User Experience Blog Posts

You may have noticed that CatalystReources.com has added a new Case Studies and Clients section. Our purpose for adding these sections is to give visitors a quick visual sampling of the types of projects and clients we have worked with.

It is easy to show case studies if the work is consumer-oriented and public.  It becomes a bit more problematic when the work is for mission critical applications or contain proprietary information (the secret sauce behind a company’s workings) - i.e. the kind of application that Catalyst typically designs.

In our new case studies section we think we achieve a balance between showing visual concepts and descriptive text, and not revealing anything competitive or confidential. We show representative samples in each of our primary areas of service.

We encourage you to take a look at samples of our application design work.  If you see projects that particularly interest you, contact us for a private and confidential briefing where we can provide more details.

Feedback of course is always welcome in the comments of this blog post or any other blog entry.

One of the unique benefits of SaaS is that the application user interface (the components the user interacts with) can be designed to monitor the users behavior and give the vendor information on how the software is actually being used. This not only provides insight into how the SaaS should be improved to meet changing customer requirements, but also how to proactively reduce customer churn.

On-boarding, the process of getting customer signed up and using a SaaS is a good example. Effective on-boarding is critical in terms of determining the tenure and profitability of a SaaS customer relationship. The challenge for SaaS vendors is to immediately gain and leverage an early understanding of new customers behavior and then drive relevant communications to facilitate both immediate on-boarding and continued engaged use for the first 60 days (and beyond).

Designing your SaaS to take advantage of monitoring

So what are some of the steps in application design for effective monitoring?

• Identify the high value scenarios for your SaaS application. We use a systematic and formal process to determine these, but on a casual level try to imagine what what customers/users want to accomplish (not what you think they need).
• Define 2-3 key benefits that differentiate your software from the competition from a customer point of view (e.g. customized interface / ready to use out of the box / cheaper / faster).
• Define the critical behaviors a user must take to successfully accomplish the high value scenarios (e.g. they must import their contact list).
• During the application design process, as you streamline workflows and user-validate the UI, track where even a small percentage of users face issues. While a goal in the design phase is to refine the user interface to minimize these friction points, track any issues that do arise, no matter how infrequently. These can be used to develop processes for intervention during on-boarding.
• Build your UI as a modular system with the capability to track user patterns and clicks, and relate them to desired behavior sequences.
• When you deploy your SaaS, use these monitoring components to identify what features of the software do not seem to be used, where users get distracted from completing high value scenarios, where they make mistakes, where they stop at signup, etc, Integrated monitoring is essentially a continuation of user-validation testing and data collection we do during the basic application design. But here is it used both as information on how to modify the software in future revs, but also where to determine where you can provide assistance before those new revisions are out.

On-premise vs SaaS on-boarding

With on-premise applications, customer on-boarding is considered as outside of the functionality of the software product itself. But with SaaS, on-boarding is an essential process and monitoring the user behavior needs to be part of the SaaS application design. Whether you are trying to get users to complete signup for a trial, or whether you are trying to get users to successfully start using your software, tracking user behavior enables the software (or humans) to intercede at any points where the user might be dropping out.

For example, if users drop out in sign-up, only partially completing the process, the SaaS application can send out an automated, semi-customized e-mail which reads "Thanks for starting your online trial. To finish the process, do XYZ."

Or if users are not going through the critical behaviors that are necessary to complete high values scenerios (and thus experience the benefits of your service), then you can have a tech support person call (costly but effective, particularly for important individuals representing large clients), or you could send them links to videos or invite them to webinars explaining how to complete these behaviors, or point them to discussion board posts that answer other users questions related to completing the tasks.

For example, based on where a customer appears to be dropping out, an automated email goes out saying: "To really take get maximum advantage from our software, you will want to do XX. We have a options to help you through the process including one on one telephone support."

Customer Engagement

This same kind of monitoring can be used to determine intelligent automated (or human-based) up-selling or to tap into social networking for referrals. Once you have determined the high value scenarios and behaviors that users need to complete in order to find "addictive" or engaging value in your software, then monitoring and intelligent SaaS application design, can help users along.

