{"id":418,"date":"2021-11-20T05:42:43","date_gmt":"2021-11-20T05:42:43","guid":{"rendered":"http:\/\/dev-revamp.originux.com\/resources\/?p=418"},"modified":"2022-08-18T11:29:04","modified_gmt":"2022-08-18T11:29:04","slug":"a-simple-framework-to-measure-roi-for-ux","status":"publish","type":"post","link":"https:\/\/www.originux.com\/resources\/blog\/a-simple-framework-to-measure-roi-for-ux\/","title":{"rendered":"A simple framework to  measure ROI for UX"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.originux.com\/resources\/blog\/a-simple-framework-to-measure-roi-for-ux\/#NN_group_mentions_these_four_steps_to_calculate_ROI\" >NN group mentions these four steps to calculate ROI:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.originux.com\/resources\/blog\/a-simple-framework-to-measure-roi-for-ux\/#Gather_a_UX_metric_in_a_benchmarking_study\" >Gather a UX metric in a benchmarking study<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.originux.com\/resources\/blog\/a-simple-framework-to-measure-roi-for-ux\/#Choose_a_KPI_Key_Performance_Indicator\" >Choose a KPI (Key Performance Indicator)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.originux.com\/resources\/blog\/a-simple-framework-to-measure-roi-for-ux\/#Convert_UX_metric_into_KPI\" >Convert UX metric into KPI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.originux.com\/resources\/blog\/a-simple-framework-to-measure-roi-for-ux\/#Report_Responsibly\" >Report Responsibly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.originux.com\/resources\/blog\/a-simple-framework-to-measure-roi-for-ux\/#Guide_on_how_to_measure_in_a_framework\" >Guide on how to measure in a framework:<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The <strong>six steps<\/strong> for justifying better UX, Forrester says that for every <strong>$ 1<\/strong> invested in UX, a company has a return of <strong>$ 100<\/strong>. In another study, The Institute of <em><strong>Electrical and Electronics Engineers (IEEE)<\/strong><\/em> estimates that more than <strong>1 trillion dollars<\/strong> is invested in IT projects each year and <strong>15%<\/strong> of projects are abandoned before they are completed. This negligible number of failures equates to a loss of <strong>37 billion dollars<\/strong>. Yes, a lack of proper UI can be expensive.<\/p>\n\n\n\n<p>As <strong>User Experience<\/strong> designers see the inherent value in <em>improving the experience of products and services<\/em>. 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.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NN_group_mentions_these_four_steps_to_calculate_ROI\"><\/span>NN group mentions these four steps to calculate ROI:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"counter--list\">\n\t\t<li>Gather a UX metric in a benchmarking study<\/li>\n\t\t<li>Choose a KPI<\/li>\n\t\t<li>Convert the UX metric into the KPI<\/li>\n\t\t<li>Report the calculation responsibly<\/li>\n<\/ul>\n\n\n\n<h4 class=\"one wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gather_a_UX_metric_in_a_benchmarking_study\"><\/span>Gather a UX metric in a benchmarking study<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A product or website equivalent digital asset can be known by its <strong>one main feature or multiple features<\/strong>. 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<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Surveys<\/li><li>Research<\/li><li>User interviews<\/li><li>Market research<\/li><li>Competitor analysis<\/li><li>User personas<\/li><\/ul>\n\n\n\n<p>For the case of ROI based on UX, we will focus on metric samples such as<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li>Surveys or questionnaires distributed during testing<\/li><li>Analytics<\/li><li>Quantitative usability testing<\/li><li>Customer support<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Surveys<\/strong><\/td><td><strong>Analytics<\/strong><\/td><td><strong>Quantitative<br>Usability testing<\/strong><\/td><td><strong>Customer Support<\/strong><\/td><\/tr><tr><td>Satisfaction rating<\/td><td>Frequency of return visits<\/td><td>Frequency of return visits<\/td><td>Customer- support tickets<\/td><\/tr><tr><td>Ease-of-use rating<\/td><td>Feature usage<\/td><td>Feature usage<\/td><td>Phone calls, chats, emails, texts<\/td><\/tr><tr><td>Perceived usability<\/td><td>New accounts or visitors<\/td><td>New accounts or visitors<\/td><td>Training hours required<\/td><\/tr><tr><td>Questionnaire scores<br>(NPS, SUS, SUPR-Q)<\/td><td>Returning visitors<\/td><td>Renewal rate<\/td><td><\/td><\/tr><tr><td><\/td><td>Churn<\/td><td>Churn<\/td><td><\/td><\/tr><tr><td><\/td><td>Completion rate<\/td><td>Completion rate<\/td><td><\/td><\/tr><tr><td><\/td><td>Error counts &amp; rate<\/td><td>Error counts &amp; rate<\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"one two wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choose_a_KPI_Key_Performance_Indicator\"><\/span>Choose a KPI (Key Performance Indicator)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A <strong>KPI<\/strong> is an essential tool to <em><strong>achieve desired goals<\/strong><\/em>. KPI helps the company refine and justify their plan, which they most care about. Choosing a KPI is to<em> bring everyone in the team\/company together to achieve the same goal<\/em>, which ensures the growth and performance of the company.