NashTech Insights

The return on investment of UX design: numbers not tell lies

Luu Dai Hai
Luu Dai Hai
Table of Contents

UX design in the competitive world

The world today shows a highly competitive business landscape. Therefore, providing a great user experience becomes a crucial factor to achieve higher and sustainable growth of the business. When companies strive to stand out and retain their customers, UX design is invested as an important and long-term strategic activity. Many surveys and research on business of the organizations reveal impressive statistics of UX return on investment (UX ROI).

Join us on this post to discover UX design benefits that delight not only customers but also a long-term business success in this user-centric world.

What is ROI in UX?

Imagine that our flower shop is the only one in a town. We don’t need to care much customers, they need us. On a beautiful day, another flower shop appears in this town. They provide more services such as fresher flowers, online shopping store and delivery service. Numbers of our customers is going down day by day.

What happens when customer experience is neglected?

  • Disappointed customers
  • Lower sales
  • Bad reputation of the brand
  • Decreased motivation of our employees, or worse they leave our business.

People often scare clients about all dreadful consequences of not taking UX design. We need to switch this topic into more pleased way that our stakeholders would like to discuss: Return on investment of UX design.

An easier way to understand UX ROI is via the 1–10–100 rule.

UX ROI rule

UX design benefits

According to UserZoom report 2022: “Digital experiences perform poorly when UX insights are not routinely embedded in decision-making. And because poor digital experiences lead to lost customers, organizations are losing money and letting competitors take the digital advantage.”

In this digital era, where user expectations are evolving, delivering seamless and enjoyable experiences. In that way, we need to understand users, their attitudes and behaviors. By balancing among user’s needs, business values and innovation technology, we actually create benefits for our customers and the business.

UX design strategy balanced by user needs, business goals and technology

Increase user adoption & satisfaction

Genesys found that the global average value of lost relationships is equal to $243 per year ($396 the UK, $339 in Australia and $330 in Canada). Losing customers is costly. Providing a great UX with high quality features to satisfy users will get higher user satisfaction. The results are better reviews that will increase the net promoter scores.

Increase revenue growth

The consequences of customer satisfaction are great for the business including getting more customers, increasing loyalty, conversion rate and higher brand reputation. The trusted brand will increase chance of sales faster, after all is increasing revenue for granted.

Reduce customer support costs

When users get troubles from completing tasks because of low quality application, lack of usabilities, or complicated features, we have to support them. We need to build forums, replying email, hiring call center agents to support our customers. Reducing these costs impact directly our business.

Optimize opportunity cost

Our business has so many competitors. We might not have many chances to attract customers from the competitors. Therefore, whenever users find our application, it should be the right app, high quality contents, great features that they can use at the first try. We will not give our competitors any try.

Reduce development time & costs

Conducting UX design, including research, will help to find out sooner the pain points and business goals that we can prioritize the right features to fit user’s needs instead of implementing everything that doesn’t work for end users. The fact is that 80% of the unanticipated issues come from UI, while 20% are actual bugs.

Reduce maintenance costs

Actually we can’t create the best UX for the application at the beginning, however, we can design the important optimal UX to eliminate risks. With better UX, we can reduce time and budgets on reworking feature, fixing issues and maintaining system.

Increase productivity

Good UX application will create more chances of developing product with more features or tools. Development team can be proud to deliver such a good product, this increases productivity of team members to create better product.

Impressive numbers of UX ROI

#1 The usability benefits

The chart demonstrates increasing usability benefits

Usability increased by 109%. With exceptional outliers, the average improvement was 160%.

Nielsen Norman Group research

#2 Conversion rate

The chart demonstrates increasing conversion rate of visitor to order

A well-designed site can have up to a 200% higher visit-to-order conversion rate than a poorly designed site. And visit-to-lead conversion rates can be more than 400% higher on sites with a superior user experience.

Forrester research

#3 Design-centric company

The chart demonstrates growth of stock market between design centric companies and S&P 500 index in ten year

Results show that over the last 10 years design-centric companies have maintained significant stock market advantage, outperforming the S&P 500 index by an extraordinary 228%.

Design Management Institute research

#4 Revenue and total returns

The chart demonstrates increasing more revenue and higher total returns to shareholders when prioritizing design and user experience

A study conducted by McKinsey & Company found that companies that prioritize design and user experience enjoy 32% more revenue and 56% higher total returns to shareholders than their competitors.

McKinsey & Company research

#5 Development time, support cost, user satisfaction

The chart demonstrates reducing development time, support costs, user satisfaction

An analysis by the Nielsen Norman Group found that investing in UX design can yield an ROI of 83% by reducing development time, support costs, and improving user satisfaction.

Nielsen Norman Group research

10 Statistics That Make a Strong Business Case for UX Design

  1. Users’ first impressions of a website are 94% design-related (Adobe.)
  2. 75% of users judge a company’s credibility based on its website design (Stanford University.)
  3. 94% of people said that web design was the major reason they mistrusted or rejected a website (Rareform New Media.)
  4. 59% would rather read beautifully designed content instead of something plain and simple (Adobe.)
  5. 38% of people would leave a site if its content or layout was unattractive (Adobe.)
  6. 39% of people will stop engaging with a site if images take too long to load (Akamai.)
  7. Consumers use an average of 5 different devices per person—and 8 out of 10 will leave a website if the content doesn’t display well on their device (Adobe.)
  8. Google started giving preferences to responsive websites in its search engine results pages in 2015 (Google.)
  9. Decreasing mobile site load times by one tenth of a second can increase conversion rates by 8-10% (Google.)
  10. Conversions can fall by up to 20% for every extra second a mobile page takes to load (Google.)

UX design goes beyond financial metrics

As businesses evolve in a rapidly changing digital landscape, integrating UX design into their core strategy is no longer an option; it is a necessity. The success stories and numbers behind UX ROI serve as a compelling call to action for organizations to prioritize user experience as a pivotal pillar of their business strategy.

Furthermore, the value of UX design goes beyond financial metrics. It fosters a deeper understanding of customers, enables empathetic problem-solving, and cultivates a culture of continuous improvement and innovation. We call it as a user-centric culture.

Luu Dai Hai

Luu Dai Hai

A senior UI/UX designer at NashTech. More than 10 years experience on design field, including brand design, printing, web-based and mobile application. Passionate about crafting intuitive experiences with user-centric design in the digital world. Let's create something amazing!

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