Reading about UX and how it impacts your website is trending charts. Everyone is aware of how UX plays a vital role in the healthcare of your website/product.
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Return on investment for User Experience design helps find how and what value the design provides to both customers and business
NNgroup mentions three myths while calculating the ROI for UX:
One of the end goals of User Experience is to make sure business goals are met too. But everything that User Experience results cannot be measured in monetary terms.
NNgroup writes, ‘calculating the ROI of UX is more about demonstrating the fact that design that improves the customer experience has a positive impact on our business goals – whatever those goals might be. Business goals often come down to money, but not always’.
The insights and results from UX can only be estimated. Sometimes the conversion ratio presents accurate results, but primarily inputs from UX are estimates.
For instance, imagine redesigning a cart experience reduces the time the user takes to finish a check out journey seamlessly. In this redesign, we can calculate resources used to make the user follow a path, cost of features in the previous user journey, conversion ratio.
However, this change doesn’t mean the company will see an increment of X$’s for sure. But rest assured, by considering the previous data, drop off rates and event completion, user journey through various analytics tools can show significant insight if the UX improvement shows an incremental improvement towards metrics aligned with the business goal.
The ROI calculations are not typically meant to calculate precisely how much extra money will show up at the end of the year, but to help the brand overcome, potential drop-offs, red routes and user dissatisfaction upto an extent that could potentially otherwise make the user visit a profitable one.
The ROI estimations can be as detailed and accurate as you want. This assumption means spending a lot of time and resources finding the accuracy in the estimation.
However, the accuracy level can depend on how the team or client would want to understand the results.
If a simple graph is enough to make the team and client understand the drop-off rate due to some sign-up first feature, it should work.
Michael Woo, director of UX at UptopHealth, explain seven KPI examples to measure ROI of UX:1. Time on Task
ROI of UX clearly helps optimize and helps in improving the UX for the website/product. If you wish to learn more about the framework to measure ROI for User Experience, please read the ‘Simple Framework to measure ROI for UX’ blog.