Monitoring at the user experience level is an effective way both to to correct drop out points during the first 60 days, improve effectiveness and efficiency for your customers, and quickly determine how to modify your application on a regular cycle to meet user needs, increase sales and up sell, and reduce churn.

I was reviewing the latest FinTech 100 and noticed that 4 of the top 10 firms are recent or current clients of Catalyst Resources. To be sure, the economic downturn has impacted the financial services sector and almost everyone is aggressively seeking ways to cut costs. However we find that many of these firms are also responding by investing in new applications that improve ROI, manage risk, reduce business process inefficiencies and attract new customers.

Financial services firms continue to invest in new applications

Different financial services firms (across banking, capital markets and insurance) call Catalyst in at different points in the design of these new applications - anywhere from the early idea stage, to a project with well-defined requirements. But one thing that is consistent. Because these tend to be mission critical applications, designing the application functionality and the user experience, is always an interesting challenge.

Typically these are global systems with extremely high performance requirements (e.g. trading platforms, or financial communications systems), as well as uncompromising fault tolerance and security (e.g. payroll systems or credit card processing). Progressively there is an increasing awareness that the functionality and components need to be modular so that they can be applied across disparate applications and, more importantly, to so that they can be reconfigured very quickly, and still adhere to regulatory compliance standards.

Changes in how software is delivered consumed - SaaS and mobile

There has been a fundamental shift in the requirements for how services are delivered and consumed in the financial services industry. Web-based applications, SaaS and on-demand cloud infrastructure are increasingly important for point financial processes such as governance, or tax management, as well as core systems such as HR, payroll and process management. In a Feb 2009 report, Saugatuck predicted that usage of SaaS-based core financial systems will reach 40% or greater by the end of 2010.

Firms are also asking that their applications become more user-centric, accommodating the diverse ways that their services are experienced by an increasingly distributed and mobile workforce. In the past, mobile meant laptops. But with users now accustomed to web-based business applications, firms are asking to adapt their mission-critical applications for handheld devices such as the iPhone and Blackberry. For these applications in particular it is essential to thoroughly encapsulate critical business processes and streamline the functionality so the apps are more refined, prioritized and elicit greater productivity within the small visual real-estate of the device.

A renewed focus on monitoring

As part of the focus on optimized application design, financial services firms want to be able to monitor how and when applications are being used. This information can then be applied to correct drop out points, improve effectiveness and efficiency for their users, and quickly determine how to modify an application on a regular cycle to adjust to changing needs.

Changing priorities

The priorities of senior financial service firm executives are changing as they adapt to today’s unprecedented economic conditions. Firms are jettisoning less efficient business processes and technologies, but they are also spending on well-designed applications that allows them to reduce costs elsewhere (via automation and self-support), generate new revenues, or attract additional customers. For us its an exciting time and certainly keeping us busy.

It used to be in the healthcare arena, that investment dollars followed the companies searching for the next new breakthrough drug or treatment. Recently however, the opportunities and incentives have started to shift to less glamorous products aimed at health care efficiency, and cost-control using SaaS, RIAs and optimized user experience design.

A $19 billion nudge

This move is spurred in part, by provider funding freezes, regulatory scrutiny and the growing push for universal health coverage. The other driving force, of course, is the $19 billion in the Obama stimulus package to encourage doctors to convert to digital medical records.

Efficiency and cost-cutting through health care software solutions can be achieved in many ways, across many sectors of the healthcare industry - in everything from research, to Pharma clinical trial management to patient scheduling, records and billing. The design of these applications will be a high growth area in both the short and long term. SaaS solutions will grow particularly fast as tighter regulatory compliance forces more standardization and interoperability in healthcare protocols, reporting and practice.

The success of these new applications will depend on how well they are designed to maximize efficiency, usability and performance. A few of the key best practices for successful application design include: define the high value scenarios, determine the best conceptual model, user-validate, design for perceived control using RIAs, and create application UI that is modular and reusable.

