The Value of User Experience
Discover the importance of UX to make data-driven decisions.
Leading market research company, Forrester, has found that every $1 invested in user experience brings an average of $100 in return. This is equivalent to a ROI of 9,900%.
The question which arises, then, is what is user experience and how can your business achieve this ROI?
User experience (UX) refers to how a user interacts with, and experiences, a company’s product or service. It encompasses the experience of a user navigating a website, placing an order on the website, as well as the customer service offered by the company. A common analogy used to illustrate this concept is that UX in a restaurant is everything from the utensils and food to the service, parking, lighting and music.
What does the data show about UX?
● A well-designed user interface can increase the conversion rate of your website by 200%.
● Companies which are leading in UX outperformed the S&P index by 35%.
● Customers take approximately 0.05 seconds to form an opinion about your website, which determines whether they remain or leave.
● 75% of customers make judgements about a company’s credibility based on its website design.
● 61% of users are unlikely to return to a site on mobile if they have trouble accessing it and 40% will visit a competitor’s site as an alternative.
● 23% of customers who have a positive experience tell 10 or more people about it.
● 8 out of 10 customers are willing to pay more for customer service.
● Jeff Bezos invested 100x more into customer experience than advertising during the first year of Amazon.
What is the loss from bad UX?
● Companies lose $62 billion each year due to poor customer service.
● Retailers lose $2.6 billion each year due to long loading times on their website.
● 70% of customers abandon their purchases due to bad user experience.
● 79% of people will search for another website if they don’t like what they see on one website.
What does this tell us about user experience?
There is significant business value in design. The best design performers increase their revenues and shareholder returns at almost twice the rate of their industry counterparts.
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