Why measuring UX in dollars misses the bigger picture
Is anyone else frustrated when asked to attribute UX to financial metrics? I know I am. I mean, how do you financially measure something that’s intertwined with human behaviour?
I remember sitting in a leadership meeting as the UX leader, and out of nowhere, someone asked, “Jas, what’s the Return On Investment, aka ROI, on UX?” I almost choked on my tea because the value of UX is a good user experience that solves user problems.
But I was being asked on the spot what the financial gain of UX is. At that moment, I couldn’t help but scream a little inside because I don’t think we should be reducing something complex and human-centred to sheer numbers.
What is UX
UX is about understanding user behaviour. UX is not about pushing the users to the finish line in the fastest time possible.
UX is about understanding the users, how they use your product or service, and the problems they face. UX is about smoothing out friction points to make the customer journey from A to B as intuitive and enjoyable as possible.
I believe that UX is the art of making users feel valued and cared for, which will drive long-term value. You see, a positive user-centred designer can;
- Increase engagement,
- Build loyalty, and, yes,
- Contribute positively to revenue
I just feel that the moment we link UX to financial metrics, the conversation about the value of UX goes out the window.
What is ROI?
I understand that ROI is the holy grail for many businesses, especially those in growth-orientated environments. It’s an indicator of both value and efficiency. And I get it; companies need to ensure that investment yields return.
However, when ROI becomes the primary metric for UX, it stifles creativity and empathy and reduces UX to a mere tool for conversion. I’ve seen firsthand that as soon as ROI enters the UX conversation, ideation flatlines, priorities shift, and front-end development suffers, resulting in a backlog of “experience debt.”
UX is more than metrics
Technological advancements have propelled UX into the limelight. The rise in smartphones alone has made UX the strategic core of many organisations. Leaders at companies like Google and Apple have championed the user-first approach, shaping the mainstream UX conversation.
Just look at Google’s mantra: “Focus on the user, and all else will follow.” This mantra underscores the shift toward placing user needs at the heart of the design process. Yet, despite the data supporting user-centric design, 88% of online customers are less likely to return to a website after a poor experience.
However, companies persist in asking, “What is the ROI of UX?” And, so, when I hear that question, I wonder whether companies really understand UX at all.
Don’t get me wrong; some brands get it and appreciate the behavioural impact of UX and how it can influence meaningful conversion. However, many others see UX as a means to just improve short-term conversion rates, which can result in minimal and sometimes misguided investment in UX initiatives.
The trap of measuring UX in financial terms
Simply put, ROI looks at the financial return against the investment made. However, using ROI as the main metric for UX can feel like a blunt instrument, as it undermines the human benefit of good design.
As designers, we understand that our work does more than drive numbers. A simple design can improve the UX, making it enjoyable and engaging, building trust and loyalty.
Baymard Institute has identified that a well-designed checkout flow can boost conversion by up to 35%. Yet, 27% of online shoppers abandon their carts due to overcomplicated checkouts.
That’s more than missed revenue, right? It’s a missed opportunity to build trust. And so, when companies solely focus on ROI, they risk overlooking the moments where UX adds value by prioritising the user’s needs over immediate financial return.
The human ROI
The risk of an ROI-centric approach is that it shifts the focus from designing meaningful experiences to creating experiences for short-term financial gains. Poor UX can lead to catastrophic outcomes in industries like healthcare, transport, and nuclear energy.
Take the Three Mile Island nuclear accident, for instance. The near disaster was caused by a poorly designed user interface that led operators to make incorrect decisions. This example highlights the “human ROI,” the value of UX that goes beyond money.
While the “human ROI” won’t appear on balance sheets, I don’t think it can be ignored. Yet, in many organisations, this is precisely what happens; short-term financial wins overshadow the less quantifiable benefits of UX.
The cost of poor UX
Poor UX doesn’t only affect users in the short term. I believe it creates something more: UX debt. UX debt is the hidden cost that builds up when UX issues are ignored, leading to poor customer satisfaction, higher development costs, and eventually a loss in sales.
When users have a terrible experience with a website or an app, they don’t just abandon it; they talk about it negatively. Negative feedback spreads like wildfire, damaging a brand’s reputation and discouraging future customers.
In addition, poor UX can lead to higher training costs, decreased productivity and more resources spent fixing issues that could have been avoided. Good UX isn’t just about creating pleasant user experiences today; it’s about preventing long-term financial and operations costs.
Shifting the focus
Instead of asking, “What’s the ROI of this UX design?” Jared Spool, who I’d call the Lord of UX, encourages us to ask, “What problems are preventing users from reaching their goals, and how much are these issues costing us?”
This reframes UX as a proactive solution to user challenges rather than a luxury add-on. By tackling UX issues, organisations can reduce customer service demands, lower churn rates, and prevent future losses, all of which have financial implications.
Jared introduces ‘problem-value metrics’ that allow us to frame UX in a way business executives understand. Showing how UX impacts operational costs, customer retention, and workflows can make the case that UX is an investment, protecting the business from the cost of poor UX.
So, has ROI killed UX
Yes and no.
When ROI is used as the only measure of success, then yes, ROI has killed UX as it undermines the essence of what makes UX valuable: its ability to improve users’ lives in meaningful ways.
As design leaders and stakeholders, we need to balance financial accountability with an appreciation for the human side of design.
Yes, ROI should be part of the conversation, but not at the expense of creativity, empathy, and the long-term benefits of good UX. ROI should not lead UX decisions. We must move beyond short-term metrics and prioritise creating user experiences that drive relationships, trust, and loyalty, all of which will contribute to conversion.
In the end, UX is about more than financial gain. It’s about developing meaningful interactions that make a positive difference in people’s lives, which is, I think, priceless.
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Has ROI killed UX? was originally published in UX Planet on Medium, where people are continuing the conversation by highlighting and responding to this story.