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Ensuring Value in our Work: The ROI of Design (FEDC 2018)
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Jared Ponchot
April 26, 2018
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Ensuring Value in our Work: The ROI of Design (FEDC 2018)
This was a talk at FEDC 2018 about how to measure the ROI of design.
Jared Ponchot
April 26, 2018
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Transcript
ENSURING VALUE IN OUR WORK The ROI of Design JARED
PONCHOT // @JPONCH // FEDC 2018
‣Understanding the ROI of an improved User Experience WHAT’S MOST
IMPORTANT FOR YOUR AGENCY RIGHT NOW?
THE ROI OF DESIGN?
ROI= RETURN ON INVESTMENT
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 …
None
“ — ALBERT EINSTEIN If you can’t explain it to
a six year old, you don’t understand it yourself.
A TAXONOMY FOR DESIGN VALUE
‣ Brand ‣ Innovation ‣ Efficiency ‣ Satisfaction ‣ Sustainability
BRAND
“ — HARTMUT ESSLINGER, FROG DESIGN Money buys, but emotion
sells.
None
Desirability Studies
INNOVATION
‣ Making strategic initiatives possible ‣ Creating new products, services,
etc. ‣ Enabling entry into new markets INNOVATION THROUGH
Re-imagining problems
Tesco Subway Store in South Korea image from littledoremi.com
from evigo.com
from jcdecaux-oneworld.com
Intellectual Property
EFFICIENCY
25% FAIL OUTRIGHT IT PROJECTS PROVIDE NO ROI (IF THEY
SUCCEED) 20-25% REQUIRE SIGNIFICANT REWORK 50% Based on a 2009 study
Poor requirements
Editorial & process improvements
Customer service requests
SATISFACTION
“ — JEROME KATHMAN, CEO OF LPK Consumer-preferred design outperforms
management-preferred design.
Usability
SUSTAINABILITY
YOUR USERS desirability YOUR BUSINESS viability YOUR BUILD TEAM feasibility
‣ 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?
MEASURING IS HARD
Projects often begin with a measurement to improve
Simpson’s Paradox
7.9% 11%
22.9% 2.8% 0% 11.3%
None
None
“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.”
MATH SCORES 40pts VERBAL SCORES 50pts
Bad Teachers
More test takers
LOW INCOME INCOME: LURKING VARIABLE MIDDLE INCOME HIGH INCOME
LOW INCOME INCOME: LURKING VARIABLE MIDDLE INCOME HIGH INCOME
LOW INCOME INCOME: LURKING VARIABLE MIDDLE INCOME HIGH INCOME
LOW INCOME INCOME: LURKING VARIABLE MIDDLE INCOME HIGH INCOME
448/8,000 VISITS PAGE A 5.6% 584/8,000 VISITS 7.3% PAGE B
PAGE A PAGE B
PAGE A PAGE B FACEBOOK 300/6,000 5%
PAGE A FACEBOOK 30/750 4% PAGE B FACEBOOK 300/6,000 5%
PAGE A GOOGLE ADS 60/1,000 6% FACEBOOK 30/750 4% PAGE
B FACEBOOK 300/6,000 5%
PAGE A GOOGLE ADS 60/1,000 6% GOOGLE ADS 40/800 5%
FACEBOOK 30/750 4% PAGE B FACEBOOK 300/6,000 5%
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%
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%
None
DATA != MEANING
Confirmation Bias
“ — UPTON SINCLAIR It is difficult to get a
man to understand something, when his salary depends on his NOT understanding it.
Gestalt Principle: Isomorphism
None
Photos from Reddit
“ — 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.
Photo by Ghida Basma
Availability Heuristic
None
“ — ERIKA HALL We tend to measure what we
can easily count, but not necessarily what counts.
Goodhart’s Law
MORE DATA != BETTER DECISIONS
Photos by Reuters / Bassim Shati and from https://www.huffingtonpost.co.uk/2014/05/07/working-at-amazon-like_n_5278503.html
The allure of cheap science
SCIENCE & ART
None
Sunset photo from http://www.city-data.com/picfilesv/picv16390.php
None
From https://reasonandreflection.wordpress.com/tag/atomic-bomb/
1. Mystery 2. Hypothesis 3. Repeated Experimentation 4. Theory 5.
Fact SCIENTIFIC METHOD
1. Mystery
2. Hypothesis
3. Repeated Experimentation
4. Theory
5. Fact
Repeat
EPISTEMOLOGY
How do we know things?
From wallpapercave.com
“ — 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.
Trust
TAKE RISKS
The value of design
“ — 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.
THANKS! Jared Ponchot @jponch