UNIT - III FOUNDATIONS OF UX DESIGN

Introduction to User Experience - Why You Should Care about User Experience -
Understanding User Experience - Defining the UX Design Process and its Methodology -
Research in User Experience Design - Tools and Method used for Research - User Needs and
its Goals - Know about Business Goals

User Experience Design:

It’s the process of creating a product that is easy to use, easy to interact with, and accessible
for the users while putting their feelings first, based on a long-term and short-term scale.
A UX designer is concerned with the entire process of acquiring and integrating a product,
including aspects of branding, design, usability and function. The story begins before the
device is even in the user’s hands.
“No product is an island. A product is more than the product. It is a cohesive, integrated set of
experiences. Think through all of the stages of a product or service – from initial intentions
through final reflections, from the first usage to help, service, and maintenance. Make them all
work together seamlessly.”
— Don Norman, inventor of the term “User Experience.”

UX Design—A Formal Definition

The International Organization for Standardization (ISO) defines user experience as:
“A person's perceptions and responses that result from the use or anticipated use of a product,
system or service.”
We can break this definition into two parts:
 A person’s perceptions and responses.
●
The use of a product, system or service.
●
In user experience, designers do not have much control over a person’s perceptions and
responses—the first part of the definition. For example, they cannot control how someone feels,
moves their fingers or controls their eyes as they use a product.
However, designers can control how the product, system or service behaves and looks—the
second part of the definition.
“One cannot design a user experience, only design for a user experience. In particular, one
cannot design a sensual experience, but only create the design features that can evoke it.”
The simplest way to think about user experience design is as a verb and a noun. A UX designer
designs (verb)—ideates, plans, changes—the things that affect the user experience (noun)—
perceptions and responses to a system or service.

The simplest way to think about user experience design is as a verb and a noun.
For example, when using a physical device, such as a computer mouse, we can control some
aspects of the product that influence whether the user enjoys looking at, feeling and holding it:
The way it fits in their hand. Is it snug? Is it too big and cumbersome?
The weight. Does it affect their ability to move it as they wish?
Its ease of use. Can they use it automatically, or do they have to think hard about it to achieve
a goal?
When a person uses a digital product, such as a computer application, a few aspects that we
can influence include:
 How intuitively they can navigate through the system.
●
The cues that help guide them to their goal.
●
The visibility of the essential aspects of a task at the appropriate time.
●

UX Designers Consider the Who, Why, What, and How of Product Use
As a UX designer, you should consider the Who, Why, What and How of product use.
The Why involves the users’ motivations for adopting a product, whether they relate to a task
they wish to perform with it or to values and views that users associate with the ownership and
use of the product. The What addresses the things people can do with a product—its
functionality. Finally, the How relates to the design of functionality in an accessible and
aesthetically pleasant way.
UX designers start with the Why before determining the What and then, finally, How to create
products with which users can form meaningful experiences. In software designs, you must
ensure the product’s “substance” comes through an existing device and offers a seamless, fluid
experience.
UX Design is User-Centered
Since UX design encompasses the entire user journey, it’s a multidisciplinary field–UX
designers come from various backgrounds, such as visual design, programming, psychology
and interaction design. To design for human users also means working with a heightened scope
regarding accessibility and accommodating many potential users’ physical limitations, such as
reading small text.
A UX designer’s typical tasks vary but often include user research, creating personas,
designing wireframes and interactive prototypes, and testing designs. These tasks can vary
significantly from one organization to the next. Still, they always demand designers to be the
users’ advocates and keep their needs at the center of all design and development efforts.
That’s also why most UX designers work in some form of user-centered work process and keep
channelling their best-informed efforts until they optimally address all of the relevant issues
and user needs.
 ©

User-Centered design is an iterative process where you take an understanding of the users and
their context as a starting point for all design and development.

