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28/5/2020

How to use data to convince a customer for functional design (UX)

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IDEACTO has been on the market for more than a decade. Originally and colloquially, activities related to functional design were associated by clients with broadly understood graphic design and were related to the aesthetic layer rather than strictly business aspects. Fortunately, thanks to years of education and market development, today customers have a greater knowledge of the values that UX provides. Nevertheless, the question of how functional design is translated into business parameters is still not clear to customers.

Based on this premise, we have prepared a text in which we collect various data and statistics from the UX area, which aim to strengthen the argumentation and thus facilitate the persuasion of the client to allocate an adequate budget for work in this area. The summary of examples is based on the results of the work achieved by IDEACTO and from an extensive analysis of the information available online.

To facilitate the use of this document, we have organized the summary by dividing it into individual stages of cooperation with the client. As a result, it should be easier to find adequate arguments so as to be able to convince the client of the effectiveness of broadly understood user-oriented functional design and understanding of the market and its needs.

First steps

  • In 94% of cases, the user's first impression is related to the design. This is important information for investors because
  • 75% of user ratings of a website's credibility are based on aesthetics. This can be combined with the fact that
  • About 70% of online businesses fail due to poor UX. The statement seems correct, given that
  • 21% of mobile apps created in 2018 were launched only once. On the other hand
  • Conversion per user can increase by 400% if the site or application offers a high level of UX. What's more,
  • PLN spent in the broadest sense UX design returns 100x. Probably because
  • 7 out of 10 CEOs think good UX is a competitive brand differentiator

When the application is already created

  • 50% of developers' time can be wasted correcting errors that could have been avoided if applications were well designed early in the process. Additionally
  • It is 10 times more expensive to correct errors at the development stage than at the design stage. This value increases until
  • 100x when bugs are corrected on a running and published application. In spite of this,
  • Only 55% of companies declare the use of usability tests at any stage of project implementation. Surprising, especially since
  • 85% of problems related to design and functional assumptions can be identified during tests on a group of only 5-7 people. Moreover
  • 79% of users say that the top priority on a website or app is overall usability

When the application already exists

  • As many as 32% of companies learn about application problems from end users. But on the other hand
  • 91% of users will not share negative feedback about their online experience and will stop using the solution without a word. This is why it is so important to optimize UX, which can
  • Increase your conversion rate by 46% and reduce your bounce rate by 60% (Nest Bank) or
  • Increase user return by 231% while increasing the number of leads by 226% (Vehiculum). Another example shows how
  • reduce the number of support calls by 90% by redesigning the interface (McAfee; the same problem was once faced by the Spanish branch of ING - there AI testing allowed to reduce the load on the call center). Through testing, you can also
  • increase sales by $300 million by optimizing CTA (Amazon). These examples confirm the sentence
  • 74% of companies say UX is essential in increasing sales This leads us to respond to the real needs of the user, where
  • 94% of them do not trust outdated sites, as well as
  • almost half of them are frustrated by websites that are poorly optimized for mobile devices, and
  • More than 50% of users say they are unlikely to use the services of companies that do not use responsive mobile versions. Adding to this
  • almost 70% of users who prefer to buy a product or service through a mobile-friendly site than from competitors (even if the price is higher).
  • More than 60% of online shoppers spend on mobile devices. If we add to this
  • 88% of online shoppers who say they won't return to a brand's website if they've experienced a bad UX

It turns out that the optimization of websites and online stores is extremely important in the context of the success of the entire business and the generation of profits. They know this perfectly well, e.g.

  • ESPN, which increased revenue by 35% exclusively through a redesign of its homepage
  • Airbnb, which sees in a well-thought-out UX the reason for the transition from a company on the verge of bankruptcy to a company worth millions (in 2018 the value is 38 billion dollars)
  • American Time reported a 15% drop in bounce rate after the introduction of functional modifications to the site
  • Walmart increased its revenue from online sales by 13% thanks to UX testing and making necessary changes to the product card
  • Evernote has seen a 15% increase in user retention thanks to the implementation of new functionalities based on results from UX research.

The above statistics clearly show how essential a well-thought-out UX is for the market success of digital solutions. It also plays a critical role in optimizing existing solutions. It may seem that functional design focuses only on the graphic layer, but in fact its essence is to have a good understanding of market needs and user needs and then properly implement them in a digital product. Ultimately, these activities translate into key business parameters and can often represent the success of a business project (or its failure). That is why it is so important to highlight the benefits of broadly understood functional design also called UX design. As you can see from the above summary, the numbers speak for themselves.

Data sources in the article:
TrueList.co
Userzoom.com
Smallbizgenius.net
Uxcam.com
Uxeria.com

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