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Why user experience is more important than marketing Trent Mankelow Optimal Usability

Why user experience is more important than marketing

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Every time we run a breakfast briefing we get the same feedback – “I wish my boss was here!” When Fly Buys asked us to speak at their national conference earlier this month, we saw the perfect opportunity to present a clear argument for why organisations need to treat the user experience as their number one priority. In other words, we think we’ve finally put together the presentation you’ve been asking for! So grab your boss, come along and hear: How widespread broadband, smart phones and social media is fracturing our attention and driving us to abandon traditional touchpoints (like stores and call centres) for emerging touchpoints (like Facebook and apps) Why many consumers use more than one touchpoint to make a purchase, even though they are less satisfied as a result How people are becoming less tolerant of poor service and why many organisations struggle to see it How loyalty (not customer satisfaction or NPS) is the best predictor for revenue growth, and how you can increase it The key to creating great user experiences – it’s Design with a capital D Stories of New Zealand innovation – including more examples of real projects than you would have heard at any other Optimal Usability presentation Even if you can’t get the boss to come and are already convinced about the importance of the user experience, it’ll be worthwhile attending to hear the latest user experience statistics from New Zealand, Europe and the US.

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Why user experience is more important than marketingTrent MankelowOptimal Usability

AIR NZ:“come to queenslandwhy don’t cha!?”

Nice site

This port douglas deal looks good

Looks promising. Ok, where next?

Apparently I have to use the “fare finder”. That’s a bit weird

Ok, I’ll plug in some random

dates

What the…?!

Is this the same site? Where’s the hotel I was

looking AT?

Oh here it is – way down the bottom

hang on – why is it so expensive? wasn’t the deal for $435 per

person?

Oh that’s right, it did say something about “7

nights”. How do I change the dates?

Oh well, start again. This time with 7 days

instead of 10…

It’s still not $435 per person! I can’t be

bothered…

Over $2B was spent on advertising in New Zealand in

2010

Source: http://www.asa.co.nz/industry_turnover/media_turnover_with_explanatory_notes_2010%20final%20.pdf

The bad news

Our attention is fracturing

Consumers decrease time with traditional touchpoints…

TV

•US online adults spend equal amounts of time – 13 hours a week –watching TV and being online 3

Other media

•The percent of US online adults reading print newspaper has fallen from 81% in 2007 to 73% in 2010 3

Stores / branches

•More than 1 in 4 UK adults claim that online product reviews have a major influence on their purchasing decisions 1

•Only 16% of Americans prefer to deal with a customer-service problem in person 2

1 TGI, June 2011 2 What’s wrong with customer service?’, Consumer Reports, July 2011 3 Forrester Research, 2010

… and increase engagement with newer emerging ones:

Mobile

•New Zealand’s mobile penetration is estimated to be 120% 6

•Within five years the number of users accessing the Web from mobile devices will surpass the number who access it from PCs 7

•Global shipments of smartphones and tablets surpassed shipments of desktop PCs and notebooks in Q4, 2010 8

6 http://www.nbr.co.nz/opinion/what-2degrees-should-announce-tomorrow 7 http://www.wired.com/magazine/2010/08/ff_webrip/all/1 8 http://www.slideshare.net/kleinerperkins/kpcb-top-10-mobile-trends-feb-2011

The Web

•Online retail expenditure now accounts for 5.1% of all retail sales in New Zealand 4

•My Dad is the only one left in New Zealand who is not online

Social networks

•96% of Kiwi Internet users visited a Social Media site in May 2011 5

•34% of Kiwi shoppers follow an online shopping site on Facebook 4

4 Digital Media Research 2011, PwC and Frost & Sullivan 5 comScore State of The Internet with a Focus on New Zealand, July 2011

We live in a multichannel world

Example: My TV Buying Experience

I started my research on the consumer website…

Found the cheapest price using pricespy…

Bought the tvonline through noel leeeming…

Your TV is ready to pick up!

Went into the store to pick it up…

A new TV!!

Customer-facing staff

Websites

Communications

Physical environments

Payment systems

Packaging

Multiple organisations, channels and interactions, across time

Pop quizWhat percentage of people cross at least two channels when making a purchase?

a) 15%

b) 30%

c) 50%

d) 70%

Source: Profiling The Multichannel ConsumerHow Retailers Can Enable Multichannel Consumer BehaviorForrester Report July 29, 2009, By Patti Freeman Evans

70%

Consumers who gave channel or channel transition a 4 or 5 on a scale from 1 (not satisfied) to 5 (very satisfied):

Bought in a store

Researched a product online and bought it in a store

Bought online

Researched a product in the store and bought it online

82%

61%

61%

56%

Source: http://www.retailtouchpoints.com/cross-channel-strategies/201-forrester-shoppers-show-cross-channel-eagerness-but-satisfaction-levels-slump-.html

Consumers who gave channel or channel transition a 4 or 5 on a scale from 1 (not satisfied) to 5 (very satisfied):

Bought in a store

Researched a product online and bought it in a store

Bought online

Researched a product in the store and bought it online

82%

61%

61%

56%

Most people use more than one channel, And are less satisfied as a result

Source: http://www.retailtouchpoints.com/cross-channel-strategies/201-forrester-shoppers-show-cross-channel-eagerness-but-satisfaction-levels-slump-.html

Customer-facing staff

Websites

Communications

Physical environments

Payment systems

Packaging

More channels

= more failure points

= more likely to have a bad experience

64% of respondents had left a store because of poor service

in the last 12 months.