Defining the UX Design Process and its Methodology

The UX design process in most UX teams involves researching, understanding, and improving
the user experience of your product. It’s a step-by-step, iterative design process that focuses on
the user, their problems, and how you can best solve them.
Improving your product’s UX design by creating an intuitive and enjoyable user experience
can lead to enhanced customer satisfaction, increased revenue, and a better product overall.
What does the UX design process look like?
There are six major steps of the UX Design Process:

● Define (your final product and goals)

● Research (on real users)

● Analyze (all the information you’ve collected)

● Design (the improved user experience)

● Test (if your design works)

● Iterate (repeat the process)

1. Defining and understanding your product
Defining your product and goals is where the UX design process starts. At this stage, your main
focus is to define how your final product should work and how it solves your users' problems.
Interviews with key stakeholders are a great way to get your project started. This includes
talking with management across departments—from sales, to finance, to marketing, and more.
Having these essential conversations helps UX designers identify business goals, and enables
them to focus on building UX designs that help hit them.
2. Conducting product and in-depth user research
The next step in the UX design process is to identify specific user issues and problem areas.
This is what enables you to build a better product.
It’s in this step that you’ll learn about what needs improving, directly from users. You’ve got
lots of options when it comes to the type of UX research you’ll conduct:

● Qualitative: this type of UX research returns insights that can be observed but not
computed

● Quantitative: this type of UX research returns numerical insights, such as time taken
to complete a task

● Moderated: in this type of research the researcher is present

● Unmoderated: in this type of research the researcher is absent

There are a number of different UX research techniques you can use to understand your user’s
experience, such as:
● User interviews: this research involves communicating directly with users to hear their
thoughts on your product. This helps uncover key insights, and can help with the development
of user personas.

● Usability testing: this research method involves testing a design using real users. It
typically involves getting users to perform a task, then asking them questions about the
experience.

● Heatmaps and click testing: this research method involves analyzing how users
interact with your product or website. This gives you insights into where they’re looking on
your site, and how you can more easily guide them to performing a desired action.

● Surveys: this research method enables you to gather insights on a wide variety of
business-related topics. Surveys give your users the opportunity to share their thoughts in a
low-pressure environment.
3. Analysing your research results
At this stage of the UX design process, you’ll analyze information to highlight the key
takeaways from your research, and how you can use them in the design phase to test your
design concepts later on.
It’s during this stage you’ll look to identify pain points. If you’ve conducted qualitative
research, this will be verbal dissatisfaction and frustration from users. Think: ‘this is tricky’ or
‘I don’t know how to use this feature’. If you’ve got quantitative data, you’ll be looking for
incomplete tasks or time-consuming actions. For example, if users are unable to complete a
task during usability testing, there’s an issue with the current design and user interface.
You can also develop user journeys during the research analysis process. User journey maps
are a great way to visualize how your user interacts with your product. By doing this, you’ll be
able to visualize the user flow and experience and identify friction points to resolve.
4. Designing your ideal product
Now you’ve done the heavy lifting, it’s time for you to action your insights. You’re ready to
develop your new-and-improved product, feature, or user flows.
To do this, consider creating wireframes and prototypes—these enable you to test designs
before investing too much time and energy into building them.
Wireframes
A wireframeis a visual creation designed to represent the skeletal framework of your design. It
enables you to give an idea of what you’re building, without having built it. Wireframes can
be used to test information architecture, navigation functions, and more.
Wireframes are the first version of the design you’re looking to build, and are very basic
representations of the final product.

Prototypes
Once you’ve designed and tested your wireframe, you’re ready to create a prototype.
Prototypes are closer to the final version of your design, and enable you to test interaction and
functionality.
During this design stage, it’s key to keep some key UX design principles in mind. These are
UX design best practices that can help ensure you’re building a great product.
Once you’ve created your design, you need to test its effectiveness with users.
5. Testing and noting your findings
This step is one of the most important stages of the UX design process.
Using different user testing methods will help to validate your design and understand whether
your insight-driven developments are actually meeting your user’s needs. There are several
ways of testing if your design works as intended—solving the problems it is supposed to
solve—and it varies depending on your project needs.
For example, if your UX research has revolved around improving the information architecture
of your site, you’ll likely have developed wireframes in the previous step. Here’s where you
present wireframes to users and see how easily they can navigate through them.
6. Iterate and continue for relevant processes
UX research and design is a never-ending cycle of these six steps—there’s always room for
improvement. Whether you’re testing the same features or flows or researching for completely
new ones, the UX design process is an iterative process.
Your product and users will likely change over time, and as you grow as a business you’ll want
to keep offering a high-quality user experience. Every change you make to your product should
be made with your users in mind—and that’s done with UX research.
Research in UX Design
What is UX research?
User experience (UX) research is the study of learning what end users of a system or product
need and want, then employing those insights to enhance the design process for products,
services or software.
User experience research is the systematic investigation of your users in order to gather insights
that will inform the design process. With the help of various user research techniques, you’ll
set out to understand your users’ needs, attitudes, pain points, and behaviors (processes
like task analyses look at how users actually navigate the product experience—not just how
they should or how they say they do).
Typically done at the start of a project—but also extremely valuable throughout—it
encompasses different types of research methodology to gather both qualitative and
quantitative data in relation to your product or service.
Qualitative UX Research
It results in descriptive data which looks more at how people think and feel. It helps to find
your users’ opinions, problems, reasons, and motivations.
Quantitative UX Research
It produces numerical data that can be measured and analyzed, looking more at the statistics.
Quantitative data is used to quantify the opinions and behaviors of your users.
User research rarely relies on just one form of data collection and often uses both qualitative
and quantitative research methods together to form a bigger picture. The data can be applied to
an existing product to gain insight to help improve the product experiences, or it can be
applied to an entirely new product or service, providing a baseline for UX, design, and
development.
From the data gathered during your user research phase, you should be able to understand the
following areas within the context of your product or service:

