Connect with us

Tech News

How UX impacts a company’s financial performance [study]

(Tech News) User Experience (UX) is more than just a geek term, it is something that can actually impact your company’s financial performance, and this study of stocks backs this theory up.

Published

on

user experience

user experience, UX

UX investments earn a huge return

Charlie Claxton is chief creative strategist for UpTop, a full-service, web-based software application design firm that focuses on user experience design, conversion and mobile. He has led successful design efforts for Expedia, Amazon and Microsoft as well as growing early-stage companies and is a frequent speaker on user experience (UX) design and conversion.

Claxton recently shared with us data revealing that every $1 invested in UX yields a $2 to $100 return, a stunning statistic that makes one pause and consider their own brand’s UX. But now that you know that, how do you get your boss (or even yourself) to pull the trigger on that investment? In his own words below, Claxton offers an entire case study:

Looking for ammo to back up that investment in UX design?

Then take a moment with the story of the UX Fund, a year-long experiment in 2006 that inevitably comes up when the UX crowd talks about the value and importance of great user experience design.

The premise behind the UX Fund experiment is simple: companies that deliver a great user experience will see it reflected in their stock price.

Two UX designers, Geoff Teehan and Jon Lax, tracked 10 companies in their UX Fund and invested $50,000 in the fund. The companies, which included Apple, Target, Electronic Arts, Research in Motion (RIM), Progressive Insurance and JetBlue Airways, among others, shared some of the following attributes:

  • A demonstrated care in the design of their products and Web site.
  • A history of innovation and inspiring loyalty in their customer base.
  • A track record of customers having positive experiences to do business with them.

After a year, Teehan and Lax found that the fund grew 39.3 percent growth, beating out all of the major indices. Of course, it’s not a straightforward numbers game, and Teehan and Lax acknowledged that a number of underlying factors – some in their favor, some not – affected the final outcome.

Result: UX actually impacts stocks

“It’s clear that the fund did well from a performance perspective, beating out all of the major indices,” they wrote the experiment’s summary. “However, that wasn’t the case during the entire hold. Up until September there was usually one index that was outperforming it. On two occasions the fund was actually in the red. It wasn’t [outperforming] until financial news or new product announcements from holdings like Apple, Google and RIM boosted its overall value nearly 30 percent in less than two months.

“Even though the impact that UX has on a company’s stock price is but one of many factors, we feel confident that (UX) was a major contributor to the fund’s success.” (Click here to read the entire post and see the UX fund graphs.) https://www.teehanlax.com/blog/ux-fund-matures-up-393/

So nearly a decade later, why does that matter?

In today’s world, UX firms talk a lot about delivering measurable payoffs that come with providing a seamless and attractive user experience. In other words, people who come to your site or use your app will find it attractive and easy/ pleasant to use. That’s good touchy-feely stuff, but what better payoff could a company ask for than increased revenues and improved bottom line?

Critics easily dismiss the UX Fund experiment, arguing that these companies’ inherent strengths influenced the fund’s results more heavily than UX design. But without great UX design, a company can’t provide a stellar customer experience and a poor customer experience definitely impacts financial performance.

The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

Continue Reading
Advertisement
3 Comments

3 Comments

  1. Harry Meliss

    December 16, 2014 at 6:52 am

    Nice case study. And very well explained the how to guide for user experience designs.

    Thanks for the post. Keep posting Good work 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech News

Google set to release new AI-operated meeting room kit… and it’s pretty baller

(TECH NEWS) Google’s newest toy is designed to “put people first” by alleviating video and audio issues for conference room meetings.

Published

on

Google Meet Series One is a new meeting kit that puts people first.

Remote meetings can be the worst sometimes. The awful video and audio quality are frustrating when you’re trying to hear important details for an upcoming project. Even with the fastest internet connection, this doesn’t guarantee you’ll be able to clearly hear or see anyone who’s in the office. But Google is re-imagining conference rooms with their new video conferencing hardware.

Yesterday, the company introduced Google Meet Series One. In partnership with Lenovo, this meeting room kit is made exclusively for Google Meet and is poised to be the hardware that “puts people first.”

The Series One has several components that make it stand out. First is the “Smart Audio Bar,” powered by eight beam-forming microphones. Using Google Edge TPUs, the soundbar can deliver TrueVoice®, the company’s “proprietary, multi-channel noise cancellation technology.” It removes distracting sounds, like annoying finger and foot-tapping noises, so everyone’s voices are crystal clear from anywhere in the room.

The hardware also has 4K smart cameras that allow for high-resolution video and digital PTZ (pan, tilt, zoom) effects. Processed with Google AI, the device knows to automatically zoom in and out so all of the meetings’ participants are framed in the camera. With an i7 processor and Google Edge TPUs, the system is built to “handle the taxing demands of video conferencing along with running the latest in Google AI as efficiently and reliably as possible.”

The meeting kit has Google grade security built-in, so the system automatically updates over-the-air. The system also works seamlessly with Google services and apps we already use. Its touch control display is powered by a single ethernet cable. From the admin controls, you can manage meeting lists and control room settings. Powered by assistant voice commands, their touch controller provides a “touchless touchability”; if you want to, you can join a meeting just by saying, “Hey Google, join the meeting.”

