Correlation between product usability and stock price?

23 Jan 2008 - 10:46pm
6 years ago
7 replies
731 reads
Jerome Ryckborst
2007

Is there any evidence that companies whose products are more usable see their stock price grow more than the stock market's average growth? Which companies?

Comments

24 Jan 2008 - 8:22am
Daniel Williams
2005

and this...

http://lawsofsimplicity.com/smeter

On Jan 24, 2008 3:46 AM, Jerome Ryckborst <JRyckborst at gemcomsoftware.com>
wrote:

> Is there any evidence that companies whose products are more usable see
> their stock price grow more than the stock market's average growth? Which
> companies?
> ________________________________________________________________
> *Come to IxDA Interaction08 | Savannah*
> February 8-10, 2008 in Savannah, GA, USA
> Register today: http://interaction08.ixda.org/
>
> ________________________________________________________________
> Welcome to the Interaction Design Association (IxDA)!
> To post to this list ....... discuss at ixda.org
> Unsubscribe ................ http://www.ixda.org/unsubscribe
> List Guidelines ............ http://www.ixda.org/guidelines
> List Help .................. http://www.ixda.org/help
>

24 Jan 2008 - 8:19am
Daniel Williams
2005

You may find this interesting...

http://lawsofsimplicity.com/stocks/

On Jan 24, 2008 3:46 AM, Jerome Ryckborst <JRyckborst at gemcomsoftware.com>
wrote:

> Is there any evidence that companies whose products are more usable see
> their stock price grow more than the stock market's average growth? Which
> companies?
> ________________________________________________________________
> *Come to IxDA Interaction08 | Savannah*
> February 8-10, 2008 in Savannah, GA, USA
> Register today: http://interaction08.ixda.org/
>
> ________________________________________________________________
> Welcome to the Interaction Design Association (IxDA)!
> To post to this list ....... discuss at ixda.org
> Unsubscribe ................ http://www.ixda.org/unsubscribe
> List Guidelines ............ http://www.ixda.org/guidelines
> List Help .................. http://www.ixda.org/help
>

24 Jan 2008 - 9:41am
Jared M. Spool
2003

On Jan 23, 2008, at 10:46 PM, Jerome Ryckborst wrote:

> Is there any evidence that companies whose products are more usable
> see their stock price grow more than the stock market's average
> growth?

Short answer: No.

That said, Wall Street (and executive boardrooms) are paying very
close attention to those companies that are gaining competitive edge
through delivering far superior customer experiences.

My short list of some of those companies are Apple, JetBlue,
Starbucks, Nintendo, and Netflix.

Jared

Jared M. Spool
User Interface Engineering
510 Turnpike St., Suite 102, North Andover, MA 01845
e: jspool at uie.com p: +1 978 327 5561
http://uie.com Blog: http://uie.com/brainsparks

24 Jan 2008 - 9:41am
.pauric
2006

Related; some reporting on stock prices and customer satisfaction
http://pogue.blogs.nytimes.com/2006/04/12/12pogues-posts/

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Posted from the new ixda.org
http://www.ixda.org/discuss?post=25032

24 Jan 2008 - 9:50am
Todd Warfel
2003

http://www.teehanlax.com/blog/?p=293

Tehann+Lax invested $50k in what they called a UX fund last year and
tracked it against the rest of the market. They focused on companies
they felt focused on UX. Those included: Apple, Electronic Arts,
Google, JetBlue, Netflix, Nike, Progressive Insurance, Research in
Motion, Target, and Yahoo.

Overall, they were up 39%, much better than the market average. Some,
however, did not fare that well.

On Jan 24, 2008, at 9:41 AM, Jared M. Spool wrote:

> My short list of some of those companies are Apple, JetBlue,
> Starbucks, Nintendo, and Netflix.

Cheers!

Todd Zaki Warfel
President, Design Researcher
Messagefirst | Designing Information. Beautifully.
----------------------------------
Contact Info
Voice: (215) 825-7423
Email: todd at messagefirst.com
AIM: twarfel at mac.com
Blog: http://toddwarfel.com
----------------------------------
In theory, theory and practice are the same.
In practice, they are not.

24 Jan 2008 - 10:02am
Mark Schraad
2006

This is a great idea... the caveat is the execution and metrics. Bringing the into the boardroom will result in having your backside handed to you. There is very little in the way of reliable or reproducible metrics here. The list of investment is incredibly front loaded with prior and forecastable success. I would LOVE to see this theory fortified with harder evidence... hmmm, what should I be doing nights and weekends...

Mark

On Thursday, January 24, 2008, at 09:51AM, "Todd Zaki Warfel" <lists at toddwarfel.com> wrote:
>http://www.teehanlax.com/blog/?p=293
>
>Tehann+Lax invested $50k in what they called a UX fund last year and
>tracked it against the rest of the market. They focused on companies
>they felt focused on UX. Those included: Apple, Electronic Arts,
>Google, JetBlue, Netflix, Nike, Progressive Insurance, Research in
>Motion, Target, and Yahoo.
>
>Overall, they were up 39%, much better than the market average. Some,
>however, did not fare that well.
>
>On Jan 24, 2008, at 9:41 AM, Jared M. Spool wrote:
>
>> My short list of some of those companies are Apple, JetBlue,
>> Starbucks, Nintendo, and Netflix.

24 Jan 2008 - 10:26am
Jared M. Spool
2003

If you want to see how this is done, I strongly suggest you read the
classic Built To Last. (http://tinyurl.com/2yjzoj) They've done a
good job of how you create stock indexes based on business practices.

You don't really want to compare it with the market overall, since
the market tends to equalize. Instead, you want to choose comparable
organizations in the same industries with inverted metrics to see
performance. (For example, tracking Netflix vs. Blockbuster or Apple
vs. Sony.)

That said, the noise in the market data (such as this week's huge
fluctuations) makes it so you need to look at fairly long windows.
We're talking greater than 20 or 30 years.

Strategies like Usable products and UX are really too young to get
solid data. In 40 years, we could have this conversation and it would
likely be much more meaningful.

Jared

On Jan 24, 2008, at 10:02 AM, Mark Schraad wrote:

> This is a great idea... the caveat is the execution and metrics.
> Bringing the into the boardroom will result in having your backside
> handed to you. There is very little in the way of reliable or
> reproducible metrics here. The list of investment is incredibly
> front loaded with prior and forecastable success. I would LOVE to
> see this theory fortified with harder evidence... hmmm, what should
> I be doing nights and weekends...
>
> Mark
>
>
> On Thursday, January 24, 2008, at 09:51AM, "Todd Zaki Warfel"
> <lists at toddwarfel.com> wrote:
>> http://www.teehanlax.com/blog/?p=293
>>
>> Tehann+Lax invested $50k in what they called a UX fund last year and
>> tracked it against the rest of the market. They focused on companies
>> they felt focused on UX. Those included: Apple, Electronic Arts,
>> Google, JetBlue, Netflix, Nike, Progressive Insurance, Research in
>> Motion, Target, and Yahoo.
>>
>> Overall, they were up 39%, much better than the market average. Some,
>> however, did not fare that well.
>>
>> On Jan 24, 2008, at 9:41 AM, Jared M. Spool wrote:
>>
>>> My short list of some of those companies are Apple, JetBlue,
>>> Starbucks, Nintendo, and Netflix.

Syndicate content Get the feed