<\/p>\n\n\n\n<p>KPI depends upon the company\u2019s long-term and short goals.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Examples of KPI:<\/strong><\/h5>\n\n\n\n<ul class=\"wp-block-list\"><li>Profit<\/li><li>Cost<\/li><li>Customer lifetime value (CLV)<\/li><li>Employee-Turnover Rate (ETR)<\/li><li>Employee productivity<\/li><li>Donors &amp; donor growth<\/li><\/ul>\n\n\n\n<p>KPIs can also be <a href=\"#\">measured<\/a> in terms of value by <strong>design<\/strong> or <strong>user experience<\/strong>. The ROI cares about how the design impacts what the company cares about. Here stakeholders have to think about aligning both user and KPIs<\/p>\n\n\n\n<p>For instance, UX KPI can be % of people subscribed to the newsletter. The underlying business goal is that by subscribing, the customer has also <strong>enabled notification<\/strong> and has provided an email address indicating the consent to be engaged and communicated with.<\/p>\n\n\n\n<p>Here the business goals aligned with <strong>customer goals<\/strong> ensure the company collects emails of potential customers, and users get exposure to services by the brand.<\/p>\n\n\n\n<h4 class=\"one three wp-block-heading\"><span class=\"ez-toc-section\" id=\"Convert_UX_metric_into_KPI\"><\/span>Convert UX metric into KPI<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p><strong>ROI<\/strong> of the <strong>UX<\/strong> is when one metric is converted into another metric. This metric presents how the <strong>design impacted<\/strong> the growth and business performance.<\/p>\n\n\n\n<p><strong>Conversion rate\/ratio<\/strong> 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.<\/p>\n\n\n\n<p>For example, <strong>30<\/strong> people visit the website and <strong>20<\/strong> people sign up for the newsletter. Here the conversion rate is <strong>66.6%<\/strong>.<\/p>\n\n\n\n<p><strong>Calculation: Conversion rate = (conversion\/total visitors)*100<\/strong><\/p>\n\n\n\n<p>In other cases, the conversion rate calculation can be complex, as every metric is not related to how many users are signing up, <em>but what is their experience and action, and how it impacts the company goals.<\/em><\/p>\n\n\n\n<h4 class=\"one four wp-block-heading\"><span class=\"ez-toc-section\" id=\"Report_Responsibly\"><\/span>Report Responsibly<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>As mentioned above, different metrics are calculated with their formulas. <strong>Conversion rate<\/strong> and <strong>dwell time<\/strong> cannot be calculated with the same formula and presented in the same chart.<\/p>\n\n\n\n<p>The documentation of the <strong>research and findings<\/strong> has to be as detailed as the team wants, it should not just show figures but how and why it happened.<\/p>\n\n\n\n<p>Here at <strong>OriginUX<\/strong>, we believe in documenting research that is strong and visually presented.<br>For example:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"782\" height=\"1024\" src=\"https:\/\/www.originux.com\/resources\/wp-content\/uploads\/2022\/03\/persona-782x1024.jpg\" alt=\"\" class=\"wp-image-1377\" srcset=\"https:\/\/www.originux.com\/resources\/wp-content\/uploads\/2022\/03\/persona-782x1024.jpg 782w, https:\/\/www.originux.com\/resources\/wp-content\/uploads\/2022\/03\/persona-229x300.jpg 229w, https:\/\/www.originux.com\/resources\/wp-content\/uploads\/2022\/03\/persona-768x1005.jpg 768w, https:\/\/www.originux.com\/resources\/wp-content\/uploads\/2022\/03\/persona.jpg 800w\" sizes=\"auto, (max-width: 782px) 100vw, 782px\" \/><\/figure>\n<\/div>\n\n\n<p>Here is an example of how the user interview was documented for an e-learning website project.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Guide_on_how_to_measure_in_a_framework\"><\/span>Guide on how to measure in a framework:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The <strong>HEART<\/strong> framework by Google is one way to calculate one feature or the entire website ROI from UX.