{"id":26791,"date":"2021-06-02T11:14:03","date_gmt":"2021-06-02T09:14:03","guid":{"rendered":"https:\/\/www.testingtime.com\/?p=26791"},"modified":"2021-10-08T09:17:53","modified_gmt":"2021-10-08T07:17:53","slug":"a-comprehensive-guide-to-the-roi-of-user-experience-ux","status":"publish","type":"post","link":"https:\/\/www.testingtime.com\/en\/blog\/a-comprehensive-guide-to-the-roi-of-user-experience-ux\/","title":{"rendered":"A comprehensive guide to the ROI of User Experience (UX)"},"content":{"rendered":"

Table of contents<\/h3>\n

1. How UX affects business revenue<\/a>
\n2. Basics about ROI<\/a>
\n3. Two myths of UX ROI<\/a>
\n4. Calculating UX ROI<\/a>
\n5. Why should you invest in UX<\/a>
\n6. Key areas that can help elevate the user experience<\/a>
\n7. Conclusion<\/a><\/p>\n

<\/a>1. How UX affects business revenue?<\/h2>\n

When we talk about business ROI, we usually don\u2019t include the value of UX design. UX can directly influence the overall experience of the customer with your business. This means the better the user experience; the more will be the engagement, thereby contributing to your bottom line.\u00a0<\/span><\/p>\n

The Mckinsey & Company international consulting firm <\/span>conducted studies to measure revenues<\/span><\/a> and shareholder returns related to good design. They found that the best design performers increase their revenues and returns at nearly twice the rate of their industry counterparts.<\/span><\/p>\n

\"A

Source: McKinsey<\/a><\/p><\/div>\n

<\/a>2. Basics about ROI<\/h2>\n

Return on investment (ROI) is a globally accepted KPI for evaluating the efficiency of an investment. It tries to directly measure the amount of return (in percent) on a particular investment. <\/span><\/p>\n

<\/a>2.1 What is ROI?<\/h3>\n

ROI is a standardized financial KPI that helps determine the profitability of an investment. It is a ratio that compares profits or losses from an investment.\u00a0<\/span><\/p>\n

ROI is calculated as (Income – total investment \/total investment) * 100<\/span><\/p>\n

For instance, if you invested $1000 in UX and earned over $1500, then your ROI will be 50%.
\n<\/span>ROI = ($1500 – $ 1000 \/$1000) * 100 = 50%<\/span><\/p>\n

An ROI of 15-30 percent is considered good across industries. When it comes to marketing, a ratio of 5:1 is deemed to be strong for most businesses.<\/span><\/p>\n\t\t\t

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Toolbox with templates for measuring UX KPIs<\/h2>\n\t\t\t\t\t\t\t

The free toolbox reliably supports UX researchers with user experience evaluations. It allows a valid, trustworthy and objective measurement of user perception. The three relevant KPIs\u2014Single Ease Question (SEQ), Net Promoter Score (NPS) and System Usability Scale (SUS)\u2014help you to better assess risks and derive improvements based on them.<\/span><\/p>\n\t\t\t\t\t\t\t

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<\/a>2.1 Why does ROI matter?<\/h3>\n

When you hire someone (developers, marketers, sales representatives, or graphic designers), you invest in them. Your investment must generate some income for you to continue the business.\u00a0 <\/span>ROI helps understand if the investment is generating profit or loss, so you can choose to proceed only with the most promising ones or optimize the strategies.\u00a0<\/span>While there are numerous types of ROIs to measure in each business (e.g., hiring new employees, purchasing a new tool, sales strategies, etc.), we will stick to the ROI of user experience.\u00a0<\/span><\/p>\n

Measuring the ROI of UX helps determine:\u00a0<\/span><\/p>\n