ROI of Enterprise Software UX/UI Design - The Bex

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A hands-on UX/UI guide for enterprise software development teams, making the business case, what goes into building a strategy for project success and how to calculate the ROI of your next UX project. A Strategic Approach to Improve ROI of Enterprise Software UX/UI Design

Transcript of ROI of Enterprise Software UX/UI Design - The Bex

A hands-on UX/UI guide for enterprise software development teams, making the business case,

what goes into building a strategy for project successand how to calculate the ROI of your next UX project.

A Strategic Approach to Improve

ROI of Enterprise SoftwareUX/UI Design

Introduction

UX Design Isn't A One-timeEffort

Like any important business tool, your web-based applications and interfaces must be easy to use, intuitive and keep up with changing technologies, behaviours and expectations. Products evolve, and without an iterative approach to UX design, your applications risk looking and feeling antiquated.

Good UX adds value to any software dev project by delivering clear, tangible benefits. For customer-facing applications, a better experience can increase customer satisfaction, retention and market share. For internal enterprise applications, a better UX/UI will boost employee engagement as well as productivity. In all cases, improving the usability of a product cuts development and support costs.

This guide outlines how software leads and teams can position their development projects as a profit centre, plot out a strategic road map for redesign and then show clear ROI.

UX DesignCycle

Analyze

Gather Feedback

Design Solutions

Deploy

Making The Business Case For UX/UI

UX and UI may seem like abstract, technical concepts, but they deal with the basic functionality of your application at their core. As technology changes, the way people interact with it — and the expectations they have of how it should work — change, too.

There are a myriad of benefits to updating your UX and UI. However, you’ll need to have a clear objective at the outset of the project. Typical objectives for undertaking a software update include:

• Staying current with design trends and constantly changing user expectations

• Empowering users to be more productive• Adding new features or functionalities in a way that feels

logical and intuitive to the users• Making your application more cohesive, more intuitive or

more responsive• Reduced cost of ownership and support• Increased user satisfaction with the application

As with any business decision, updating your UI and UX interface requires a careful consideration of the costs, the benefits and the opportunities involved in doing so.

Section 1

The Cost of a Poor User Experience

UX plays an essential role in client-product communication, and failing to incorporate UX into one’s product strategy can result in massive loss of revenue.

Currently, programmers are shown to spend over half their time doing avoidable reworks. According to the IEEE, of all $1 trillion dollars of development projects that are started, 5 to 15 percent will be abandoned before or shortly after delivery due to poor usability. That means up to $150 billion is lost, something that could be avoided with a user-centered design approach.

Furthermore, 25% of these issues will be related to UX mismanagement, such as poorly defined system requirements, lack of understanding between consumers, developers and users as well as conflict of interest between stakeholders.

Why You Must Absolutely Update the UX/UI

An overhaul of your application’s UX and UI can be a major investment, one that many executives and software teams may not even realize they are due to make. After all, once you’ve put in the time and work to complete a project, it’s tempting to think of it as done for good. While it’s obviously counterproductive to needlessly update a platform users are just becoming accustomed to, it’s also easy to lose sight of where your app stands with current trends and user expectations.

So what should motivate a UX or UI overhaul? Here are a few compelling reasons:

Five years have gone by, and your application is starting to look and, more importantly, feel outdated. It’s time to upgrade the UI to improve the user experience, and align the app with user expectations and current trends.

Dated UI

UX or UI redesign projects don't have to be major or even outwardly noticeable. Subtle changes to the workflow and effectiveness of your applications can increase user satisfaction and productivity. For example, streamlining a process to reduce the number of screens a user must go through isn't something that will be noticed right away, but it's something that will deliver tangible benefits on an ongoing basis.

Successful businesses are able to adapt and change over time. When your staff has different goals, your internal web applications should change to accommodate them. Instead of trying to shove an old interface into a new business model, a complete redesign of your internal applications will ultimately deliver better long-term value to your users.

Organizational needs change over time. As time goes by, you’ll need to add new features, or remove old ones to ensure that your app continues to add value. Adding new functionality is an opportunity to deepen your users’ engagement

Changes in technology play a significant role in how users interact with applications. From support bots to voice-activated interfaces to biometric authentications, apps will need to change as your organization integrates new technologies.

