Impacts of UX Design on Business
Introduction
User experience in the digital product impacts customer retention and satisfaction. Simply, a great user experience means it is easy to use or navigate and feels better when using the product. Providing a great user experience needs a deep understanding of the problems that users face and how to provide the best solution with a better experience.
When it comes to the business, UX design can significantly impact business value. Bad UX design can make users never return to your website or product because they had a negative experience. On the other hand, customers would like to return when they have a memorable user experience, and they quickly turn into loyal customers, which brings more profits.
The Significance of UX Design in Business
When a company invests in design, it serves as a sign that it prioritizes providing a positive experience for the customer. Excellent design can serve as an indicator of this commitment.
The halo effect is also reflected in brand valuation: a strong brand increases the company’s perceived value. Examples can be companies like Coca-Cola or Nike which have strong design values and achieve high brand equity.
McKinsey’s Findings: Design-Driven Approaches
An extensive McKinsey survey has shown that companies incorporating design-driven approaches into their business outperform their non-design-focused competitors. That turned out to be applicable to companies selling either physical goods, digital products, or a combination of both.
According to McKinsey, a good design puts companies in a winning position to outperform the market even by two to one. In other words, the design-focused frontrunners have an advantage over the competitors.
But the survey further shows that to land the market leader position first, companies must put design into their DNA: and implement it through all departments and phases of product development.
Impacts of UX Design on Business
Studies show that companies that provide a great user experience have better revenue growth than companies that don’t pay attention to UX design.
- User Experience design has a high correlation with company revenue growth.
- Research shows that every $1 invested in UX brings $100 in return, 9,900% of ROI.
- Well-designed UI could increase the website conversion rate by 200%, and user-friendly UX design can bring the conversion rate up to 400%.
These studies prove how UX design can bring so much value to the business and is the most crucial factor for successful digital product design. Bank of America, for example, increased the registration rate by up to 24% after redesigning the UX for registration. The results show that understanding usability and user experience significantly impacts customer acquisition and satisfaction.
Design-driven companies lead industries
The difference between design-driven companies and others is putting the customer-first theory into practice: design leaders don’t make assumptions about the customer, but instead learn what the customer wants.
Why are brands like Airbnb, Apple, Asos, and Google almost universally set as examples of design-driven companies? Their products are created by listening to, interacting with, and taking inspiration from customers. Design-focused companies aim to serve the user.
Airbnb, for instance, started as a website listing accommodation. Through listening to its users’ expectations, it transformed into much more — a global brand for travel and online experiences. They state, “We believe that design is contextual, inspiration comes in many forms, and that collaboration with our community is the key to well-designed experiences.”
Apple is well known for its excellent product design. It’s also organized around design: the company doesn’t have separate departments with competing managers, but a functional structure in which different divisions align their expertise.
Asos grew in online fashion shopping by placing the user first early on. For example, over four months in 2018, it made 700 consumer-facing improvements.
Google, which started as a tech company, is now widely regarded as a design-first one with the motto: “ Focus on the user and all else will follow.”
Being design-driven means focusing on empathy, inclusion, and open communication with customers and employees. This approach leads to smoother collaboration and the ability to make better-informed business decisions.
Conclusion
UX design is not just a design philosophy; it’s a business strategy that empowers companies to thrive, evolve, and innovate in the face of relentless change. By prioritizing the user experience, businesses can forge stronger connections with their customers, boost their bottom line, and ultimately, chart a course toward lasting success in the digital age.
Further Reading and Sources:
https://www.linkedin.com/pulse/value-ux-design-tacpoint/
https://www.mckinsey.com/capabilities/mckinsey-design/our-insights/the-business-value-of-design
https://www.toptal.com/designers/web/business-value-of-design
