Convincing your company to set up a UX team
A dedicated UX team can help create products and services that are more successful in the market, leading to increased customer satisfaction, loyalty, and revenue.
User Experience (UX) has become an essential aspect of modern business. It encompasses the process of designing and creating products or services that provide a positive experience to the end-user. A good UX is critical to the success of any product or service, as it can greatly impact user satisfaction, loyalty, and retention.
Many companies out there have established their own UX team, others are starting to hire one or two UX designers, or choose to outsource some of their projects to freelancers. Convincing a company to set up a dedicated UX team can be challenging as the distribution of company resources to it needs to be well justified and companies, especially startups, may find it hard to do so.
In this article, we will explore some ways you can convince your company to set up a UX team and the benefits that come with it.
1️⃣ Show the value of UX
One of the best ways to convince a company to set up a UX team is to demonstrate the value that UX can bring to the business.
Present case studies, statistics, and success stories from other companies to show the impact that good UX has had on customer satisfaction, sales, and retention rates etc.
A good example is Apple’s success story. The company’s focus on user experience has been a key driver of its success, with products such as the iPhone and iPad becoming household names thanks to their intuitive interfaces, easy to use functions and accessibility features. This focus on user experience has also helped Apple build a loyal customer base and establish itself as a leader in the tech industry.
A report by Relently states that Apple has an Net Promoter Score (NPS)of 72, one that is significantly higher than the average NPS score of the consumer electronics industry. According to a report from research group Consumer Intelligence Research Partners (CIRP) in 2021, Apple maintained a loyalty rate of more than 90% from 2019–2021.
Apple’s success is also reflected in its financial performance. As of March 2023, Apple had a market cap of $2.619 trillion, making it the most valuable company in the world. In Q4 2022, the company shipped 72.3 million iPhones worldwide, maintaining its position as the number one smartphone maker in the world. Apple’s revenue for the second quarter of 2021 was $81.4 billion, representing a year-over-year increase of 36%.
2️⃣ Highlight the cost savings
A well-designed product can save a company a lot of money in the long run. The cost of fixing problems after the product has been launched is much higher than the cost of fixing them during the design phase.
Having a dedicated UX team can help identify potential problems before they arise and prevent costly fixes. By highlighting the cost savings that a UX team can bring, companies may be more willing to invest in one.
Referencing Design Management Institute (DMI)’s Design Value Index, I found out that design-driven companies outperformed the S&P 500 index by 180% over a ten-year period from 2013–2023. This is because design-driven companies prioritize user experience and design quality, which can lead to lower costs over time. For example, a study by Forrester, every dollar invested in UX brings, on average, 100 in return. This amounts to an ROI of over 9,900%.
*Plotted in this graph is the change in aggregated market capitalisation of aforementioned companies, indexed at 10 years ago.
3️⃣ Discuss the competitive advantage
In today’s competitive business landscape, having a competitive advantage is crucial.
Good UX can differentiate a company’s products or services from its competitors, leading to revenue growth and capturing of significant market share.
A good example is Airbnb, whose success can be attributed to its focus on user experience. The company’s platform is designed to make it easy for users to search for and book unique accommodations around the world.
According to Airbnb, as of 31 December 2022, the company had over 4 million hosts with more than 1.4 billion guest arrivals all-time in over 220 countries and regions with Airbnb listings. Airbnb’s global market share was estimated at 25.97% in 2021 (second highest among competitors) and the company also reported a revenue of $8.4 billion grew 40% year over year in 2022.
These statistics highlight Airbnb’s success in the competitive hospitality industry. The company’s user-friendly platform and unique offering have helped it differentiate itself from traditional hotel booking sites and capture a significant share of the market. Additionally, the company’s revenue growth indicates that its focus on user experience continues to drive success.
4️⃣ Explain the user-centric approach
UX teams put users at the center of the design process. They work to understand the needs and preferences of the end-user and create products and services that meet those needs.
By designing products and services that are user-friendly and meet the needs of customers, a company can attract new customers and retain existing ones. In addition, a well-designed user experience can lead to increased sales and upsells, as customers are more likely to purchase additional products and services that meet their needs.
According to a study by Forrester Research, companies that prioritize customer experience (CX) outperform their competitors in terms of revenue growth. Specifically, companies with high CX scores had an average revenue growth rate of 17% over a five-year period, compared to just 3% for companies with low CX scores.
5️⃣ Emphasize the long-term benefits
Investing in a UX team is an investment in the long-term success of a company. By consistently delivering high-quality user experiences, a company can establish itself as a leader in its industry and build a strong reputation among its customers. This, in turn, can lead to increased brand loyalty and recognition, which can be invaluable in the long run.
By designing products and services that are easy to use and meet the needs of users, a UX team can help improve customer satisfaction and loyalty. This can lead to increased customer retention rates, as satisfied customers are more likely to continue using a company’s products and services and recommend them to others. A study by Bain & Company found that increasing customer retention rates by just 5% can increase profits by 25% to 95%.
Furthermore, loyal customers are also more likely to forgive a company for mistakes and continue to support it during difficult times.
Summary
To convince your company to set up a UX team, you need to explain the great benefits that come with it.
By showing the value of UX, highlighting the cost savings, discussing the competitive advantage, explaining the user-centric approach, and emphasizing the long-term benefits, companies may be more willing to invest in a UX team.
Let your company know that a dedicated UX team can help create products and services that are more successful in the market, leading to increased customer satisfaction, loyalty, and revenue like what we’ve seen with Apple and Airbnb.
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