Awareness of the usefulness of User Experience Design (UX) is steadily growing. More and more people are realizing that UX and its various areas (such as UX Writing, which we discussed HERE) are not just a "trend" but a conscious and responsible approach to building products, websites, and... strategic advantages.
However, many companies still downplay the role of UX. Often, well-established market players with a long tradition of activity dismiss the significance of systematic user experience design. They nurture the belief that investing in UX is costly and does not bring immediate, easily measurable financial benefits. By focusing on short-term gains, they often ignore that good UX practices can significantly impact long-term customer loyalty and profitability and reduce the need for costly overhauls in the future. In such organizations, convincing management to invest in areas where the effects are not immediately visible or easy to quantify, such as improving user satisfaction or increasing product usability, can be challenging.
There's still a perception that the UX design process is abstract, subjective, and lacks clear success criteria. In the business world, where a data-driven and results-oriented approach dominates, difficulties in measurably determining the impact of UX on the commercial success of a product or service can lead to perceiving it as less significant. Some companies still need to see user experience design as a position that can generate substantial profits. However, by increasing customer satisfaction and improving engagement, investments in UX can bring tangible benefits and build a lasting competitive advantage.
UX and its impact on business outcomes – examples
Walmartone of the world's largest retailers, decided to invest in User Experience (UX) by redesigning its website and mobile application. The goal was to create a more intuitive, personalized, and convenient customer shopping platform. The redesign focused on simplifying the purchasing process, improving product search, and introducing customized recommendations to increase user engagement and sales.
As a result of these efforts, online sales significantly increased, and customer satisfaction improved. The enhanced shopping convenience and tailored offerings to user needs brought concrete business benefits.
On the other hand, Bank of America redesigned its online banking platform, emphasizing simplifying and personalizing the user experience. The 'Keep the Change' initiative significantly increased customer engagement and satisfaction by rounding up transactions to the nearest dollar and transferring the difference to the customer's savings account. This feature not only facilitated saving money for customers but also significantly increased the number of new savings accounts opened in the bank. Bank of America strengthened its position in the banking services market by focusing on user needs and providing added value.
In the domestic market, mBank introduced a similar function – mSaver. While different from Bank of America's 'Keep the Change,' it is based on a similar concept of encouraging customers to save through daily transactions. Although the specific mechanics may differ, adapting to the operation and offerings of each bank, the effect of increased customer engagement is similar.
Fot. Weronika Dyląg
UX in Insurance
In the insurance sector, where customer experience is often complex and burdened with formalities, UX design can significantly impact a company's success, including financial success. Improving user interfaces, simplifying the insurance application process, providing easier access to policy information, and intuitive online purchasing paths will increase customer satisfaction.
Well-designed mobile applications or websites in terms of user experience lead to increased insurance contract subscriptions and reduced policy cancellations. It also improves customer loyalty. Simplifying and personalizing the insurance purchase process using advanced UX techniques allows customers to understand offers better and tailor them to individual needs. As a result, there are more customers, and sales results are better.
Investments in UX can also bring insurers benefits through operational cost reduction. For example, efficient self-service systems that allow customers to manage their policies, report claims online, or automate specific queries can significantly reduce the workload for customer service teams. This increases operational efficiency and improves the speed and quality of service, which is crucial when customers need support. It enables insurance companies to manage their resources better, focusing on product development and innovation, further strengthening their market position and potentially translating into financial results.
Examples
Lemonade: Lemonade, an insurer, utilizes artificial intelligence and behavioral data to personalize insurance offers, simplifying and speeding up the policy purchase process for customers. Through investments in UX and UI, Lemonade revolutionized the insurance purchasing experience, allowing customers to buy a policy within minutes without contacting an agent. This approach increased customer satisfaction and improved the company's financial performance, making it one of the most innovative entities in the insurance market.
AXA: The global insurance giant AXA focused on the digital transformation of its business, introducing a range of UX/UI solutions to streamline policy management and claims reporting for customers. AXA increased user engagement and customer service efficiency by developing mobile applications and portals offering intuitive and personalized interfaces. These investments contributed to increased customer loyalty and satisfaction and, ultimately, improved financial results.
ZhongAn: Chinese insurance company ZhongAn uses big data technology and behavioral analysis to offer personalized insurance. Thanks to advanced UX design, the online platform enables customers to purchase insurance tailored to their needs easily and quickly. ZhongAn's innovative approach to user experience and effective data utilization allowed the company to quickly gain a significant market share and achieve considerable financial success.
Fot. Weronika Dyląg
UX – not only for end-users
Efficiency
Investments in UX for internal systems can increase operational efficiency. For example, improving the user interface of Enterprise Resource Planning (ERP) or Customer Relationship Management (CRM) systems can significantly streamline work processes, reducing the time needed for daily tasks. This can contribute to lowering operational costs and increasing employee productivity, which, in turn, affects the company's financial results.
Error Reduction and Data Quality Improvement
Enhancing UX in internal applications can also help reduce user errors, which is crucial in financial, logistical, or data management applications. Improved data quality impacts the accuracy of analyses and business decisions, leading to better resource management, cost optimization, and increased revenue.
Employee Satisfaction and Engagement
Investments in UX can also improve employee satisfaction and engagement, providing long-term benefits for organizations. Employees using intuitive and efficient tools are more likely to be satisfied with their work, resulting in lower turnover and greater loyalty. Satisfied employees are also more productive and inclined to innovate, contributing to the company's competitiveness in the market.
Example
IBM is an example of a company that invested in UX for its internal systems and tools, significantly improving work efficiency and reducing costs. By introducing consistent design standards and focusing on user needs, IBM achieved better integration of its systems, facilitating employee access to necessary information and tools. These investments improved internal operational efficiency and strengthened IBM's position as a leader in innovation and UX design.
