Making a strong business case for the ROI of UX

The Business Case for User Experience Investment

• 8 min read

513 Shares
Save

The case for user experience is clear in all our minds. Better products should lead to happier customers and more of them and thus more revenue. But how much money should be invested in user experience design as part of a software or web development project? And how do we convince those holding the purse strings that the money, they are going to spend, is going to bring value for money?

How Much Is Spent on User Experience Design?

Project investment varies a huge deal. There are apps out there which were built by someone in their spare time – the only physical cost was their time and effort and whatever portion of the life span of their hardware was expended during development. A lot of those apps get zero user experience investment and a lot of them fail accordingly.

However, when it comes to large software projects budgets can range from $200,000 to $20 million (or more in some cases). A rule of thumb suggests that about 40% of the total project budget should be spent on user experience research and design to produce optimal results. Now, some companies will put in a little more and some a little less but it’s as good a guide as we have at the moment. We’d expect to see this figure receive a lot of revision over the coming years, though whether it will be up or down - remains to be seen.

This doesn’t reflect the budgets that will be spent on marketing and selling the product once it’s complete. Just the development costs of the project itself.



What Do Companies Do?

Before you can put a business case together for your 40% slice of the action; you need to think about putting your work into the context of your business. There are a small number of key activities related to the core efforts of a business. They may do other things too but these are the activities which are designed to make money from the operation of the business:

  • Buying things. Most companies need materials and equipment to put anything together.
  • Operational work. Once you have the things you need, you have to design and develop products to sell or services to offer.
  • Marketing and sales. Once you have your product/service it’s time to tell the world about it and then extract some money for it.
  • Delivery. This may be simple for an internet based app business and it may be much more complex for a service delivery business. But you have to get the product in your customer’s hands somehow.
  • After care. You won’t be in business for very long if you don’t supply support and care when things go wrong.

Once you understand the key drivers of business activity, you can start to link an improved user experience to them and show how you might add value to each step of the chain.

Buying Things (Purchasing and Logistics)

Not all of this category of activity involves the acquisition of physical goods. The world that most UX designers inhabit also requires a ton of information. This might be from research conducted yourself or from research carried out by an external group (such as an ethnographic research team).

The business and customer (including users) needs determine the requirements for information. UX research can provide insight into these spaces – it can help determine what contexts a product will be used in, how a product may be differentiated from another easily, it can show how your offering compares to your competitor’s, etc.

In essence user research can save money in the “buying things” stage of business activity. It prevents, to some extent, mistakes being made and thus wastage. Internally focused user research can also help examine the way that the business works and how other savings may be identified in future.




Operational Work

Companies don’t get anywhere without someone doing the doing. The purpose of operations, for most UX designers at least, is to design and develop the product. UX teams can add significant value to the operational work of a business.



You should be able to reduce the time taken to market by proposing multiple ideas and quickly eliminating those that don’t add the value expected. You can create prototypes that allow the whole development team to fully understand the objectives of a project reducing rework. You can ensure that the project meets user needs as well as business needs. Most importantly you can create design specifications that make it easier to build the product without people needing to ask “why” which reduces operational drag.

Marketing, Delivery and After Care

These three areas form a larger sphere – one of customer experience (CX) and UX is a subset of customer experience work. That means that all the work we do as user experience professionals is focused on customer experience. Not all of our users, particularly in enterprise contexts, pay the bills but all of them count when it comes to delivering a great customer experience.

It is easier to market and sell a product that was built with users in mind. If it’s clear and obvious what the benefits are and that users will pay for those benefits – marketing can reduce its spending on research because much of it has already been done. It’s critical that your business case shows how data will flow between the two functions.

Delivery of the product is part of the user experience too. Quick digital download versus a posted disc? It’s clear which makes the process easier and less prone to error.

And it should be clear that by providing something users like and find easy to use – you’ll be cutting down on calls to the helpdesk and reducing the requirement for aftercare. That’s another straightforward cost saving.



Summary

Building the business case for user experience design should be simple when you tie the benefits of UX work into the value drivers for the business as a whole.

Image Sources: Experience Dynamics (link to image), e27.co (link to image), Chris Guy (link to image), Gavin Llewellyn (link to image), Elisabeth Hubert (link to image)






Learn More in This Course:

Learn Design and AI From the Best

Get one powerful email each week, like 312,424 others.

