Can UX Design Lead to Better Customer Retention?

By measuring and analyzing user behavior and feedback, companies can identify areas where UX design can be improved to enhance the user experience and increase customer retention.

Amazon has invested millions in UX. During the first year at Amazon, Bezos invested 100 times more into customer experience than Advertising. Forrester Research conducted a study of the financial impact of User Experience and found on average every dollar invested in UX brings 100 dollars in return.

Similarly, a 2018 McKinsey report on the Business Value of Design showed the companies that focus on design and make it a priority, have a higher rate of return on investments. In short, customers are more loyal if you invest in providing a better user experience.

Here are some ways that UX design can be tracked to improve customer retention:

1. User testing: Conducting user testing can help companies identify usability issues and pain points in their products or services. By observing how users interact with a product or service, companies can gain insights into how to improve the user experience, and in turn, improve customer retention.

2. User feedback: Soliciting user feedback through surveys, feedback forms, or social media can help companies identify areas where UX design can be improved. User feedback can provide valuable insights into what users like and dislike about a product or service, and can help companies prioritize areas for improvement.

3. Analytics: Analyzing user behavior through website or app analytics can provide insights into how users are interacting with a product or service. By tracking metrics such as time spent on a page, bounce rates, or click-through rates, companies can identify areas where UX design can be improved to better engage and retain users.

4. A/B testing: A/B testing can help companies test different UX design variations to identify which design is more effective in retaining customers. By comparing the performance of different designs, companies can identify the most effective design solution to improve customer retention.

UX design can be tracked to better customer retention by using various methods to measure and analyze user behavior and feedback. In my career, I have held usability testing sessions in person with stakeholders and random users. I have also gathered feedback from online participants using a tool called UserTesting to quickly gather feedback and make improvements to a UI based on usability research.

In 2020, I designed a mobile app for Selective Insurance and made several changes to the UI based on user feedback. Not only did the app win 3 awards, the reviews on the app stores jumped from three stars to five in just a few months.

Happy customers are loyal customers. By identifying areas for improvement and making iterative changes to UX design, companies can ensure they are giving customers a better experience.

Jason Bailey @jasonbdesign