What is the ROI of UX design? 5 unobvious business benefits

What is the ROI of UX design? 5 unobvious business benefits

Marta Haida
July 01, 2019  | 4 min read

It is time to consider the most common questions concerning UX design: why should we spend money on it? What will the ROI of UX be? Or maybe we loose something by NOT investing in it?

As a company with great research department (which is integral part of UX design of course), we collected some interesting data on the topic. If you are eager to learn, jump in!

First of all, we have to get the simple answer to the question what is the ROI of UX design? According to Forrester Research: a 100$ out of every 1$ invested, meaning an ROI of 9,900%.

The return value is strictly connected to user's satisfaction on your product. The more pleasurable experience will be, the more likely it is to sell the product. Yes, that is obviuos.

But let's take a bit closer look on the topic and explain one by one these 5 promised unobviuos business benefits.

The first business ROI of UX design:  revenue and loyalty

A lot of users these days can act a bit like spoiled kids. If they don’t like a toy, they leave it and find a new better one. But if a toy/product:

  • is really good,
  • allows them to complete their need or tasks,
  • is intuitive so they can use it naturally

they will probably stick with the product for a longer period of time.

Kids or adults - nobody will use a tool that does not meet expectations, right?

Here's an interesting fact: 21% of US online shoppers have abandoned an order in the past quarter solely due to a “too long / complicated checkout process”, while 28% abandoned their order because they needed to create an account to continue.

ux design roi - abandonment rate survey

Source: https://baymard.com/lists/cart-abandonment-rate

Companies know this! They know that user satisfaction is a major influence when choosing a product, because nobody wants to play with a boring toy which doesn’t work properly.

The second business ROI of UX design: quicker time to market

Imagine that a product is built by a tech team only or only business managers. How would it look like? Will they succeed or fail?

An interdisciplinary team allows a product to be seen from multiple perspectives. A UX designer in your team gives you more. UX is not just about design, it is a holistic strategy which:

  • creates a vision and a plan that will both delight users and provide tangible business results,
  • provides a new point of view based on business and user needs,
  • makes communication between a product and its users a priority.

UX team keeps everybody on the same page. The co-creative approach encourages integration and builds better understanding across the whole team, from business stakeholders to developers.

As a result, the product goes live faster and more easily. Nobody wastes time on unnecessary actions.

Don't loose money & time

Only 26% of enterprises have a full-time UX role for more than 5 years (source). This means that 3/4 of companies on the market have smaller or even zero capacity to adjust it's products and services to markets' needs. Don't be one of them.

As we said earlier, the impact of good design results in quicker time to ship the product or service to the market. How exacly UX accelerate the processes? Designer use some powerfull tools & methods, for example:

  • stakeholders interviews,
  • concept testings,
  • POC or prototyping,
  • expert evaluation,
  • post-launch testing

and more, much more.

The third business ROI of UX design: less money and changes are needed

UX design doesn’t just provide benefits to development. Investing in UX lets you get things right from the start. By beginning with the right design and injecting capital in the first stage of the process, overall costs are reduced and ultimately life is made easier. The money you invest in UX now will save you from costly fixes in the future.

Here's the data to prove the words: UX designers reduce the time developers need to re-work or ‘fix’ a product by up to 50%.

roi of ux design cutting on costs

Source: https://www.experiencedynamics.com

Furthermore - wireframes prepared by the designers allow you to test your product with the real users which is priceless. It shows us whether we chose a good approach for our product before we spend thousands of dollars on unnecessary development.

roi of ux design wireframes personas

Source: https://www.experiencedynamics.com


The fourth business ROI of UX design:

your development team spends time on meaningful tasks

Coding without design is extremely hard and time consuming, as is dealing with bug fixing. Research shows that 50% of programmer time during IT projects is spent doing avoidable work.

When UX design is part of the project, the preparation of wireframes and guidelines by the designers before development reduces ambiguity during developing and testing phases.

Work is carried out faster and more efficiently, and all team members know what should be done. They can be sure that the designers’ decisions are based on proper knowledge, not assumptions and guesswork.

  • It makes requirements easy to understand. It’s much easier to explain something visually than with text
  • UX prepares the design layer, and I can really focus on technical issues. I can be sure that texts & flows will be done by someone experienced in communication

The fyfth business ROI of UX design:

better retention in your development team

IT is a unique sector and has its own rules. Companies are fighting for top talent because developers change their workplace quickly. Nobody likes an unfriendly environment where nothing is certain.

When decisions in a projects are based on knowledge from all fields – UX + business + developers, work goes smoothly and workers return to previous tasks less often in order to fix usability bugs. Why?

  • Problematic issues are found early enough on during the design and testing stages.
  • Developers get everything they need to start their work (wireframes, graphic designs).
  • A whole team with developers, designers and business stakeholders can discuss cases together and nobody feels as though they have no impact on the product

The product evolves and the workplace is a more comfortable environment and staff turnover decreases.

Conclusion

Remember, UX is not just design with pretty colours and illustrations. It is an entire process which discovers what feels good for the user. It brings benefit to each and every project and leads to improved teamwork and greater efficiency.

Ultimately, if the user is happy with experience of the product this will increase your profits.


Extend your knowledge and read other posts on UX design.


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