UX designers rarely define the success of their product design with business metrics. They predominantly base success on user-centric data, which is fine, but proving profit and loss will only increase value of their designs or aid with finding opportunities to optimize. Key Performance Indicators (KPI) and Return of Investment (ROI) are now being utilized to directly quantify (measure and calculate) the impacts of of user experience.
To impact business outcomes, define your KPIs and ROIs and execute on them. Downstreaming KPIs and ROIs from your company's mission will align your goals and measure success.
Use this step-by-step process below to define your KPIs and ROIs.
Step 1: Define your mission
The value brought to your users.
We make it (adjective) for (noun) to (verb).
Step 2: Define your vision
The product that will deliver the value.
We will provide (product idea) that enables users to (action) so that they (user goal).
Step 3: Define your KPIs (Key Performance Indicators)
The user problems you will solve.
Decrease the time to (user goal or task).
Decrease the effort to (user goal or task).
Increase productivity by (user goal or task).
Increase revenue by (user goal or task).
Step 4: Define your goals
The design solutions that measure the KPIs.
Design interfaces that enable users to efficiently complete their tasks and achieve their goals: in (x) amount of time, with (x) amount of effort, and (x) amount of satisfaction.
Step 5: Define your outputs
Methods and artifacts that deliver the UI
Conduct user research, competitive analysis, design sprints, work sessions, and usability tests.
Deliver foundational stories, reports, specs, and all design artifacts to PM's, developers, and business stakeholders.
Step 6: Define your ROIs (Return of Investment)
Business impacts and outcomes from the product UX.
UX leads to: acquisition, productivity, adoption, retention, satisfaction, and loyalty
Investment returns: increased revenue, business deals, B2B recommendations, and user or operational cost savings
Summary
Ensure every product decision is aligned with your KPIs and ROIs
Measure your KPIs with user testing, surveys, formulas, and web analytics
Calculate your ROIs by retrieving revenue data and using investment and return formulas
KPIs and ROIs measure goal success for your product value and annual performance review (how you've generated revenue for the company)
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