In this article we discuss seven benefits and ways to calculate the value of UX.
UX designers provide synergy between business goals and user needs. But what KPIs should UX focus on to increase the business value of the company?
In this article I describe the 7 most important UX KPIs with which you can calculate the value of UX:
1: Increased sales / turnover / return
Charlie Claxton, head of UX design of the world’s largest ecommerce platform Amazon, teaches us that every dollar invested in UX yields a return between $ 2 and $ 100. A study published by Forrester Research in 2016 stated that while a great UI could increase a website’s conversion rate by 200%, a great UX could increase the same by nearly 400%. In many projects we worked on, increasing sales was the main objective. The checkout / order plays an important role in this. By correlating UX adjustments to the increased checkout / order amount, we can measure the ROI.
2: Increased involvement
We know that a great user experience has a big effect on your customer’s satisfaction; so much so that it:
– increase their willingness to pay by 14.4%
– their reluctance to change brands decreases by 15.8%
– increases their chances of recommending a product by 16.6%
3: Increased acceptance
A well-developed UX design will increase acceptance. Users will embrace the product or service more easily, thereby increasing its use. Usability tests can be performed by UX designers in test labs. The results can be presented to management.
4: Increase user retention
When a potential customer visits your site, you only have seconds to convince them that they are in the right place. Investment in UX optimization is necessary to gain trust quickly and ensure brand recognition and user retention. Lowering the bounce rate is a KPI that UX designers can focus on during the design process and that managers can direct.
Example project where the bounce decreased and how we did that?
5: Saves time
After spending approximately 14 weeks improving ease of use through an iterative design, Mozilla saw a 70% decrease in calls to the call center. So there is a lot of time to be saved and thus money to be saved. SAP optimized its UX and reduced the required training time by 30 to 80%. Improving UX saves time and generates immediate profit.
6: Increase brand loyalty
A good user experience also has a direct impact on the credibility of your brand. By providing a hassle-free user experience, organizations can positively influence customer satisfaction and increase their trust in the product, the system, and thus brand loyalty. A great UX thus leads to increased brand loyalty, higher brand awareness, quality and brand associations.
A whopping 88% of online consumers are less likely to return to a website after a bad experience, according to a report by Gomez, Why Web Performance Matters. More than a third will tell others about their disappointing experience. Well-designed software increases the likelihood that users will easily fix their problems, turning them into repeat users and taking others too. This also filters through to your brand reputation. The Future of Design in Start-Ups survey found that the more a company invested in and focused on design, the higher the customer retention and engagement rate.
7: Reduces development time
Roger Pressman teaches us in his book Software Engineering that for every dollar spent solving a problem during product design, $ 10 is spent on the same problem during development and $ 100 or more if the problem needs to be resolved after the product is or service has been launched.
A consistently thought-out UX design that has been tested in advance in a test lab reduces the number of hours of development required to achieve a result. Developing / programming without UX design or without UX testing results in rework in most cases. This means that the project has to be re-scheduled, code rewritten and tested and the site or app has to be put live again. This can therefore be prevented by thoroughly testing beforehand.
Dr. Susan Weinschenk, in her White Paper Usability of 2005, states that up to 50% of a programmer’s time is spent on avoidable reprogramming. This can be avoided by giving developers and programmers a clearer understanding of what they are building. Cost savings are calculated using this calculation:
(Number of errors) x (average repair time) x (personnel costs) x (number of employees required) = cost savings.
or
(Number of changes) x (average development time per change) x (personnel costs) x (number of employees required) = cost savings.
or
(Time savings) x (personnel costs) x (number of employees) = cost savings
Source: https://www.siliconrepublic.com/companies/ux-design-business-benefits
Source: https://www.siliconrepublic.com/companies/ux-design-business-benefits
