The Importance of a Good User Interface (UI Design)

On 04/27/2012 · Leave a Comment

It still amazes me that in the 20-plus years since the commercialization of the Internet, some companies still don’t get the fundamentals of how it works: That the more user-friendly a website is, the more profitable it will be. I mean, the Internet (and now the mobile app world) is littered with the presence of companies that threw a lot of money into having one. But in their rush to build more features, flashy designs and graphically inviting pages, they have often lost site of the key ingredient: basic usability.

User-interface design, or UI, is the art of simplifying complexity into meaningful user experiences. It’s an increasingly important competitive advantage for companies, as consumers seek sites, apps and products that offer as much intuitiveness as they do function. But the reality is that many still have no idea that the key to success lies in the user experience, providing the consumer with the information they want right when they want it.

Studies have validated the importance of good UI design. A 2009 Best Practices in User Experience study by Forrester Research (read the study here) finds that companies who provide a superior experience have more customers who are willing to consider them for another purchase (14.4 percent), fewer customers who are likely to do business with a competitor (15.8 percent), and more customers who are likely to recommend their products (16.6 percent). Enough said.

But if you’re still not convinced, think back to 2006, when Microsoft introduced Zune, a portable MP3 player that, despite being feature-rich, failed to compete with the iPod due in part to a more complex interface. The simplicity of Apple’s design won them the mobile media market – and Microsoft is still trying to catch up. More recently, a bad design and confusing user interface could be the reason more people haven’t adopted Google Plus (read more about that here).  Admittedly these are large-scale examples, but I can think of many more experiences I’ve had lately with bad UI design – online banking to name one, ING .

In short, I can’t stress enough the importance of a good, smart user interface: It can quite literally be the difference between product acceptance and rejection in today’s commoditized marketplace. If the customer feels that your website, app or product is not easy to learn, not easy to use or too cumbersome, your otherwise-excellent idea could be destined to fail before the customer has a chance to discover it.

I constantly find myself studying good user interface design to find out what makes it work so well, and I’m interested in your thoughts and experiences with good (or bad) UI design.

 

How Startup Weekend Didn’t Change My Life

On 04/24/2012 · Leave a Comment

Startup Weekends (and similar conferences) are an interesting concept; but they are also an oxymoron.

They are basically weekend-long, hands-on experiences where entrepreneurs and aspiring entrepreneurs can find out if startup ideas are viable. These 54-hour events bring together developers, designers, marketers, product managers and startup enthusiasts to share ideas, form teams, build products and launch new ventures.

Call me an antagonist, but I just don’t think this concept works. I mean, for one, most start-ups ultimately fail. Couple that with the fact that you’re trying to build a concept or rough idea into a full-blown product in a ridiculously short period of time – you pitch your concept Friday, execute it Saturday and launch it Sunday – makes me skeptical of the whole thing.

From my perspective, these conferences are a good way to build something small – functional software code that is worth taking the time to pursue, for example – but not a fully operational piece of software or a product, much less an entire company. At least, not one with staying power. And most importantly, there isn’t time to do the up-front diligence in assessing the market potential of ideas or test those ideas with potential customers.

Startup Weekend may be the new hip way to dabble your feet to sample startup life. And don’t get me wrong, they are a great way to network and grow your rolodex of experts and learn what others have to offer. But in my opinion, you’re not going to walk away with your startup dream come true.

 

Good Financial Sense?

On 04/20/2012 · Leave a Comment

I have something to confess: My wife and I are renting an apartment in New York City, despite having the ability to purchase one, and despite the fact that we’ll be shelling out more money for rent than we would paying a monthly mortgage.  But for us, what made the most financial sense in this situation didn’t end up being what made most sense.  We opted to rent a nicer, larger apartment to fit our lifestyle and immediate priorities.