It can be difficult to provide a consistent user experience across native applications. Companies will move a native app to a web-based app to help centralize their offering. Users can easily access the app from any device and updates are automatic. However, as users are logging on from a desktop or a phone, your interface needs to perform elegantly across multiple platforms and meet user expectations.

Persistent usability issues

Changesto your business goals

New functionality

Embracing new technologies

Moving from a native app to a web app

How To Build A Successful UX Strategy

Why Does Your Business Need a UX Strategy?

95% 83% 52%

How end users interact with company’s application has a direct effect on business. A positive UX drives increased user engagement and retention, while a negative experience causes a company to fall behind its rivals in the global marketplace. In short, it determines whether an end user continues to leverage a mobile or web app or chooses an alternative.

Ultimately, your UX strategy needs to meet the needs of the application’s end users. Deploying an effective UX strategy, however, can be exceedingly difficult for businesses that lack the necessary UX experience and knowledge.

So what does it take to build a successful UX strategy? Let’s dig in the whys and hows of creating a strategic plan for your next project.

A UX strategy can make or break a mobile or web app — just consider some of the following UX stats from an Oregon-based design consultancy:

of users said they agree with the following statement: "Good user experience just makes sense."

described a seamless UX across all devices as "somewhat or very important."

pointed out they were less likely to engage with a company that provided a poor mobile UX.

Section 2

Why Enterprise Software Projects Fail

Simply changing the UX of your existing application without considering the principles of what will make your new design successful may not result in much of a change when it comes to saving money or generating more revenue.

Understanding your end-user’s needs, is essential when considering changes in the design of a UI and how you will create a better user experience. A successful UX meets the needs of your user types while supporting your organization's needs as well.

With mobile and web apps, you only get one chance to make a first impression. So, you'll want to do everything possible to engage users and garner their attention. With the right UX strategy in place, your company will be equipped to do just that.

Remember, businesses big and small are designing and deploying apps, and it’s critical for your company to deploy one that hits the mark with end users immediately.

A UX strategy, meanwhile, ensures your business is prepared to create apps that end users enjoy. This plan serves as an outline your company can use to create the right app for your target audience. Plus, it’s adaptable as the development process progresses, enabling you to remain flexible and make changes as needed.

UX case studies have determined some of the

reasons why projects fail,and those reasons include:

01. Unrealistic project goals

03. Poor communication between the team members

02. Poorly defined requirements

04. Poor development practices

05. Poor project management

The 5 Foundations of a Successful UX Strategy

Researching your users’ pain points and how they interact with your application is an important step when looking at a redesign. By thoroughly understanding your users’ needs and their particular expectations, you can garner a better understanding of how to improve your mobile or web application. This will also help you set attainable goals during the redesign.

The ultimate goal of overhauling your UX/UI is to deliver a consistent, quality experience for the people using your application.

Creating a UX strategy is rarely simple; fortunately, here are five foundational building blocks to help you develop a successful UX strategy:

If you are creating a new application, is there one on the market currently that delivers an outstanding UX that your business wants to analyze? Take a close look at this app and incorporate the UX features you like into your company's UX strategy. By doing so, you'll be able to narrow your focus and move closer to developing a successful UX plan. Millions of apps are available, so there likely are many that could influence the development of your company's new app as well. However, try to create a list of a few that stand out from the pack, and you'll be able to incorporate some of the key features of these apps into your UX strategy instantly.

Analyze the competition

Is there an app that delivers an outstanding UX that your business wants to replicate? Take a close look at this app and incorporate the UX features you like into your company's UX strategy. By doing so, you'll be able to narrow your focus and move closer to developing a successful UX plan. Millions of apps are available, so there likely are many that could influence the development of your company's new app as well. However, try to create a list of a few that stand out from the pack, and you'll be able to incorporate some of the key features of these apps into your UX strategy instantly.

Storyboards mockups show how the app will look and perform. Effective use of storyboards as part of the development of a UX strategy is key to the development of high-performing, user-friendly apps.An effective storyboard offers an ideal way to get feedback from users. It focuses on your UX strategy and its goals, ensuring you can stay on track with your plan. Moreover, a storyboard requires no artistic talent to create and merely serves as an option to brainstorm ideas about how your app will look to end users.

