Showing posts with label competition. Show all posts
Showing posts with label competition. Show all posts

Sunday, July 6, 2014

UX actions to do BEFORE you redesign your website - part 2

Here's the second part of my thoughts on the UX actions to consider before redesigning your website. Part 1 is available here.

4. Benchmark
So who in your competitive market is doing a better job of things than you online and who isn't? What does great look like for your digital customers and why? If you cannot answer these two questions, then you clearly haven't assessed the competition and understood what makes other sites better.
Action:
Review at least a handful of competitors websites to understand how they solve the same problems you have. Assess the features that make them easy to use (you might even want to look further afield at organisations that aren't necessarily in competition with you, but just have similar goals).
Note: For a small cost you can even point your usability tool at these competitive sites and give users the same tasks you give your own site.

5. Map out the customer journeys
Not all goals are the same on each site. Whether your aim is to generate leads or to directly convert users to buy a good or service, the path to acquisition can be difficult and dependant upon a huge number of factors. Action:
Map out the journey through your site for each of your key personas, ideally from initial awareness and acquisition through to them converting and beyond (e.g. into being a brand advocate). These functional flows will explain to you, your stakeholders, your developers and your testers what is happening to your users.
Note: Remember to include the situations when things don't go exactly according to plan.

6. Build your sitemap
It's not all about functionality, you also need to map out your content and the site's information architecture.
Action:
Draw up the hierarchy of your primary content pages and understand how each of your topics is delivered (if necessary for each device).



7. Wireframe the key templates
Producing a schematic or blueprint of every key page will create a visual guide of what your online users will experience. Wireframes will explain: the kinds of information displayed, the functions available, the priority of the information & functions, any display rules and effects of personalisation & other scenarios.
Action:
Create your wireframes based upon your customer journeys and the sitemap. But remember to test your creation before going into design.


  

Thursday, June 14, 2012

Aggregation and the Herfindahl index

The Herfindahl Index (AKA the Hirschman-Herfindahl Index or HHI) is a measurement of the competitiveness of a particular industry. The index gives a figure between 0 and 1, with those markets closest to zero being more competitive and those closest to 1 being an (almost) monopoly.


An increase in the index typically means that there’s been a decrease in competition and therefore greater market power to those still operating. Whereas a decrease towards zero indicates more companies fighting over the same customer base and therefore the existence of a more ‘perfect’ and competitive market.
So why is the Herfindahl Index important in the online aggregators markets? Well, over the last decade, the appearance of aggregators in different online markets has created a more level playing field for customers; by collating the rates and fees for different suppliers and presenting them to the online user in an easy-to-compare format. Therefore in those markets where price is so-often the defining decision factor, such as utilities, financial services and travel, the use of aggregators increases competition and pushes the Herfindahl Index figure closer to zero.


Take the UK motor insurance market right now. As you will see from the diagram below (sourced from Towers Watson’s report ‘why aren’t we making money’
www.towerswatson.com/assets/.../Why-arent-we-making-money.pdf



In the last 10 years (really since the appearance of confused.com which was the first UK motor insurance aggregator) the HHI has moved closer to zero.

So what are the implications of this? Well, if anything is predictable, it is that the UK motor insurance market is going to get more (not less) price sensitive over the next few years, becoming more like the oil and airline industry in its competitiveness, unless something happens to interrupt this trend……