● Who your users are

● What their needs are

● What they want

● How they currently do things

● How they’d like to do them

Tools and method used forUX research

Like many types of research, studies on UX behaviours embody a number of different

approaches to testing, data aggregation and garnering information. This involves both
quantitative and qualitative methods.
Using quantitative research methods, UX researchers test proposed hypotheses about users'
behaviors and attitudes based on a system of numerical and statistical evidence. Quantitative
methods uncover, for instance, what percentage of people can successfully find a button on a
page or how many users clicked on a particular link.
Meanwhile, qualitative UX research focuses on understanding why users behave the way they
do or their reasons for wanting things to work a certain way. Qualitative research can be done
via observations, field studies, moderated usability tests and user interviews. This research aims
to comprehend the human side of data by trying to understand the underlying reasons and
motivations that cause consumers to act the way they do.

● Card sorting. A technique that assesses and designs the navigation and structure of an
application or website by giving individuals a list of related items (for example, a sample
inventory listing for an online supermarket) and asking them to group the items in a way that
makes the most logical sense to them.

● Contextual interviews. Monitored sessions where UX researchers observe users in

their natural environments and ask questions to gain firsthand accounts of their experiences.

● Focus groups. A moderated feedback approach where a panel of users are asked to
discuss their experiences among themselves, either in moderated or open formats, to help
researchers learn more about the group's attitudes, ideas and wants.

● Expert reviews. Accredited and verified evaluations of a website against a list of

established industry standards or other governing guidelines.

● Surveys. A selected series of questions posed to a number of users that help researchers
learn about the individuals who use the end product.

● Usability testing. An evaluation technique that attempts to uncover the problems and
frustrations users have with a site through one-on-one sessions where users perform tasks using
a particular software application or other product.
● A/B testing. An assessment technique where users take part in blind studies that
randomly assign those users to different versions of a website, application or other software
product.

Research Description When to use it Best for gathering

technique

User One-on-one open-ended and Start and end of Qualitative

interviews guided discussions your project Generative

Field studies Observe people in their All stages Qualitative

natural environment Behavioral

Focus group Group discussions facilitated Start and end of Qualitative

by a moderator your project Generative

Diary Users keep a diary to track Start of your Qualitative

studies interactions and experience project Evaluative
with a product

Surveys Asking people open or closed All stages Qualitative

questions Quantitative
Attitudinal
Generative
Evaluative

Card sorting Users sort information and Start of your Qualitative

ideas into groups that makes project Generative
sense to them Attitudinal

Tree testing Assess the findability and Start of your design Quantitative
organization of information as or redesign process Behavioral
users navigate a stripped- Evaluative
down IA
Research Description When to use it Best for gathering
technique

Usability Users perform a set of tasks in All stages Qualitative Behavioral

testing a controlled setting Evaluative

Five second Collect immediate During initial Attitudinal

testing impressions within a short ideation and Evaluative
timeframe throughout design

A/B testing Compare two versions of a All stages Quantitative

solution Evaluative

Concept Evaluate the feasibility, During initial Qualitative

testing appeal, and potential success ideation, design, Generative
of a new product and before launch

What are the benefits of UX research?

