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February8-LedbyJaredSpool

Growexecutivesupportforhigh-valueUXefforts.

PoorUXcausesproblemsforyourusersandcustomers.Anditoftencomesback tohauntyourorganizationʼsbottomlinethroughthecostsofsupport,training,and lostsales.Now,youcanaccuratelyshowhowmuchthesecostscontinueto accumulate.

ExplorehowtocreateinfluentialProblem-ValueMetricssothat…

YoumotivateseniormanagementtotakeUXseriouslybecausebetterUXisa winforeveryone.

YouwinoverthefinancedepartmentasyourUXeffortsshrinkcorporate costs.

YouhavevitalstakeholderspraisinghowbetterUXimprovedtheir departmentʼsfiscalperformance.

Beforethetalkgetsstarted:

Howthisdiscussionwillgo:

Weʼllstartwithashortpresentationontoday'stopic.

Theremainderofthetimewillbespentdiscussingyourquestions.

Pleaseputyourquestionsinthechat.

PleasechangeyourZoomnametoyouractualname.

Randolphwillcollectthequestionsandpicktheoneswe'llanswer today.

ThingstokeepinmindwithZoom:

IfthelittleChatpop-upsgetdistracting,feelfreetoopenthechatwindow.

Pleaseputyourmicrophoneonmute.

IfRandolphchoosesyourquestion,youcanunmutetotalkaboutit withJared

Zoom'sSpeakerViewwillletyoukeepJaredvisibleandyou'llseewhat he'spresentingonthescreen.

Thissessionisclosedcaptioned.

We'rerecordingthissessionandwillpostitlatertoday.Youcanfindthe recordingsintheProgramMaterialssectionofyourUXMetricstoDriveYour OrganizationandinahandyRecordingRound-UpPostintheActivityFeed.

EliminatetheCostsofPoorUXwith Problem-ValueMetrics

Problem-valuemetricsanswerthequestions:

WhatobstaclesarepreventingourusersfromachievingourUXOutcome?

Howmucharethoseobstaclescostingourorganization?

Problem-valuemetricsarehowwecanintroduceourexecutiveleadersandsenior stakeholderstoUX.

Wereportthemetricsinaunitofmeasurementtheyunderstand:Money.

Themonetaryvaluegivesthemarelativescaletoothercostsinthe organization.

Theycanjuxtaposeitagainstsalescosts(coststoacquirethecustomers), marketing,development,andstaffingcosts.

Problem-valuemetricsalsointroducetheideathateverythinghasauser experience.

EvenifnoUXpeoplewereinvolved.

Pooruserexperiencescanbecostlytotheorganization.

Problem-valuemetricsaredifferentfromUXSuccessmetricsandUXProgress metrics.

UXSuccessmetricstelluswhenwe'veachievedourUXoutcome.

UXProgressmetricstellushowfarwearefromachievingourUXoutcome.

Andtheprogresswe'vemadesofar.

Problem-valuemetricstellushowsignificanttheobstaclesareinachievingour UXoutcomes.

Whatdowemeanbyvalue?

Valueisoneofthosetermsthateverybodyusesbutnobodycandefine.

Thedefinitionweuse:Whatsomeonewouldpayusfor.

Paymentcanbeinmoney,time,attention,orrespect.

Therearetwowaystocompeteinbusiness.

Havethelowestcosts.

Havethehighestquality.

Whenthinkingaboutvalue,therearefourpricepoints:

OurcostOCisthemoneywespendtomakeandsellourproduct.

CompetitorʼscostCCisthemoneyourcompetitorsspendtomakeand selltheirversion.

OurpriceOPandCompetitorʼspriceCParewhatcustomerspay.

CustomerperceivedvalueCWPisthemaximumthecustomerwillpay.

LowestpossiblecostLPCisthelowestanyonecouldspendtomakethe product.

Whencompetingoncosts,weaimtoreduceourcoststobelowerthanour competitors.

Thisway,ourpricetoourcustomerscanbelowerthantheircoststomakeand sell.

Theylosemoneyoneverysaleiftheytrytomatchourprice.

Wecanonlylowerourcoststothelowestpossiblecost.

