How we can gather evidence of the return on UX improvements to our digital proposition.
Hello again, I'm David Úbeda, user experience specialist and Business Manager at Interactius. I've worked with many companies and digital value proposition managers who were unsure whether investing in UX was really worthwhile. Yet very few companies consider measuring the ROI of their UX investment until they detect a serious conversion problem.
One of the best ways to convince them has been to demonstrate that UX not only improves the user experience, but also has a direct impact on business results.
One of the most compelling arguments is that UX generates a measurable return on investment (ROI) — and in many cases, in the short term. It's often assumed that the benefits of UX only materialise over the long term, but the truth is that small improvements can increase conversions, reduce costs, and improve customer retention almost immediately.
In this article, a follow-up to my earlier study on the economics of design, I'll take a deeper look at measuring the return on UX investment and explain how to calculate UX ROI using a simple formula and a practical example you can apply to your own business.
1. Why measure UX ROI?
When it comes to UX, many companies — far too many — perceive it as an unexpected expense rather than an investment. However, measuring its impact with concrete data helps demonstrate that a good user experience translates into more revenue and lower costs.
The most obvious benefits:
- Increased conversions: if the purchasing process is easier and more intuitive, more users will complete the purchase flow.
- Greater customer retention: when a product is easy to use, customers come back instead of switching to a competitor.
- Reduced operational costs: well-designed UX decreases the need for customer support and reduces errors in product use.
In short, UX impacts key areas of the business.
The key is to measure the return with concrete numbers. And a question worth asking — why not consider a fixed budget line for UX improvement? I'm confident that by the end of this article, you'll be thinking about it.
2. Formula for calculating UX ROI
To calculate the return on investment (ROI) of a UX project, we can use the following formula:
Let's break it down:
- Benefit gained: the increase in revenue after improving the UX.
- UX investment: the total cost of the research, design, and development (very important) of the improvement.
If the result is positive, it means the investment has generated more revenue than it cost. If it's negative, the investment hasn't been recouped yet (which may change in the medium to long term).
Confused? Let's look at a practical example…
3. Practical example: how a UX improvement can increase revenue
Imagine you run an online shop selling electronics. Currently, out of every 1,000 visitors to the site, only 2% complete a purchase — meaning you achieve 20 sales per 1,000 visits.
After optimising the checkout process with a smoother, friction-free shopping experience, the conversion rate rises to 2.5%. Now, for every 1,000 visits, you achieve 25 sales.
While we know that the average e-commerce conversion rate in Spain is 1.19%, for the purposes of this practical example we'll use the following scenario.
Let's look at the numbers:
- Revenue before the improvement: 20 sales x €100 per sale = €2,000
- Revenue after the improvement: 25 sales x €100 per sale = €2,500
- Increase in revenue: +€500 per 1,000 visits
- Cost of UX investment: €5,000 (with our UXAAS subscription)
Now we apply the ROI formula:
(Note: We multiply by 10 because we're assuming 10,000 monthly visits.)
This means the investment has been fully recouped within the first month. This means the investment has been fully recouped within the first month. From the second month onwards, all the extra benefit will be (DRUMROLL PLEASE) net profit!!!!
If the site continues to receive 10,000 visits per month, over the course of a year the UX improvement will have generated €60,000 in additional revenue at no extra cost.
4. Beyond ROI: other benefits of UX
The ROI calculation gives us a clear picture of the immediate economic impact of UX. But there are other benefits that can be equally important in the medium and long term:
🚀 Greater customer loyalty: good UX not only increases conversions, it also brings customers back and encourages them to recommend the product.
📉 Fewer drop-offs and fewer complaints: an intuitive website or app reduces frustration and abandonment rates.
💬 Better brand reputation: customers associate a great experience with a trustworthy, quality company.
Investing in UX is a way of ensuring the business not only grows in the short term, but also remains strong and competitive in the future.
Conclusion
UX ROI is real and measurable. If you've ever questioned whether it's worth investing in improving the user experience, I hope this article helps you see it more clearly. UX improvements don't just make users happier — they also generate more revenue and reduce costs.
If you haven't yet measured the impact of UX on your business, I encourage you to make small changes and analyse the results. The numbers will speak for themselves. 🚀
If you still have doubts about how a UX investment can boost your business results, please don't hesitate to get in touch with Interactius.
