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The value of User Experience can be found in its ROI

Susan Weinschenk from Human Factors International (HFI) has published a video to Youtube that attempts to explain the value of Usability and User Experience in terms of Return on Investment (ROI). Unsurprisingly, the video is called “The ROI of User Experience with Dr. Susan Weinschenk”.

The interesting part and the reason I’m sharing it with you, is because for me it really does sum up the shift in commercial focus that has affected the world of User Experience throughout 2011. (If nothing else, it’s a really nicely animated video!)

How to measure your ROI from User Experience…

Summary of the video

While we continue to strive for new efficiencies and smarter ways of generating revenue, it seems that businesses of all sizes and functions are increasingly turning towards usability, user experience, and conversion rate optimisation to deliver that all important ROI.

Here are some interesting points from the video:

• It’s all about the average user! Unfortunately this video came under fire earlier in the year for its apparently over-simplified example involving every user donating $50. The intention of the explanation however, was to describe an average user – not an attempt to suggest that every user will spend $50! The analytical principle this point raises however, is that it’s important to boil your data all the way down until you reach the average value of a single visitor segregated by channel.
• Choose your ROI metrics carefully. Return on Investment can be measured in a number of different ways (just see the header graphic to this post!). Consequently, it’s vitally important that you apply a great deal of thought to the exact metrics you will use to measure the success of your digital activities. These metrics can range from the obvious: conversions or sales, to the slightly more passive: fewer support calls.
• Investing in User Experience is money well spent. Most importantly though, I think that 2011 has been the year in which businesses of all sizes have accepted that if you’re going to invest money in your digital properties, then you’ll get the biggest bang for your buck if you invest in usability and the overall experience enjoyed by your users.