It can be hard to justify extra project costs when you are already stretched with a razor-thin budget. However, investing in user experience design will not only save you money at the end of the project, but it can also increase your ROI.

Before we dive into how user experience (UX) can increase your revenue and bottom line, let’s get aligned on the basics. When we say “user experience” we’re referring to how people interact with a product or online experience. The UX designer’s role is to make a product or service more usable, enjoyable and accessible.

Take a look at this path.

Clearly nobody was thinking about the end user when this sidewalk was produced. This happens all too often. Usually it’s just that business needs and due dates don’t allow for a UX design team to take the necessary time that it takes to understand their users.

But that is a big mistake and a decline of your return on investment. Good design improves revenue, customer satisfaction, customer loyalty and retention.

And as Einstein said – we cannot solve our problems with the same thinking we used when we created them.

Benefit #1: UX can improve revenue

Brands that provide a good customer experience generate 5.7x more revenue than competitors with a poor experience.

A good example is Bank of America who increased their customers by 45%. Yes, you read that right, 45%. How did they do it? They first investigated why they have such a low amount of new customers. During their Discovery and Design Thinking Phase, they discovered that most people dropped off during their onboarding flow.

Then they researched and redesigned the onboarding flow to a simple five step onboarding process, and were able to gain 45% of new users. The time they invested in this investigation, research and redesign was a long term investment that had a huge positive ripple effect.

Benefit #2: Investing in UX upfront can significantly reduce overall project costs

More and more companies are starting to realize that doing a little due diligence on the onset is much less expensive than fixing problems or bugs after development is completed. In fact, 55% of development time is reduced by investing in good user experience design.

Most of the bugs spotted within a product launch are actually problems – the majority can be fixed with better design. This is why even post launch support can decrease by up 90% with good UX design.

Benefit #3: UX design can improve customer satisfaction and customer loyalty

Customers have high expectations of brands and want a seamless experience when they purchase. If you build a brand that customers like, they will continue to do business with you and even refer their friends. Customers with a positive experience are 140% more likely to spend than those that have a poor experience.

Benefit #4: User Experience can improve customer retention

User experience is key to your online success and customer retention. When customers have a positive experience, they will keep coming back. Conversely, and this is the scary part – 89% of users purchase from a competitor after a poor user experience.

To end on a positive note, 43% of consumers said they would pay more for a better experience. So, now is the time to start investing in a good user experience.
Our experience and design team is ready to help you improve your current products or work with you on building the next big thing on the market. You’ll give us the time and we’ll give you happy end users in return.

Ready to get started? Contact Us.

About Cognits

Cognits is a design and development company that specializes in user centric digital products which improve your value chain. Our mission is to empower your company by using design and development best practices to improve your existing processes in an agile, efficient, and affordable way. We strive by making your company succeed in the digital world.

References:
Forbes, UX Planet, Relevant, UX Matters, CX Services 360, PWC, TopTal