User Experience & its Impact on Revenue Growth

Divami Design Labs
9 min readFeb 16, 2023

User experience has a direct impact on revenue growth for a business. How a product makes the user feel encourage a habit-forming behaviour and boosts engagement as well. We live in an era where some of the biggest names in tech are innovating user experience like never before, ensuring their product is efficient and enjoyable. Amazon, Google, Apple, and YouTube prioritize user experience as their main point of convergence, which makes them so successful.

A good user experience encourages customers and visitors to stay on platforms longer. It’s this interaction that brands need to focus on to grow their customer base and keep customers engaged with their products or service.

What Makes UX the Cornerstone of Digital Products?

To determine the influence of UX design, it’s essential to analyze its implications on businesses. UX design is proven to positively impact businesses (and, contribute signiicantly towards revenue growth) as more and more people spend their time online. Let’s explore some of the most impactful figures from today’s abundant evidence.

– On average, every $1 invested in UX returns $100. That’s an impressive ROI of 9,900%.

– A well-designed user interface can increase your website’s conversion rate by up to 200%.

– Improving the UX design of a website can enable a business to achieve a conversion rate as high as 400%.

– 66% of customers are willing to pay more for a great experience

– 84% of customers say a company’s overall experience is as important as its products and services.

– 72% of customers will tell 6 other people about their good user experience. This is excellent for brand reputation and winning new customers.

It’s apparent from the stats that UX design directly influences key business metrics.

Business value of UX design

– Improved customer loyalty and retention

– A stronger brand reputation

– Better word-of-mouth marketing, with satisfied users more likely to recommend your brand

– Higher conversion rates

– Increased sales and revenue

– A competitive edge in your market

UX design helps to ensure the right solutions are created for the right customers. It all starts with user research, uncovering those unanswered questions about who your customers really are, which pain points they need solutions for, and what kind of viable solutions should be put forth.

Testing and gathering feedback are critical elements of the UX design process, helping to ensure that products are as user-friendly and efficient as possible before they hit the market. Not only does this focus on customer satisfaction, but it also helps save money in the long run. For example, research by IBM found that finding and correcting a mistake during the design phase costs up to five times less than fixing one after launch. This makes UX design an invaluable tool for reducing costly errors and improving user experiences.

Key Factors that Influence UX

UX design is all about delivering value to users. Peter Morville encapsulates this concept with his User Experience Honeycomb, which revolves around user needs and wants. By keeping these front and center in the design process, companies can create solutions that bring real value to their customers.

According to him, for an optimal user experience, content should be:

– Useful: Original and relevant to your users’ needs

– Usable: Intuitively navigated

– Desirable: Invoking emotion and appreciation through design elements such as images, logos, and branding

– Findable: Accessible both onsite and offsite

– Accessible: Easily maneuvered by users with disabilities

– Credible: Built on a foundation of trust for users to believe in

The Tangible Impact of Poor UX

It’s becoming increasingly apparent that investing in UX design is an absolute necessity for businesses. Experts suggest allocating at least 10% of a project’s budget to UX design, up to 40% being the most efficient amount. Spending money on quality user experience design may not seem important initially, but it can make or break your product — so it pays off to prioritize it.

Companies that fail to invest in UX design often face the following consequences. First, a negative user experience can be disastrous for any business. Stats show that:

– 70% of ecommerce purchases are abandoned due to poor UX (Source: Spiralytics).

– 88% of online consumers are less likely to return to a website after having a bad UX (Source: Toptal).

– 90% of users report dropping an app altogether because of the UX (Source: Toptal).

– 70% of online businesses fail because of how their product has been designed and implemented (Source: Uxeria).

– And, perhaps worst of all, 13% who have a negative experience will share it with at least 15 other people — making it hugely detrimental to the company’s reputation (Referring to Spiralytics).

If you want to get the most out of your website, it pays to do some deep digging and find out what’s hindering its performance. Afterward, you can make any necessary tweaks, adjustments, and regular changes over time to keep things running smoothly and ensure maximum returns. You might stumble across something that works even better by exploring different combinations.

How UX Impacts Business Growth

1. Impact On Increasing Revenue

If prospects struggle to find what they are looking for, how can they convert from visitors to customers? On the other hand, companies that invest in UX design almost always see their sales converted at a faster rate and longer-lasting customer loyalty.

When users first encounter your website or application layout, it sets the tone for their entire experience with you. If the design is unique and pleasing, they will feel encouraged and ready to explore further. However, if it’s unimpressive and challenging to use, they may not stick around long enough to complete an action.

Companies benefit greatly from improved conversion rates by understanding user behavior and adjusting changes as needed — such as interactivity options or minor design tweaks. A few simple improvements could mean the difference between gaining loyal customers or losing them altogether!

2. UX Even Impacts Cost Savings

When done right, UX design can result in considerable cost savings in several key areas. Companies that invest in comprehensive user experience design will not only create an easier way for people to find what they are looking for, but can also generate more conversions and higher customer satisfaction levels. Three areas that UX impacts the most include:

– More effective Support:

For many businesses, adequate customer support is vital to success. Taking the time and investing in UX design can help users find what they need quickly and easily, with less strain on the support team.

