I was trying to find out if there have been studies on how much a bad UI or UX design affects sales on websites? I couldn't really find anything in my searches.
Also, does anyone know about any studies on the ROI with proper UI or UX design?
This will help to know the power of ROI impact on UX and UI
Top key points that i remember are :
IBM's “The rule of thumb: Every dollar invested in ease of use returns $10 to $100.″
That would be a ROI somewhere between 1000% – 10000%... Source: http://www-01.ibm.com/software/ucd/ucd.html
Jakob Nielsen and his team have conducted a couple of interesting ROI studies.
They may be a bit "old" (2002 and 2008), but they are still valid.
The article Usability ROI Declining, But Still Strong concludes with an average KPI improvement of +83% in projects based on usability engineering (2008). This is less that the +135% in 2002, but still significant.
(The different case studies are arranged across the horizontal axis. The vertical axis shows each case study's improvement.)
You can buy the full 212-page report "Usability ROI (4th edition)", with 72 metrics case studies and 131 before/after screenshots from their website: http://www.nngroup.com/reports/roi/
Other interesting articles:
(...and I'm not going to include any summary of these :-) If the fear of link rot reigns, then feel free to delete them. Or downvote the answer. )
You could also look at it the other way around. There must be a bigger focus on a structured UX-approach when doing IT projects because:
In one of the screencasts of Billy Hollis that I watched, he gave an example where good UX design cut a fraction of a second from something a nurse would do many times a day - across the entire hospital system, over the course of a year this added up to several hundred thousand dollars of saved staff time.
Product owners or executives are not able to see the value of UX (as most people continue to struggle to quantify UX). It can be really challenging to calculate ROI of UX for any product or service. Here are some UX metrics that can help you build a strong business case for investing in UX:
1) METRIC 01: CONVERSION RATE - A conversion rate is the ratio of visitors to customers:
Total customer purchases / Total Number of visitors x 100 = Conversion Rate
2) METRIC 02: SUPPORT COST PER USER
Total support expense/number of registered users = support cost per user
3) METRIC 03: USER RETENTION RATE
Retention Rate = ((CE-CN)/CS)) X 100
4) METRIC 04: SUM (SINGLE USABILITY METRIC)
SUM metric is a combination of subjective and objective variables. Data collected from users performing the task includes time users require to complete the task, a tally of errors they encountered while completing the task, users’ overall success or failure in completing the task and users’ responses to one or more post-task satisfaction scores.
The only reason people have heard of Google is because the company incorporates good user experience and user centered design in their product. The average person can not explain why Google is the best search engine they just use it and it works.