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 * 03-15-12


DOLLARS AND SENSE: THE BUSINESS CASE FOR INVESTING IN UI DESIGN


APPLE HAS SHOWN THAT CONSUMERS ARE WILLING TO PAY A PREMIUM FOR PRODUCTS THAT
ARE EASY TO USE. SO WHY DO COMPANIES RESIST PUTTING MONEY INTO UI UPFRONT?


 * 
 * 
 * 
 * 

More Like This
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The innovation economy—a reason to be optimistic
Front row seats in your home
By Peter Eckert3 minute Read

In their rush to build more features into their electronic devices, companies
often lose sight of a key ingredient: basic usability. User-interface design
(UI), the art of simplifying complexity into meaningful user experiences, is an
increasingly important competitive advantage for technology companies launching
new products, as people from consumers to business users seek solutions that
offer as much intuitiveness as they do function.



Every dollar spent on UX brings in between $2 and $100 dollars in return.

Today, usability is a must-have for optimal return on investment with new
technologies. Companies focusing on user-experience (UX) and user-interface
design in product and application development create better solutions, improving
revenue, loyalty, and market share. Numerous industry studies have stated that
every dollar spent on UX brings in between $2 and $100 dollars in return.
Already, household names such as Samsung, Charles Schwab, Motorola, Logitech,
and Dell are leveraging UX and interface design in the development of their
products and applications–with strong results.


USABILITY MATTERS

While the research has been out for some time, many companies still dramatically
underestimate the importance of ease of use and focus too heavily on features
and functions. Some have learned the lesson the hard way. Think back to 2006,
when Microsoft introduced Zune, a portable MP3 player designed to compete with
the iPod. While feature-rich, Zune failed due in part to a more complex
interface, which couldn’t compete with the simplicity of Apple’s design.

The doomed first-generation Zune

With options that are user-friendly on the market, frustrated consumers are not
going to overlook technological kinks. When a product gets singled out in the
media for poor performance, it goes viral and quickly deters potential customers
from not only the new product but potentially the company’s non-related
products. Thus, companies face losing brand credibility, revenue opportunities,
and entire markets. With the millions of dollars it takes in R&D–from the hard
costs of manufacturing to the less definable costs of resources and people–the
losses mount quickly with an unsuccessful product. Complications caused by
design oversights have cost companies billions of dollars.




DRIVING MARKET SHARE AND REVENUE

In a marketplace of all too similar offerings, whether it is a website or
electronic device, it is easy to see how design focused on user experience is a
key competitive differentiator. The market is cluttered with “me too” products.
In the last year alone, at least half a dozen tablet computers hit the market,
along with three times as many new smartphones and countless MP3 players. The
devices that offer simplicity over complexity win market share.

As we have seen with Apple’s success, creating products that offer as much
simplicity as functionality drives market share and premium pricing. Recent
studies validate this strategy. Forrester Research finds that “implementing a
focus on customers’ experience increases their willingness to pay by 14.4
percent, reduces their reluctance to switch brands by 15.8 percent, and boosts
their likelihood to recommend your product by 16.6 percent.”

The Logitech Harmony One: Not a beauty, but solving problems.

Take, for example, Logitech, which, like Apple, delivered a simply superior
product, the Harmony One universal remote control, that consumers were willing
to pay for. Not long ago, the company reexamined how people truly use remotes
and decided to move away from device-centric controls to activity-based
controls. Based on research of what consumers truly needed, a simple-to-use
interface solution was developed that makes controlling home entertainment
easier with a full-color touchscreen, an intuitive button layout, and an
exceptionally ergonomic design. While the product is more expensive than other
devices, Logitech has won the lion’s share of the market because its product
offers unparalleled usability.




INVEST IN UX FROM THE GET-GO

Racing to market with greater levels of functionality isn’t going to ensure
dominance; solutions must offer users an intuitive and tailored user interface.
Companies are recognizing that it is far less expensive to prevent a problem or
usability issue from occurring in the first place than to fix it later in a
redesign process. In a marketplace with very little differentiation among
products and increasing complexity, companies that embrace usability early on
will drive revenue, productivity, and customer loyalty.

[Top image: Tom Nance/Shutterstock]





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The first-production electric snowmobile from Taiga could have an outsize impact

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Today's Top Stories:
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Get more from the cloud with the right hybrid connectivity strategy
02

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By adopting a flexible technology strategy, Mindbody has taken its business to
the next level
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How a cloud anywhere approach solves business challenges
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Bringing the cloud closer to end users in a metro area
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high-stakes tech showdown
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3 traits digital leaders have in common
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Democratizing software development
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IMPACT

Impact


PREMATURE BIRTHS HAVE TRIPLED IN UKRAINE. THIS NONPROFIT IS DONATING PORTABLE
INCUBATORS

Impact


THOUSANDS OF FOSSIL FUEL PROJECTS ARE PROTECTED BY TREATIES. CANCELING THEM
COULD COST COUNTRIES BILLIONS

Impact


HOW MONITORING OUR SEWAGE COULD HELP HEAD OFF FUTURE DISEASE OUTBREAKS


NEWS

News


WILL STOCKS KEEP GOING DOWN? WALL STREET BRACES FOR ANOTHER PUNISHING WEEK AFTER
LOSING STREAK

News


THE DEMOCRATS’ BRAND ADVERTISING IS BROKEN. CAN HOOLIGANS FIX IT?