How will you know if your app meets your end users' needs if you don't test it? Incorporate testing into your UX strategy, and you'll be able to discover your app's weaknesses and strengths during the development process. Creating a regular testing schedule and sticking to it usually is a good idea. With assessment results at your disposal, your business can work toward transforming an app's weaknesses into strengths, as well as optimizing the UX.

An app is an ongoing project, one that needs continuous updates to ensure users are fully supported.. For companies that prioritize UX, collecting feedback is crucial, as it enables them to understand whether their apps hit the mark with users. Feedback can come from a variety of sources — everything from end user surveys to social media. Businesses that explore end user reviews can use this feedback to build an app that delivers a great UX day after day.

Use your app experience to your advantage

Craft prototypes

Conduct tests

Collect feedback

How Can Your Business Provide A Personalized UX?

Researching your users’ pain points and how they interact with your application is an important step when looking at a redesign. By thoroughly understanding your users’ needs and their particular expectations, you can garner a better understanding of how to improve your mobile or web application. This will also help you set attainable goals during the redesign.

The ultimate goal of overhauling your UX/UI is to deliver a consistent, quality experience for the people using your application.

Personalization allows an application to deliver the appropriate content and functionality to meet users needs or interests. In other words, users get what they need when they need it. Personalization may deliver specific information, authorize access to certain tools, or simplify tasks by remembering frequent selections from previous activities. The application adapts to user behaviour without effort on the part of the user.

$1Investment

$100ROI

IBM notes that a $1 investment in UX may result in ROI that

ranges from $10 to $100

up to

The return on investment (ROI) of a positive UX is significant, especially if a business goes provides a personalized UX. For example, IBM notes that a $1 investment in UX may result in ROI that ranges from $10 to $100. This shows that even a minor UX investment can go a long way, particularly for businesses that strive to deliver a personalized experience for end users.

New technologies have made it easier for many companies to design and deploy apps that expand the boundaries of what a personalized UX means. Enterprise software products now, more than ever, have the ability to be personalized to how the end-user works and interacts with the application, streamlining day-to-day work. Personalization can provide more value to the user by delivering relevant content, matching expectations and addressing needs.

How to Overhaul Your UX/UI Without Alienating Users

Change for change's sake isn't the point of updating any element of your application’s UX and UI. Instead, it must be done in a way that delivers genuine value for your users. There are numerous examples of web applications that have alienated users thanks to abrupt, poorly implemented changes to their UX. Here are some tips for navigating an overhaul without falling into the same trap:

Section 3

Instead of assuming what your users want out of your application, dig deeper. Research is a key part of the UX design process, but it’s frequently overlooked at this critical stage. While you may already know who is using your application, you also need to review how they are using it. Look into how much time they spend on the app, poor workflow, and support call data. Use this information to establish clear priorities and set measurable goals for your redesign.

Usability testing is the focus group's real-world counterpart. After the planning and research stages, usability testing occurs once the initial wireframes and information architecture have been developed. It should aim to illuminate conceptual problems in a UX design workflow. Give users a set of tasks to accomplish and look at how they attempt to do so. Are there opportunities for making the process simpler or more obvious? If so, it may be necessary to further refine your design.

Do the Research

Perform Usability Testing

The old adage about how you can't please all the people all of time is certainly true when it comes to UX and UI. Ultimately, every user will have slightly different expectations when engaging with a web-based application. Attempting to solve every problem that comes up can quickly drive your project off the rails. Instead, prioritize issues that are most frequently reported or that have the most impact on a user's experience. Choose the most important user type for your app’s success and design for them.

How your app looks is important, but it isn’t the whole story. How it works is critical to user adoption, productivity and satisfaction. In fact, 90 percent of the value of an experience comes from how the app works, not how it looks. Too often, there is a strong emphasis on visual design, often at the expense of the underlying UX/UI. While a good looking app may have instant appeal, if the user cannot easily accomplish their tasks, the end result will be a poor experience and lack of satisfaction. Experience trumps aesthetic.