67% had hung up on customer service without

having their issue addressed.

Source: What’s wrong with customer service?, Consumer Reports, July 2011

80%

8%

Companies that believethey provide a superior

proposition

Companies whosecustomers agree

Source: http://www.bain.com/bainweb/PDFs/cms/Public/BB_Closing_delivery_gap.pdf

Many organisations have a blind spot when it comes to their customer experience

The bad news

� Our attention is fracturing across channels, and many of us use more than one channel to make a purchase

� Those who use more than one channel are less satisfied, and less tolerant towards poor service

� And companies can’t see the blind spots in their customer experience

The good news

Design is the key

Design is not just what it looks like and feels like. Design is how it works.

- Steve Jobs

Source: http://experiencematters.wordpress.com/2011/08/25/customer-experience-lessons-from-steve-jobs/

Design isn’t just about making things beautiful; it’s also about making things work beautifully.

- Roger Martin

We need to design the entire experience:

across interactions and across channels

How do you “do” design?

The uk design council looked at 11 world-leading companies and found their design processes mapped to 4 stages…

Source: http://www.designcouncil.org.uk/about-design/How-designers-work/The-design-process/

1. DISCOVER

1. Who your users are

2. Their goals

3. Their characteristics

4. Their context of use

5. Existing usage

� FOCUS GROUPS ARE aren’t enough

More than 60% of participants testing a new kitchen appliance indicated that they were “likely” or “very likely” to buy it in the next 3

months.

8 months later, only 12% had.

Focus group participants will tell you they don’t like all the sex and violence on tv. Yet what do we watch? Sex and violence.

Observation is the key to the Discovery phase

� You have to go beyond what people say and watch what they do

Field studies: Who users are, goals, characteristics, context

On-street videos: Who users are, characteristics, goals

In-lab user testing: Who users are, goals, characteristics

Analytics: Existing usage

Surveys: Who users are, characteristics, goals

Eye tracking: Existing usage

Customer complaint info is what draws the eye!

2. DEFINE

Customer journey maps

Personas

� PERsonascan help drive the strategy & design

3. DEVELOP

Myth: the design process is necessarily chaotic

� Myth: great design is part MAGIC

TRUTH: great design involves users early and often, is iterative, and is participatory

WEB

STORE DESIGN

mobile

Contact centre

There is even an isostandard for this stuff! (ISO 13407)

4. DELIVER

Sorry! This is where we’d normally show you all the sexy stuff we did with the Air New Zealand Skycouch.

Unfortunately we can’t put the photos online, so drop us a line if you’d like us to run you through

them in person.

[email protected]

Imagine if…

Over $2B was spent on

advertising in New Zealand in 2010

Improving the customer experience

Source: State of The Internet with a Focus on New Zealand - comScore , July 2011

Advertising is the price you pay for having an unremarkable product or service.

- Jeff Bezos

Source: http://blog.seattlepi.com/amazon/2009/05/28/amazons-jeff-bezos-on-kindle-advertising-and-being-green/

� And BE more loyal…

Loyalty is the best predictor of repurchase and growth…

.. And reducing customer effort has the greatest impact on

loyalty

Consumers spend between 7 –22% more with companies that they believe provide excellent customer service.

Source: American Express Global Customer Service Barometer, May 2011

In conclusion

World-class organisations don’t compete on service, products, technology or

features.

They compete on experience.

Customer-facing staff

Websites

Communications

Physical environments

Payment systems

Packaging

You are here

9 years experience

190clients

19 industries

We love to design cross-channel

customer experiences. Talk to us today

[email protected]

Sign up to our newsletter at www.optimalusability.com!

Image credits

Slide 1: http://www.kewlwallpapers.com/bulkupload/73/Animals/Bear%20Boxing.jpg

Slide 4: http://www.imgbase.info/images/safe-wallpapers/photography/beach/18223_beach_tropical_palm_beach.jpg

Slide 21: http://www.flickr.com/photos/jesse757/3094868007/sizes/l/in/photostream

Slide 30: http://www.dnzproperty.com/images/objectImages/highres_images/PMC-Noel-Leeming.jpg

Slide 42: http://www.pollsb.com/photos/o/30630-key.jpg

Slide 43: http://themoodbooster.net/wp-content/uploads/2011/10/Steve_Jobs_portrait_by_tumb.jpg

Slide 44: http://www.phorecast.com/wp-content/images/dean_roger_martin.jpg

Slide 50: http://www.msresearchinc.com/images/Focus%20Group.jpg

Slide 52: http://errornotfound.files.wordpress.com/2011/06/true-blood-true-blood-7167238-1280-1024.jpg

Slide 76: http://www.viruscomix.com/creativevitaerc.jpg

Slide 77: http://www.alistapart.com/d/demystifying-design/demystifying-design.jpg

Slide 91: http://img.scoop.co.nz/stories/images/1103/richardsimmons.jpg

Slide 100: http://theasiacareertimes.com/wp-content/uploads/2011/07/bezos.jpg

Slide 101: http://en.wikipedia.org/wiki/File:Line_at_Apple_Store_in_NYC.jpg

Slide 102: http://theoatmeal.com/comics/customer_service