The ROI of UX

Provisioning a top tier user experience is arguably one of the most effective ways of connecting with end users and or customers. Virtually every business executive recognizes that; putting a price on the actual value proposition of UX as a product, however, that can be a bit trickier.

That’s because unlike other factors implicated in producing and delivering a product, improvements in UX are not directly correlated to gains in measurable financial indicators. The keyword here is ‘directly.’ While it might be challenging to draw a direct line connecting UX activities to revenue or cost savings improvements, there are ways to indirectly quantify the ROI of UX activities, many of which are more apparent than you would expect.

Bump in revenue

A high-quality user experience is a surefire way to drive user engagement. When customers interact with visibly cleaner and simple UX designs, they extrapolate the positive image created thereof to the entirety of the brand even though their interaction was limited to the UX interface. With the brand image cast in positive light consumers are set up to display heightened brand loyalty. And when user engagement and brand loyalty rises, you can expect a correspondent increase in conversion rates. Of course, it goes without saying that an increased rate of sales conversion ultimately results in higher revenues and indeed wider profit margins.

A practical example of how a fluid UX experience can propagate increases in conversion can be seen in the Bank of America story. Following a radical redesign of its UX interface for its online banking registration process, the company recorded a 45% increase in completed registrations.

Building a loyal and profitable consumer base

Provisioning a fluid and seamless UX is one way to guarantee consumer satisfaction. And with consumers satisfied you can expect the satisfy-retain-recommend mechanism to play out effortlessly. The result for your business is an increase in customer base to levels that would have otherwise required marketing and advertisement campaigns with very significant cost implications.

So, we now know that an optimized UX does more than just ‘satisfy’ consumers, but of what value is this realization in the grand scheme of things? It is a call to action for businesses that have relegated UX to the backburner. UX design and implementation is an essential recipe in the cocktail of success and one that practically all businesses cannot afford to ignore.

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