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ENSURING VALUE IN OUR WORK The ROI of Design JARED PONCHOT // @JPONCH // FEDC 2018

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‣Understanding the ROI of an improved User Experience WHAT’S MOST IMPORTANT FOR YOUR AGENCY RIGHT NOW?

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THE ROI OF DESIGN?

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ROI=
 RETURN ON INVESTMENT

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the resources (e.g. time, money) we invest in design will wind up getting us even more money in return? HOW CAN WE KNOW THAT …

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“ — ALBERT EINSTEIN If you can’t explain it to a six year old, you don’t understand it yourself.

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A TAXONOMY FOR DESIGN VALUE

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‣ Brand ‣ Innovation ‣ Efficiency ‣ Satisfaction ‣ Sustainability

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BRAND

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“ — HARTMUT ESSLINGER, FROG DESIGN Money buys, but emotion sells.

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Desirability Studies

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INNOVATION

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‣ Making strategic initiatives possible ‣ Creating new products, services, etc. ‣ Enabling entry into new markets INNOVATION THROUGH

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Re-imagining problems

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Tesco Subway Store in South Korea image from littledoremi.com

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from evigo.com

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from jcdecaux-oneworld.com

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Intellectual Property

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EFFICIENCY

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25% FAIL OUTRIGHT IT PROJECTS PROVIDE NO ROI (IF THEY SUCCEED) 20-25% REQUIRE SIGNIFICANT REWORK 50% Based on a 2009 study

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Poor requirements

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Editorial & process improvements

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Customer service requests

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SATISFACTION

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“ — JEROME KATHMAN, CEO OF LPK Consumer-preferred design outperforms management-preferred design.

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Usability

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SUSTAINABILITY

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YOUR USERS
 desirability YOUR BUSINESS
 viability YOUR BUILD TEAM
 feasibility

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‣ Is it changing how customers see our brand? ‣ Is it helping us innovate? ‣ Is it increasing efficiency? ‣ Is it improving satisfaction? ‣ Is it making things more sustainable?

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MEASURING IS HARD

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Projects often begin with a measurement to improve

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Simpson’s Paradox

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7.9% 11%

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22.9% 2.8% 0% 11.3%

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“If an unfriendly foreign power had attempted to impose these bad schools on us, we might well have viewed it as an act of war.”

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MATH SCORES 40pts VERBAL SCORES 50pts

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Bad Teachers

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More test takers

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LOW INCOME INCOME: LURKING VARIABLE MIDDLE INCOME HIGH INCOME

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LOW INCOME INCOME: LURKING VARIABLE MIDDLE INCOME HIGH INCOME

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LOW INCOME INCOME: LURKING VARIABLE MIDDLE INCOME HIGH INCOME

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LOW INCOME INCOME: LURKING VARIABLE MIDDLE INCOME HIGH INCOME

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448/8,000 VISITS PAGE A 5.6% 584/8,000 VISITS 7.3% PAGE B

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PAGE A PAGE B

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PAGE A PAGE B FACEBOOK 300/6,000 5%

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PAGE A FACEBOOK 30/750 4% PAGE B FACEBOOK 300/6,000 5%

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PAGE A GOOGLE ADS 60/1,000 6% FACEBOOK 30/750 4% PAGE B FACEBOOK 300/6,000 5%

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PAGE A GOOGLE ADS 60/1,000 6% GOOGLE ADS 40/800 5% FACEBOOK 30/750 4% PAGE B FACEBOOK 300/6,000 5%

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PAGE A GOOGLE ADS 60/1,000 6% EMAIL 90/1,000 9% GOOGLE ADS 40/800 5% FACEBOOK 30/750 4% PAGE B FACEBOOK 300/6,000 5%

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PAGE A GOOGLE ADS 60/1,000 6% EMAIL 90/1,000 9% GOOGLE ADS 40/800 5% EMAIL 516/6,450 8% FACEBOOK 30/750 4% PAGE B FACEBOOK 300/6,000 5%

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DATA != MEANING

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Confirmation Bias

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“ — UPTON SINCLAIR It is difficult to get a man to understand something, when his salary depends on his NOT understanding it.

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Gestalt Principle: Isomorphism

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Photos from Reddit

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“ — JACK HANDY To me, clowns aren't funny. In fact, they're kind of scary. I've wondered where this started and I think it goes back to the time I went to the circus, and a clown killed my dad.

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Photo by Ghida Basma

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Availability Heuristic

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“ — ERIKA HALL We tend to measure what we can easily count, but not necessarily what counts.

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Goodhart’s Law

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MORE DATA != BETTER DECISIONS

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Photos by Reuters / Bassim Shati and from https://www.huffingtonpost.co.uk/2014/05/07/working-at-amazon-like_n_5278503.html

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The allure of cheap science

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SCIENCE & ART

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Sunset photo from http://www.city-data.com/picfilesv/picv16390.php

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From https://reasonandreflection.wordpress.com/tag/atomic-bomb/

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1. Mystery 2. Hypothesis 3. Repeated Experimentation 4. Theory 5. Fact SCIENTIFIC METHOD

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1. Mystery

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2. Hypothesis

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3. Repeated Experimentation

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4. Theory

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5. Fact

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Repeat

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EPISTEMOLOGY

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How do we know things?

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From wallpapercave.com

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“ — JEFF BEZOS “Most decisions should probably be made with somewhere around 70% of the information you wish you had. If you wait for 90%, in most cases, you’re probably being slow.

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Trust

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TAKE RISKS

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The value of design

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“ — ANNE LAMOTT Perfectionism is the voice of the oppressor, the enemy of the people. It will keep you cramped and insane your whole life, and it is the main obstacle between you and a shitty first draft.

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THANKS! Jared Ponchot @jponch