ROI: Can You Really Measure the Power of Experience Design?
This is part eight of 13 in the Experience Design 101 series. For links to all the articles in this series, click here.
69 % of small business owners involved key friends and partners extensively in developing and marketing their products and services (National Federation of Independent Business) (See Part 2 of this series)
well over 100 % increase in interest in Experience Design over the past 3 years (as measured by Internet search frequency) (Google Trends, which does not yet give exact numbers) (See Part 4 of this series)
Can you measure the power of Experience Design? Lots of marketers don’t want to do it, citing “brand equity,” “goodwill,” “share of mind,” and “raising your profile.” Don’t fall for this. What you want to know is, Will we make more money?
If you are willing to control for variables you can measure the Return on Investment of Experience Design, and you and your design firm will benefit from the scrutiny. (It helps to have definite implementation dates for the stages of your design, rather than a trickle of smaller changes.) If you already keep a close eye on your books, watch these key metrics to see the impact of Experience Design:
Number of leads generated
Quality of leads
Time from lead to sale
Average number of contacts needed to close sale
Total sales revenue
Average dollar amount of sales
Customer satisfaction, loyalty, repeat business
Internet/ Lead gathering:
Clickthroughs from email campaign or other advertising
Average number of pages visited
Average time on site
Leads per (thousand) visits
Sales per (thousand) leads
Cost per lead, cost per sale
Employee turnover, productivity, attendance, satisfaction
(See Part 4 of this series for definitions of these and other key terms.)
If you don’t already track these numbers, stop and immediately implement a system for tracking number of leads, close rates, and costs in your traditional and online lead generation. There are many relational databases designed to automate this tracking for you. You’ll save time, eliminate guesswork, and be able to quickly spot strengths and weaknesses in your marketing and sales efforts.
Measure these numbers at three and six months after implementation of your new Experience Design plan. It may take time to see the improvements, but many firms can start seeing improvements even sooner.
Grow and be well,
Next up in the series: Part Nine: Firm growth (not) guaranteed
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