So where will optimized UI and SaaS application design play especially prominent roles? Here are a few targets that are already moving steadily in that direction:

Medical Research

Efficiencies in clinical research can be achieved from analyzing workflows, user interactions and then designing software interfaces to streamline the process. For example, for Ventana Medical we developed a dynamic Rich Internet Application (RIA) that interfaced to a piece of complex equipment for immunohistochemical assays for diagnosis of cancer and infectious disease. The new user interface greatly increased efficiency and reduced delays, allowing labs to do more screening in less time.

Pharma

Pharma is already moving to a SaaS model, particularly for clinical trials with electronic data capture (EDC) and analysis, and sales & marketing using CRM. The SaaS delivery model allows companies to easily scale resources as needed depending on the number of drugs in clinical trials or based on a dynamically changing sales force. Ease of use, performance and mobile access will be the key drivers.

Patient scheduling, records and billing has Service written all over it

Less than 9% of U.S. physicians in small practices and less than 30% in medium size offices are using digital patient records, according to a June 2008 study in The New England Journal of Medicine. This represents an enormous opportunity for companies to develop solutions to provide provides patient registration, scheduling, patient electronic health records with HIPAA compliance, clinical work flow, billing and collections. The key to success is to package the technology, functionality, and support at a cost/usability/perfomance level that makes it accessible to the average physician. This translates directly to user-validated UI and a SaaS business model. A well-designed modular SaaS application will be able to handle a sole practitioner seeing 20 patients a day or a multi-clinic operation seeing hundreds of patients a day.

Moving beyond the entrenched culture

Healthcare is one of the largest software and IT footprint has the most to benefit from the use of SaaS and user experience design. The biggest challenge will be cultural. But change is finding its way through the cracks and the new federal stimulus money will be a compelling motivator.

You can’t visit a technology or business-related website these days without running into the terms Software as a Service (SaaS ), Cloud Computing, Rich Internet Applications (RIA) or User Experience (Ux). The technologies and best practices that define these terms are evolving rapidly and it is difficult for our clients and potential clients to sift through the burgeoning literature and blogs and find SaaS and UX content that is not filtered through the lens of an infrastructure or service management provider. 

At Catalyst user experience, RIAs and SaaS application design is our full time job.  We routinely work with our clients to define the best strategy for SaaS within their own companies and are constantly following industry trends, learning about the latest technologies and looking out for good ideas.  Since we are tracking what is going on, I thought it would be valuable to our clients and potential clients if we started posting links to the interesting articles, blogs, whitepapers and guides we come across every week.  The SaaS Application Design Resource Center will be a unique place on the net. It is focused specifically on user experience and best practices for SaaS application design, as well as high level strategy and targeted references to cloud infrastructure, and enterprises migrating from on-premise software to SaaS .

We welcome any requests or suggestion you might have for relevant content that we might have missed, or comments about the content we have posted.  Please comment in our blog or send an email send an email

User experience designers all agree on the importance of user interface simplicity, consistency, and performance as keys to successful application design. This is particularly relevant for enterprise SaaS and RIA applications where expectations for "use without training" have been set high by consumer SaaS applications.

But one often overlooked attribute of good user experience design is perceived control. This is surprising because in many ways, a user's feeling of being in control is what defines their perception of simplicity, consistency, performance and even innovation.

Perceived control is a fundamental concept but rarely discussed and even more rarely do I see it implemented as a specific goal in SaaS application design. The basic idea is simple: the more a user feels in control of their software environment, the more satisfied they feel and the more likely they will become loyal repeat users. On the flip side, the more a user feels that they cannot control the software (because of a poorly designed or poorly validated UI), the more likely they will blame it on a "bad" application and seek alternatives.

Predictability, Simplicity, Performance, & Innovation

Designing for consistency is in large part just a way of creating predictability. Predictability is about controlling your environment. The user knows what will happen when they do something - even for the first time. It gives them a feeling of mastery and control, which is critically important to product use and loyalty.

