Business Value of UX: How Investing in UX Design Can Lead to Product Success in the Market

Sep 07, 2023 0 min read 362
Daria Kyrychenko Designer
Business Value of UX: How Investing in UX Design Can Lead to Product Success in the Market

The importance of user experience is a key factor in today's world of product development and service delivery. More and more companies are realizing that not only the functionality and performance of a product play a crucial role in its success, but also the level of users' interaction with it and their feelings while using it. In this article, we will view the reasons of the importance of user experience for the product success and practical steps that may assist in the improvement of its quality.

First of all, it is worth emphasizing that the user experience encompasses much more than just the product interface. It includes all user interactions with the brand, from the first contact to the last one. User satisfaction, emotions, loyalty, and desire to use the product again - all these aspects depend on the quality of UX.

Besides, a successful user experience helps increase conversions, reduce customer churn, and boost customer satisfaction. This means that investments in improving the user experience usually pay off in the form of increased revenues and a stronger position in the market. Nowadays, when the competition in the market of products and services is continuously progressing, paying attention to UX has become a necessity for the successful survival and development of companies.

Why investing in UX is a strategic business decision

Positive usability leads to greater number of users, an increase in the number of recommendations, and an improvement in brand reputation, which are the most important factors for the success of a product in today's competitive environment. In addition, the usability and intuitiveness of the interface directly affect conversion. When users can easily achieve their product goals, whether it's making a purchase or completing a task, they're more likely to convert. And, as you know, the ultimate goal of any business is income. Therefore, it is important to communicate to businesses the value of UX from a business perspective and how it will help reduce costs and increase their bottom line.

Cost reduction

As far as cost reduction is concerned, implementing UX techniques at the product development stage is a good tool for this. After all, correcting a bad decision at the design stage is much cheaper than doing that at the stage of the product  launching.   As an example,we can mention several cases of well-known development companies that implemented UX practices in the early stages, that lead to the reduction of errors and costs for the development itself.

  • Windows 7: During the development of Windows 7, Microsoft conducted extensive UX testing and feedback collection. Involving users in the development process through various iterations allowed Microsoft to identify and fix usability problems at an early stage. According to a study conducted by Forrester Research, this approach made it possible to reduce the number of calls to the support service by 50% and reduce the costs of development and error correction by 40% compared to previous versions.
  • Intuit and QuickBooks Online: Intuit focused on improving the user experience of its QuickBooks Online accounting program by involving users in the development process from the very beginning. Through user research, testing, and iterative design, Intuit reduced development costs by 33% and achieved a 37% reduction in support calls through improved usability. This example demonstrates how addressing UX issues early on can lead to significant cost savings, as reported by Nielsen Norman Group.

These examples highlight the importance of implementing UX practices early in development to identify and resolve potential problems before they become more costly to fix. By engaging users and conducting usability testing, these companies were able to reduce errors, improve usability, and ultimately save time and resources during product development.

Increase in profit

A well-designed UX is directly related to customer satisfaction. When users find a product easy to use, visually appealing, and relevant to their needs, they are more likely to have a positive experience, which in turn increases conversion, because when users find it easy to complete tasks or make purchases, they are more likely to perform. For example, the Baymard company was conducting  a research for 12 years and found out that 70.19% of all e-commerce visitors abandoned the cart. That happened due to various factors, that, according to the research of Baymard, are as follows:

How investing in UX design can lead to product success in the marketplace - 01

That is why, the implementation of UX research and principles is expected to help businesses identify these reasons, and dealing with them will reduce the astonishing percentage of rejections, increasing conversion and profits instead. Here are some successful examples:

  • Amazon's implementation of one-click checkout is a classic example of how UX design leads to increased revenue. The hassle-free checkout process reduced bounces and boosted impulse purchases, driving Amazon's revenue by 5-10%.
  • Booking.com's research-based approach to UX optimization led to a 9.5% increase in bookings, according to a Nielsen Norman Group case study. By eliminating user pain points and streamlining the booking process, the company increased user conversion and increased revenue.
  • Optimizing the speed of Google search pages. A study conducted by Google showed that extra 500 milliseconds of page load time can reduce traffic by 20%. To improve user experience, Google optimized the loading speed of search pages, which resulted in a 20% reduction in bounce rates. This improvement in the user interface helped Google maintain its dominant position and increase its advertising revenue.