Thislimitswhatwecandotocompete.

Whencompetingonquality,weaimtodiscoverandimproveaproductattribute thatraisesthecustomerʼsperceivedvalue.

Thatproductattributecanbeanythingmeaningfultothecustomer.

Suchasreliability,perceivedstatus,oruserexperience.

Peoplearewillingtopaymorewhenweraisethecustomerʼsperceivedvalue. Theyʼllpayforanyproductthathasthatmeaningfulattribute.

ThevalueofGreatUX

Whenweproduceexperiencesthatcausefrustration,weʼrecreatingPoorUXfor ourusersandcustomers.

Whenweproduceexperiencesthateliminatefrustration,wecallthatGoodUX.

Whenweproducedelightfulexperiences,wecallthatGreatUX.

PoorUXiswhenwemissexpectationsanddonʼtmeetourusers'andcustomersʼ needs.

GoodUXiswhenwemeetexpectationsandmeetthecustomerʼsactiveneeds.

GreatUXiswhenweexceedtheusersʼexpectationsandanticipatethe customersʼneeds.

Includingneedstheycouldnʼthaveexpressedbeforewemetthem.

PeoplewillpaymoremoneyforGoodUXthanforPoorUX.

TheyʼllpaythemostmoneyforGreatUX.

ThecostsofPoorUX

Wheneverwedeliverapoorexperience,itusuallyshowsupsomewhereinthe organization'sfinances.

Wecallthesethecostoffrustration.

Lostsales

Increasedsupportcosts

Increasedtrainingcosts

Decreasedproductivity

Increased“damagecontrolˮ

Increaseddevelopercosts

Increaseddeveloperwaste

Thesequantitiescanbeconvertedtomonetaryunits.

TheyreflectaquantityofUXdebt.

Discoveringthesenumbersmightneedtotakealittledetectivework.

Weoftenestimatethemintermsoflaborcosts.

Example:Tocalculateacostpersupportticket,use:

ThetotalcostofoperatingsupportinayearNumberoftickets handledinayear.

Toestimatethetotalcostofoperatingsupport:

Numberofsupportrepresentatives*Estimatedsalaryandemployment costs

Iʼveincludedalistofcostcalculationformulasyoucanuse.)

ConstructingProblem-valueMetrics

ThedefinitionsoftheOutcome-drivenUXMetricframework.

Measure:anobservablequantityofanobject'sstate.

Metric:measuresthatwetrack.

Analytics:measuresthatcomputerscantrack.

KPIs:Importantmetrics

Problem-valuemetricsareusuallyongoingcosts.

Thatmeanstheygoupifwedon'ttakeactiontocurbthem.

FixingtheUXissuesisusuallyaone-timefixedcost.

Thatmeansthatitwon'tcostanymoreonceit'sfixed.

Fixedcostsarealwaysbetterforabusinessthanongoingcosts.

Thisishowyouwintheheartsofthosewhocontrolpursestrings.

Remember:Animprecisenumbercanstillbeaccurate. Youonlyneedenoughprecisiontogettherightpeopleʼsattention.

Saying,“WeʼrespendingalmostamilliondollarsayearsupportingthisUX problem.ˮisaccurateyetimprecise.

Saying,“Wespent$974,371.45lastyeartosupportthisUXproblem.ˮis moreprecisebutdoesnʼtaddanyurgencyorimportancetotheclaim.

Donʼtbeafraidofstatinginaccuratenumbers.

Aback-of-the-envelopeguessisoftenagoodplacetostart.

FeelfreetouseSWAGsScientificWild-AssGuesses).

Ifitʼsclose,itmaybeaccurateenough.

Sometimes,thebestwaytogetamoreaccuratenumberistopresentanotso-accuratenumber.

Someonewillannounce,"That'snottherightnumber,"andgoofftofindthe rightonetoprovehowwrongyouare.

Whendealingwithanumberyoususpectisinaccurate,coptoit.

