A high-quality UX is a way to make your product stand out among competitors without changing the features of the product itself. UX design has two objectives: to provide the user with convenience/satisfaction and value.
UX consists of two components: creative and business-related:
- Creative part is selling to the customer the realization of their dreams, meeting the needs, providing a pleasant path from the entry point to achieving the goal.
- Business-related part is a way to increase your business profitability without additional cash injections.
The logic here is simple: the more comfortable and pleasant it is to use your product, the more people will do it. UX of high-quality is all the more critical since competition among online products is growing, particularly in terms of presence in online environments. If you are unable to provide the necessary value to users, they will go to those who can.
Also, such a design often improves the work within the team. How? We will tell you below. Meanwhile, let’s talk about numbers.
The Interrelation between UX and Profit in Numbers
The connection between UX and profit is not evident at first glance, but it is easy to calculate. There are studies (in fact, many of them) confirming that a good website-UX affects both the cost of an individual product, and even the company market value.
Experiencematters research confirms that a constant focus on the consumer’s desires and needs increases their desire to bring you money by 14.4%, the wish to recommend your brand to others by 16.6%, and reduces the urge to switch to another brand by 15.8%.
Many studies are proving that a properly tuned UX brings excellent ROI. On average, every dollar spent on UX makes between $ 2 and $ 100 in profit.
In November 2006, two UX designers, Geoff Teehan and Jon Lax, have founded the UX Fund, invested $ 50,000 in it, and engaged 10 companies, including Apple, Target, Electronic Arts, Research in Motion (RIM), Progressive Insurance and JetBlue Airways.
These companies were selected based on the UX level that they provided to their customers. They had to meet the following criteria:
- Paying attention to the design of their products and web resources;
- keeping track of the history of innovation;
- Inspiring users and earning their loyalty
- Increasing their positive experience from using the site.
A year later, the companies selected by the UX Fund exhibited a significant increase. But, more interestingly: this growth hasn’t been spasmodic, during the first weeks or months, but constant and long. The stock prices of these companies outstripped key stock indices by as much as 200 percent. The companies themselves outperformed the average market indicators in terms of capitalization growth rate.
The inspiration for creating the UX Fund was the UK Design Council. After creating the Design Index and monitoring the results, the reports showed that the companies that made efforts to develop a high-quality UX design outperformed FTSE 10 and FTSE All Shares indexes by more than 200%.
Making $ 300,000 by Changing just One Button: a Real Experience
To investigate how UX affects ROI, let us tell a famous story about the $300 million button.
The story happened to Jared M. Spool, who had been working on an e-commerce site. Customers needed to fill out a form before paying for a product and enter their email address and password. The form also included registration and password recovery buttons. It was expected that this would enable repeat customers to purchase faster, and new ones would register in the system.
In reality, the opposite has happened: the form proved to be an obstacle for all types of shoppers. The new ones didn’t want to register, so as not to leave personal data and then not to receive endless messages from the company. On the other hand, old customers often forgot the password or email address they used during registration.
45% of all customers had multiple registrations in the system. During the day, the system received 160 thousand requests for password recovery, 75% of which never ended in completing a purchase.
As soon as the developers took away the compulsory registration, the number of purchases increased by 45%, which resulted in an extra $15 million in the first month alone and an additional $300,000,000 for the first year. This story showcases that even the tiniest components of a UX process can significantly affect your revenues.
Additional Benefits of a Good UX
Businesses can gain profit in two ways: by increasing revenues and by cutting expenses. We have already discussed income. In this section, we’ll explain how a good UX reduces the daily costs of your business.
Good UX Reduces the Support Cost
The more complicated it is to use your product, the more questions users will have. And, accordingly, the more human resources, you will need to answer these questions.
If your product is easy to handle, your users will no longer need to contact support services. They will need only the motivation that can be obtained from the website. The UX guidelines serve this purpose so that your team can concentrate on creating the most effective user-flow and help the users get what they want.
Good UX Reduces Infrastructure Costs
If the UX of the site is poorly designed, there is a high risk that the user will get lost in the middle of the process. Each time this happens, users are forced to return to the previous page or go to any other, throwing additional load at your site’s infrastructure. Especially often this happens during the use of SaaS products, where reload of each page additionally loads the database.
Update alone will not do the trick. But if you have a large website and thousands of users visit it, all together they can give a tangible load. The load directly affects the access of other potential users to your resource and your profit accordingly.
Good UX design means that users always know what they are doing and where they are. This clarity reduces server load and API bills, which also applies to the first paragraph: users will contact support less often, saving the time of your employees.
Good UX Reduces Employee Training Costs
It mostly concerns the UX of internal processes. Just imagine: every new employee will not need mentoring from more experienced co-workers during the implementation process, being able to show good efficiency from the first day.
This goal can be achieved if internal business processes are easy to understand and simple to work with. If the internal processes are simple to use, the newcomer will reach the level of an experienced employee much faster, without distracting anyone from work.
Besides, the simplicity of internal processes expands the opportunities for potential employees’ recruitment: no need to look for those who already understand the specific terminology/processes adopted by the company. People can learn everything necessary during the work process, which simplifies the work of your HR, in particular.
Good UX Boosts Employee Productivity
Studies show that businesses that pay significant attention to UX design achieve high levels of productivity more quickly and are better rated by employees.
Such a UX means that all unnecessary movements have been eliminated from internal business processes signifying that all processes are accelerated and as convenient as possible.
How Do You Know if You Need to Change Your Product’s UX
Automation will help you cope with this task. Today, when companies widely use automated testing, there is every opportunity to explore site usability to understand what needs to be improved.
For the design team, this means to notice timely what users like and what doesn’t work. This approach allows you to collect and process a massive amount of data to determine the KPI of each type of UX and the profit that it brings.
Thus, all decisions made by the designer will be based on precise and verified data, and not on the fact that they believe some button shape looks good and “seems to work”.
Conclusion: each year, companies pay more and more attention to UX to secure a competitive advantage in the market race. The impact of UX on business will continue to grow, and very soon, in the foreseeable future, this course will be at the center of decisions that people in business around the world take.
Our designers’ experience in the UX design helps us to be confident in the quality and effectiveness of the UX we created. Interested to learn how big your profit can grow thanks to an in-depth UX redesign? Contact us. We will be happy to work on making your product even better.