Before starting your UX/UI overhaul, your team must have clearly defined user pain points and established current benchmarks. This way you can keep tabs on these indicators and demonstrate how the UX/UI project is working towards those goals. These might include faster task completion rates, increased user satisfaction with the app or fewer errors. Tying your project to specific, tangible outcomes will ensure everyone on the team, as well as management, understands what constitutes a successful redesign.

Integrate Feedback With A Grain Of Salt

Put Form And Function Under The Microscope

Measure Your Progress

In the B2C world, there is study after study that clearly demonstrates how people’s interactions with mobile technology is changing. A famous study from Microsoft noted that, in the 15 year span between the year 2000 (or about when the mobile revolution began) and 2015, the average attention span dropped from 12 seconds to eight seconds. A Jampp study that examined how consumers interacted with mobile apps reported that there is up to 88% decrease in consumers’ attention span year over year.

There is no doubt that how users interact in the B2C world influences how they interact in the world of enterprise software. People have come to expect — and demand — the same ease of use and intuitiveness of B2C software in enterprise mobile and website applications.

The need for a UI tailored for a specific screen size is obvious. Users don’t use desktops and tablets and phones in the same way, and they often don’t need the same robust functionality they have on desktop to be available on their phones.

User Attention Considerations

The study offers these average interaction times for each device that may be running your applications:

Generally speaking, the smaller the device, the lower the attention span a user has for applications on that device. When you embrace efficient design principles for your app, consider what users actually need on the go and what workflows require large screens and prolonged interaction. This way, the UI is still using the same logic, but boosts the UX by providing only what a user needs in the moment.

While maintaining consistency between platforms is important, your UX needs to get increasingly efficient as the screen size gets smaller.

Is your UX/UI facilitating that efficiency, or is it aggravating users? In the enterprise world, users often have no choice but to use the app. But we can make them more efficient, more productive, minimize support and more focused on the goals than on how to get around the app. Effective multi-platform implementation is just one example of how keeping your user interface updated can benefit your organization.

39min 30min 17min

PC/laptop Tablet Smartphone

Key UX Metrics

UX Metrics That Help Calculate ROI

When measured correctly, revenue from UX projects can be directly correlated with your investment. This is why it is increasingly important to have metrics in place in relation to your UX projects. These metrics will place a critical role in being able to show UX as a profit-centre.

User experience activities can reduce developmental inefficiencies in a number of ways, such as diminishing wasted development time, shortening development time altogether, and instead focusing on perfecting the user interface. User studies show that 70% of projects fail due to lack of user acceptance, which is a common consequence of lack of UX design.

When measured correctly, revenue from UX projects can be directly correlated with your investment. This is why it is increasingly important to have metrics in place in relation to your UX projects. These metrics will place a critical role in being able to show UX as a profit-centre.

User experience activities can reduce developmental inefficiencies in a number of ways, such as diminishing wasted development time, shortening development time altogether, and instead focusing on perfecting the user interface. User studies show that 70% of projects fail due to lack of user acceptance, which is a common consequence of lack of UX design.

Section 4

Key UX Metrics

Conversion rate allows you to measure the impact of UX activities on your KPIs (key performance indicators). If you are attempting to measure direct activity on your application, then UX can significantly influence those numbers through branding, usability and accessibility. This method allows you to observe the different components that make up your UX impact user behaviour.

Drop off rates are another way to measure the number of users who decided to abandon a workflow before completion or take too much time to complete a task. Being able to measure the drop off rate is critical because it allows you to identify which part of your UI is causing user dissatisfaction and at which step they decide to abandon the task. In order to calculate drop off rates, you will need google analytics or another engine to track user activity to convert the raw usability metrics into a SUM score (with the help of a SUM calculator). The formula used to calculate the drop off rate would be:

DROP OFF RATE

Number of users / number of unique users in each segment x 100 = Drop off rate (%).[ ]

This metric will be used to record any errors that may arise as well as identifying user interface design issues that impact users’ ability to proceed through the conversion funnel. Single usability metric (SUM) is a standardized metric that calculates task completion rates, time used to complete tasks, and satisfaction and error tolls. Your SUM can be easily calculated using a SUM calculator. SUM has a direct correlation to drop off rates considering that:

SINGLE USABILITY METRIC (SUM)

Fewer UX errors = Fewer conversion drop-offs.[ ]

USAGE METRICS RATE

It’s difficult to quantify customer satisfaction. It can seem like an imprecise process with nebulous results. Customer experience expert, Gerry McGovern, developed the TPI (Task Performance Indicator) method to measure the impact of changes on customer experience. TPI assesses changes to an app or website with regard to a defined set of customer “top tasks.” Govern says that the testing group should include 13-18 participants to produce stable, consistent results.

