Faceted navigation is widespread on the web (a.k.a faceted search and faceted browse). It’s become an expected standard. I’ve written several posts on the subject and also have a popular workshop on faceted navigation. (Next one: 22 Oct 2011 in NYC). Yet we really don’t know much about the ROI of faceted navigation. Or do we?
I’ve only been able to find a few studies or case studies reporting a measureable ROI of faceted navigation. There are lots of variables in play, and definitively showing measureable gains directly to faceted navigation can be tricky. But a simple before-and-after comparison should be possible.
One helpful sources is Endeca’s case studies. Examples of ROI include:
- Kiddicare.com: 100% increase in conversion rates; 100% increase in sales; Additional 100% increase in conversion rates with PowerReviews
- AutoScout 24: 5% increase in lead generation to dealers; 70% decrease in no results found
- Otto Group: 130% increase in conversion rates; Doubled conversion rates for visitors originating from pay-per-click marketing programs; Search failure rate decreased from over 33% to 0.5%
If you have such data or evidence in any form, please let me and others know about by commenting here. Note I’m not talking about studies that show how efficient faceted navigation is in terms of interaction or time on task (such as the ones reported here): I’m looking for hard evidence on ROI in real world situations.
It’s a positive sign that so many websites have faceted navigation these days: there must be something “right” about it. But why have so many site owners and stakeholders funded and implemented faceted navigation systems? What’s the actual return against the cost of implementation and maintenance?
Some logical arguments include combinations of the following:
- Conversion: Customers can’t buy what they can’t find: Findability is critical for ecommerce sites. A well-designed navigation plays a key role in getting people to the information or products you want to see. This ultimately helps you sell products or ideas. Faceted navigation has been shown to improve findability, in general.
- Efficiency: Employees lose productivity when navigation is inefficient: These days company intranets can be enormous. The time to find information impacts employee productivity. Even the smallest increase in navigational efficiency can have huge returns for a large corporation if you multiple it by thousands of employees. Faceted navigation is efficient.
- Confidence: Faceted navigation increases information scent: Revealing facet values gives users better insight into the type of terms and language used on the site. They are then able to match their information need with the content of the site, giving them confidence as the navigate forward through a given collection. This keeps them on the site and away from the customer support hotline.
- “Aboutness”: Facets show the overall semantic make-up of a collection: Faceted metadata–the values associated with a collection of documents or products–give clues into the “aboutness” of that collection. Facets convey the breadth and type of a results list, for instance. This can help get to their target information better.
- Reduced Uncertainty: Users don’t have to specify precise queries: With faceted navigation, users don’t rely on formulating precise keyword searches alone to find information. Instead, they can enter broad searches and use the facets in a flexible way to refine the initial query. This gives confidence in being comprehensive and reduces uncertainty in information seeking in general, as well as removes the frustration of finding no results.
- Navigation: Browsing categories provides a different experience than keyword search: Jared Spool and his colleagues found that people tend to continue shopping more often when navigating than after doing a direct keyword search: people tend to continue browsing—and buying—when they can successfully navigate to the products they want to purchase. Sure, keyword searching may also get them there, but that experience is different. He writes in an article entitled “Users Continue After Category Links” (Dec 2001):
- Apparently, the way you get to the target content affects whether you’ll continue looking or not. In a recent study of 30 users, we found that if the users used Search to locate their target content on the site, only 20% of them continued looking at other content after they found the target content. But if the users used the category links to find their target, 62% continued browsing the site. Users who started with the category links ended up looking at almost 10 times as many non-target content pages as those who started with Search.
A well-designed faceted navigation system won’t solve all your problems. But because navigation is so central to the basic web experience, it stands to reason that that are financial implications involved. What are they exactly?
Again, if you have any support for the above contentions or have another argument around the benefits of faceted navigation, please let me know.