UX research helps organizations in many ways, but the following are some of the oft-cited
benefits of performing UX research on a regular basis:

● Understand how users experience websites, mobile applications, products and

prototypes.

● Evaluate and improve ideas and prototypes based on the findings of the UX research,
enabling organizations to make the right design decisions early in the development process.

● Discover new customer needs and business opportunities.

● Find and fix flaws in products and services.

● Provide better user experiences than competitors.

● Understand every user interaction across the entire customer journey.

● Develop a more useful picture of the target audience for better advertising and
marketing.

UX researcher role and responsibilities

The role of a UX researcher is to uncover user behaviors, needs and motivations to make
products, services and websites more intuitive and enjoyable for users. Using qualitative and
quantitative methods, they conduct comprehensive research and share the insights from
research with the UX designers. The goal of the UX researcher is to make the overall design
process smoother and more productive.
Some typical responsibilities of the UX researcher include:

● Create a well-crafted research plan with clear objectives.

● Build a picture of the target users based on their needs, wants, motivations and
challenges.

● Write usability research screener questionnaires and discussion guides.

● Recruit targeted users for specific research studies.

● Moderate one-on-one usability sessions.

● Develop and implement quantitative surveys.

● Conduct client and stakeholder interviews.

● Provide actionable and meaningful recommendations for the product team.

● Present findings of the design research to a larger team clearly and in an organized
manner.

● Work closely with the product team to identify research goals.

● Establish and implement an overall research strategy.

Best practices to conduct UX research

The following are some of the most important considerations to keep in mind when
implementing a UX research initiative:

● Understand the needs and behaviors of users. This is key to building a product
people want to use. Employ qualitative research, including studies and one-on-one interviews,
to understand users' behaviors and desires.

● Pay attention to the differences in user behavior. After moving to the quantitative
stage of measuring user behavior, don't just focus on the behaviors of the majority because not
every user behaves the same way. Ask what you can learn from the behavior of the minority.
Be open to every possibility, even if the findings don't align with the initial assumptions.

● Do UX research at every stage of a project. Although it may be best to conduct most

research at the beginning to ensure the project is on track, it's also important to save some
resources and budget to also conduct research later in the project.
● Conduct usability testing during the refinement and iteration phase. This will help
provide an indication of what features should be added and what needs to be fixed by revealing
how users interact with early versions of the product.

● Communicate the findings of usability tests, studies, quantitative and qualitative

research, and user interviews with the developers working on the product. UX researchers
should translate their users' needs into the technical language that the developers and the
product team will understand.

How to become a UX researcher

While there are many paths to become a UX researcher, most job postings suggest that those
interested in the career should possess the following certifications and skills:

● A bachelor's degree in computer science, psychology, marketing or another related

field.

● Experience conducting user research using qualitative and user-centered design

methodologies.

● In-depth understanding of user interface design.

● Working knowledge of behavioural analysis, quantitative methodology and statistics.

● General problem-solving and critical thinking skills.

● Good teamwork, communication and collaboration skills.

● Strong organization and time management skills.

User Needs and its Goals in UX Design

User Needs
User needs are the specific requirements and expectations of users that a product or service
should fulfil to provide value and enhance their experience. These needs represent users'
perspectives, goals, motivations, pain points, and other human factors.
1. Desk research
Desk research (secondary research) is valuable for gathering information and insights to
understand user needs based on existing data from various internal and external sources. This
data can come from published materials, academic papers, industry reports, social media,
online resources, and other third-party data sources.
2. User interviews
Interviews are a widely used user research method that involves direct conversations with end
users to gather insights, understand their perspectives, and uncover their needs.
Researchers ask questions and prompt participants to share their experiences, opinions, and
expectations about a product or service. Interviews provide rich qualitative data and allow
researchers to delve deeper into users’ thoughts and emotions.

● Structured interviews: follow a predetermined set of questions and a fixed order,

allowing for consistency and comparability in data collection. They help gather specific
information from participants systematically.

● Semi-structured interviews: offer more flexibility, combining predefined questions

with the freedom to explore additional topics and follow up on participants’ responses. This
approach encourages participants to express themselves more freely, providing richer insights.

