Friday, August 05, 2011

The $300 Million Button

This article (http://www.uie.com/articles/three_hund_million_button/) is crazy. It explains how one site was able to increase revenues by $300 million (as in Three Hundred MILLION Dollars) by simply redesigning its website to require a little bit less on its online purchase form.

Clearly, design matters.

Way more than any of us realize.

As many of us just finished advising a startup, and some of us are working on our own startups, I think this lesson should be kept in mind all the time. Decisions like whether to require more than an email address to log-in are NOT trivial and may cost your company lots of money.

My own reaction to that article was to budget in a top-notch designer (in addition to our back-end engineers) to pay when we raise our first round of financing...clearly hiring somebody is more important than just "aesthetics".

3 comments:

Ida said...

I completely agree with your point, and I'm glad that there are examples that validate the importance of good design. As great as advances in technology or other sort of "hard" concentrations, it takes good design to be able to translate language and guide a person to the solution.

George said...

I also agree. Today, when we have several competing options of almost all kind of e-service, customers often decide based on the ease of use and the looks. Yes, the look and feel of a website and app conveys a message about the professionalism of the service provider, and noone wants to work with someone who is not among the best in their area if the others are available almost cost free.

Dan said...

To further add to your points, one of the most important reasons Facebook prevailed over other social networks like Myspace, was site design. Facebook was given a clean well laid out interface which users preferred. The look and feel of the application as well as the ease of use which is always so important, give Facebook, the edge over their competition.