We (should) all know by now that getting the user experience (UX) of your user interface (UI) right equals more engaged users who stay and spend more money. But it’s way bigger than that. Did you know that investing in UX/UI can influence the value of your business and stock price too?
There are a bunch of statistics out there extolling the importance of optimising digital user experiences. For example:
- Every $1 invested in UX returns between $2 – $100
- Leaders in UX outperform the S&P index by 35%
- Strategic UX can raise conversion rates by up to 400%
- 38% of users will stop interacting with a poorly designed mobile app or website
- 13% customers will share bad user experiences with 15 or more people
- 72% will share positive user experiences with 6 or more people
But rewind a bit further back in UX design history, and there’s an experiment that proved investing in user experience correlates directly to a higher stock price.
Every $1 invested in UX returns between $2 - $100
Back in 2006, creative design agency Teehan+Lax decided to test a hypothesis that companies who valued providing great user experiences would see it reflected in their stock price.
They invested $5k in 10 companies who they considered to be leaders in delivering great user experience and tracked their performance for a year. Those companies included Apple, Google, Netflix, Nike and Electronic Arts and in a year their $50k investment had become $70k.
Reviewing this ten years later they found that the value of those stocks would have reached nearly $306k, a gain in excess of 500%. Beside this fascinating piece of research, the Teehan+Lax agency team went on to join Facebook en masse in 2015 – clearly investing in UX is a good move for any business!
In another study by the NEA in 2016, 408 different companies were measured on their focus and financial investment in design against sales and customer retention. The study proved categorically that dedication to designing for their users saw engagement and profitability soar. Further, a 2018 McKinsey & Company quarterly report on ‘The business value of design’ found those utilising the best design practices increased their revenues and returns at nearly double the rate of industry counterparts.
Strategic UX can raise conversion rates by up to 400%
What are the main elements of user experience?
We think there are five core aspects of good UX that businesses should
focus on and invest in:
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- Well-organised information architecture: Making it super-intuitive and easy for users to navigate around your digital destination, find what they’re looking for and complete tasks.
- Interaction-oriented design: Personalising user experiences aligned to user behaviours (and journeys) – know your audience, and how they want to interact with you.
- Usability-aligned design: Honing usability so that users can effectively attain their end objective without getting confused, lost or interrupted.
- Visually-appealing design: Getting the aesthetic appeal right makes the experience memorable, generates brand affinity and delivers moments of joy.
- Continual user research: Don’t stop asking the audience – their UX expectations, preferences and objectives are ever-evolving, and you need to keep pace with them
- Well-organised information architecture: Making it super-intuitive and easy for users to navigate around your digital destination, find what they’re looking for and complete tasks.
38% of users will stop interacting with a poorly designed mobile app or website
Get these right, and you’ll likely see an increase in conversions (visitors > customers), longer dwell time, and an uplift in average customer spend. As well as a decrease in visitors bouncing off to a competitor, complaints and the need for customer support to resolve issues, and training (a more intuitive interface improves efficiencies, customer perception and loyalty).
Now we’ve demonstrated the value of investing in UX/UI, why not let our design architects help you optimise the user experience of your digital interface. Reach out via our contact form or email us at hello@randomcolouranimal.com for an initial discussion.
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