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The UX Fund
Inspired by “Jeneanne Rae”:http://www.peerinsight.com and “The Design Council”:http://www.design-council.org.uk/webdav/harmonise?Page/@id=77&Session/@id=D_XpqbT3d1CjX8rFMBHt6o&Document/@id=10475 we’ve decided to create a UX Investment Portfolio.
Hypothesis
Companies that deliver a great user experience will see it reflected in their stock price.
Experiment
Create a portfolio of 10 companies who we think do great user experience.
Invest $5,000 USD in each company on November 1, 2006.
Track the portfolio for 1 year, selling on November 1, 2007.
Here is how we define a company that does great User Experience:
# A demonstrated care in the design of their products and Web site
# A history of innovation
# They inspire loyalty in their customer base
# Doing business with them is a positive experience
The Rules
Companies must be publicly traded.
Shares will be held for 1 year. We are not allowed to sell shares during that one year.
We can not choose our own clients. We are exposed to sensitive information when working with clients and do not want to be accused of insider trading.
We will track the total value of the portfolio and track it against major indexes (S&P, Dow, Nasdaq 100, 500 etc.)
Proposed Portfolio
Highly considering…
Netflix – “NFLX”:http://finance.google.com/finance?q=NFLX
Apple – “AAPL”:http://finance.google.com/finance?q=AAPL
Harrah’s Entertainment – “HET”:http://finance.google.com/finance?q=HET
Cabela’s – “CAB”:http://finance.google.com/finance?q=CAB (We would have done Bass Pro but they aren’t publicly traded)
Starwood Hotels – “HOT”:http://finance.google.com/finance?q=HOT
Google – “Goog”:http://finance.google.com/finance?q=GOOG
Research in Motion “RIM”:http://finance.google.com/finance?q=RIM
Nike – “NKE”:http://finance.google.com/finance?q=NKE
Still deciding…
Target – “TGT”:http://finance.google.com/finance?q=TGT
Harley Davidson – “HOG”:http://finance.google.com/finance?q=HOG
Travelocity – “TSG”:http://finance.google.com/finance?q=TSG
Best Buy – “BBY”:http://finance.google.com/finance?q=BBY
Expedia – “EXPE”:http://finance.google.com/finance?q=EXPE
Ebay – “EBAY”:http://finance.google.com/finance?q=EBAY
Tivo – “TIVO”:http://finance.google.com/finance?q=TIVO
VW – “VOW”:http://finance.google.com/finance?q=VOW
Amazon – “AMZN”:http://finance.google.com/finance?q=AMZN
Gucci – “PPR”:http://finance.google.com/finance?q=EPA:PP
Progressive Insurance – “PGR”:http://finance.google.com/finance?q=PGR
Jet Blue – “JBLU”:http://finance.google.com/finance?q=JBLU
SouthWest – “LUV”:http://finance.google.com/finance?q=LUV
We would like help from the UX community. Please participate by giving us investment suggestions.
Goldman+Sachs, err… Teehan+Lax Investments Inc.
1. Apple
2. Netflix
3. Google
4. Nike
5. VW
6. Nokia
7. Target
8. Jet Blue
9. Nintendo
10. Electronic Arts
P’s top 10:
1. Apple
2. Google
3. Target
4. eBay
5. Virgin Atlantic
6. Comcast
7. Design Within Reach (if they don’t get delisted for late financials)
8. Netflix
9. VW
10. Whole Foods (maybe a suckee website so far but they are dedicated to the products and service they provide – and well, they rule :)
I took a stab at this a while back (http://www.scottweisbrod.com/index.php/?p=108) too. I might add Starbucks (SBUX) and Nordstrom (JWN) to your list.
Paulette and Jeremy’s suggestions, plus yours, are all great. I question VW though. Are they really about user experience? Or are they just a cool brand that we identify with? Just want to make sure they’re on there for the right reasons.
Some other companies to consider include:
– Philips (PHG) – Mattel (MAT)And here’s an interesting one to consider – Umpqua Bank (UMPQ), in Portland, OR. Read up on their customer experience focus that Ziba is helping them implement:
http://www.ziba.com/Products.aspx?currentNav=3&pid=8
Cheers,
Scott
Not that I have an overwhelming need to justify it’s place on the list, or the fact that I’m an owner myself, but if you owned a VW you’d understand. Sure, their price no longer makes them “the people’s car”, and yeah the latest models look more like Toyota’s… but I have to give them some credit. Their vehicles are entirely designed around the user experience, and it’s clear when you take at the fit, finish, and attention to detail. The materials used in the dash, the stitching in the seats, the little button on the steering wheel that turns the lights on and off, the inset rails for the roof rack…
Beyond that, I think their website is pretty solid, and they really stepped up with the vwfeatures.com. They totally belong on the list.
Jeremy – regarding VW; What’s the customer experience like beyond the car and their website? What was the dealership experience like? What was the service experience like? I’ve never owned one, so I’m playing devil’s advocate here more than anything else.
Scott, allow me to give the devil his due!
I’m an owner and bought from a dealer. The overall ownership experience is, for me at least, very good overall. The coffee at the dealership isn’t very good, but other than that, no real complaints. The cars show well and they’ve got lots of good support materials. You also get a few little perks when you join the VW “family”.
More than anything, though, I think their mothership factory in Wolfsburg makes a pretty impressive statement about how important UX is to them. (http://autospeed.drive.com.au/cms/A_2538/article.html)
Will I be a VW owner forever? Maybe, maybe not. But they’re definitely a super-legible brand, and a big part of that brand is exceptional UX.
Yeah… what he said! :)
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[…] of customer experience to a new level of financial scrutiny. Earlier this month, they proposed a stock fund comprised of companies that value design and customer experience as a core business dri… (Similar to specialty stock funds such as “socially responsible” or from a certain […]