User experience is the process that helps improve customer satisfaction when interacting with a product or service. Investing in UX means for companies to increase their revenue more than twice as much as their competition. According to the article The Case of the $300 Million Button by Plytix, for every dollar invested in UX, there is a return of between two and one hundred dollars.
The importance of UX
Forrester Research in its article The six steps to justify a better UX, tells us that approximately 50% of sales are lost because users do not find the information they are looking for in order to make a purchase decision. In Latin America alone, a bad shopping experience is enough to make us abandon a company, according to statistics.
What is a good UX?
To avoid losing customers you must make sure you have a good UX, but what do we mean by that? We mean that you must provide your users with the best possible experience, taking into account what they want to find and what is the opportunity they represent for us.
Some points you should take into account are the following:
- Loading speed
- Usability / user-friendly interfaces
- Human-centered platforms
Return on investment
So what about UX ROI - why is it important? Because it allows you and members of your company to have visibility into how changes implemented at the UX level impact revenue and costs, so you can analyze whether and how it benefits your company.
What is ROI?
It is an estimate that allows you to conceptualize the relative value of this type of design projects, it is important to emphasize that they are not financial projections. You must consider the cost of the project within the return you want to communicate, and we advise you to project the ROI to two or five years.
How to calculate UX ROI?
It can be calculated through revenue impact, savings or other important KPIs for the company. To calculate it, we recommend following these steps:
You will need to choose a metric that can demonstrate improvement. Among those you can find:
- Surveys: satisfaction rates, user-friendliness index, perceived usability, scores.
- Analytics: frequency of return visits, feature utilization, new accounts or visits, conversion rate, recurring visits, renewal rate, abandonment rate, completion rate, counts and error rate.
- Qualitative testing: success rate, time to complete the task, error rate, productivity.
- Customer support: number of support tickets, calls, chats, emails and texts, hours of training required, number of complaints.
Select a KPI to translate your metric, you should choose based on what your organization is interested in, it can be:
- Customer Lifetime Value (Customer Lifetime Value)
- Employee turnover rate
- Employee Productivity
Convert your metric into a KPI, for example, if your metric is "reduction of support tickets related to the registration process" and your KPI is the "savings derived by these support tickets", the process to follow would be this:
If each ticket costs $100:
The ticket reduction would be 9k, therefore:
The cost savings would be 900 thousand, therefore saving $10,800,000 per year.
The UX is important for the improvements for your users and will bring multiple benefits to your company. After reading all the advantages that implementing a good UX can have for your company, are you going to continue without working on it?
At BluePixel we specialize in creating and optimizing user-centric platforms, feel free to contact us at firstname.lastname@example.org to talk about how to improve your platform.