Next email in:

What You Should Read Next

  • Read full article
    The Relationship Between Visual Design and User Experience Design - Article hero image

    The Relationship Between Visual Design and User Experience Design

    A common perception about UX designers is that we are artists who can create beautiful interfaces from a blank canvas. While the aesthetics of products are important, visual design is only one aspect of the design process – in which team members with different skillsets and expertise collaborate

    Social shares
    802
    Published
    Read Article
  • Read full article
    You’re Not Bad at Presenting; You Just Haven’t Mastered the Right Way (Yet) - Article hero image

    You’re Not Bad at Presenting; You Just Haven’t Mastered the Right Way (Yet)

    Ever walked out of a presentation thinking, “That could’ve gone so much better, maybe I’m just not a presenter”? You’re not alone. And you’re not the problem. You simply haven’t been shown an easy, clear, repeatable way to prepare, deliver and follow up.Presenting is not an innate talent; it’s a ski

    Social shares
    359
    Published
    Read Article
  • Read full article
    The Power of Mapping - Article hero image

    The Power of Mapping

    The map is one of the earliest and most important human inventions. It helps us to navigate our complex world. Maps simplify complex spaces, create shared understanding, reveal hidden insights and help us coordinate action. Around 25,000 B.C. a person carved the earliest known map into a mammoth tus

    Social shares
    588
    Published
    Read Article
  • Read full article
    The Past, Present, and Future of Virtual Reality - Article hero image

    The Past, Present, and Future of Virtual Reality

    Virtual Reality (VR) has come a long way since its humble beginnings—with stereoscopic images back in the 1800s—“astronomically” far, in fact! Twenty-first century VR catapults users into immersive and interactive 3D environments, ones that let them experience something far beyond what they find in

    Social shares
    647
    Published
    Read Article
  • Read full article
    Turn Your Non-Design Experience into Design Portfolio Gold - Article hero image

    Turn Your Non-Design Experience into Design Portfolio Gold

    Have you ever wondered how to transition into UX and product design from a different career background without feeling insecure? Let's uncover strategies to confidently bridge the gap and showcase your skills to prospective employers with confidence and clarity.In this video, Morgane Peng, Desi

    Social shares
    508
    Published
    Read Article
  • Read full article
    Structure First: The Inverted Pyramid and Visual Organization - Article hero image

    Structure First: The Inverted Pyramid and Visual Organization

    This clip examines two principles that work hand in hand to make web content readable: the inverted pyramid approach to information order and the use of visual structure to help users scan efficiently. William Hudson, UX Strategist and Founder of Syntagm Ltd, describes the theoretical basis and prac

    Social shares
    207
    Published
    Read Article
  • Read full article
    What Is Card Sorting? - Article hero image

    What Is Card Sorting?

    In this video, William Hudson, UX Strategist and Founder of Syntagm Ltd, introduces card sorting: what it is, where it comes from, and the broad range of problems it can help solve.Card sorting is a research technique in which participants organize a set of items into groups that make sense to them,

    Social shares
    174
    Published
    Read Article
  • Read full article
    Design Accessible Navigation for Keyboards and Screen Readers - Article hero image

    Design Accessible Navigation for Keyboards and Screen Readers

    Accessibility is often treated as a finishing touch, but for navigation, it belongs at the foundation. Menus are how users reach everything else on a site, so a menu that works only with a mouse quietly shuts out anyone who depends on a keyboard, a screen reader, or another form of assistive technol

    Social shares
    174
    Published
    Read Article
  • Read full article
    The Scent of Information: Give Users the Confidence to Click - Article hero image

    The Scent of Information: Give Users the Confidence to Click

    William Hudson, UX Strategist and Founder of Syntagm Ltd, introduces the scent of information as a model for understanding how users navigate toward their goals, and sets out the principles for writing navigation links that strengthen that scent.Information Foraging and the Scent of InformationThe s

    Social shares
    173
    Published
    Read Article
  • Read full article
    4 UI Design Tips Every Designer Needs to Know - Article hero image

    4 UI Design Tips Every Designer Needs to Know

    User interface (UI) design can make or break any digital product. A user often won’t even notice when they interact with a great UI. They feel the visual appeal and simply trust it. On the contrary, a bad UI design can prevent the user from interacting with a product intuitively or at all and lead t

    Social shares
    646
    Published
    Read Article

Top Articles

Top Topic Definitions

39% of Today's Skills Will Change by 2030

The World Economic Forum expects 39% of today's skills to be transformed or become outdated by 2030.

The good news is that jobs in UX / UI design and AI are among the fastest-growing professions globally.

Build Skills That Keep You Relevant

Privacy Settings

By using this site, you accept our Cookie Policy and Terms of Use.
Customize
Accept all

Be the One Who Inspires

People remember who shares great ideas.

Share on:

Academic Credibility — On Autopilot

Don't waste time googling citation formats. Just copy, paste and look legit in seconds.

Learn Design and AI From the Best

Get one powerful email each week, like 312,424 others.

Next email in: