usabilityroi - Cost justifying Usability State of the Art...

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Cost justifying Usability – State of the Art Overview 2003 1/12 Taken from [April 3, 2003] Cost justifying Usability (CoU) Below are gathered case study summaries from multiple authoritative sources and are based on numerous research projects: The benefits of good web design Creative Good To hammer home its point, Creative Good offered the striking revelation that a dollar spent on advertising during the 1998 holiday season produced $5 in total revenue, while a dollar spent on customer experience improvements yielded more than $60. IBM On IBM's website, the most popular feature was the search function, because the site was difficult to navigate. The second most popular feature was the 'help' button, because the search technology was so ineffective. IBM's solution was a 10-week effort to redesign the site, which involved more than 100 employees at a cost estimated 'in the millions.' The result: In the first week after the redesign, use of the 'help' button decreased 84 per cent, while sales increased 400 per cent. Jakob Nielsen Alert Box, June 2000. It's quite normal for e-commerce sites to increase sales by 100% or more as a result of usability, but configurator-driven sites can probably increase sales by at least 500% by emphasizing usability. More important, they can probably avoid 9 of 10 returns by eliminating most mis-designed items. The cost of bad web design Creative Good Poor customer experiences will have a devastating effect on holiday revenues, even with the most conservative estimates. Given an estimated $9.5 billion in holiday spending despite a 39 per cent failure rate, the industry stands to lose over $6 billion. 39 per cent of test shoppers failed in their buying attempts because sites were too difficult to navigate. Additionally, 56 per cent of search attempts failed. ©ompiled by M. Rauterberg
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Cost justifying Usability – State of the Art Overview 2003 2/12 Cyber Dialogue The absolute number of online bankers grew 100,000 to a total of 6.3 million in the past 12 months, but 3.1 million U.S. adults have discontinued their use of online banking according to Cybercitizen Finance from Cyber Dialogue. The study also found that only 35 per cent of online bankers that discontinued their service were inclined to try it again. "Although Cybercitizens begin banking online to save time, more than 50 per cent have discontinued use because they find the service too complicated or were dissatisfied with the level of customer service," said Michael Weiksner, Manager of Finance Strategies at Cyber Dialogue. Forrester Research Of 20 major sites audited, 51 per cent were compliant with simple web usability principles such as "is the site organized by user goals?" and "does a search list retrievals in order of relevance?" (in other words, the average site violated half of these simple design principles).
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usabilityroi - Cost justifying Usability State of the Art...

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