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UX Design plays vital role business ROI

Updated: Jan 28, 2021

Due to relative newness and lack of awareness about UX design in the mainstream. Investing in UX design is still indecisive and debatable decision for companies because the amount of time it takes to “pay off financial returns.”

Generally, clients or stakeholders who complain that there’s no budget for UX-UI or act as a push back by saying they have less budget or How will they justify the value of UX design to investors, as UX is difficult to measure in currency.

It’s a proven that companies who put users to the front and centre of everything they do outperform far better compared to those who don’t invest in this area.

It is said that UX-UI adds values which are intangible like “satisfaction” & “delight” to the product but actually UX-UI has a direct impact on revenues when we measure it correctly. ROI of product increases when the targeted users have a feeling of content while using it and to achieve that success intuitive design is required that anticipates user needs.

If you’re still unsure about the value of UX and its ROI, here are several insights into the return on investment (ROI) of UX design.

#1: UX design reduces development costs

Companies should invest in UX design with a motto Design to Develop.

UX design process helps to avoid rework which reduces 50% of development efforts. As this Forbes article mentions: “According to IBM, code defects are 30 times more expensive to correct than using the right information in the first place. It is extremely unlikely that these coding defects will occur if you choose the UX design as a part of the product development process.

“Developers spend 50% of their time reworking on projects.”

If we calculate; this 50% of a developer salary is spent to fix bugs and errors that UX design would have to get rid of it in early iterations.

“In short UX design reduces the cost and time”

If UX design process is followed, designs are tested, iterated & prototyped as per targeted user requirement well before they’re handed off to a developer. It is easy to make changes and explore alternative possibilities during prototyping as it’s so much cheaper to do so at this earlier stage. At companies that invest in UX, products get released faster because it is easier for developers to prioritise the development task and improve decision making.

#2: UX design increases your sales

Product with UX design builds experience for the customer

  • By creating easy to navigate site and locate what they’re looking for

  • This will lead customers to experience happy interacting with site and less likely to become frustrated or disengaged, so they’re more likely to complete transactions

  • The product has been designed keeping in mind targeted audience, so it is easy for a right user to find the right products

  • User journey has been made as smooth and delightful as possible so that customers return and recommend

A 2016 design study of 408 different companies found that the more a company invested in and human-centric design, the more sales growth they saw. The companies with the highest investment in UX referred to as “design unicorns,” saw their sales increase by 75%. Companies that were less invested in UX (they considered themselves simply “design-centric”) still saw their sales increase by 60%.

“The more a company invests in and focuses on design, the more sales they see.” In fact, even if a company has less budget, a small investment in this area will lead to increased sales.

#3: In UX design A DOLLAR INVESTED = $100 Returns

UX design bring high return due to multiple of factors like

lower cost of customer acquisition | lower support costs | Increased customer retention|Increased market share.

Companies don’t invest at all? It is difficult to outplay in this competitive world. Which is likely to become a trillion-dollar issue whereas uptake of user-centric processes remains as it is.

#4: UX design increases customer loyalty and word-of-mouth referrals

At instinct design studio we believe, great UX design not only brings new users but also helps in retaining them. Users returning back to our loyal customers. Positive experiences with a web or mobile app bind new the user to come back to your product and convert them into loyal customers.

The other way, to do the math of calculating ROI for UX service is to first decide your key indicator’s, — Estimate the value of lost opportunities you have due to poor UX

Estimate the cost to rectify it or correct.

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