Surely, companies that invest in UX are investing in customer satisfaction, customer loyalty, and long-term success. A user-centric approach not only improves the product, but also strengthens the brand, customer relationships, and ultimately drives business growth.

The impact of UX on conversion, sales, and customer loyalty

The Business Value of UX_ How investing in UX design can lead to product success in the marketplace - 01

As we've seen above, user experience impacts product success, can reduce business costs, and most importantly, increases revenue.

UX has a direct impact on conversion - the percentage of visitors who complete a targeted action, such as filling out a form, placing an order, or signing up. Therefore, it is the main tool that encourages users to the desired actions.

In what way?
Let's take a look at some tips that help minimize users' challenges and ultimately increase conversions.

User research.

Conducting research on our target audience is essential in order to understand their needs, expectations, and behavior. After all, in this way, we can design an interface that best meets their needs and expectations. Analyzing user experience helps identify pain points on the site that can be improved. This analysis can result in an optimized interface and structure of the site, which, in turn, facilitates better interactions with users, increasing the probability of their conversion into customers. As a result, the probability of successful sales and, accordingly, profit increases. Of course, effective user research takes time and resources, but it might be a key tool for increasing conversions and improving the financial health of a business in the long run.

Simplicity and clarity.

We must be sure that the interface is intuitive for the user even without additional explanations. The user should easily and quickly achieve their goals while using the product, be it a website or an application. Research is also needed to guarantee the simplicity  and clarity of the interface.

Clear and understandable calls to action (CTA).

CTAs are the elements that encourage the user to perform a desired action, such as placing an order, subscribing to a newsletter, downloading a file, or moving to the next page. We need to make such elements expressive, noticeable, and able to clearly indicate the expected action. Ambiguity and clarity help users understand what will happen after clicking a button. In general, well-designed CTAs can significantly increase the likelihood that users will take targeted actions, which, in turn, increases conversions.

Easy navigation.

Provide clear and easy navigation. Use logical categories and subcategories so that the users could quickly find the information or product they need. According to the Research by Baymard,  most of E-Commerce sites have navigation problems. So, regarding  the ultimate ability of users to find a relevant product, as the latest UX evaluations show, the average performance of the most profitable site in the US and Europe is "poor" (20% are "decent", 34%  are "mediocre", 41% are "poor" and 4% are "very poor").

Minimal forms and simple ordering.

In case of filling out a form, it is  needed to minimize the number of fields for the user, leaving  some only for the most necessary information. Long forms can scare away users. If we lead the user down a long and complicated path, (s)he will simply close the site and go somewhere else. According to the study conducted by Baymard, 18% of users abandon an order due to a "too long/complicated checkout process". They also found that the average site needs to make 39 unique improvements to the checkout process to achieve a 35.26% increase in conversions, which, as usability test results show, could potentially improve an average large e-commerce site just by improving interface of the checkout user order.

Download speed.

Slow pages can annoy users and degrade their experience.

A Google page load time study collected the data presented below. This data is vivid enough to understand how important the site load time is and why we should ensure  that the site is always running fast.

  • Increasing the loading time of a web page by 1-3 seconds causes the boost of bounces probability by 32%.
  • Increasing page load time by 1-5 seconds increases the probability of bounces by 90%.
  • A page load time of 1 to 6 seconds increases the probability of bounces by 90%.
  • A page load time between 1 and 10 seconds increases the probability of bounces by 123%.

Therefore, it is necessary to ensure that the pages load quickly, and also not to forget to show the user the progress of the download if it takes some time. This will let the user know that the page will load and not just hang.

Responsive design.

Responsive design allows the product to adapt to any device, making user experience more convenient and accessible. As a result, it attracts more users and can increase conversion. With more and more users turning to mobile devices to access websites and apps, responsive design allows you to reach wider audience. This is especially important if the target audience is actively using mobile devices. It should also be taken into account that the user, accessing the product from different devices, should be equally satisfied, so it is recommended to pay attention to it when developing adaptive versions of the product in detail.

Visual clues.

