What is a UX redesign worth in numbers?


It's about having a balance, a moment of rest, a conscious pause from work by turning your gaze inwards.

A long-term investment


Investing in a good user experience (UX) is basically like investing in your own education. It's a long-term investment, and it will pay off - but first you need to spare time and money for it. That means commitment - something that is much easier to generate when you have the hard facts in front of you, and what you get out of it in the end - the money. So how can we calculate the business value of a UX redesign? 


Define the finish line


In order to measure success, as in any field, you must first set a goal. Studies show that the targeted key figures can be improved by 80-135% on average through usability redesign. But in order to improve a key figure, you must first have one. This could be: 


- Reduction of the bounce rate on the service page by 40%.

- Reduce the number of people who abandon their purchase during the payment process by 60%. 

Or  

- enable service centre staff to process customer enquiries 30 % faster

 

With such a goal, it is clear on which parts of the product the concept phase is focused and which figures need to be measured to make a statement about success. This also makes it possible to give all those involved better feedback. Because feedback can be based on numbers and not on feelings. The feedback is: "With this design the users do not reach their goal faster" instead of "this design does not look good to me".


Turning metrics into money 


How can the Return of Investment (ROI) be calculated in the next step? That depends on the project goals. Let's take a simple example of an online computer accessories retailer: Its main goal is to reduce the number of returns. A return costs 19 EUR for shipping and handling and the dealer potentially receives about 300 returns per month. This equals 5.700 EUR per month.  


The retailer receives an offer for 15.000 EUR to identify the reason for the returns and reduce the number of returns. That seems like a lot of money. So is it worth it?  After a UX analysis and a user test of the web shop, the results show that two main problems cause the returns. The compatibility information was not visible enough and the metrics were displayed in a confusing way. The UX service provider creates a new design, tests and develops it. 


By making the information clearer and more detailed for the customer, the number of returns is reduced by 40%. This means a reduction of 2.280 EUR per month. If the redesign costs 15.000 EUR after only 6-7 months, the re-design has already recovered the originally generated costs.   


And this is only a rough calculation for a single improvement. Usually a redesign shows several problems of usability and experience. This means that a redesign improves several other factors. Presenting the monetization of a good UX design can convince management and other team members to invest, and also make the improvements clear in retrospect. 


Luck equals money 


Improved user-friendliness can bring real added value to companies. Design, especially UX design, is not about making something more beautiful. It's about making it easier to attract new customers, building a long-term relationship with them and saving costs in the process. A good UX redesign not only treats the symptoms, but finds the cause for the inefficiency of costly processes and eliminates it. 

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What’s next?

After we defined the new process, the team will start applying it to every future project/task in order to improve the performance. It might be hard and need extra time to get used to it at the beginning, but we are happy to have a try after we spot the value from the exercise in order to provide a better product to our clients.


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