User experience is a hot topic in today’s business world. And for good reason, because as companies adapt to new technology, trends, and consumer demands, an effective user experience is critical to business success. That sentiment is being echoed by industry leaders like Andrew Kucheriavy, founder and CEO of Intechnic. Kucheriavy contended in a recent article published in Forbes that the business case for experience design is “a matter of survival.” In fact, only half of consumers are satisfied with a business’s mobile experiences. Consumers expect more, better, faster—and there is pressure on companies to keep pace. Technology is transforming organizations and there is a growing interest in the trends that are most likely to impact experience design, maximize profits and minimize costs.
The proof is in the stats. Kucheriavy referenced recent research from Forrester that showed, “on average, every dollar invested in UX brings 100 in return. That’s an ROI of 9,900%.” There’s not a CEO on earth who would turn down a 9,900% return on investment opportunity.
Another study, conducted by the Design Management Institute, analyzed 16 publicly traded stocks from design-centric companies based on a set of criteria called the Design Value Index. The Design Value Index includes criterion such as “design operates at scale across the enterprise” and “design sees a growing level of investment to support its growing influence.”
They found that the organizations that meet the Design Value Index showed a 211% return over the S&P 500. This marks the third year in a row we have seen such results in excess of 200% over the S&P. However, a great designs’ influence resonates in more than just the stock market rankings. The report concluded that companies that embrace and invest in design also showed, “a highly integrated and influential force that enables the organization to achieve outsized results.”
But don’t forget, the success of UX depends on how willing a company is to invest in UX. Getting key stakeholders on board can be a challenge, but it’s crucial they understand, “the short and long-term benefits of UX to the business,” Kucheriavy said in his Forbes piece.
Kucheriavy makes a big argument for data, saying that when leaders rely on their own experience and intuition rather than listening to their users and understanding the data that supports UX decisions, they’re destined to fail and “will continue to do so until executives start putting their customers’ opinions first.”
Mr. Kucheriavy’s article and the Design Management Institute study add further proof that companies and designers that recognize the relationship between user experience design and business growth are the ones who are more likely to find increased profit, customer retention and a brighter talent pool. Those who see this are ahead of the game, are already acquiring the talent they believe will bridge that gap between them and the customer experience, and investing in UX and design across the organization.
Where does UX fall on your company’s list of priorities? How impactful is your post-purchase user experience? Let us help make your post-purchase experience an ROI winner and the start of a powerful customer journey.