It is necessary to use informative messages, icons, and graphic elements that will help the user navigate the interface, understand the functionality, and take the necessary actions. This makes the user experience more intuitive, informative, and engaging, which in turn can lead to higher conversions because users are more likely to take targeted actions on your site or app.

Testing and optimization.

It is very important to regularly survey and test users, and see how they interact with the interface, this will help to constantly improve the product and implement improvements.

In addition, UX design helps increase sales by building trust and authority. If users have a positive experience with a website or app, they are more likely to trust the brand and make a purchase with confidence. Clear and convincing call-to-action buttons, intuitive navigation, and up-to-date information about the product - all contribute to the smooth passage of the purchase path and increase the chances of a successful sale. Companies that prioritize UX design not only increase conversion but also improve customer retention and value, ensuring long-term business growth.

Examples of companies that have succeeded with a focus on user experience

In today's market, success is most often determined by a company's ability to establish a relationship with its users, support them, and create an experience for them that meets their needs and expectations. Companies that have realized the key role of UX in building customer loyalty and business development have become pioneers in their industries. Now we are looking at these products and often don't understand how it could  have been possible to take one or another path for the user differently, but these companies have achieved this precisely because of research and testing. Let's look at some illustrative examples:

Airbnb - 01

Airbnb

The accommodation booking service focuses on convenience and personalization of the experience for users. An intuitive interface, high-quality housing photos, and reviews help users make informed decisions when choosing a place to live. They are some of the most impressive examples of companies that have achieved tremendous success through their focus on user experience.
Founded in 2008, this company has transformed the home rental market by providing unique and convenient options for travelers around the world.

Netflix- 01

Netflix

 For the last decade, Netflix has allocated a lot of resources to improving its design. They know that the user experience needs to be constantly adapted as people around the world watch movies on a variety of devices in a variety of network environments. Therefore, the design team  has always conducted various tests and experiments to constantly improve the user interface. They have put a lot of effort into creating an intuitive and personalized interface for consumers, which has significantly contributed to their growth and user loyalty, attracting millions of people worldwide and setting new standards in the entertainment industry.

Slack - 01

Slack

The success story of Slack is really closely related to the fact that the company pays a lot of attention to the convenience of working with users. The company has revolutionized workplace communication and collaboration by creating a platform that prioritizes ease of use, flexibility, and a user-friendly interface. The Slack interface was designed with simplicity in mind. Its clean and intuitive design allows users to easily navigate and understand the platform without the need for extensive training. Slack has also actively listened to user feedback and refined its features based on their suggestions. This iterative approach ensured that the platform was always in line with the needs and preferences of users. In general, Slack's success is due to the company’s ability to make communication and collaboration enjoyable and efficient. By understanding user needs and constantly improving the platform based on feedback, Slack has created a user experience that sets new standards for workplace communication.

uber - 01

Uber
Thanks to the constant improvement of the interface, Uber not only gained popularity but also became one of the most popular brands in the transportation industry. They have created a user-friendly app interface that allows users to book rides with just a few taps, track the driver's location, and make cashless payments. They have minimized the number of steps required to order a ride, allowing users to quickly and easily achieve what they want.

Besides, Uber regularly updates its application, taking into account user feedback and introducing new features. These updates are designed to improve usability, performance, and security. By constantly improving the app, Uber provides users with a consistently pleasant experience.
Importantly, Uber is making efforts to make its app accessible to users with disabilities. Such features as screen reading and voice commands are built into the app, making the platform more inclusive.
So Uber's commitment to creating a convenient user interface is the reason for its global success.

These are just a few examples of companies that have succeeded by putting user experience at the heart of their products and services, making them easy to use, functional, and enjoyable for users, so don't underestimate the benefits of UX for business. We can definitely say that investing in UX design is one of the financial tools for business, because, in the long run, it reduces costs, and increases profits, customer retention, and overall business growth.

Software Development Hub is a team of like-minded people with broad experience in software development, web engineering and mobile engineering. We provide clients with a full comprehensive custom development cycle, including architecture planning, business analysis for clients, UI/UX design, quality control, project management and support.

Our portfolio includes medical information systemse-Prescription systems, applications for tracking medicines with a QR scanner, medical ERP systems, etc.

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UX UX Design Design UI/UX

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