At Go To Clan, we understand businesses. I have been an entrepreneur for more than 13 years now. I totally understand when a marketer emphasizes calculating the ROI of any activity, be it hiring an employee or buying a service. Being a Founder and Creative Head of a UI UX Agency, I always tell my clients to look at the Design as something beyond ‘good looks’ and ‘functionality’. It is more about converting and retaining users. Making people understand your brand better.
Let’s take an example- your friend tells you about a brand’s product he has used. He is very impressed and tells you about the good experience. You search for the brand online, land on their website or application, and start exploring what is so unique about it. If the exploration journey is engaging enough, you stay for a while. Here the UI UX Agency has worked on more retentions. If the journey is leading you to some point, it is conversion-oriented design and the UI UX Agency has designed the website/app to boost branding + conversions.
A study indicates that 52% of users said a bad mobile experience made them less likely to engage with a company. Now that number indicates the ROI of UI UX. A number of poor ‘new users’ rates or poor ‘conversion rate’ gives clear pictures of UI UX ROI.
Investing in a professional UI UX Agency is a game-changer and we know why! Here is the formula for calculating the ROI of UI UX Agency:
UI/UX ROI=(Revenue Benefits−Total UI UX Investment/Total UI UX Investment)×100
Where:
- Revenue Benefits could include:
- Increased Sales Revenue: Additional sales generated as a direct result of UI/UX improvements.
- Customer Retention Revenue: Increased revenue from retaining more customers due to enhanced user experience.
- Reduced Customer Support Costs: Savings from a decrease in customer support queries due to a more intuitive UI.
- Increased Customer Lifetime Value: Greater revenue from customers over time due to improved satisfaction and engagement.
- Total UI/UX Investment might encompass:
- Design and Development Costs: Costs of hiring UI/UX designers and developers.
- Research and Testing Costs: Expenses related to user research, usability testing, and prototyping.
- Implementation Costs: Costs associated with integrating the new UI/UX into your system.
- Training Costs: If new UI/UX requires staff training.
Here Is How You Can Calculate The ROI Of UI UX In 5 Simple Steps By An Experienced UI UX Agency In India:
1. Identify The Goal Of Hiring Professional UI UX Services
What results are you expecting from hiring a professional UI UX Agency? Why not design the website in-house or better; buy a template? You must have a Quantitative Goal. Determine what metrics you want to improve that will have a direct business impact (e.g. conversion rate, retention rate, task completion rate).
Having a goal is good but having a quantitative goal is a must. “I want to have good sales this month from my eCommerce website.” This is a good example of a goal. “I want to increase my this month’s sales by 10%” That’s a quantified goal. It helps in the assessment of the overall ROI of UI UX, Marketing Campaigns, Branding Campaigns, etc.
2. Analyze Current Scenario
Building an in-house UI/UX team demands significant resources. From hiring to training, the process can be lengthy and costly.
- UI Designer: ₹400,000 – ₹1,500,000
- UX Designer: ₹450,000 – ₹1,700,000
- UX Researcher: ₹500,000 – ₹1,800,000
- UI/UX Lead or Manager: ₹1,200,000 – ₹2,500,000
Make sure you analyze the current scenarios at your company. Let’s say there is a food-delivery app. The brand notices a fall in retention rate. It is important to analyze what is the average time users are spending on the app. Say the average time is 3 minutes and only 1 out of 10 people are placing orders. This number needs some serious changes in the retention as well as conversion rate. But say the average time is 3 minutes and 3-4 out of every 10 people are placing an order through the app, the brand needs to optimize the UI UX to engage the user after placing the order. Though the primary objective of the brand is to get a good number of orders placed, the opportunity to upsell and to boost brand awareness cannot be missed.
3. Gaining Diverse Perspectives
Some things should be left to the experts. A UI UX Agency brings a lot to the table; a new perspective. Diving into the detailing is what you can learn from professional UI UX Experts. Right from making the website/application easy to use to making it look beautiful, a professional UI UX Expert thinks beyond functional websites. Engaging people, making them spend more time on every part of the website, driving their journey to the sale or purchase; all this is possible with a renowned UI UX Agency. Their broad exposure ensures that the UI and UX designs are aligned with current market trends, further enhancing the ROI of UI UX.
Stanford’s Web Credibility Research shows that 75% of users admit to making judgments about a company’s credibility based on their website’s design.
4. Cost-Benefit Comparison
Hiring a professional UI UX Agency means looking critically at the cost incurred. Depending on the complexity of the application or website, the Agencies are going to quote. Always analyze long-term goals and plan a future-proof strategy with the UI UX Experts. A strategy that covers Brand Awareness, Conversion Optimization, Comprehensive Enhancement, Cost Optimization, Appreciated Customer Experience, and much more. A report by PwC found that 73% of all people point to customer experience as an essential factor in their purchasing decisions.
Another important thing to consider during a cost-benefit comparison is to calculate the Reduced Development Cost. Be it a brand face-lifting website or a highly functional mobile application, the highest cost incurred is for the Development. A skilled team of UI UX Agency makes sure the development cost is reduced by
- Early Error Identification and Correction
- Preventing Redesigns and Reiterations
- Streamlining the Development Process
- Enhancing User Feedback and Iteration
- Reducing Feature Overload
IBM states that every dollar invested in ease of use returns $10 to $100, and the National Institute of Standards and Technology points out that it’s 100 times more expensive to fix a problem after a product is released than during the design phase.
5. What’s Beyond The Formula Of ROI Of UI UX?
After analyzing all 4 points mentioned above, you can easily put numbers in the Formula of ROI of UI UX and assess the decisions. There is one more thing companies need to consider. Go To Clan’s Content Director Aarti always says that one of the best lessons she learned in MBA is ‘you are offering what you are supposed to and that’s all great but what are you doing to go beyond ordinary?’ Offering a service with great experience and perfection is awesome but the brands offering Delightful service beyond regular services stand a higher chance to win hearts. Make sure the UI UX Agency you are working with is boosting your brand’s image.
In the digital world, your brand’s image hinges on its online presence. A poor UI/UX can turn users away, tarnishing your brand’s reputation. Partnering with a top-tier UI/UX agency in India ensures your brand shines online.
Let’s say your products are amazing! You wish to start D2C for your products to reach out to every corner of India. Now would that be possible if you have a horrible Application experience? No! What if you have a decent UI UX giving a satisfactory user experience? Good! What if the UI UX Agency went a bit out of the box and delivered a ‘Delightful’ design? Your brand gains more popularity not because of the good-quality products but because of the delightful user experience!
Conclusion:
The decision to partner with a UI UX AGENCY in India is not just about improving digital interfaces; it’s a strategic move with long-term implications for the ROI of UI UX. By prioritizing both UI and UX, businesses can enjoy increased customer satisfaction, higher conversions, and a fortified brand reputation, making the investment truly worthwhile.