“IknowmyestimateofamilliondollarsislikelyoffsinceIguessedsome keyvalues.However,letʼssayitʼsonlyhalfthat.Spendinghalfamillion dollarsthisyear,andthenagainnextyear,isstillalotofmoney.Isthat whatwewant?ˮ

Bytrackingthesecosts,wecanshowthesizeofaproblemtotheorganization. Byconvertingthemtomoney(dollars,euros),wecancalibratethevalueto othercorporateexpenditures.

Thesenumbersbecomehelpfulinorganizationswhereshowingreturnon investmentROIisessential.

Often,apersonisalreadyinchargeofreducingtheexpenseweidentify. Wecallthesefolkshiddenchampions. Theymaynotbeimmediatelyvisibletous.

Theymaynotbeourmanagerorourmanagerʼsmanager.

Theycouldbeinacompletelydifferentpartoftheorganization.

Theymayhavealotofinfluenceintheorganization.

Oncetheylearnthatwefiguredoutawayforthemtosavemoney,theyget veryexcitedtohelpus.

Theybecomechampionsofourinitiativestomaketheproductbetter. Theycanusetheirinfluencetomakeourmetricmorevisible.

WhenpoorUXhasbeendeliveredforalongtime,thenumbersgrowsignificantly. WewinwhentheexecutiveleadershiprealizestheymustfixtheUX. Insteadofcontinuingtocosttheorganizationmoney.

ThisbecomestheseedweplantforwhybetterUXisanintelligentinvestment fortheorganization. ExampleProblem-valuemetricscalculations

SupportCosts

Lookforpeoplededicatedtomanagingclients.

OftencalledAccountmanagersorcustomersuccess. Youcancalculatetheircostssimply:

Estimatethesalaryofeachindividual.

$200,000ismygo-toSWAGScientificwild-assguess)forafullyburdenedsalary.

Multiplysalariesbynumberofpeople.

$200,000300people$60,000,000peryear.

IfdealingwithproblemscausedbypoorUXissuesisonlypartoftheir responsibility,estimatehowmuchoftheirtimeisspentdealingwiththat.

$60,000,000x½$30,000,000

LookforUXcallsorticketscomingintoasupportcenter.

Estimatethecostpercall.

Numberofsupportstaffxsalary

300supportstaffx$200,000/year$60,000,000

Dividethesupportcostbythenumberofcallsorticketstheyhandle eachyear.

$60,000,000600,000ticketsperyear$100/ticket

CalculatethenumberofticketshandledeachdayonUXissues.

200ticketsperdayx300businessdays60,000ticketsperyear.

60,000ticketsx$100/ticket$6,000,000/yearspenton supportingUXissues.

Trainingcosts

Trainingistheoppositeofusability.Lookfortrainingthatʼscompensatingfor anunusableexperience.

Estimatethenumberoftraininginstructorsthecompanyhas.

20instructorsx$200,000/year$4,000,000trainingcosts

Lookforemployeesbeingtrainedtouseinternalsystems.

Estimateemployeesbeingtrainedeachyear.

1,000newemployeeseachyear.

Calculatethecostofadayforanaverageemployee.

$200,000/year365daysx7$3,816/week

$3,816/week5workdays/week$767/day

Estimatethenumberofdaysoftraining.

1weekoftraining5days

5daysoftrainingx1,000employees/year5,000trainingdays/year

5,000trainingdays*$767/day$3,835,000

Donʼtforgettoaddinstructorcostsandanycostsfortheadministrative supportneededtorunthetrainingeffort.

Productivitycosts

LookforemployeesspendingtimeonactionsoractivitiesthatbetterUXcould eliminate.

Estimatethetimethe“unproductiveˮactivitytakes

Anactivitytakes60minutesbutshouldtake10. Unproductivetime50minutes

Estimatethenumberoftimesapersondoestheactivity.

Anemployeedoestheactivityonceperday.

300days/yearx50minutes15,000/year

Calculatethecostperminuteoftheemployee.

$767/day8hours/day60minutes/hour$1.60/minute

Estimatethenumberofemployeeswhodothisactivityeachday.

5employeesperstorex100store500employees

Calculatethetotalcost.

500employeesx15,000minutes/yearx$1.60/minute$1,200,000

“DamageControlˮ

Lookforproductmanagersorotherseniorstakeholdersdealingwithaclient whoisunhappyaboutwhatwasdelivered.

