The six steps for justifying better UX, Forrester says that for every $ 1 invested in UX, a company has a return of $ 100. In another study, The Institute of Electrical and Electronics Engineers (IEEE) estimates that more than 1 trillion dollars is invested in IT projects each year and 15% of projects are abandoned before they are completed. This negligible number of failures equates to a loss of 37 billion dollars. Yes, a lack of proper UI can be expensive.
As User Experience designers see the inherent value in improving the experience of products and services. The value of design and how it has impacted the website can be calculated with different metrics. This ensures to keep a check on ensign improvements and get an adequate Return on investment from design.
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A product or website equivalent digital asset can be known by its one main feature or multiple features. In a benchmarking study, it is important to figure out which feature to focus on or take the entire project under review. The benchmarking study can be achieved by
For the case of ROI based on UX, we will focus on metric samples such as
|Satisfaction rating||Frequency of return visits||Frequency of return visits||Customer- support tickets|
|Ease-of-use rating||Feature usage||Feature usage||Phone calls, chats, emails, texts|
|Perceived usability||New accounts or visitors||New accounts or visitors||Training hours required|
(NPS, SUS, SUPR-Q)
|Returning visitors||Renewal rate|
|Completion rate||Completion rate|
|Error counts & rate||Error counts & rate|
A KPI is an essential tool to achieve desired goals. KPI helps the company refine and justify their plan, which they most care about. Choosing a KPI is to bring everyone in the team/company together to achieve the same goal, which ensures the growth and performance of the company.
KPI depends upon the company’s long-term and short goals.
KPIs can also be measured in terms of value by design or user experience. The ROI cares about how the design impacts what the company cares about. Here stakeholders have to think about aligning both user and KPIs
For instance, UX KPI can be % of people subscribed to the newsletter. The underlying business goal is that by subscribing, the customer has also enabled notification and has provided an email address indicating the consent to be engaged and communicated with.
Here the business goals aligned with customer goals ensure the company collects emails of potential customers, and users get exposure to services by the brand.
ROI of the UX is when one metric is converted into another metric. This metric presents how the design impacted the growth and business performance.
Conversion rate/ratio is when a customer visits the website, completes a course of action, and signs up for the newsletter. Here the conversion rate can be easily calculated.
For example, 30 people visit the website and 20 people sign up for the newsletter. Here the conversion rate is 66.6%.
Calculation: Conversion rate = (conversion/total visitors)*100
In other cases, the conversion rate calculation can be complex, as every metric is not related to how many users are signing up, but what is their experience and action, and how it impacts the company goals.
As mentioned above, different metrics are calculated with their formulas. Conversion rate and dwell time cannot be calculated with the same formula and presented in the same chart.
The documentation of the research and findings has to be as detailed as the team wants, it should not just show figures but how and why it happened.
Here at OriginUX, we believe in documenting research that is strong and visually presented.
Here is an example of how the user interview was documented for an e-learning website project.
The HEART framework by Google is one way to calculate one feature or the entire website ROI from UX.
|Happiness||Users find the app helpful, fun and|
easy to use
| Responding to survey|
Leaving 5-star ratings
Leaving user feedback
| Net Promoter Score|
Customer satisfaction rating
Number of 5-star reviews
|Engagement||Users enjoy app contents and keep|
engaging with it
|Spending more time in the app|| Average session length|
Average session frequency
Number of conversions
|Adoption||New users see the value in the|
product or new feature
| Downloading, launching app|
Signing up for an account
Using a new feature
| Download rate|
Feature adoption rate
|Retention||Users keep coming back to the app|
to complete a key section
| Staying active in the app|
Renewing a subscription
Making repeat purchases
| Churn rate|
Subscription renewal rate
|Task Success||Uers complete their goal quickly|
| Finding and viewing content quickly|
Completing tasks efficiently
| Search exit rate|
To learn more about Google’s HEART framework, visit the blog where we extensively explain how the framework works and help in calculating metrics of small features to the entire website.
The importance of UX design cannot be overstated; pie charts and sophisticated computations cannot do it justice. Remember this the next time you visit Disneyland or use Google; there are successful organisations that have established their reputations on design thought.
For many businesses, embracing UX design is as simple as replacing bad design. Poor design can result in costly and time-consuming support calls, as well as lost revenue and increased development costs. The Covid-19 epidemic has resulted in numerous success stories of well-designed experiences and applications assisting individuals and businesses.
Perhaps it’s time to reconsider the entire premise of questioning design’s return on investment and start constructing a better world?