The ROI of User Experience: How Good UX Can Benefit your Business
- Customer Experience, Tech

The ROI of User Experience: How Good UX Can Benefit your Business

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 to have” rather than a necessity. But the truth is, good UX can greatly impact your bottom line. In this article, we’ll see how.

The cost of bad UX

Before we dive into the topic, let’s start with the cost of not having a good UX. Bad UX can cost you in a lot of ways. First, there’s the direct cost of fixing things that are broken. Second, there’s the indirect cost of lost productivity due to frustrated employees. Third, there’s the opportunity cost of missed sales due to potential customers bouncing from your site. And last but not least, there’s the cost of your reputation if word gets out 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 ways that bad UX can cost you money. By making your site easy to use, you’ll avoid the direct and indirect costs of repairing or replacing broken things. By making your site user-friendly, you’ll avoid the opportunity cost of lost sales. And by ensuring that your site provides a great user experience, you’ll protect your reputation and avoid negative word-of-mouth. In other words, good UX pays for itself!

The benefits of good UX

In addition to saving you money, good UX can also help you make money. How? By increasing conversions and driving growth. Users who have a positive experience on your site are more likely to buy something from you or sign up for your newsletter. They’re also more likely to come back and recommend your site to their friends. In other words, good UX isn’t just good for business—it’s great for business!

What the data tell us

There’s unfortunately not much data on the ROI of good UX. However, a much-quoted study from Forrester says that every dollar invested in UX saves around 100 dollars in development costs.

At the end of 2021, Design Accelerator released a special report among European startups and scaleups to benchmark the ROI of UX for their companies.

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

This means that UX is one of the activities with the highest RO.

How UX affects your business KPI

Have you ever visited a website or opened an app and been immediately turned off by its appearance? First impressions matter, whether the colors are too bright, the layout is confusing, or the overall aesthetic is just to your taste. And when it comes to websites and apps, users are more likely to return if they have a good experience with the site or app from the start. For example, users are more likely to return if a website or app is easy to navigate and use. And if it looks good, too? Even better. So next time you create 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 can make or break a company. In today’s competitive market, it’s more important than ever to ensure that your product is high quality and user-friendly. That’s where UX research comes in. By taking the time to understand your users and their needs, you can save your company both time and money in the long run. Good UX research has been shown to reduce development costs by as much as 50%. Not only that, but it can also help to reduce the cost of waste, which means developing a product that users want to use. In other words, UX research is an essential tool for any company that wants to stay ahead of the competition.

This means that good UX saves you money in development costs and helps you avoid wasting time and money on products that users don’t actually use.

Examples of businesses with great UX

There are lots of examples of businesses with great UX, but here 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 favorite 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, there are a few things you can do:

Start with some research

To improve your product, start by understanding what works and doesn’t. Next, look at your competitors and see what they’re doing right—and wrong. Then, talk to your customers and find out what they want and need from your product. This research will give you a good starting point for improving your product’s UX.

Make a plan

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

Talk to your users

Try to get feedback from users as early and as often as possible. This feedback will be invaluable in helping you improve your product’s UX. Ask them what they think about your site and what could be improved.

Make changes based on feedback.

Based on the feedback you receive from users, make changes to 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 always focusing on their goals, values, or needs to create products that truly meet those expectations.

A good understanding of what individuals need from a product can help you develop better designs that benefit both individual people as well as society at large by giving rise to an experience tailored specifically for each person’s unique priorities when using it; instead of providing one-size fits all solutions like too many other companies do nowadays! When designing something new, think twice before rolling out any type.

Conclusion

Good UX benefits your development costs and can save you time and money in the long run by ensuring that people use the products you create. As the study from Design Accelerator shows, investing in UX is, for most startups and scaleups, one of the activities with the highest ROI. So if you’re looking to improve your product or website, consider good UX design principles – it could be one of the best decisions you ever make.

The ROI of User Experience: How Good UX Can Benefit your Business

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