“ A good Customer Experience is success key to Best Revenue Generation ”
UX ROI is all about making more profit by your services. Very few companies are aware of the concept of ROI – Return On Investment in UX. To make profit, companies spend lot of money in ad, online campaigns and other services like support system (we are not saying that these practices are wrong), but they neglect the research concept of user experience. Lack of which causes user unable to find desired service on your site or get stuck in some issue, then they have to contact your support system, which adds cost to the company, and this happens because you are not clear with user requirements.
“ Invest in User Research process instead of Investing in Support System ”
“ 70% of projects fail due to lack of User Experience or User Acceptance ”
“ Pay 10% in UCD-User Centered Design and get 100% Sales Increases, Triple usage of Features ” – NN/g
Cost Of Usability – NN/g
To access the total cost of Usability (as opposed to the price of a single test), we collected data from 863 design projects that included usability activities. Depending on how the estimate is made, the proportion of these projects’ budget that was spent on usability was 8%-13%.
Averaged across the 42 pairs of measures (excluding five outliers with exceptionally large improvements in usability), usability increased by 135%. With these outliers included, the average improvement was 202%.
The improvement in usability metrics differed depending on what was being measured:
|Metric||Average Improvement Across Web Projects|
|Sales / conversion rate||100%|
|Traffic / visitor count||150%|
|User performance / productivity||161%|
|Use of specific (desired) features||202%|
ROI Calculation – Usability Gov
• (# of errors) x (avg. repair time) x (employee cost) x (# of employees) = cost savings
• Example: (2 errors/week) x (60 mins) x ($30/hour) x (100 employees) = $6,0000/week or $300,000/year
Cost of Development and Maintenance:
• (# of changes) x (avg. hrs/change) x (cost of developer) x (4, if late) = cost savings
• Example: (20 changes) x (8 hrs each) x ($40/hour) = $6,400 if fixed early or $25,600 if changed late
• (time saved) x (employee cost) x (# of employees) = cost savings
• Example: (1 hr/week) x ($30/hr) x (1000 employees) = $30,000/ week or $15,000,000/year
… I think this is enough for UX ROI understanding, keep checking for latest updates, signing off – Sanket