– Improved bug detection and eradication:

Investing in UX design can help ensure that problems are detected, analyzed, and eradicated before users even notice them, resulting in a smoother user experience all around. Having a feedback-driven approach to UX helps ensure that any issues are addressed on time, enhancing the overall user experience while saving money in the long run.

– Decreased client churn:

It’s a well-known fact that users are more likely to depart from a product when their experience falls short of expectations — whether it be from dissatisfaction with a particular feature or an inability to find what they’re looking for. However, investing in UX design can help ensure that customers have a wonderful experience that keeps them engaged and returning, ultimately reducing costs associated with lost customers. In addition, by improving the overall user experience, businesses can protect their bottom line while still providing top-quality services.

3. Makes You Stand Out From The Crowd

Investing in UX design can be the key to success if your business wants to make a lasting impression on customers. According to Invision Design, 94% of users’ first impressions of a website or app interface are based solely on its design — making it essential for businesses to create an outstanding experience. Companies like Google, Amazon, and Airbnb have all prioritized crafting positive user experiences to help them gain a competitive edge — something you should also consider if you want to succeed.

A well-crafted user experience can majorly impact your business in 2023 and beyond. Here are some ways that investing in UX design can help you stand out from the competition:

– Customers will be far less likely to turn away if their experience with your product is positive.

– A great initial impression will ensure visitors come back for more.

– Design plays an essential role in creating trust and credibility for your brand.

– With a well-designed interface, users will stay engaged for longer.

– Personal touches such as personalized content and experiences will lead to more conversions.

Creating an outstanding user experience is the way to go if you want to succeed in a crowded marketplace. Price will only take you so far — once people have downloaded the free trial or begun using your product, they may quickly become disillusioned if it is not designed for ease of use and convenience. Investing in UX design can help ensure that your customers stay loyal and that your product stands out as the clear choice. With this approach, you can compete based on value instead of being lumped into the same ‘commodity’ bracket as your rivals.

4. Boosts Customer Retention

Investing in UX design means having an innate understanding of how customers interact with your product or website. Designers need a user-centered approach and incorporate aspects that will simplify the overall experience. Before diving into development, create a plan that outlines each step of the journey and makes it easy for users to orient themselves as they navigate through the product or website. By focusing on these details, customer retention will be significantly increased.

To ensure customer retention and success, consider the following aspects:

– Crafting a personalized experience on your website or product.

– Making sure photos and web pages load quickly.

– Providing precise contact details for users.

– Ensuring instructional resources and relevant information about products and services are easy to find.

– Always responding promptly and providing excellent customer service with an easy way of connecting.

5. Reduces Churn

Customers are the key to a company’s success, and UX plays an important role in reducing churn. A high churn rate means customers aren’t sticking around, and companies struggle to gain new ones. On the flip side, when customer satisfaction and loyalty are strong, companies can benefit from excellent customer retention — resulting in a higher Lifetime Value (LTV) and lower Customer Acquisition Cost (CAC). Ultimately, it’s all about keeping customers happy — something UX does well!

6. Improves Cross Team Performance

Understanding user experience isn’t just for developers and designers. Every team throughout your organization plays a role in creating a great user experience — from sales to marketing to leadership; everyone should work together to benefit your users. This is vital to creating a cohesive strategy that will deliver results by engaging customers and driving performance. In the end, investing in UX brings tangible benefits to your bottom line.

7. Facilitates Easy Reporting

The power of UX lies in its ability to facilitate easy and accurate reporting. By collecting data about your customers, analyzing their behavior and patterns, and then quantifying the data, you can arm yourself with the insight needed to make informed decisions. This data can even be presented in a chart for stakeholders and investors, demonstrating how beneficial UX is for any organization.

8. Reduces the Need For Customer Support

By crafting a seamless journey for customers, there will be less need to involve customer support teams. From intuitive navigation and reduced loading times to simplified checkout steps, these features help reduce the hassle of looking for assistance. In addition, investing in UX not only encourages consumer autonomy — it also allows you to make the most out of your engineering team’s capabilities by letting them focus on innovation instead of addressing user queries.

9. Improves Conversion Rate with the Same Traffic

Increasing your conversion rate with the same amount of traffic can be exhausting if you focus on optimizing user experience. Utilizing technologies such as Hotjar and audience polling gives you insight into what could be improved on your website. This knowledge can help you develop an effective iterative site-wide optimization strategy. Additionally, adding tailored CTA’s to educational or product/service pages can help guide visitors further down the sales funnel. Finally, fusing awareness information with components that direct users towards conversion will create experience bridges throughout your website, making it easier for visitors to complete their journey.

10. Improve Overall Brand Strength

A well-designed app can not only increase consumer happiness, but it also boosts brand recognition. An essential part of building a strong online presence has a UX/UI designer on your team to define your branding identity and create consistency through color, font, and patterns. In addition, developing positive relationships with customers will further raise the worth of your business and have a significant impact.


It is clear that UI/UX design is essential to a company’s success. A well-designed website or app not only attracts visitors and makes the user experience more enjoyable but also helps build brand recognition and loyalty. When designing user interfaces and experiences, businesses should strive to create fun experiences for users on both ends. Without good UI/UX design, companies will find it hard to achieve their desired level of success.