These new meeting kits are easy to install and are versatile. They can be configured to fit small, medium, and large-sized rooms. “Expanding kits for larger rooms can be done with just an ethernet cable and the tappable Mic Pod, which expands microphone reach and allows for mute/unmute control.”

According to the Google Meet Series One introductory video, the meeting room kits are “beautifully and thoughtfully designed to make video meetings approachable and immersive so everyone gets a seat at the table.”

Currently, there is no release date set for Google Meet Series One. However, pre-orders will soon be available in the US, Canada, Finland, France, Norway, Spain, Ireland, United Kingdom, Sweden, Australia, New Zealand, Japan, Netherlands, Denmark, and Belgium.

Continue Reading

Tech News

One creepy way law enforcement might have your private data

(TECH NEWS) Wait, geofences do what? Law enforcement can pull your private data if you’re in the wrong place at the wrong time.

Published

on

Man walking on crosswalk with phone, but his private data could be vulnerable.

By now, it’s pretty common knowledge that our smartphones are tracking us, but what you might not be aware of is just how much law enforcement is taking advantage of our private data. Now, the good news is that some places have gotten wise to this breach of privacy and are banning certain tactics. The bad news is: If you were ever in the vicinity of a recent crime scene, it’s quite possible your privacy has already been invaded.

How are law enforcement doing this? Well, it starts with a geofence.

At its core, a geofence is a virtual border around a real geographic location. This can serve many purposes, from creating marketing opportunities for targeted ads to tracking shipping packages. In the case of law enforcement, though, geofences are often used in something called a geofence warrant.

Traditionally, warrants identify a subject first, then retrieve their electronic records. A geofence warrant, on the other hand, identifies a time and place and pulls electronic data from that area. If you’re thinking “hey, that sounds sketchy,” you are–forgive the pun–completely warranted.

With a geofence, law enforcement can dig through your private data, not because they have proof you were involved in a crime, but because you happened to be nearby.

This practice, though relatively new, is on the rise: Google reported a 15-fold increase in geofence warrant requests between 2017 and 2018. As well as invading privacy, these warrants have led to false arrests and can be used against peaceful protesters. Not to mention, in many cases, geofence warrants can be extremely easy to acquire. One report in Minnesota found judges signed off on these cases in under 4 minutes.

Thankfully, there have been signs of people pushing back against the use of geofence warrants. In fact, there have been multiple federal court rulings that find the practice in violation of the Fourth Amendment, which protects citizens from “unreasonable searches and seizures,” including your electronic data.

If you’re still worried about your privacy, there are ways to keep your electronic data on lock. For example, turn off your location services when you’re traveling, and avoid connecting to open Wi-Fi networks. You can also work to limit location sharing with apps and websites.

These and other tips can be a great way to help you avoid not just geofence warrants, but others who want to use your electronic information for their own gain.

Continue Reading

Tech News

Incoming! Amazon drones will be dropping off packages soon (we hope)

(TECH NEWS) The Federal Aviation Administration has approved Amazon for drone delivery service, but when will the drones actually take flight?

Published

on

One of Prime Air's drones ready for test flights.

Amazon has finally received the stamp of approval from the Federal Aviation Administration (FAA) to deliver packages by drones. This pivotal step brings the online retailer closer to their promise of delivering packages to customers in 30 minutes or less.

In 2013, during CBS’s “60 Minutes” interview, Amazon CEO and Founder, Jeff Bezos, said drones would be delivering customers’ packages within five years. Although the estimate is a couple of years off, it seems like that day might be right around the corner.

Personally, I’m looking forward to the day when little floating presents are sailing through the sky (Animal Crossing balloons, anyone?). Despite our excitement to see our latest Amazon impulse purchase land on our doorstep, it isn’t going to happen overnight.

The Part 135 Air Carrier Certificate Amazon obtained for its fleet of Prime Air drones will allow the company to use unmanned aircraft systems (UAS) “to carry the property of another for compensation beyond visual line of sight.” Although the FAA certification is allowing Amazon to begin test trials, Bloomberg reports that the retail giant still has “regulatory and technical hurdles” to overcome.

In addition, the FAA has yet to set regulations that will “serve as a framework to expand drone flights over crowds, a building block necessary for deliveries.” Amazon hasn’t said when and where it will start testing the delivery service either.

David Carbon, Amazon Vice President who oversees Prime Air, made this statement: “This certification is an important step forward for Prime Air and indicates the FAA’s confidence in Amazon’s operating and safety procedures for an autonomous drone delivery service that will one day deliver packages to our customers around the world.”

This approval is definitely a step forward, but Amazon has been working on the drone delivery service for years. Early last year, the giant retailer revealed they would start offering one-day shipping. They have followed through on this, at least. And during a Las Vegas Conference in June 2019, they revealed their “fully electric drones that can fly up to 15 miles and deliver packages under five pounds to customers in less than 30 minutes.” But it still doesn’t answer when we can expect to see whizzing drones overhead.

I’m not sure when Amazon will fulfill their last promise. But it is getting closer. What I do know is that I look forward to the Amazon drones taking flight. I can’t wait to place my orders knowing that I will get that last-minute present I ordered just in time.

Continue Reading

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!