Why investing in UX the fastest way to grow your business?

garima

April 22, 2020
Why investing in UX the fastest way to grow your business?

Why you should inve$t in UX?

 

We now have more power as users. By leveraging social media platforms and online reviews, we can be a lot more vocal about which products or services meet our needs and which fail to do so.

A few years back, sending a letter of complaint to the company might mostly go unnoticed. These days, however, a click of a button or a 140-character tweet is enough to not only complain about an experience but broadcast it to the world.

 

Good UX = Good Business

ux and business

 

Andrew Kucheriavy, a well-known figure in the UX world, wrote an article Good UX Is Good Business for Forbes in 2015, which highlights the importance and value of good UX. Studies show that companies that invest in UX see a lower cost of customer acquisition, lower support cost, increased customer retention and increased market share, according to a study done by Forrester.

When compared to their peers, the top 10 companies leading in customer experience outperformed the S&P index with close to triple the returns. Forester Research shows that, on average, every dollar invested in UX brings 100 dollars in return. That’s an ROI of a whopping 9,900 %!

With user’s voices becoming even more important, companies have started considering the value of UX as a no-brainer. Few companies which are already employing user-centric methods are performing exceptionally well.

The difference between success and failure is determined by good User Experience which is reflected in their products. Companies that fail to invest in UX design won’t only lose money in the short term, they’ll fall behind their competitors and lose their customers.

Based on a report by the UX School, the following were some important reasons uncovered during their research.

 

#1 UX increases $ales

 

“The impact of UX is quite clear: the more satisfied your users are, the more likely they are to do whatever it is you are encouraging,” said Abby Covert, information architect and author of How to Make Sense of Any Mess.

One often-quoted statistic is that every dollar spent in UX brings in between $2 and $100 in return (this stat originated in Roger Pressman’s classic textbook, Software Engineering: A Practitioner’s Approach). 

By not placing the users at the center of your product, you most definitely are missing out on some positive sales numbers similar to what Jigsaw faced. Jigsaw Academy is a global award-winning online analytics and big data training provider.

They were on a mission to train the next generation of analytics practitioners but they also weren’t generating enough leads and conversions. We designed a unified experience for different users increasing cross-sell, up-sell and engagement opportunities. A structured Homepage design led to higher conversion and engagement. 

The outcome was incredible. 5x increase in leads and conversions, 7% reduction in their bounce rates and a whopping 4M$ raised from Manipal post redesign.

 

#2 UX can save you money

 

Imagine you have a product where users are unable to achieve their goal or they consume a lot more time than intended in doing so and later you realize that a lot of rework is needed. Reworks will most definitely cost you a lot of time, money and effort.

But what if it was designed effectively in the first place? The results and the total money spent would have said a different story.

One study (reported in Usability: A Business Case) has estimated that fixing issues after development can be up to 100 times more expensive than fixing them during design. The same study shows that, on average, programmers spend nearly half their time on a project reworking issues that were avoidable.

Getting it right from the start can save those labor costs. Investing in UX can also help reduce other costs like customer support and training costs as mentioned in the same report as above.

 

#3 UX gives your business a competitive advantage

 

The big four in tech – Apple, Amazon, Facebook, and Google have been the guiding north star for many new companies. These four invest heavily in UX and it shows in all their products. The overall vibe of doing so is quite evident. Noticeably happy users, effective research and studies before and after design and fewer development costs. All these are indications of solid advantage.

Whatever your domain might be, if your product can help the users achieve their goal seamlessly, you will be well ahead of your competitors and to do that you need a solidly well-designed product.

Users’ needs for a better and faster product experience will only continue to grow and now is the right time to rightly invest your resources in UX.

A case to highlight would be a project we did for Nearex, where they helped users in small payment problems. After a thoughtful evaluation of their competitors, we designed a seamless interface with rich illustrations and micro-interactions.

Clear navigation and hierarchy increased accessibility to products from Homepage and increased average time per page by 35%. The number of users increased three times and all that we witnessed was happy and satisfied faces. 

 

#4 UX increases customer loyalty

 

Let’s see you go to a website and the response to your reaction is ‘ugh’. Despite that, you feel like giving it a shot. A few minutes later, you’ve moved on to a more appealing and functional site. Almost every other company faces a similar situation. Most users will never return to a website where they had a bad experience.

It is true for apps and software products as well. Users will uninstall or move over to other applications that serve their purpose. A well-designed product with the right amount of flair will make the users want more from it.

From there on the graph is the only way – upwards.A survey from the Future of Startups reveals that companies who invest and are focussed in UX tend to gain a better hold in customer retention.

To provide more clarity, here is an example of how we helped Semnox retain and engage their users. Semnox provides holistic IT solutions for the entertainment and leisure industry.

We designed a playful interface with rich illustrations and micro-interactions that speaks the industry solutions. Also, integrating clear navigation, hierarchy and increased accessibility to products from the Homepage increased the average time per page by 35%.

 

UX for business: What should you remember?

 

In most cases we’ve noticed, the user’s priorities are not really being put forward by companies despite the users having more vocal power. Instead, they tend to focus more on their business needs.

Ironically, were this not the case, companies would save money, and significantly increase their revenue. 

The simple reason being that for users if their needs are met and they enjoy using and interacting with the products, they’ll more likely continue using it, recommend it to their friends and family, engage and support it and more importantly be a loyal customer.