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><\/td><td><strong><span style=\"color:#6c2dc7\" class=\"has-inline-color\">Goals<\/span><\/strong><\/td><td><strong><span style=\"color:#6c2dc7\" class=\"has-inline-color\">Signals<\/span><\/strong><\/td><td><strong><span style=\"color:#6c2dc7\" class=\"has-inline-color\">Metrics<\/span><\/strong><\/td><\/tr><tr><td><strong>Happiness<\/strong><\/td><td>Users find the app helpful, fun and<br>easy to use<\/td><td><img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\"> Responding to survey<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Leaving 5-star ratings<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Leaving user feedback<br><\/td><td> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\"> Net Promoter Score<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Customer satisfaction rating<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Number of 5-star reviews <\/td><\/tr><tr><td><strong>Engagement<\/strong><\/td><td>Users enjoy app contents and keep<br>engaging with it<\/td><td>Spending more time in the app<\/td><td>  <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Average session length<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Average session frequency<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Number of conversions <\/td><\/tr><tr><td><strong>Adoption<\/strong><\/td><td>New users see the value in the<br>product or new feature<\/td><td> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\"> Downloading, launching app<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Signing up for an account<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Using a new feature<\/td><td> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Download rate<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Registration rate<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Feature adoption rate  <\/td><\/tr><tr><td><strong>Retention<\/strong><\/td><td>Users keep coming back to the app<br>to complete a key section<\/td><td>  <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\"> Staying active in the app<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Renewing a subscription<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Making repeat purchases<\/td><td> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Churn rate<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Subscription renewal rate  <\/td><\/tr><tr><td><strong>Task Success<\/strong><\/td><td>Uers complete their goal quickly<br>and easily<\/td><td>  <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\"> Finding and viewing content quickly<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Completing tasks efficiently<br><\/td><td> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Search exit rate<br> <img loading=\"lazy\" decoding=\"async\" width=\"6\" height=\"6\" class=\"wp-image-466\" style=\"width: 6px;\" src=\"\/resources\/wp-content\/uploads\/2022\/01\/table-dot.png\" alt=\"table-dot\">  Crash rate   <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>To learn more about Google\u2019s HEART framework, visit the <a href=\"#\">blog<\/a> where we extensively explain how the framework works and help in calculating metrics of small features to the entire website.<\/p>\n\n\n\n<p>The importance of UX design cannot be overstated; <em>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<\/em>.<\/p>\n\n\n\n<h5 style=\"border-left: 1px solid #000000; padding-left: 10px;\"><i>\u201cWe need to stop worrying about proving the value of design and just focus on outcomes that provide value\u201d<\/i><br><br> <i>&#8211; Denis Weil<\/i><\/h5>\n\n\n\n<p>For many businesses, <strong>embracing UX design<\/strong> is as simple as replacing bad design. <strong>Poor design<\/strong> can result in <em>costly and time-consuming support calls, as well as lost revenue and increased development costs<\/em>. The Covid-19 epidemic has resulted in numerous success stories of well-designed experiences and applications assisting individuals and businesses.<\/p>\n\n\n\n<p>Perhaps it&#8217;s time to reconsider the entire premise of questioning design&#8217;s return on investment and start constructing a better world?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&hellip; <a class=\"more-link\" href=\"https:\/\/www.originux.com\/resources\/blog\/a-simple-framework-to-measure-roi-for-ux\/\">Continue reading <span class=\"screen-reader-text\">A simple framework to  measure ROI for UX<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":1345,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[11,6],"class_list":["post-418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-roi-for-ux","tag-ux","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Simple Framework to Measure ROI for UX<\/title>\n<meta name=\"description\" content=\"The value of a website&#039;s UX design and its impact can be calculated with different metrics. 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