News


MEET THE DUO OF BLACK FINANCIAL ADVISORS WHO WANT TO HELP YOU MANAGE AND GROW
MORE WEALTH


CO.DESIGN

Co.Design


HOW AIRPORT SECURITY TECH COULD HELP UNCOVER ANCIENT CAVE ART

Co.Design


THIS CHILDREN’S BOOK ABOUT DESIGN SHOULD BE REQUIRED READING FOR CEOS

Co.Design


INSIDE THE LUCRATIVE BUSINESS OF A METAVERSE LANDLORD, WHERE MONTHLY RENT CAN
HIT $60,000 PER PROPERTY


WORK LIFE

Work Life


HAS YOUR MOTIVATION TO WORK DECLINED? MAYBE YOUR VALUES HAVE SHIFTED

Work Life


YELP CEO: WHY COMPANIES NEED TO TAKE A STAND ON REPRODUCTIVE RIGHTS

Work Life


IT’S NOT ABOUT YOU. HOW TO REFRAME REJECTION AS AN OPPORTUNITY—NOT AN OBSTACLE 

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FAST COMPANY

Follow
 * 
 * 
 * 
 * 
 * 

Login
 * Co.Design
 * Tech
 * Work Life
 * News
 * Impact
 * Podcasts
 * Video
 * Recommender
 * Innovation Festival 360IF360
 * Subscribe
 * 
 * FastCo Works
    * AWS
    * Deloitte
    * Genpact


 * HOMEPAGE


 * CO.DESIGN


 * TECH


 * WORK LIFE


 * NEWS


 * IMPACT


 * PODCASTS


 * VIDEO


 * RECOMMENDER


 * INNOVATION FESTIVAL 360


 * SUBSCRIBE

Help Center
fastco works


 * AWS


 * BOSTON SCIENTIFIC


 * DELOITTE


 * DEPT


 * ELEVATE PRIZE


 * GENPACT


 * KLARNA


 * LOGITECH


 * SQUARE


 * VERIZON AWS


 * VISA


 * FASTCO WORKS
   
   An award-winning team of journalists, designers, and videographers who tell
   brand stories through Fast Company's distinctive lens

FC Executive Board
collections


 * FAST GOVERNMENT
   
   The future of innovation and technology in government for the greater good


 * MOST INNOVATIVE COMPANIES
   
   Fast Company's annual ranking of businesses that are making an outsize impact


 * MOST CREATIVE PEOPLE
   
   Leaders who are shaping the future of business in creative ways


 * WORLD CHANGING IDEAS
   
   New workplaces, new food sources, new medicine--even an entirely new economic
   system


 * INNOVATION BY DESIGN
   
   Celebrating the best ideas in business

Newsletter
Events


 * THE FUTURE OF HYBRID CLOUD


 * MOST INNOVATIVE COMPANIES SUMMIT

Courses and LearningAdvertiseCurrent Issue
Current Issue
SUBSCRIBE
Follow us:

advertisement

advertisement

 * 03-15-12


DOLLARS AND SENSE: THE BUSINESS CASE FOR INVESTING IN UI DESIGN


APPLE HAS SHOWN THAT CONSUMERS ARE WILLING TO PAY A PREMIUM FOR PRODUCTS THAT
ARE EASY TO USE. SO WHY DO COMPANIES RESIST PUTTING MONEY INTO UI UPFRONT?


 * 
 * 
 * 
 * 

By Peter Eckert3 minute Read

In their rush to build more features into their electronic devices, companies
often lose sight of a key ingredient: basic usability. User-interface design
(UI), the art of simplifying complexity into meaningful user experiences, is an
increasingly important competitive advantage for technology companies launching
new products, as people from consumers to business users seek solutions that
offer as much intuitiveness as they do function.

advertisement

advertisement


Every dollar spent on UX brings in between $2 and $100 dollars in return.

Today, usability is a must-have for optimal return on investment with new
technologies. Companies focusing on user-experience (UX) and user-interface
design in product and application development create better solutions, improving
revenue, loyalty, and market share. Numerous industry studies have stated that
every dollar spent on UX brings in between $2 and $100 dollars in return.
Already, household names such as Samsung, Charles Schwab, Motorola, Logitech,
and Dell are leveraging UX and interface design in the development of their
products and applications–with strong results.


USABILITY MATTERS

While the research has been out for some time, many companies still dramatically
underestimate the importance of ease of use and focus too heavily on features
and functions. Some have learned the lesson the hard way. Think back to 2006,
when Microsoft introduced Zune, a portable MP3 player designed to compete with
the iPod. While feature-rich, Zune failed due in part to a more complex
interface, which couldn’t compete with the simplicity of Apple’s design.