For each task, the user is asked a task question via a live chat. The user then completes the task and provides the answer. The interviewer ask the user how confident they are in their answer.

CUSTOMER SATISFACTION

Several factors can influence the answer. TPI takes into account:

Govern’s methodology, which you can read more about here, can be, however, time consuming. Other user researchers instead advocate pushing out live versions to A/B test in order to get higher volumes of data.

You can also use many other metrics to gauge user satisfaction, like reduced errors or ease of completion.

Targer Time

Disaster Gives Up

The user gives up on the task.

Time Out

The user takes longer than the allotted 5 minutes.

The user has high confidence, but the wrong result.

Confidence

At the end of each task, people are asked how confident they are.

Minor Wrong

The user is unsure; their answer is almost correct.

How long it should take to complete the task under best practice conditions.

Compelted Task

Success 70% Failure 30%

Disaster 6%

Wrong 9%

Gave Up 11%

Timeout 4%

Other Metrics for Measuring UX Projects

These can be app specific and may not work for your situation:

Application usage — The increase (or decrease) in application usage. Use this metric to demonstrate that your UX overhaul has improved the app’s appeal.

User interaction — Good UX may increase or decrease how much users use the system and the length of each interaction.This metric will vary from project to project. If the goal is to deepen user engagement with the application, the desired outcome will be an increase in user interaction. If the team is looking to boost user productivity and the efficiency of the app, the goal may be to reduce interactions.

Support requests — If your application has improved in ease of use and intuitiveness, you should be able to measure a decrease in calls to the help desk.

Training time — Likewise, by making the UI more user-friendly, it should help reduce the amount of time to train people to use the application.

Task completion rate — A common metric that measures the percentage of tasks correctly completed by users. The task must have a defined goal or completion point, such as filling out a form. This will help show the efficiency of the UX design. Before measuring, define what constitutes success.

Task completion time — The length of time (minutes/seconds) it took users to complete a task. Use this metric to gauge whether or not the UI improved user productivity. It can also be used to track the learnability of the application.

Error rate — This metric measures the percentage of users who made an error or mistake during a task. To err is human, but a higher percentage represents an opportunity to improve your app’s UI.

Average number of errors — By counting the number of errors or mistakes users made on average during a task, you can identify usability issues.

Ease of completion — Survey users to determine the ease with which they were able to complete a task. The single ease question (SEQ), asks users to rank how easy or difficult a task was to complete, with 1 representing “Very Difficult” and 7 “Very Easy” is a good way to capture ease of use and the ease with which a user completes a task.

These metrics allow a company to observe the difference in user behaviour and time saved for the company while also taking into account an increase in company earnings as a direct result of a UX project.

Measuring the User Experience ROI

3 Ways Good UX Improves Revenue

Conversion rate allows you to measure the impact of UX activities on your KPIs (key performance indicators). If you are attempting to measure direct activity on your application, then UX can significantly influence those numbers through branding, usability and accessibility. This method allows you to observe the different components that make up your UX impact user behaviour.

01. REDUCING DEVELOPMENT COSTS

You know that a good user experience will help attract new users, create new functionality and features and make your digital product more cohesive and responsive. It’s also a very smart business move as investment in UX is also measurable in dollars and cents.

Investing in UX/UI at the beginning of a project helps software development teams to prevent or minimize changes later on when it’s too late or too expensive. This section outlines how to show UX investment as a profit centre, rather than a cost.

Section 5

Increasing your revenue with a better UX is an effective way to boost your customer list, while staving off more expensive advertising and marketing strategies. By increasing the attachment a user has with your product and offering a UX that is more accessible, existing users — as well as new ones — will be attracted to your application.