● User story interviews: focus on understanding users’ goals, motivations, and

behaviours by having them narrate their experiences through storytelling. These interviews
capture the user’s journey and provide valuable context for understanding their needs and
expectations.
3. Surveys and questionnaires
Surveys and questionnaires are popular user research methods that systematically collect data
from many participants. Surveys typically consist of questions designed to gather quantitative
or qualitative data about users’ preferences, opinions, behaviors, and demographics.
They provide researchers with a structured approach to gathering insights from a broader
audience, allowing for statistical analysis and identification of trends.

● Surveys: allow researchers to reach a wide audience and collect data efficiently,
providing quantitative insights. Surveys are beneficial for gathering feedback on specific
features, user satisfaction, or demographic information.

● Likert scale questionnaires: use a series of statements or items with response options,
allowing participants to rate their level of agreement or disagreement. This method provides
researchers with quantitative data to statistically analyze user preferences, perceptions, or
attitudes.
4. Observation and field studies
Observation and field studies are user research methods that directly observe users in their
natural environment to gain insights into their behaviours, needs, and experiences.
Researchers can gather rich qualitative data that helps uncover user needs and understand the
context in which people use products or services.
● Contextual inquiry: combines observation and interviewing techniques to understand
users’ workflows and the context in which they perform tasks. Researchers observe users in
their work or living environment and engage in conversations to gain deeper insights into their
needs, motivations, and challenges.

● Ethnographic research: involves immersing oneself in the users’ cultural or social

context to better understand their behaviours, values, and norms. Researchers spend an
extended period with the users, observing and participating in their daily activities, to uncover
deep insights that influence design decisions.

● Diary studies: involve participants documenting their experiences, behaviors, or

interactions over time. Participants record their thoughts, activities, and emotions in a diary or
journal, providing researchers with detailed and longitudinal data. Diary studies offer insights
into users’ daily lives, habits, and pain points, helping to identify patterns and uncover unmet
needs.
5. Focus groups
Focus groups are small groups of participants engaging in a guided discussion about a specific
topic or product. This method allows researchers to collect qualitative data by leveraging group
dynamics and participant interactions.
Participants can share their opinions, ideas, and experiences in a focus group, providing
valuable insights into user needs and preferences.
1. Plan and conduct effective focus groups by defining clear objectives, selecting
appropriate participants, creating a discussion guide, and facilitating the session effectively.
Creating a comfortable and inclusive environment encourages participants to express their
thoughts and opinions freely.
2. Analyse and synthesize focus group data to identify patterns, themes, and key
insights. This analysis involves transcribing or reviewing the discussion, extracting meaningful
data points, and organizing them into categories. Researchers can use affinity mapping or
thematic analysis techniques to make sense of the data and draw meaningful conclusions.
6. Usability testing
Usability testing evaluates a product or interface’s usability and user experience. It involves
observing users performing specific tasks and providing feedback on their interactions.
Usability testing helps identify usability issues, understand user behavior, and gather insights
for improving the design.

● Moderated usability testing: a researcher facilitates the session and guides

participants through predefined tasks while observing their interactions and gathering
feedback. The researcher can ask follow-up questions, clarify uncertainties, and delve deeper
into participants’ thoughts and experiences.

● Remote usability testing: researchers use video conferencing or screen-sharing tools

to observe their interactions and gather feedback.

● Thinking aloud: participants are encouraged to verbalize their thoughts, feelings, and
decision-making processes as they navigate a digital product. This narration provides valuable
insights into users’ cognitive processes and helps uncover usability issues.
Data Analysis and Synthesis
Data analysis and synthesis is a crucial step in user research that involves organizing,
examining, and interpreting the collected data to derive meaningful insights.

Qualitative analysis

UX researchers use qualitative analysis methods to analyze and make sense of qualitative data,
such as interview transcripts, observation notes, and open-ended survey responses.

● Thematic analysis involves identifying and categorizing recurring themes, patterns,

and concepts within the qualitative data. Researchers review the data, generate codes or labels
to represent key ideas, and then group similar codes into broader themes to identify meaningful
patterns.

● Affinity diagrams organize qualitative data by grouping related ideas or concepts.

Researchers write each finding on sticky notes and then arrange and rearrange them on a wall
or board to discover connections and identify patterns or themes.