When you decide to buy, you are essentially locking yourself in to your home for a set period of time – if you leave too soon, you’re inevitably going to lose.  But there’s no long-term commitment in renting, which is going to allow us to live comfortably in Manhattan and within walking distance to things we like to do – shopping, restaurants, etc.  Regardless of the fact that we may spend more in rent and lose what we would gain through lower monthly mortgage payments, funding an investment and building equity, we lose in flexibility, the opportunity to walk away, and the chance to buy when the right opportunity presents itself.

Before every financial decision you make, you have to ask yourself, “Does it make sense?”  And what makes most financial sense may not always be what makes most sense.

For us –  the price of flexibility (renting) turned out to be the better buy.

 

The Shifting Landscape of Real Estate

On 04/17/2012 · Leave a Comment

There was a time not too long ago when the main demographic target for the real estate industry was the baby boomer generation.  This was the generation that valued the American dream of owning a home and looked to the expertise of a real estate agent and an ad in their daily newspaper to make that happen.

Remember those days?  Yeah, me neither.

That’s because the Internet has so drastically changed the real estate landscape that it’s now hard to imagine not having the ability to quickly and easily search listings by the things most important to us.  Sites like StreetEasy, Zillow and Trulia.com have literally taken power from the hands of the real estate agent and given it to you, the consumer, to make smart home-related decisions.  These sites allow you to search for your next home by using keywords like “gourmet kitchen,” “swimming pool” or “deck with a view.”  You can examine rental and purchase history in real time (as well as rental and purchase history for your neighbors), get instant updates when a new home or rental has hit the market or when a change in price has occurred, and refine your searches by literally anything you can thing of — price per square foot, amenities, public school zoning, commute time, etc.  There are now so many new tools and such an abundance of information available online that the whole real estate game has changed.  No longer are we running on 1950s-newspaper time.

As you can imagine, the role of the real estate agent is now up for debate.  Some realty groups have even started to cut off listing access to Zillow and Trulia, accusing them of being inaccurate, misleading and taking away business from listing agents.  It makes perfect sense though.  If you’re able to do your own research and make your own informed decisions about where to rent and what to buy, why pay an agent just to show up and let you in the door?

Similarly, what was once a lucrative business for newspaper real estate classifieds is now turning into yet another blow to the already declining ad revenue sales and circulation of print media publications.

So, what have we learned today?  Basically, technology accelerates markets, and in this case, for the better.  Take advantage of it.

 

Expedia is acting like a Big Bad C

On 04/13/2012 · Leave a Comment

And by C, I mean commodity.  Nobody wants to be one.  It seems like online travel company Expedia.com has become the latest victim of this aversion.  There are literally dozens of travel websites out there these days that provide the exact same service – Travelocity and Orbitz, to name a few.  That’s because nowadays, more travel is sold over the Internet than any other consumer product, because it’s the perfect medium for it – bringing a vast network of suppliers and a widely dispersed customer pool together into a centralized marketplace.

Recently, though, Expedia has been advertising as though they are the best thing to happen to travel since the inflatable neck pillow.  It claims that where you book your travel actually matters, that it isn’t selling a commodity, but rather selling a brand.  But I’m just not seeing it. Think about it: The last time you walked in to a hotel, be it the W or the Holiday Inn, did anyone look down on you or tell you you’re an idiot for booking at Orbitz instead of Expedia?

Short answer: No.

Expedia is desperately trying to differentiate, but fundamentally, Expedia is a commodity, competing exclusively on price and convenience.  Customers simply don’t care where they book if the price is right.

 

Promote, But Promote Smart

On 03/30/2012 · Leave a Comment

Anyone with a background in business or marketing will tell you that the type of promotional activities you choose for your business helps to create and affirm your company’s image.  However, without specific goals in place, there’s no way to measure your success, and you’re much less likely to succeed.

