Maximizing ROI through UX: 5 Key Areas of Impact

According to “The Future of Design in Start-Ups” (2016) survey results,

87% of design-mature companies believe that design leads to higher sales,

60% of companies claim that design brings higher customer retention, 83% — higher customer engagement, and 60% — faster product cycle.

Credit: Freepik

Table of contents:

There are five key areas where user experience (UX) design can provide a positive return on investment (ROI) for a company:

1. Increased efficiency: UX design can streamline processes and reduce the number of steps required to complete a task, resulting in a more efficient workflow.

2. Increased productivity: A well-designed product or service can help users complete tasks faster and more accurately, increasing overall productivity.

3. Increased customer satisfaction: A positive UX can lead to increased customer satisfaction, which can translate into increased loyalty and sales.

4. Decreased development costs: UX design can help identify and address issues early

in the development process, reducing the need for costly revisions and changes later on.

5. Increased brand reputation: A positive UX can improve a company's reputation and brand image, leading to increased customer trust and loyalty.

Let's scaffold each of them now ...

1. Increased efficiency

Increased efficiency is one of the key areas where user experience (UX) design can provide a positive return on investment (ROI) for a company. UX design can help streamline processes

and reduce the number of steps required to complete a task, resulting in a more efficient flow.

This can be achieved through careful planning and design that takes into account the needs

and preferences of the end user. By creating a product or service that is easy and intuitive to use, designers can improve the efficiency of the user flow and save time and resources in the long run.

There have been numerous studies that have demonstrated the positive impact that UX can have

on efficiency. A well-designed user interface can reduce the time it takes for users to complete a task by up to 50%. Another study found that a positive user experience can lead to increased productivity, with users completing tasks up to 15% faster.

These studies suggest that investing in UX design can lead to significant improvements in efficiency for both users and organizations.

2. Increased productivity

A well-designed product or service can help users complete tasks faster and more accurately, increasing overall productivity.

Productivity is in tight connection with an efficient app/service. High intuition in navigation, fewer steps in user flow, and less time in achieving the specific task with fewer errors, lead to increased customer satisfaction, boosting the overall rate of conversion and providing a positive ROI.

3. Increased customer satisfaction

A positive UX can lead to increased customer satisfaction, which can translate into increased loyalty and sales. This is because customers are more likely to continue using and recommending a product or service that meets their needs and provides a positive experience.

A positive customer experience increases customers’ willingness to pay by 14.4%, increases their likelihood to recommend a product by 16.6%, and reduces their likeliness to switch brands by 15.8%. (Forrester Research)

Customer satisfaction and ROI go hand in hand!

4. Decreased development costs

- Reduced time to market (production/development)

Incorporating user experience (UX) design practices at the beginning of the product development process has been demonstrated to shorten the overall development cycle by between 33 to 50%.

This is because UX design focuses on creating a product that is easy and enjoyable to use, which can help minimize the need for revisions and changes later on in the development process.

By considering the needs and preferences of the end user early on, designers can create a product that meets their requirements more effectively, ultimately leading to a shorter development cycle.

- Companies that highly invest in UX design can see up to a 75% increase in their sales. This demonstrates the significant impact that user experience can have on the success of a product or service. By focusing on creating a positive and seamless experience for the end user, companies can drive customer satisfaction and loyalty, leading to increased sales and revenue.

- Developers spend 50% of their time reworking projects. This can be a time-consuming and costly process, as it takes developers away from working on new projects and can also result in delays or setbacks in the development process. By prioritizing thorough planning and design, developers can aim to minimize the amount of rework needed and maximize their efficiency.

- Conducting early testing and usability studies can help prevent the need for costly and time-consuming changes later in the product development process. By identifying and addressing issues early on, the overall development process can be more efficient and cost-effective.

The cost of fixing an error after development is 100x that of fixing it before development. (Dr. Susan Weinschenk in “The ROI of User Experience”)

5. Increased reputation and brand loyalty

Customers are more likely to be satisfied, remain loyal to, and engage with a brand if the product offers a good user experience. Over 75% of consumers said they were likely to continue spending money as a result of an exceptional customer experience, while 82% would stop spending money with a company as a result of a bad customer experience. (Avaya)

70% of startups fail due to poor user experience (UX) design and user experience, according

to research on business success. In today's digital world, brand reputation is crucial to success,

and consumers have high expectations for a satisfactory experience when purchasing products

or services.

To meet these expectations and attract customers, it is important for a company to align its brand values with the needs and preferences of its target audience. This involves fulfilling the actual demands of customers and creating a product or service that aligns with the company's values and enhances the user experience.

Simply implementing UX technologies is not enough; the brand must also focus on creating a cohesive and fulfilling experience that aligns with its values.

Final thoughts

Return on investment (ROI) is a financial metric that helps evaluate the effectiveness

of an investment by comparing the amount of money gained to the amount invested.

In UX design, ROI metrics can be used to measure the impact of design investments and track progress toward design goals from a business perspective.

Essentially, ROI is a ratio that shows the financial gain resulting from an investment.

By analyzing ROI, companies can determine the value and impact of their design investments and make informed decisions about how to allocate resources.

Good UX is good for business, and the numbers agree.

According to a study by Forrester, every dollar invested in UX brings, on average,

100 in return.

This amounts to an ROI of over 9,900%

The benefits of investing in user experience (UX) design can vary significantly from one company

to another. For some companies, an investment in UX may lead to increased conversions or revenue. Others may see benefits such as shorter time-to-market, reduced costs, or fewer customer complaints.

These immediate benefits can be important, but the long-term rewards of good UX can be even more significant. These may include improved customer satisfaction, higher engagement with the brand, and increased customer loyalty.

While these benefits may be harder to quantify and may take longer to materialize, they are essential for sustained growth and can ultimately have a significant impact on a company's bottom line.