Why investing in UX is your smartest business decision


Investing in user experience (UX) is crucial for business today as the digital world becomes the main reference point for consumers looking for information, products and services. More and more companies are realizing the importance of UX design and its impact on user engagement and customer retention. While having a great product is paramount, in today’s market it often is not enough to keep you ahead of the curve. This is why investing into UX design has proven to be a game-changing strategy.

UX can boost your bottom line

According to a study conducted by Econsultancy of more than 1,400 professionals working for brands, agencies and specialist user experience firms, around 78% of respondents said their companies were “extremely” or “quite” committed to delivering the best online user experience, while 95% stated they believe that “good user experience just makes sense.”

Many UX designers face difficulties when trying to prove the value of their work to companies and clients. Aiming to shed some light on the impact of UX on a company’s financials, The UX School conducted a design study of 408 companies in 2016 which found that the larger the investment made on UX, the greater the increase in sales, the higher their customer retention and customer engagement was, and the faster the company moved through its product cycles.

The UX School research revealed that companies which invested the most on UX recorded an increase of at least 75% in sales. If done correctly, UX gives users a positive experience, and in return, these users give their business to companies, and as a result, a layer of trust is formed between the two sides. In addition, many companies have seen that the more they invest in UX design, the lower their customer acquisition and support costs, while they often witness an improvement in customer retention and increased market share.

UX saves you time and money

Any UX designer will tell you that the time and effort they put into their work ends up saving the company countless hours of development time which would otherwise be spent on re-designing and fixing a product. Statistics from Experience Dynamics show that investing in UX design can reduce the amount of development time by between 33-50%.

By bringing a UX expert on board to design a product, the chances are that they have experience in doing the necessary market research, prototyping, reworking and usability testing which will make all the difference to building an app or website. It is a lot more cost-effective to make such changes before a product is implemented, which is a part of the UX designer’s responsibilities and work process.

UX offers a great return on investment

One of the most important reasons why businesses continue to invest a sizable portion of their capital into UX is the great return on investment which it provides. Calculations based on a recent study from Forester Research showed that every dollar a company invests in UX design brings 100 dollars in return. These figures reflect a return on investment of a staggering 9,900 percent.

World-class companies such as Google, Apple, and Amazon, make significant investments to maintain and improve the quality of their customer experiences. Unlike acquisition costs, these types of investments often pay for themselves in the long run, while they also have a positive impact on the company’s brand reputation and performance. The same Forrester study also revealed that the top 10 companies leading in customer experience outperformed the S&P index and raked in more than triple the returns of their peers, which clearly shows the return on investment of UX design.

Improving the UX can reduce your bounce rates

Often the case, companies with high bounce rates will look into the reasons why this problem is happening in the first place. Although it is impossible to bring down your bounce rate to zero, there are ways to decrease this rate by implementing UX design techniques. This can be done by structuring website elements, such as visuals, navigation, and content, in a way that gives the user a positive experience where they can seamlessly access the content, information and services they are looking for.

The good news is that the reasons for the high bounce rates are often identified during the UX design process, enabling the designer to fix such issues before launching the product. When you think about it, the easier a website is to use, the more you are encouraged to stay engaged with that platform, and the less likely you are to leave or seek a competitor’s website.

This is why investing heavily in the back end of the landing page is critical, as this is the main page that users will visit before they decided whether they want to stay or go. In fact, e-commerce websites that optimized their product pages for mobile witnessed a 50% drop in bounce rates on average, in addition to a 70% increase in product sold, according to the same Experience Dynamics survey.

UX can be a great advertising tool for your business

Advertisements are increasingly becoming a pain point for today’s consumers as users are becoming more in control of the ads they see. This has created challenges for businesses and advertising who need to get their message across to their target audiences. However, many have found success in this area by implementing UX design principles that aim to give the end user a positive and customized experience, as well as ads and content that are relevant to them.

Combining UX and advertising creates a win-win situation for the company and the user as it creates a symbiotic relationship and connection between the two sides. By using UX to develop more targeted and relevant ads for the user, the company ends up saving a lot of money and effort, while the user receives a better experience which is more likely to encourage them to seek out that company’s products and services. The chances are that if you browse through your email or social media feeds, you will immediately notice that the ads you are seeing have been personalized according to your preferences and search criteria as opposed to irrelevant pop-up ads that may have been there years ago.

 UX can boost customer satisfaction

UX designers have the potential to transform an app and website in a way that enabled the product to reach its full potential by keeping user satisfaction in mind throughout the development process. While creating beautiful visuals, unique features, and informative content will help improve UX, building a product that is genuinely pleasing to the user is by far one of the most important components in this equation.

A great example that shows the link between UX and customer satisfaction is Twitter, which enables its users to click on a Valentine’s heart when they want to favorite a tweet. By doing this in one click, users are immediately notified that they have successfully completed this action, as the heart explodes across the screen into colorful confetti. It is a both a practical and fun that keeps users engaged on the platform.

Online travel booking website Netflights is another good example of how a company’s investment in UX resulted in boosting their performance and customer satisfaction. In fact, over the course of the year, Netflights’ KPIs significantly as their revenue rose by 26%, while their customer satisfaction increased to 95%, according to UX agency Keep It Usable, which worked on the UX project for the company.

Make UX a part of your business strategy

There are several valid reasons why businesses should be investing more resources and capital into UX design. Not only it will save you time and money, it will help you realize countless benefits such as achieving a great return on investment, boost KPIs and performance, improve customer retention and advertising approach, and reduce your bounce rates. By using the design principles mention above, you will be well on your way to developing a high-quality experience that draws in your users and enhances your competitiveness.

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