“Design is the silent ambassador of your brand.” -Paul Rand, Art Director and Graphic Designer who designed the IBM logo.
In businesses, company investments often get associated with a factor called Return-of-Investment (ROI), well before the slightest of consideration. You’d have heard this acronym (ROI) thrown around in the meeting room during discussions, mainly by marketers, like a catch ball, this prevalent ambiguity and skepticism circling investments in regards to business aren’t just restricted to UX, but every other aspect of business experiences it.
According to a study by CareerFoundry, companies that invest in enhancing user experience observe lowered customer acquisition cost, increased retention rates, and a better market share among the industry. Moreover, statistics revealed that for every $1 invested in UX, companies were capable of documenting returns up to $100.
Now, let’s look at some points on how a good UX could tick all the boxes of marketing essentials.
4 Income-Contributing Factors Majorly Influenced by UX
1. Increased Conversion & Revenue
Robert Pressman said in his book, Software Engineering: A Practitioner’s Approach, that the cost of fixing any problem after the release is ten times more than the effective cost of addressing it during the design stage, 77% of the users discontinue using an application inside the first week of its download.
At any moment of the usage of a product or service, if the user identifies that he or she is getting some value, then it’s an achievement from a UX perspective. Excellent designs and effective onboarding fascinates users to keep using the application or service, and it is vital to maintain that experience. Implementing such UX naturally profits the acquisition with an increase in Word-of-Mouth marketing and brand loyalty.
According to the Baymard Institute, millions of shoppers drop-out at the moment of checkout because of poor UX. The research claims that those businesses could have easily saved billions of dollars by fixing some minor UX bugs and good design.
2. Reduced Operational Costs
When a design-centric approach gets integrated into the process, it further reduces costs in product referrals, advertisement & marketing, sales, etc towards the end product. Moreover, it reduces costs in product overhaul projects and future fixes.
One of the significant areas of cost reduction happens in customer support. If the UX is good, the volume of the customer support team is bound to decrease proportionally. A recent study on cost estimation suggests that for every one minute spent on customer support call costs the company about $1.
The general assumption believes that every company needs extensive customer support, but a handful of successful companies or brands like WhatsApp, Facebook, Uber work on little to no customer support. A good UX takes care of these issues, and helping companies avoid spending on the need for training staff for support, and from buying types of equipment for the same.
3. Improved Productivity
Dr. Susan Weinschenk, a behavioral psychologist in user experience, affirms that a UX designer spends 50% of his/her time reworking on projects. Most of the designs have avoidable lapses, investing in UX lets companies save employee’s time, reduce unnecessary efforts, and leaving them with time to learn more.
When the products are built with UX processes that run parallel to the needs of the user, design mistakes are less likely, resulting in increased sales and company profitability.
4. User Satisfaction & Customer Loyalty
Happy and satisfied customers are the center of any successful brand, there’s nothing more that users appreciate than a product or application design that anticipates & meets their needs.
The research states that users are more likely to spend money on a product that offers them good user experience continually while on the other, they’re less likely to even continue using the product or service as a result of poor UX.
Thus, positive experience increases user’s or customer’s willingness to spend more money and also at the same time establishes a trust factor, indirectly diminishing their desire to switch brands.
With all the new products now starting to offer top-notch user experiences, delivering a positive UX has become a priority, and the businesses that fail to provide a satisfactory user experience will face a competitive disadvantage in the market.
Incorporating a design-oriented approach and involving the user in the process of design and testing is key to creating a successful UX. Products that are easy to use and designed for users- increase revenue, and reduce costs in other aspects of the business.
A great UX offers a great ROI, it’s the distinguishable factor that lets the product or service stay afloat in the competitive market.