UX ROI: What’s the Value of Investing in User Experience? [Infographic]

The value of UX

Research shows that a well-designed UX can raise a website’s conversion rates by 400%. How’s that for ROI?

  • Deliver personalized product page recommendations
  • Make your site multilingual
  • Simplify the checkout process
  • Upgrade your load balancer to increase site speed
  • Optimize call-to-action (CTA) buttons
  • Implement a responsive web design
  • Conduct customer surveys

Lower development costs

In the software development industry, the typical cost of an engineer is between $80-$120 per hour, with some freelancers charging up to $200. For many eCommerce companies, a significant portion of web development costs goes toward identifying and resolving code errors that are negatively impacting user experience. In fact, the average software developer spends 75% of their time fixing bugs.

Accelerated key performance indicators (KPIs)

We rely on a variety of KPIs to measure the success of a website, and many of these are directly tied to the quality of the user experience. In other words, invest in user experience, watch KPIs improve, and watch your bottom line follow suit.

  • Customer retention rate
  • Average order value
  • Customer acquisition cost
  • Time on site
  • Churn rate

Effective user testing

When we layout our design process to clients, we sometimes raise a few eyebrows at our extensive user testing. As a top-ranking UX design agency, user testing permeates our design process, and many questions how our incessant, repeated experiments translate into value.

  • What features and content users do and don’t interact with
  • Which parts of the navigation flow cause confusion or frustration

How to calculate the ROI of your UX activities

There are simple equations you can use to see how much opportunity your business is missing out on with its current UX, as well as the kind of results you can expect by implementing a superior design. Here is a quick way to calculate UX ROI:

Bottom line

It’s no surprise that an increasing number of eCommerce companies are noticing the value of investing in user experience. Joe Gebbia, a co-founder of Airbnb, credits the app’s UX as the main reason for the company reaching $10 billion in sales. And Jeff Bezos, the founder of Amazon, invested a hundred times more into UX than advertising during the company’s first year.

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Codal Inc.

Codal Inc.

A digital solutions partner with a data-driven approach that empowers companies at the intersection of UX design, development, & business.