● Narrative analysis examines the structure, content, and meaning of individual stories
participants share. Researchers analyze the storytelling elements, underlying themes, and
narrative arcs to gain insights into users’ experiences, perspectives, and motivations.

Quantitative analysis

Quantitative analysis methods analyse numerical data and metrics collected through surveys,
questionnaires, and quantitative research studies.

● Statistical analysis applies various statistical techniques to analyze and interpret

quantitative data. Researchers use measures of central tendency, dispersion, correlation, and
statistical tests to identify data relationships, trends, and patterns.
● Data visualization represents quantitative data using charts, graphs, and other visual
representations. Visualizing data helps researchers and stakeholders easily understand patterns,
trends, and relationships within the data.

● Pattern recognition helps identify recurring patterns, trends, or anomalies within

quantitative data. Researchers look for clusters, outliers, or other patterns that can provide
insights into user behaviour, preferences, or trends.

Identifying User Goals

User goals vary depending on the type of product and its target audience. Some common user
goals and KPIs organizations use to track them.

1. Efficiency

Users want to complete tasks efficiently with minimal effort. Products must streamline
processes and reduce users’ time to complete tasks and accomplish goals.
KPIs for efficiency:

● Task completion time

● Number of clicks/steps/interactions required to complete a task

2. Usability

Users want products that are easy to understand, learn, and operate. Intuitive products with
simple navigation and helpful guidance enhance the user experience.
KPIs for usability:

● Error rates

● Customer Effort Score (CES)

● System Usability Scale (SUS)

3. Accessibility
Designers must create product experiences that cater to diverse users and abilities. Features
like adjustable font sizes, alternative input methods, and compatibility with screen readers are
essential to delivering inclusive user experiences.
KPIs for accessibility:

● Level of compliance according to an accessibility checklist.

4. Personalization

Personalization enhances the product experience with content and features tailored to meet
individual needs and preferences. Satisfying this need increases enjoyment, retention, and the
likelihood that someone will share their positive experience.
KPIs for personalization:

● Percentage of users who customize settings

● Number of customizations available

● Number of customizations utilized

5. Reliability

Users expect products to work consistently without errors–especially if they’re paying for
something. Products must function correctly without errors, glitches, or performance issues to
maintain user trust and satisfaction.
KPIs for reliability:

● Technical error rates (crashes, downtime, etc.)

● Mean Time Between Failures (MTBF)

● Mean Time to Recover (MTTR)

6. Security and privacy

Users expect organizations to secure personal information and data. Implementing robust
security measures and transparent privacy policies reassures users that their data is protected.
KPIs for security and privacy:

● Number of security incidents

● Number of data breaches

● Number of privacy complaints

● Number of privacy complaints per jurisdiction

7. Aesthetics

An attractive and visually appealing product can enhance the customer experience and
contribute to a favourable product perception. Good aesthetics also reinforce a brand’s identity
and make a product stand out from its competitors.
KPIs for aesthetics:

● User feedback on design elements (interviews, reviews, surveys, etc.)

8. Enjoyment

Incorporating elements of fun, delight, or entertainment can make a product more engaging
and enjoyable.
KPIs for enjoyment (engagement metrics):

● Average session length

● Retention rate

● Frequency of use

● Net Promoter Score (NPS)

9. Social interactions

Users often seek social interaction or the ability to share their experiences with others.
Integrating social features or facilitating user communication can improve a product’s appeal.
KPIs for social interactions:

● Number of comments, likes, shares, etc.

● Average follows per account

● Number of invitations sent to friends

10. Support and assistance

Providing accessible and responsive customer support and comprehensive documentation or

tutorials can enhance user satisfaction and build loyalty.
KPIs for support and assistance:

● Number of customer support tickets

● Customer support response times

● Ticket resolution rates

● Satisfaction scores from support interactions

Know about Business goals in UX Design

Business goals are the objectives that a company aims to achieve through its product or service.
Some examples include increasing revenue, expanding market share, or improving brand
reputation.

User Goals vs. Business Goals

What are User Goals?

User goals refer to the objectives, desires, or problems users want to achieve, satisfy, or solve
when using a product. Understanding and prioritizing user goals ensures a product is usable,
functional, and delightful–the core principles of design thinking.

What are Business Goals?