The doomed first-generation Zune

With options that are user-friendly on the market, frustrated consumers are not
going to overlook technological kinks. When a product gets singled out in the
media for poor performance, it goes viral and quickly deters potential customers
from not only the new product but potentially the company’s non-related
products. Thus, companies face losing brand credibility, revenue opportunities,
and entire markets. With the millions of dollars it takes in R&D–from the hard
costs of manufacturing to the less definable costs of resources and people–the
losses mount quickly with an unsuccessful product. Complications caused by
design oversights have cost companies billions of dollars.

advertisement



DRIVING MARKET SHARE AND REVENUE

In a marketplace of all too similar offerings, whether it is a website or
electronic device, it is easy to see how design focused on user experience is a
key competitive differentiator. The market is cluttered with “me too” products.
In the last year alone, at least half a dozen tablet computers hit the market,
along with three times as many new smartphones and countless MP3 players. The
devices that offer simplicity over complexity win market share.

As we have seen with Apple’s success, creating products that offer as much
simplicity as functionality drives market share and premium pricing. Recent
studies validate this strategy. Forrester Research finds that “implementing a
focus on customers’ experience increases their willingness to pay by 14.4
percent, reduces their reluctance to switch brands by 15.8 percent, and boosts
their likelihood to recommend your product by 16.6 percent.”

The Logitech Harmony One: Not a beauty, but solving problems.

Take, for example, Logitech, which, like Apple, delivered a simply superior
product, the Harmony One universal remote control, that consumers were willing
to pay for. Not long ago, the company reexamined how people truly use remotes
and decided to move away from device-centric controls to activity-based
controls. Based on research of what consumers truly needed, a simple-to-use
interface solution was developed that makes controlling home entertainment
easier with a full-color touchscreen, an intuitive button layout, and an
exceptionally ergonomic design. While the product is more expensive than other
devices, Logitech has won the lion’s share of the market because its product
offers unparalleled usability.

advertisement



INVEST IN UX FROM THE GET-GO

Racing to market with greater levels of functionality isn’t going to ensure
dominance; solutions must offer users an intuitive and tailored user interface.
Companies are recognizing that it is far less expensive to prevent a problem or
usability issue from occurring in the first place than to fix it later in a
redesign process. In a marketplace with very little differentiation among
products and increasing complexity, companies that embrace usability early on
will drive revenue, productivity, and customer loyalty.

[Top image: Tom Nance/Shutterstock]


advertisement

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The Abortion Pill | Your Questions Answered
Can medication abortions override the impending U.S. abortion ban? ‘Fast
Company’ contributor Ruth Reader explains more.
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IMPACT

Impact


PREMATURE BIRTHS HAVE TRIPLED IN UKRAINE. THIS NONPROFIT IS DONATING PORTABLE
INCUBATORS

Impact


THOUSANDS OF FOSSIL FUEL PROJECTS ARE PROTECTED BY TREATIES. CANCELING THEM
COULD COST COUNTRIES BILLIONS

Impact


HOW MONITORING OUR SEWAGE COULD HELP HEAD OFF FUTURE DISEASE OUTBREAKS


NEWS

News


WILL STOCKS KEEP GOING DOWN? WALL STREET BRACES FOR ANOTHER PUNISHING WEEK AFTER
LOSING STREAK

News


THE DEMOCRATS’ BRAND ADVERTISING IS BROKEN. CAN HOOLIGANS FIX IT?

News


MEET THE DUO OF BLACK FINANCIAL ADVISORS WHO WANT TO HELP YOU MANAGE AND GROW
MORE WEALTH


CO.DESIGN

Co.Design


HOW AIRPORT SECURITY TECH COULD HELP UNCOVER ANCIENT CAVE ART

Co.Design


THIS CHILDREN’S BOOK ABOUT DESIGN SHOULD BE REQUIRED READING FOR CEOS

Co.Design


INSIDE THE LUCRATIVE BUSINESS OF A METAVERSE LANDLORD, WHERE MONTHLY RENT CAN
HIT $60,000 PER PROPERTY


WORK LIFE

Work Life


HAS YOUR MOTIVATION TO WORK DECLINED? MAYBE YOUR VALUES HAVE SHIFTED

Work Life


YELP CEO: WHY COMPANIES NEED TO TAKE A STAND ON REPRODUCTIVE RIGHTS

Work Life


IT’S NOT ABOUT YOU. HOW TO REFRAME REJECTION AS AN OPPORTUNITY—NOT AN OBSTACLE 

 * Advertise
 * Privacy Policy
 * Terms
 * Notice of Collection
 * Do Not Sell My Data
 * Permissions
 * Help Center
 * About Us
 * Site Map
 * Fast Company & Inc © 2022 Mansueto Ventures, LLC
 * 





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