When I say you will get triple the money you invested in the design of your app or website, as a Return on Investment, will you believe? You may find it hard to believe, right? But trust me, what you heard is true! Let me explain this to you with an example.
The e-commerce giant, Amazon, is a prime example to illustrate it.
As we know, Amazon is a company that has built its success and ROI upon a focus on customer experience throughout the entire customer journey. They ensure the user experience is not sacrificed at any point and keeps a constant check on it.
Amazon founder and CEO, Jeff Bezos remarked their initial journey:
“In our first year we didn’t spend a single dollar on advertising… the best dollars spent are those we use to improve their user experience through web design”
Amazon invested 100 times more into Customer Experience than traditional advertising in the first year of Amazon launching. He reasoned that if they could improve the customer experience to the point where they could easily find what they wanted and buy it with a couple of mouse clicks, then sales would grow. And yes, they did!
In 2017, Amazon achieved record annual sales revenues of $177 Billion!
Now you should choicelessly admit the fact that User Experience, Convenience, Customer Satisfaction and ROI, go hand in hand.
Design: An Expense or Investment?
Even today, many companies consider ‘design’ as an additional cost and the return on investment for spending on design, as uncertain. In actuality, a good design enhances the value of a company. When properly understood and used, it may significantly impact earnings, turnover and growth of the company.
In fact, companies that prioritize design, generate higher levels of revenue. But unfortunately, we live in a world where 66% CEOs still do not really understand the need for a good design and what their designers actually do!
“If you think good design is expensive, you should look at the cost of bad design”
– Ralf Speth
Because, Bad design costs you even more as you lose the trust of your user. You earn a bad reputation in the industry, which can be very costly to repair.
The value of design in business
According to a research on ‘how design adds value to business’, conducted by the Design Council, it was found that using design has bottom line benefits and gives companies a competitive edge. The report says that businesses that are growing rapidly are more likely to see design as fundamental to this growth. Also, businesses that add value by using design see a greater impact on their business performance than the rest.
User Experience has a direct impact on the customer experience and it affects the company’s Return on Investment. Because good UX investments enhance customer satisfaction as they find the technology or the Interface ‘convenient’ to use. Satisfied customers automatically become loyal to the brand as they start trusting the company’s products and they wish to come back for more.
This is why customer satisfaction is said to be essential for the success of the business, as they are the reason for the brand’s existence. Hence, investments in UX designing or branding will never rest in vain. It will act as a catalyst for the growth of any business. It will shift the target customers to potential buyers. In short, it is evident that a good design impacts conversion, customer retention & loyalty and hence, the company’s revenue.
For quickly growing businesses, UI design is crucial. From typography to color palette, each element of the design of a brand contributes to its overall feeling.
For Example, Microsoft, the largest multinational technology corporation revealed that after the A/B testing they went for a specific blue shade over some other hues, and increased their annual revenue by $80 million dollars.
Why to spend on User Experience?
In a world dominated by digital products and intense economic competition, User Experience Design has emerged as a crucial component. It helps in determining an organization’s success in market share, customer satisfaction and customer retention.
Companies who have made User Experience Design (UX Design) a key component of their business strategy have been successful in converting followers into devoted fans who eventually market their goods and services.
Airbnb, an online marketplace for lodging, serves as an ideal example for this. There is no wonder that they invested in User Experience for rescuing them from near-bankruptcy to elevating their estimate to freaking $10 billion!
Additionally, user experience design has the power to substantially alter current business paradigms. One such example is the global streaming service and production company Netflix. They consistently employ best practices in User Experience design to surpass their subscriber’s expectations.
As a result of the company’s constant trial to provide the finest User Experience, Netflix has more than 100 million devoted subscribers worldwide. This in turn escalates their revenue graph.
Still skeptical whether UX design would benefit your business?
The research analysis might help you believe. In a PwC report, 86% of people declared they are willing to pay more for better user experience. 92% of people interviewed stated they will drop the website/app after 2 to 3 negative experiences.
“People don’t buy the best products. They buy the products they can understand the fastest”
– Donald Miller
According to a research done by McKinsey, the results show that there is a strong correlation between the design of a website or application and the business performance. It says only the best designs of great User Experience now stand out from the crowd.
If the conversion process is not straightforward or the navigation is clumsy, users will definitely abandon the website without any intention of going back.
Hence, investing in good user experience is worth the expenditure. Some popular apps that are favored by people because of its good user experience are Apple, Uber, Slack.
Even the smallest UX tweaks can make huge impacts. For Example: BeatStars is a marketplace for music producers. It allows them to license and sell their beats or give them away for free. They restructured the information architecture and provided one consistent call to action for the platform. In this way the company managed to increase their macro conversion by 35% in just two weeks.
Therefore, it is evident that User Experience and User Interface Design plays a major role in improving customer retention and engagement. Thus, redesigning or designing according to the consumer preference and expectations enhance conversion rates and thus the business revenue.
