The ROI of UX design: data from our report

The Return on Investment (ROI) that good design brings for businesses is huge: in this report we have calculated the average return that ...

The ROI of UX design: data from our report

How good UX benefits your business

If you're like most people, you probably want your digital product to have great UX. After all, who doesn't love a seamless, user-friendly experience? But what does it take to create a truly exceptional UX? And is it worth the investment?

Here's the thing: UX is often seen as a "nice tohave" rather than a necessity. But the truth is, good UX can have a huge impact on your bottom line. In this article, we'll see how.

The cost of bad UX

Before we dive into the topic, let's start from the cost of not having a good UX. Bad UX can cost you in a lot of ways. First, there's thedirect cost of fixing things that are broken. Second, there's the indirect costof lost productivity due to frustrated employees. Third, there's the opportunity cost of missed sales due to potential customers bouncing from yoursite. And last but not least, there's the cost of your reputation if word getsout that your site is difficult to use. All told, bad UX can cost you a lot of money!

 

How good UX can save you money

Good UX can save you money in all of the ways that bad UXcan cost you money. By making your site easy to use, you'll avoid the directand indirect costs of repairing or replacing things that are broken. By makingyour site user-friendly, you'll avoid the opportunity cost of lost sales. Andby ensuring that your site provides a great user experience, you'll protectyour reputation and avoid any negative word-of-mouth. In other words, good UXpays for itself!

 

The benefits of good UX

In addition to saving you money, good UX can also help youmake money. How? By increasing conversions and driving growth. When users havea positive experience on your site, they're more likely to buy something fromyou or sign up for your newsletter. They're also more likely to come back andrecommend your site to their friends. In other words, good UX isn't just goodfor business—it's great for business!

 

What the data tell us

There's unfortunately not much data on the ROI of good UX. A much-quoted study is the one from Forrester that says that every dollar invested in UX saves around 100 dollars in development costs.

We have released a special report among European startups and scaleups to benchmark the ROI of UX for their companies.

The ROI of good UX design
Credits: Sparkr

The study shows that the for 78% of respondents UX has a return of more than 200%. In 1/3 of cases UX yields an even higher return,between 400% and 600%.

This mans that UX is for them one of the activities with thehighest ROI.

 

How UX affects your business KPI

Have you ever gone to a website or opened an app and beenimmediately turned off by its appearance? Whether it's because the colors aretoo bright, the layout is confusing, or the overall aesthetic is just not toyour taste, first impressions matter. And when it comes to websites and apps,users are more likely to return if they have a good experience with the site orapp from the start. If a website or app is easy to navigate and use, users aremore likely to come back. And if it looks good, too? Even better. So next timeyou're creating a website or app, keep users' experiences in mind. After all,you want them to keep coming back for more.

 

Good user experience to reduce the cost of waste

As any savvy business person knows, development costs canmake or break a company. In today's competitive market, it's more importantthan ever to ensure that your product is not only high quality, but alsouser-friendly. That's where UX research comes in. By taking the time tounderstand your users and their needs, you can save your company both time andmoney in the long run. In fact, good UX research has been shown to reducedevelopment costs by as much as 50%. Not only that, but it can also help to reducethe cost of waste, which means developing a product that users actually want touse. In other words, UX research is an essential tool for any company thatwants to stay ahead of the competition.

This means that not only does good UX save you money indevelopment costs, but it also helps you avoid wasting time and money onproducts that users don't actually use.

 

Examples of businesses with great UX

There are lots of examples of businesses with great UX, buthere are just a few:

  • Amazon: Amazon is known for its user-friendly interface and its vast selection of products.
  • Netflix: Netflix makes it easy to find something to watch with its simple search function and recommendations based on previous watching history.
  • Spotify: Spotify has an easy-to-use interface and allows users to create custom playlists based on their favourite songs and artists.
  • Pinterest: Pinterest allows users to easily find new ideas and products by searches and the related pins feature.

 

How to improve the UX of your product

If you want to improve your own business's, there are a fewthings you can do:

Start with some research

To improve your product, start by understanding what worksand what doesn't. Look at your competitors and see what they're doing right—andwrong. Then, talk to your customers and find out what they want and need fromyour product. This research will give you a good starting point for makingimprovements to your product's UX.

Make a plan

Once you've done your research, it's time to make a plan andmap what you'll be doing first. Trying to improve everything at once is a surerecipe for overwhelm and frustration. So start small, and focus on one thing ata time.

Talk to your users

Try to get feedback from users as early and as often aspossible. This feedback will be invaluable in helping you improve yourproduct's UX. Ask them what they think about your site and what could beimproved.

Make changes based on feedback

Based on the feedback you receive from users, make changesto improve their experience on your site.

 

Designing with your users in mind

The design process should start with putting the user first.This involves thinking carefully about how your users will interact and alwaysfocusing on their goals, values or needs in order to create products that trulymeet those expectations

A good understanding of what individuals need from a productcan help you develop better designs which benefit both individual people aswell as society at large by giving rise an experience tailored specifically foreach person’s unique priorities when using it; instead providing one-size fitsall solutions like too many other companies do nowadays! When designingsomething new think twice before rolling out any type.

 

Conclusion

Good UX is not only beneficial for yourdevelopment costs, but it can also save you time and money in the long run byensuring that people actually use the products you create. As the study fromDesign Accelerator shows, investing in UX is for most startups and scaleups oneof the activities with the highest ROI. If you’re looking to improve yourproduct or website, make sure to consider good UX design principles – it couldbe one of the best decisions you ever make.

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