ROI: Why UX Matters
What is the real measure of success when improving or enhancing your digital products? UX has a formula (authored by Jakob Nielsen of the Nielsen Group) that we use as an accountability yardstick for our designs and recommendations. While Nielsen’s formula measures the success of a web site, the principles can be applied to any product you’re hoping to improve.
B = amount of business done by the site
V = unique visitors coming to the site
C = conversion rate (the percentage of visitors who become customers); note
that the concept of conversion applies not only to ecommerce sites, but to
any site where there is something you want users to do
L = loyalty rate (the degree to which customers return to conduct repeat
So what does this look like in dollars and cents? The Usability Professional Association posts the following value proposition:
Value proposition: High return on savings and product usability
"The rule of thumb in many usability-aware organizations is that the cost-benefit ratio for usability is $1:$10-$100. Once a system is in development, correcting a problem costs 10 times as much as fixing the same problem in design. If the system has been released, it costs 100 times as much relative to fixing in design." (Gilb, 1988)
"The average UI has some 40 flaws. Correcting the easiest 20 of these yields an average improvement in usability of 50%. The big win, however, occurs when usability is factored in from the beginning. This can yield efficiency improvements of over 700%." (Landauer, 1995)
For real examples of how UX impacts a development project, view our case studies.
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