If an application is difficult to navigate, confusing or doesn't perform the function intended, many potential customers may abandon your product before even making a purchase. This can result in a number of lost sales annually that could have potentially been garnered had the UX been better for your customers.

Customers who trust and enjoy their experience with your application will be more inclined to stick with it, which helps you build your brand and increase loyalty among your users. In addition, by analyzing customer interactions with your product, you can identify what works and what doesn't, which will help you build an even better UX in the future.

Simple changes in a design can go a long way, and by updating and improving your application to fit the latest expectations and trends, you will ensure your business remains competitive in a marketplace with evolving technological demands.

02. INCREASING REVENUE AND SALES

Because user interactions and expectations are constantly evolving, businesses that focus on the user experience can help maintain their competitiveness in the market. Researching what your direct competitors are doing to improve UX may help your business in the long term.

The easier you make it for people to use your product and have a better experience, the more likely they are to conduct business with you in the future. A better UX is one way of getting the upper hand on your competitors and attracting new clients.

By creating a UX that elicits an emotional response from the user as well as being useful, easily accessible and efficient, you can ensure you meet the standards required to create a more successful redesign. In addition to meeting your business’s needs and creating an experience that sticks with the design principles of your brand, effectively measuring the impact of the UX is important for identifying your ROI.

03. INCREASING MARKET COMPETITIVENESS

How to Measure User Experience ROI

By calculating the total number of errors, multiplied by the average repair time, which is then multiplied by the product of the total employee cost and total number of employees, you can discern how much money you can save by improving user experience and reducing errors.

Measuring the ROI of your current UX is important when determining the advantages of creating a better UX. If a development project is completed on schedule and costs stay within the allocated budget, UX is successful in that it meets the expected requirements of the job.

While on the surface this is a great accomplishment, digging into the core of both user satisfaction and how the UX has helped generate revenue is another facet to the success of your application.

Dr. Susan Weinschenk, a behavioral scientists and author of a white paper concerning productivity in IT development, suggests three components to measuring the return on investment of user experience.

By calculating the total number of errors, multiplied by the average repair time, which is then multiplied by the product of the total employee cost and total number of employees, you can discern how much money you can save by improving user experience and reducing errors.

01. Calculating the cost of errors

(number of errors) x (average repair time) x (employee cost) x (number of employees) = cost savings[ ]

As mentioned above, development is often a lengthy and expensive process. You can reduce your maintenance and overall development costs by creating a better UX before the product is completed, thus reducing expenditures in the future.

By calculating the number of changes multiplied by the amount of hours needed to make the change, which is then multiplied by the product of developer costs by four, you can discern how much potentially avoidable changes will drain away in expenditures.

A better user experience will also lead to increased productivity. By reducing errors and development changes, your team can focus on additional products, reduce the time needed for customer support and dedicate time to new projects. In order to calculate productivity savings, the time saved in development, multiplied by the total employee cost, should then be multiplied by the number of employees.

Some other methods of measuring your return on investment come from setting measurable goals and identifying targets for improvement. By reducing the number of errors, you will effectively save on development costs, as well as increase the efficiency and ease of use for your customers. Reducing development costs by focusing on UX during development is essential and will help prevent costly repair, maintenance, training and redesign projects in the future.

03. Calculating overall productivity savings

By calculating the total number of errors, multiplied by the average repair time, which is then multiplied by the product of the total employee cost and total number of employees, you can discern how much money you can save by improving user experience and reducing errors.

(number of changes) x (average hrs/change) x (cost of developer) x (4) = cost savings[ ]

(time saved) x (employee cost) x (number of employees) = cost savings[ ]

02. Calculating development andmaintenance expenses

In addition, a better user experience can help you increase the number of users, help you retain existing customers and increase traffic to your application — all of which are measurable through analytic tools.

With a better user experience, it’s possible to increase your revenue through product sales that could be lost due a frustrating customer experience.

How to Calculate Overall ROI

In order to estimate the precise revenue from a UX investment, simply subtract the investment from the

economic profit gained from the investment.

Remember to take inflation into account as well as the number of years you will need to pay off the

entirety of the investment.