We’ve all heard that providing a better user experience can help your organization improve performance, increase exposure, gain more credibility, reduce the resource burden and ultimately increase sales, but as nice as these goals are, how are they truly being measured? Join us in a webinar with Dr. Susan Weinschenk as she dives into the trending topic of User Experience ROI (Return On Investment) – Should you spend all this time and money on user experience research and design? Is it worth it? How do even go about figuring out the ROI of UX? Key concepts Susan will discuss in the webinar: -When and why to consider the ROI of UX -How to measure the ROI of UX -The biggest mistakes to avoid in calculating the ROI of UX

1. The ROI Of User Experience:
Consider, Calculate & Measure Success
Featuring Dr. Susan Weinschenk & Alfonso de la Nuez

2. 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

3. Meet the Speakers
Dr. Susan Weinschenk
Behavioral Scientist AKA “The Brain Lady”
The Team W
Alfonso de la Nuez
Co-Founder and CEO
UserZoom
Continue the discussion using #uzwebinar
Aka “The Brain Lady”
@thebrainlady
susan@theteamw.com

7. Sample ROI Calculation -- Conversion
• 100 visitors a day put an item in the shopping
cart
• But 30% don’t complete because of a user
experience problem
• You are losing 30 sales a day due to a UX
issue
• @ $10 a purchase = $300 a day lost
• 300 x 365 = $109,500 a year lost
• It will take $50,000 fix the UX issue
• $109,500 - $50,000 = $59,500
• It will take you 198 days, or approximately
6.5 months to recoup your costs

8. Conversion at large online retailer
Approximately 10,000 abandonments of shopping cart each day.
Average purchase -- $36 – potential loss of 360k each day.
User testing to figure out the problem and then rework to fix -- $75k
Abandonment reduced by approximately 25%
2500 people a day purchasing average of $36 = 90k a day saved
90k * 365 = $32,850,000 a year saved

9. ROI = Net profit / Investment (Net profit is
Gross profit – expenses)

10. Conversion at large online retailer
Approximately 10,000 abandonments of shopping cart each day.
Average purchase -- $36 – potential loss of 360k each day.
User testing to figure out the problem and then rework to fix -- $75k
Abandonment reduced by approximately 25%
2500 people a day purchasing average of $36 = 90k a day saved
90k * 365 = $32,850,000 a year saved
ROI = (32,850,000 – 75,000)/ 75,000
ROI = 32,775,000/75,000
ROI = 437 or 43700%

11. You are on a team designing a software app.
You think the plan for the navigation bar/information architecture is poor.
You want to do a card sort to design it right before it goes into development.
Cost to do card sort = $5,000
Cost to do re-work = $50,000 (this is the cost to fix it later if you don’t do the
card sort – this is the amount you are saving)
Cost of re-work

12. Cost to do card sort = $5,000
Cost to do re-work = $50,000 (this is the cost to fix it later if you don’t do the
card sort – this is the amount you are saving)
ROI = (50k-5k)/5k
ROI = 45k/5k
ROI = 9 or 900%
Cost of re-work

13. My First ROI Calculation (circa 1994)
• Software for bank tellers
• 5000 users
• Interface was hard to learn and hard to use -- poor user experience
• Assumptions: waste 5 seconds per transaction
• 100 transactions per person per day
• 5000 people x 100 transactions x 5 seconds = 2.5 M seconds = 41,666 minutes =
694 hours
• x $7/hour = $4,858 a day x 252 days = $1,224,216

14. That’s Not All!
• Take training from 2 weeks to 2 days, saves $1000 in training costs per new person
• 10% turnover = 500 people a year x $1000 = $500,000 per year in training
• PLUS help desk -- reduce calls by half, save 300 calls per month x $10 per call = $3,000 a month
= $36,000 per year
• $1,224,216 + $500,000 + $36,000 = $1,760,216 in first year
• Cost to fix: $500,000
ROI = (1,760216-500,000)/500,000
ROI = 1,260,216/500,000
ROI = 2.52 or 252%

15. To Calculate Your ROI
1. Decide on your key indicators.
2. Estimate lost opportunity, cost of having a poor user experience,
or money to be made with a fix.
3. Estimate the cost to research and fix the problem.
4. Do your ROI calculation: Net Profit/Investment

16. Well-Designed User Experiences:
• Increase conversion
• Save user time
• Save developer time
• Increase customer satisfaction
• Increase use of the technology
• Reduce training costs
• Reduce calls to the help desk
• Increase self-service

18. Poll Question:
Which key indicator is the most important to you right now on your
project(s)?
A. Conversion
B. Saving users time
C. Saving developer time/avoiding costly rework
D. Other
E. I don’t know

19. Mistakes, Myths, Misconceptions
1. There is The ROI Formula
2. Use the metric you currently get data on
3. If we don’t have hard data it’s not worth it
4. It’s only worth it if there are millions at stake
5. Fail to document assumptions
6. If we aren’t sure we can measure it after then we shouldn’t
estimate it before
7. You need just one metric, or
8. You need many metrics
9. Fail to get input and buy-in from key stakeholders
10. I’m not good at math/this is too hard

20. Benefits/Why Do It
1. Decide if it’s worth it to do UX stuff on a particular
project
2. Decide which UX stuff to do on a particular project
3. Decide which projects have priority for UX attention
4. Forecast how many and what kinds of UX staff you
need
5. Convince others/justify existence

21. Next Steps:
• Try one out – pick a simple project and one key
indicator to start.
• Email or call me if you get stuck
• Ask for a workshop (remote or in-person)

23. courses.theteamw.com

24. humantech.theteamw.com

25. An Inspirational Idea To Take
With You…

27. Automated Usability Testing
Reduced costs,
Increased speed
Increased efficiency
Higher ROI

28. ● We see a WHOLE lot more testing being done
● Companies that were doing some testing, now do much more
● Companies that were never doing testing, now do it
● Software is helping automate the (tedious) process of testing
● Enabled companies to scale their research, do more with less
● Testing embedded in the design process (test early, often, quickly, cost-effectively)
User Testing Automation

29. Less of this...

30. ...and much more of this.

31. The FutureFast, in-the-wild, real-time, instant feedback & insights

32. On-the-go, multi-device, contextual

33. 2016: UXers are busy people…
How can they cope with this high demand for testing
needs?

34. The Automation of Testing

35. Other industries have gone ‘automated’
Customer SuccessMarketing
CRM

36. http://cdn.chiefmartec.com/wp-content/uploads/2016/03/marketing_technology_landscape_2016_3000px.jpg

37. http://cdn.chiefmartec.com/wp-content/uploads/2016/03/marketing_technology_landscape_2016_3000px.jpg
Pure usability / UX testing vendors circled (many more not mentioned)

38. 80% of the work will be handled by software

39. Cost-effective

40. “Imagine 1,000 such nuggets. Properly
tagged, well defined, easily searched and
found. Beats any report.”
Tomer Sharon
https://medium.com/@tsharon/the-atomic-unit-of-a-research-insight-7bf13ec8fabe#.zhiklvq58

41. Automation is helping us efficiently
convert data into insights

42. Q&A Session

43. THANK YOU!
Dr. Susan Weinschenk - @thebrainlady
The Team W, Inc.
847-909-5946
www.theteamw.com
susan@theteamw.com
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