A great UX (User Experience) feels like magic. It feels effortless, leaving the user saying, “How did you do that?!” Even more important, they tell their friends.
Getting organizational buy-in for UX can be difficult though. These stats can help you make the case for why you should invest in UX, and the risk if you do not. Before the stats, let’s define what is UX.
What is UX?
UX encompasses all aspects of your user’s interactions with your company, its products, and services from initial interaction with your brand, through purchase, use of your solution, and ultimately end of use.
The first core principle of a great user experience is actually meeting the needs of your customers. You need to complete their specific job to be done in an easy, seamless way.
This requires simplicity and elegance in how your experience is designed. Your product should be a joy to use. You want to leave them saying, “I have to tell someone about this!”
Now let’s get into 15 statistics that show why UX is crucial for your business.
Why you should invest in UX
1. Research shows that, on average, every $1 invested in UX brings $100 in return. Source: Forrester
That is a 100X return. If you are needing to get buy-in from your CFO as to why you should invest in UX, show them this.
2. The top companies leading in user experience outperformed the S&P index by 35%. Source: Forbes
Good user experience ultimately is the difference between winning and losing in today’s market. The customer has the power and an endless pool of options.
That is why top companies around the world like Airbnb, Apple, and Google invest heavily in UX. They know it is the secret to growth and competing in a crowded market.
3. 8 in 10 customers are willing to pay more for a better customer experience. Source: Capgemini
Back to the ROI of UX, your users crave a simple elegant solution. A thoughtful user experience is the way to do that.
4. A well-designed user interface could raise your website’s conversion rate by up to 200%, and a better UX design could yield conversion rates up to 400%. Source: Forrester
Yes, UI is important but UX is the real driver of growth. It is easy to get sucked into the aesthetics of your solution. Don’t do this. Start with the experience, and then add the coat of paint and tchotchkes to make your solution stand out.
The risk of not investing in UX
5. Businesses lose 35% of sales due to bad UX. Source: AWS
According to a study by Amazon Web Services, eCommerce businesses leave 35% of sales on the table due to bad user experience. This translates to roughly $1.4 trillion worth of sales. (yes trillion with a “T”)
6. 70% of customers abandon purchases because of bad user experience. Source: Baymard
User Experience encompasses the whole experience including purchase. Don’t just focus on your post-purchase experience. Otherwise, you are leaving money on the table.
7. 32% of users will leave a brand they love if they have one bad experience. Source: PWC
This is mind-blowing… While it takes many great experiences to create “love” in the mind of your customers, it only takes one bad experience for some to leave your brand altogether.
8. 67% of customers claim unpleasant experiences as a reason for churn. Source: Forbes
This should be no surprise. Keeping your existing customers is one of the easiest ways to drive and grow revenue. Good UX can accomplish this.
9. 62% of customers say they share their bad experiences with others. Source: Salesforce
Not only is it bad when your customers churn and you lose revenue, but it can have a multiplier effect by telling others about the negative experience. This can create the worst type of snowball effect that can be tough to control once it starts rolling.
10. 3 out of the 12 reasons why projects fail are attributed to user experience failures. Source: AWS
So much time and effort is focused on the technical solution and how it looks, while 3 of the 12 main reasons projects fail are directly attributed to your UX.
11. The time spent by developers reworking a project with avoidable faults is 50%. Source: AWS
It is important to be proactive with your UX, and not reactionary. Not only because it is easier for you and your team, but it is also way more cost-effective. Start with UX first. Then build your product.
UX stats that make you think
12. 85% of UX problems can be solved by testing 5 users. Source: Nielsen Norman Group
One of the most important elements of UX is talking to your customers. This seems like a big hurdle and is often not done due to the perceived effort. It may not be as intensive as you think. Just talk to 5 people, and you may uncover some major issues and opportunities.
13. There was a success rate of 80% when people used the navigation scheme structured according to most users’ mental model. There was a success rate of 9% when people used the navigation scheme structured according to the company’s internal thinking. Source: Nielsen Norman Group
In the world of UX, new is not always good. Sometimes it is better to be familiar. Use common mental models as a tool to make your user experience easier for your customers. That way they are using fewer brain calories when learning how to use your product.
14. Today customers manage 85% of their relationships without interacting with a human. Source: Gartner
User experiences without human interaction provide so many different options to delight your users. Be intentional about your experience. Customers don’t just prefer non-human interaction, they expect it to work seamlessly.
15. 81% Of Consumers Say They Want More Self-service Options. Source: CXM Today
The pandemic changed many things in our world including how people interact with brands and products. Customers don’t just prefer self service, they require it. If your experience doesn’t measure up, customers will look for other options.
In today’s world, you can’t afford not to prioritize UX. It is a foundational aspect of any software solution. Don’t discount its value. Make it a priority early in your solutions life, even before you start building. If you already have an existing solution, it isn’t too late. Identify the biggest opportunity areas and start executing those changes.
Your customers will thank you.
Do You Need Help with UX Research?
Our experts can help you define and execute a comprehensive UX research study to validate and build confidence that your product is on the right track.
No matter what phase you are at in your software solution journey, HatchWorks can help you create a user experience your customers will love.