Let me give you an example:

My wife and I recently moved to New York City from Washington, D.C.  While visiting prior to our move, my wife tried to use a promotional guest pass for a gym in Kips Bay to check out a class and see whether the gym would be a good fit.  She arrived 10 minutes before the class started, only to be told she had to sit through a time-share-esque presentation and tour of the facilities, and would likely miss the class.  After an extremely rude and unaccommodating gym salesperson gave her a lengthy, defensive explanation about the gym’s corporate policy on guests (is this really a promotion the gym is trying to use to drum up new business?) he agreed to allow her to take the class and sit through the presentation afterwards; he just needed to check her ID.  However, according to yet another gym policy, to use a promotional guest pass, you have to have a New York driver’s license.

In short, this gym’s promotional guest pass policy accomplished exactly the opposite of what it was intended to do.  Rather than gaining a new member, it lost business because of its poor customer service and lack of flexibility.  It managed to take a potential customer and create animosity and a negative experience.  What’s more, its policy against allowing guests with addresses outside New York City will turn away lots of transplants who simply haven’t yet made it to the DMV.

Congratulations, gym.  Well done.

So this begs the question: Do you actually know what the goals are of your promotional activities?  If you’re not sure — or even if you are — consider taking a fresh look at your business and marketing plan/objectives in terms of clear, quantifiable goals. With these goals in mind and an eye on customer service, you’ll have an easier time creating promotional programs that will help, rather than hinder, your business.

And don’t forget: Everyone is judging you. We live in a world where more and more consumers choose where they eat, which doctor to see, and what service professionals to use by reading reviews online.  With Yelp, Google, Yahoo!, Angie’s List and other similar sites, it’s more important now than ever for businesses to manage their reputation, because if your customer service is anything less than spectacular, everyone is going to know.

 

 

Don’t be a Commodity

On 03/27/2012 · Leave a Comment

When an economist talks about a commodity, he or she generally means a good that possesses a few key qualities:

  1. Produced and/or sold by many different companies
  2. Uniform in quality between companies that produce and sell it.

Basically, you can’t tell the difference between one company’s product and another’s.

When something is viewed as a commodity, it generally means that the only difference is the price tag.  And so the concept of a commodity can really be applied to any business, product or service when differences become small and competition is all about cost.  Your customers then become ambivalent about which they choose, because there are a number of choices good enough for their purposes, and if it doesn’t work out — well, who cares?  Because there is another “you” right around the corner.

Lately, it seems like everyone and everything is a commodity, or at least acts like one.  These days, the challenge is finding a way to provide quality within an acceptable price range and, at the same time, to stand out from the rest.  At times, that’s a tall order.  But the fastest way to be treated like a commodity is to behave like one.

And if people believe you are a commodity, they are going to treat you as if you are expendable and easily replaced.  It is not enough these days to be simply as good as all the rest, because there are too many “all the rests” out there, and they’re more and more readily available.  In this fast-paced, disposable and competitive marketplace, every product and service must differentiate itself.  You have to give people what they expect, and then offer something more.

The bottom line is that we all need to continuously find ways to be unique.  If you truly believe you aren’t a commodity, find out what differentiates you from the rest of the commodities and run with it.

But most importantly, don’t allow yourself to be treated like one.

 

 

 

The Dry Cleaning Dilemma

On 03/23/2012 · Leave a Comment

Like most white-collar, business-minded, entrepreneur types, I wear a fresh dress shirt whenever my entrepreneur dress of t-shirt and jeans isn’t appropriate. Ironed, pressed and light starch.  Because of my dependency on the perfect shirt and my lack of time (and want) to wash and iron them myself, using the services of a professional dry cleaner is a must for me.

Unfortunately, dry cleaners simply don’t do customer service.  I mean, it’s reasonable to expect my dry cleaner would replace any missing or broken buttons on my dress shirts, free of charge, right?  So why does it always feel like it’s my fault – like I’m the bad guy?  These days, customers are turning their backs to businesses that do not deliver value, and good customer service adds value.  There’s no way around it and no shortcuts.  Customers demand value for money, or they are out of the door.  And why shouldn’t they?  After all, the customer is always right.  Apparently dry cleaning management never got that memo.

They should learn this quickly though, before they all begin to fail.

According to a survey done last year and reported in American Drycleaner magazine (yes, apparently there is a trade magazine even for the dry cleaning industry) dry cleaners aren’t faring that well in this tough economy.  That’s because many people have discovered that they can get through life just fine without such a luxury; it’s an easy way to save a few bucks every week.

And it will be an uphill battle to convince them to return.  When asked about initiatives they have planned to help increase sales in 2012, many dry cleaners said their efforts would involve continuing or improving upon their marketing programs to increase visibility.  Others are targeting route sales, training their customer service representatives to cross-sell, and increasing promotion of specialty cleaning and pressing services.

Hmm.  No mention of customer service.  Not surprising.

 

Is Passion Really Needed: The Power of Passion

On 03/20/2012 · Leave a Comment

I frequently hear phrases like, “follow your passion” or “love what you do.”  But is passion something you must have in life to be satisfied and successful?

I’ve posed this question to myself for a while now, and here’s where I’ve landed: Yes and No.

Passion is something I believe most people want and – frankly – I believe most people have.  The problem is, most people don’t realize, embrace or cultivate it.  But does that mean they won’t live a successful, meaningful life?  Not necessarily.  When you love what you do, your passion for it comes through, regardless of whether you realize it or not.

Realizing passion can be a huge asset, though.  Take business for example, where passion can help differentiate you from the competition.  It can also help energize you and your employees when times are tough because it makes people believe in what you do.  The small business world will always contain plenty of ideas and talent, and there will almost always be some other company doing exactly what you do.  So the question becomes, what is it that we can do better than them?  One thing that is always available to you is passion.

Is passion necessary for life and living?  No. But it may be necessary for a better life.

 

Password Tips: The Art of Cryptography

On 03/16/2012 · Leave a Comment

Like most people, I have dozens of accounts for various websites, services and software.  Unlike most, however, I have a unique, strong password for each site – and can remember every single one.  And so should you.

Here’s both how I do it and why you should, too.

Let’s start with the why.  In January, online shoe retailer Zappos.com fell victim to a cyber-attack, involving parts of their internal network and systems.  The hackers were able to access millions of customer accounts – including names, e-mail and snail mail addresses, phone numbers, the last four digits of credit card numbers and, perhaps most damaging, cryptically scrambled passwords.  Zappos reset passwords for the affected customers, but the real consequence lies in the customers’ other, non-Zappos accounts, which for many people will unadvisedly use the same passwords.  Bank accounts?  Email accounts?  It’s hard to say.  Using clues gleaned from the Zappos breach, the hackers may now have enough bits of information to gain access – and do some serious damage.

Think that’s a stretch?  Not so much.  The Zappos incident was merely the latest in a series of cyber breaches that includes megacorporation Sony.  The unauthorized access of people’s Sony accounts resulted from their reusing their usernames and passwords across multiple sites.

Unfortunately, too many of us use similar passwords for most of our online log-ins simply because it can be hard to juggle and remember different passwords for the dozens of accounts we have.  But the Zappos breach is a great example of how dangerous that can be.  To be safe, you should always create a unique and difficult-to-crack password by developing an algorithm.

So, how do you go about creating an algorithm that works for you?  One idea is to take the name of the website, add a number that is meaningful to you, and then add your own personal twist, for example spelling it backwards.  So your password for Yahoo would become oohaY4669.  The more steps in your algorithm, and the more unpredictable each step is, the more secure your password.  Regardless of how you choose to structure your algorithm, once you start using it to create your passwords, you will be able to remember any of them by applying it again.

Moral of the story: create your own unique password algorithm and never forget it.

 

Must-reads:

Zappos breach highlights fragile password, personal data security

Into the Breach: Protecting the Brand When Data Loss Is the New Normal

Passwords: Tips For Better Security