Itiscalculatedusingthesamemethodasproductivityloss.

Wasteddevelopmentefforts

Lookfordeveloperswhobuildfeaturesthatnobodyuses.

Estimatehowlongittooktobuildthefeature. Anunusedfeaturetook6months.

Estimatehowmanydevelopers,QApeople,andotherstaffwererequired tobuildthefeature.

2staffand½QAperson

Calculatethecost.

$200,000/yearx2½peoplex½year$250,000

Lookfortimespentredoingafeaturethatwasnʼtbuiltrightthefirsttime.

Itiscalculatedjustlikeunusedfeatures.

Lostsales

LookforsalesthatarelostbecauseUXisnʼtwhatcustomersneed.

Thesalesteamcanoftenestimateit.

Theycantellyouwhichdealswerelostbecauseofmissing capabilitiesorbecauseacompetitorhasaproductthathasabetter UX.

Theyusuallycanestimatethesizeofthosedeals.

Lookforcanceledsubscriptionsorlostrenewals.

Estimatethemonths(oryearsforannualsubscriptions)thecustomer wouldpayiftheproductmettheirneeds.

Theaveragecustomerwouldstay25%longerifwemettheirneeds.

Thecurrentaveragesubscriptionis12months.

12monthsx¼3additionalmonths.

Calculatesubscriptioncostsforadditionalmonths.

3additionalmonthsx$20month$60

Calculatesubscriberswhowouldstayforcapability.

¼subscriberswouldstayonifweprovidedafeature. Currently500,000subscribers

500,000x¼125,000subscriberswhowouldstayon. 125,00060$7,500,000

Resources

TheDiagramthatShowstheValueofGreatUX

OneofthequestionsIgetanawfullotthesedaysis,“Howdo weshowthatagreatexperienceproducesimmensevaluefor theorganization?ˮWecanthinkofexperienceasaspectrum https://articles.centercentre.com/the-diagram-that-shows-t he-value-of-great-ux/

AProvenMethodForShowingTheValueOfGoodUX

Forawhilenow,thishasbeenthemostcommonquestionIget: HowdoIconvincepeopleinmyorganizationtotakeuser experienceseriously?I'vetriedgivingbrown-bagsessionson https://articles.uie.com/a-proven-method-for-showing-thevalue-of-good-ux/

The$300MillionButton

Editor'snote:ThankstoMarcoDini,youcanreadthisarticlein Italian;thankstoYannickPrimel,youcanreadthisarticlein French;thankstoUweKeim,youcanreadthisarticlein https://articles.uie.com/three_hund_million_button/

Answersthequestion:Ifwedoagreatjobdeliveringawell-designedFeature, Product,orService],howwillweimprovesomeone'slife?

Theimprovementdeliverssome(hopefullydramatic)benefittoapersonor people.

UXSuccessMetrics

Howwillweknowtheexactmomentthatwe'veachievedourUXOutcome?

UXProgressMetrics

HowfarhavewecomeonthewaytoachievingourUXOutcomes?

HowmuchdowehavelefttogotoachieveourUXOutcomes?

Problem-ValueMetrics

WhatobstaclesarepreventingourusersfromachievingourUXOutcome?

Howmucharethoseobstaclescostingourorganization?

Therearefivepartstothisworkbook.Eachpartcontainsaseriesofreflectionand planningexercises.Youʼllusethosetocreateatransformationplan.

HomeworkGoogleDocversion:

https://bit.ly/Metrics-2024 Doc

Homework MicrosoftWordversion:

http://bit.ly/Metrics-2024Guide

Inthishomework,youʼllidentifypotentialProblem-Valuemetricsonwhichtobase yourOutcome-drivenUXMetrics.

Problem-Valuemetricsshowtheongoingcostsofpooruserexperiences.They areacrucialmethodforintroducingthevalueofUXtoourexecutiveleadership andkeystakeholders.Problem-Valuemetricsgettheirpowerfrombeing translatedintoauniteveryoneunderstands:money.

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Tuesday,February6,