How does analytics connect Business Owners and Designers?

Are you planning to launch a new service or improve an existing one? Designers and business owners sometimes have quite different perspectives and approaches to these matters. Designers main interest is in creating high quality services for the users whereas business owners want to grow the existing business. So what connects the design and business requirements? Analytics and metrics.

A month ago I was lecturing at Tampere University of Technology on "Using data and analytics in human centered product development". My message to the students was that experience and design patterns make a great backbone for design work, but analytics, along with insights based on user interviews, is a powerful tool of argumentation and validation for designers, and you should learn how to use it.

Everyone has opinions about what looks good, but facts double the sales.

Successful service design is always based on customer needs, but also business goals. Therefore, as a designer, you need to know the business goals of the project and the targets that we want to achieve in order to maximize the business impact of the service. The following chart explains this in more detail.

As you can see, the initial business goal for this particular project is to increase total sales. Target we are aiming for is 5%. When we break down the initial goal, we can identify three affecting factors - average order value, visitors and conversion. Based on user insights, the team has ideas about how to address these business requirements while improving the customer experience at the same time. Using these metrics the team can get more accurate insights into whether the design hypotheses are working and what is the real business value of the new features.

So what are the concrete actions required from business owners and designers?

Business owner: communicate business goals to all team members, define metrics for analytics specialists to implement and measure the business impact of new features.
Designer: in addition to user needs find out what are the business goals of the service. Learn how to utilize analytics to back up and validate your new designs and hypotheses.

I could not have summarised it better than Chuck from "Better Call Saul" Netflix series. Great series by the way, you should check it out.

Chuck and Jimmy from "Better Call Saul" (photo courtesy of Netflix).

 

Ilkka is working for Futurice helping clients to succeed in digital transformation and business strategies.