Business goals are the objectives that a company aims to achieve through its product or service.
Some examples include increasing revenue, expanding market share, or improving brand
reputation.
Business goals vary depending on the business, industry, and the organization’s strategic
priorities. Here are some common company goals you’ll find across multiple sectors in product
design.
1. Revenue growth

Increasing sales and revenue is a primary objective for most businesses. The product design
team can contribute to revenue growth by creating appealing, functional, and well-priced
products. They can also streamline revenue-generating interfaces and user flows to increase
revenue.

KPIs for revenue growth:

● Total daily/weekly/monthly/quarterly/annual revenue

● Revenue growth rate

● Average revenue per user (ARPU)

2. Market share expansion

Market share is a crucial product metric because it represents a company’s percentage of an

industry’s total sales. Increasing market share relies on organizations being competitive in
many factors. Those most relevant to product teams are innovation, features, performance, and
good user experience, to name a few.

Innovative design can help differentiate a product and make it more attractive to potential
customers, thus increasing market share.

KPIs for market share expansion:

● Market share percentage

● Market penetration rate

● Customer acquisition vs. industry/competitor benchmarks

3. Customer acquisition
Acquiring new customers is crucial for business growth and influences many other business
objectives. Designing products that cater to the needs and preferences of target audiences can
help attract new users and convert them into paying customers.

KPIs for customer acquisition:

● Number of new daily/monthly/annual customers

● Customer acquisition cost (CAC)

● Conversion rates (from trial to paid plans, subscribers/users to customers, etc.)

4. Customer retention

Keeping existing customers engaged and satisfied (customer life cycle) is essential for long-
term success. Product design can help improve customer retention by addressing user feedback,
implementing feature requests, and continuously refining the user experience.

KPIs for customer retention:

● Customer retention rate

● Churn rate

● Customer lifetime value (CLV)

5. Brand reputation and recognition

A strong, consistent brand identity can help businesses stand out and build consumer trust.
Product design can enhance brand reputation by ensuring that products align with the
company’s values, aesthetics, and overall brand strategy.

KPIs for brand reputation and recognition:

● Measuring brand awareness

● Net Promoter Score (NPS)

● Periodic sentiment analysis

● Social media sentiment analysis

6. Cost reduction

Costs impact profit, which means lower salaries, bonuses, and shareholder returns. Businesses
often seek to reduce product development, manufacturing, or support-related costs.

Efficient product design can minimize these costs in several ways:

● Optimizing product performance (reducing server costs)

● Reducing input costs

● Simplifying workflows and processes

● Improving product quality

● Reducing time to market for new releases

● Reducing support tickets

KPIs for cost reduction:

● Product design costs (design, prototyping, testing, etc.)

● Product development costs (programming, servers, API requests, etc.)

● Operational costs

● Labour time and costs

● Employee onboarding costs

7. Scalability

Businesses must often scale to meet increasing demand or expand into new markets–especially
growth-hungry start-ups. Product design teams must consider scalability to ensure products
and supporting resources can adapt or grow to meet future needs.

KPIs for cost scalability:

● Time to market for new product releases

● System performance under increased load or demand

● Product adaptability to new markets or customer segments

8. Innovation and differentiation

Remaining relevant and competitive requires continuous innovation. Product teams are crucial
in driving innovation by exploring new technologies, products, and approaches.

KPIs for cost innovation and differentiation:

● Number of new features or product improvements released

● Percentage of R&D budget allocated to innovation

● Number of patents filed or industry awards received

9. Regulatory compliance

Businesses must ensure products comply with relevant laws, regulations, and industry
standards. Product teams must ensure that products, UIs, and processes meet regulatory
requirements, making necessary adjustments for specific jurisdictions–for example,
Californian and European users.

KPIs for regulatory compliance:

● Number of compliance audits passed

● Number of non-compliance incidents

● Fines or penalties incurred due to non-compliance

10. Environmental and social responsibility

Many companies prioritize sustainability and social responsibility initiatives, particularly in

countries and states where the laws mandate they meet specific goals and requirements. Product
teams can contribute to these goals by reducing e-waste (digital waste), optimizing
performance (reducing server requests), and reducing product file sizes to minimize storage.
KPIs for environmental and social responsibility:

● Measuring and reducing greenhouse gas emissions related to the product

● Measuring and reducing energy consumption during the design and development
process

● Measuring and reducing e-waste

● Measuring the social impact of products