Designing for simplicity is similarly about designing for control. Software feels simple, intuitive and easy to use when it matches a users conceptual model of the world.

Perceived performance is how responsive the computer feels to your actions. When an application forces you to wait for it to catch up (e.g. a spinning clock), you feel like you no longer have immediate control over the application and your environment. Low perceived performance can lead to low satisfaction and high customer churn, High perceived performance makes you feel in control and will result in high customer satisfaction and stability.

Innovation in UI is often in the form of discovering how to increase perceived control. Truly innovative software makes previously difficult tasks, easier to manage and complete.

Examples of applications/products that offer little perceived control: a Comcast digital remote control, Microsoft Word.
Examples of applications/products that offer high perceived control: the iPhone, Google search, many video games.

Design for Perceived Control from the Start

Levels of perceived control of course change as users gain experience with an application. But with SaaS, where it is easy for users to switch to a different service, a UI that creates the perception of control, right from the start, can reduce churn and keep customers coming back month after month.

At Catalyst we spend much of our initial design sprint developing and validating the right conceptual models that make software feel simple. We use RIAs in a way that we can optimize perceived performance. And as a company, we are uniquely focused on designing modular reusable UI which deliver consistency (as well as cutting development costs!). We recognize that perceived control is an essentail factor in user experience design and we regularly assess it in usability and user validation testing, quickly iterating to correct perceived "lack of control".

I ordered a coffee and a scone at Starbuck's the other day. As I was reading the latest dismal financial news, the barista said "That will be $5.27 please." I paid but then as I sat down, I started to think about how it is that Starbuck's can continue to charge so much for a cup of coffee, and a small pastry. It struck me as even more interesting that Starbuck's doesn't even advertise - no TV ads, no salesman. Then I realized that Starbuck's economic value isn't about the cup of coffee as a commodity, a good or even a service. Starbucks can charge a premium price because the economic value is an experience.

You can view coffee as several kinds of products.

• As a raw commodity, coffee beans are worth maybe 2 cents/cup.
• If you grind up the beans and package them as a good for sale in a store, they are worth, say 20 cents/cup.
• If you take the same coffee and brew it for a customer in a vending machine or serve it at a coffee shop, it can sell for $1/cup. Provide the service of frothing the milk and you can charge an extra 50 cents!
• Now surround that brewing process with the environment of a Starbucks, Peets or Caribou, where you can read the paper, check your Blackberry, or chat with friends, and that experience enables you to charge $3+/cup.

This progression from value based on commodity to value based on user experience is a fundamental process in today's economy. Commodities are typically thought as raw materials - things like corn or iron. Use these raw materials to make a product and you end up with goods such as cornflakes or automobiles. But as more competitors arise in the market, goods tend to become commodities. When that happens, it no longer matters who makes them. All that people really care about is price per feature. So companies try to differentiate and beat each other up by offering more features for lesser and lesser prices. This relatively destructive approach is especially common in economically turbulent times like now.

Services delivered through software are being commoditized just like goods. The classic example is long-distance or teleconferencing services where they are sold almost exclusively on the basis of price (although see InterCall). Software as a Service (SaaS) is another example, where many companies try to compete on price once competitors enter their market space.

But there is another way. The value chain is to move from a goods and services economy, to an experience economy, where user experience is the real economic value in any offering. The easiest-to-understand example of this today is the iPhone. There is no great technological feature breakthrough in the iPhone. It is completely a commodity cell phone when you look at it from a technical perspective. What sells the iPhone and keeps it at a price premium without viable competition is the user experience.

When it comes to SaaS, there can needs to be the same progression of economic value from a service with a set of features, to a service with an innovative and compelling user experience. The features of the software are not the only goal (those can become commodities). The application needs to be designed around the user experience to provide a sustainable value proposition. This requires an understanding of agile application design, high value scenarios, usability testing, user validation, addressing the full customer lifecycle and innovative use of Rich Internet Application technologies.