User Experience: The Foundation of Product Value and Customer Loyalty

Why User Experience Matters: A Lesson from a Frustrating Ride

We all know that good user experience (UX) is important. But sometimes, we need a reminder of just how crucial it truly is. Recently, while reading Yu Jun's "Product Methodologies," I came across a powerful formula that illustrates this perfectly:

Product Value = (New Experience - Old Experience) - Switching Cost

This formula helps us understand how to measure and improve a product's value, especially when comparing new offerings to existing solutions. Let's break it down:

• New Experience: This represents the level of experience or utility users gain from adopting the new product. Think increased efficiency, higher satisfaction, new features, or even emotional gratification.

• Old Experience: This is the user's experience with the current product or service, serving as a baseline for comparison.

• Switching Cost: This encompasses all the costs and inconveniences users face when transitioning from their old solution to the new one. It includes financial costs (like purchasing a new product), time costs (learning a new interface or adapting to a new process), psychological costs (fear of the unknown, resistance to change), and potential risk costs (data migration security risks).

According to this formula, product value boils down to the net gain users experience by switching. If the result is positive, the new product offers benefits that outweigh the switching costs, making it attractive to users. Conversely, a negative result indicates that the new product's appeal isn't sufficient to justify the effort and expense of switching.

This formula emphasizes that successful product design and marketing go beyond simply innovating and improving the product itself. It also involves understanding and minimizing the barriers and costs associated with the transition process, ultimately maximizing product value and fostering user adoption and loyalty.

My Personal Experience:

I've encountered numerous instances of poor UX, but one stands out vividly. I was using Baidu Maps to hail a ride in an unfamiliar city. After confirming my route, I called a ride through the app. However, despite receiving confirmation, the car never arrived. The map showed it stationary, and calls to the driver went unanswered. During peak rush hour, worried about canceling and facing difficulties getting another ride, I messaged the driver but waited for over 15 minutes with no response. Finally, I canceled the order, only to be charged a cancellation fee despite the driver's inaction! Multiple attempts to reach customer service through phone calls were futile. Frustrated and disappointed, I uninstalled Baidu Maps shortly after.

Later, I learned that Baidu Maps didn't directly provide ride-hailing services but relied on third-party providers like Caocao Chuxing, Didi, and Shenma. This apparent lack of control over scheduling, dispatching, and customer service likely contributed to the negative experience.

While this may have been an isolated incident, it highlights a crucial point: even in highly competitive industries, prioritizing user experience is paramount. "Good enough" simply won't cut it anymore.

In today's saturated market, a single frustrating experience can drive users away permanently. User experience is the foundation of brand image and customer loyalty, especially in service industries. The formula (New Experience - Old Experience) - Switching Cost clearly demonstrates that a positive user experience is essential for creating genuine value and fostering long-term success.