.g. customer effort)
› Can be blended all together as a universal UX measures
› Composite measures could help executives to relate to the value of
UX more easily, much like other KPIs they regularly track

Q&A

Questions?
Benjamin Brown, Consultant, Total Economic Impact
Forrester Consulting
bbrown@forrester.com
Mary Luong, Ph.D, UX Research Leader
Cisco
Kuldeep Kelkar, SVP of Global Professional Services
UserZoom
kkelkar@userzoom.com

A Forrester Study: The Total Economic Impact™ Of UserZoom

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie A Forrester Study: The Total Economic Impact™ Of UserZoom

Ähnlich wie A Forrester Study: The Total Economic Impact™ Of UserZoom (20)

Mehr von UserZoom

Mehr von UserZoom (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

A Forrester Study: The Total Economic Impact™ Of UserZoom

Hinweis der Redaktion