UX Design

UX ROI – User Experience, Return On Investment

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“ A good Customer Experience is success key to Best Revenue Generation ”

UX ROI is all about making more profit by your services. Very few companies are aware of the concept of ROI – Return On Investment in UX. To make profit, companies spend lot of money in ad, online campaigns and other services like support system (we are not saying that these practices are wrong), but they neglect the research concept of user experience. Lack of which causes user unable to find desired service on your site or get stuck in some issue, then they have to contact your support system, which adds cost to the company, and this happens because you are not clear with user requirements.

“ Invest in User Research process instead of Investing in Support System ”

Some Fats:
“ 70% of projects fail due to lack of User Experience or User Acceptance ”

“ Pay 10% in UCD-User Centered Design and get 100% Sales Increases, Triple usage of Features ” – NN/g

Benefits:

  • Reduce development time
  • Stop wasted development time
  • Fast & accurate productivity
  • Improved Performance (user error reduction, ease of use & ease of learning)
  • Decrease support cost
  • Reduce training & documentation cost
  • Reduce maintenance costs
  • Increase Sales (purchases & transaction)
  • Improve credibility
  • Increase Exposure (user satisfaction, trust in system & increase traffic)

Cost Of Usability – NN/g
To access the total cost of Usability (as opposed to the price of a single test), we collected data from 863 design projects that included usability activities. Depending on how the estimate is made, the proportion of these projects’ budget that was spent on usability was 8%-13%.

Averaged across the 42 pairs of measures (excluding five outliers with exceptionally large improvements in usability), usability increased by 135%. With these outliers included, the average improvement was 202%.

The improvement in usability metrics differed depending on what was being measured:

 

Metric Average Improvement Across Web Projects
Sales / conversion rate 100%
Traffic / visitor count 150%
User performance / productivity 161%
Use of specific (desired) features 202%

 

ROI Calculation – Usability Gov

Error:
• (# of errors) x (avg. repair time) x (employee cost) x (# of employees) = cost savings

• Example: (2 errors/week) x (60 mins) x ($30/hour) x (100 employees) = $6,0000/week or $300,000/year

Cost of Development and Maintenance:
• (# of changes) x (avg. hrs/change) x (cost of developer) x (4, if late) = cost savings

• Example: (20 changes) x (8 hrs each) x ($40/hour) = $6,400 if fixed early or $25,600 if changed late

Productivity:
• (time saved) x (employee cost) x (# of employees) = cost savings
• Example: (1 hr/week) x ($30/hr) x (1000 employees) = $30,000/ week or $15,000,000/year

… I think this is enough for UX ROI understanding, keep checking for latest updates, signing off – Sanket

P.S. – Above article have feelings to share knowledge, if you found any language or grammatical mistake please ignore ☺.

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