The Brutal Truth About Design ROI (Spoiler: You're Doing It Wrong)

November 18, 2024

Design

The ROI of good design in eCommerce

Let's talk money - specifically, why some brands are swimming in profit pools while others are fishing for pennies in the fountain outside their office. And no, Karen from Marketing, it's not because they picked Helvetica over Arial.

Here's the tea: While you're reading this manifesto on design ROI, companies that actually invest in design are casually outperforming their competitors by a face-melting 32% in revenue growth .

But wait, it gets better (or worse, depending on which side of the design divide you're on):
Every. Single. Dollar. invested in UX brings back $100 in return. That's not a typo. In case you are bad at math we're talking about a 9,900% ROI that would make your crypto-bro cousin's Discord server explode.

The Hidden Dumpster Fire of Bad Design

Fun fact: In the time it took you to read this far, about 75,000 people just rage-quit a website because it looks like it was designed by a caffeinated toddler with a keyboard. A whopping 88% of online consumers would rather ghost your site than suffer through a bad experience.

That's like opening a store where the doors randomly punch customers in the face - except this time, they're not just leaving, they're telling their friends, their mom, and their 47,000 TikTok followers about it.

(P.S. Still think that website redesign can wait until next quarter?)

The DTC Design Revolution (Or: How Direct-to-Consumer Brands Are Eating Your Lunch)

The Warby Parker Flex

Remember when buying glasses meant choosing between rent and being able to see? Then Warby Parker strutted in like the cool kid at a chess club, dropped their AR try-on experience, and casually moonwalked their way to a $6 billion valuation. Mind? Blown. Their virtual try-on feature didn't just change the game - it flipped the board, with a 70% boost in conversion rates.

The Design Revolution You're Sleeping On

Time for some tough love: While you're in your 17th meeting about updating the footer color, direct-to-consumer brands are out there making your business model look like a flip phone at an iPhone launch. Companies that prioritize design aren't just winning - they're lapping the competition twice.

The Allbirds Attitude Adjustment

Remember when sustainable meant looking like you borrowed clothes from your eco-warrior cousin? Then Allbirds swooped in and made sustainable so sexy that people actually brag about their carbon footprint. Their customers who engage with both digital and physical touchpoints spend 1.5X more.

Plot twist: They're not hawking shoes - they're selling membership to the "I care about the planet but make it fashion" club. The shoes are just your admission ticket.

The Glossier Glow-Up

While traditional beauty brands were still photoshopping pores into oblivion, Glossier was building the beauty equivalent of a viral TikTok trend. Their user-generated content isn't just content - it's a conversion machine, driving 2.5X higher rates than those perfectly-lit professional shots.

(P.S. In the time it took to read this section, Glossier converted another 100 Instagram scrollers into buyers, and your website... well, it's still there.)

(P.P.S. Yes, that was shade. No, we won't apologize.)

UI, UX, CX - The Holy Trinity of Digital Design Experience

Think design is just making things pretty? Cute. Let's talk about why Digital Experience Design is the secret sauce making some brands rake in millions while others wonder why their gorgeous website isn't converting.

The Three-Ring Circus of Digital Design

UI: The Pretty Face With Brains
This is what your users can see, touch, and curse at (hopefully not the latter). We're talking buttons that actually look clickable, color combos that don't make eyes bleed, and typography that doesn't scream "I just discovered Word Art." It's the digital equivalent of a firm handshake - you only notice when it's bad.

UX: The Chess Player
While UI is playing checkers, UX is playing 4D chess. It's analyzing why your users rage-quit your checkout page, why they're getting lost in your navigation, and why they're leaving your site faster than your ex left your DMs on read. "Companies with strong UX design outperform the S&P index by 228%".

CX: The Grand Puppet Master
This is where the magic happens - or doesn't. CX connects all the dots between your fancy UI, smart UX, and every single touchpoint where customers interact with your brand. It's making sure your digital experience isn't giving users trust issues like that one dating app we all regret downloading.

The Numbers That'll Make Your CFO Cry Into Their Spreadsheets

Let's get brutal with some stats that'll hurt worse than your last performance review:

Your Website Is Your Handshake

A whopping 75% of users are judging your company's entire existence based on your website design. That's like being rejected for a job because you wore cargo shorts to the interview.

The Mobile Massacre

Here's a fun fact that should keep you up at night: 88% of users will ghost your site faster than a bad Tinder date if your mobile experience sucks. And unlike your dating life, this one's actually costing you money.

The Seven-Second Money Drain

Every tick of the clock on your loading time is bleeding you dry - we're talking 7% of your conversions vanishing into thin air with each passing second. While you're reading this sentence, someone just abandoned their cart on your slow-loading site.

The Kitchen Status Symbol Revolution

Take Caraway Home (because someone had to make cookware sexy). They didn't just redesign their shopping cart - they turned basic pots and pans into Instagram-worthy status symbols. The result? A tasty 40% boost in average order value.

Reality Check: They're not in the cookware business - they're in the "make-your-kitchen-look-like-a-celebrity-chef's" business. And they're doing it one perfectly-designed pixel at a time.

(P.S. While you were debating whether to update your site, they just sold another $200 pan to someone who doesn't even cook.)

The "Get Your Act Together" Implementation Playbook

WARNING: This section contains information that might make your current design process feel personally attacked.

Design Systems: Because Chaos Isn't a Strategy

Still updating brand assets manually like it's 2010? Bless your heart. While you're copying and pasting colors across 47 different files, companies like HelloFresh are living in 3024 with design systems that:

  • Cut development time by 67% (aka more time for actual innovation, less time playing "find that font")
  • Boosted user engagement by 45% (turns out consistency is pretty sexy)
  • Keep eight different markets looking fresh without having mental breakdowns

Plot twist: Your competitors aren't just working faster - they're working smarter. And your pixel-by-pixel updates are starting to look a lot like bringing a knife to a gunfight.

Mobile-First or Last Place (Your Choice)

Here's a fun fact that should keep you up at night: "71% of all retail traffic now comes from mobile devices". Yet here you are, designing for desktop like it's still 2015 and Pokemon GO is the hottest thing around.

Want receipts? When Warby Parker finally got with the program and redesigned their mobile experience, their conversions jumped by 33%. That's not just money that was being left on the table - that's money thrown out the window while doing a backflip.

The "Stop Procrastinating" Action Plan

Listen up, because this is where the rubber meets the road (and where your excuses hit the trash can).

Immediate Moves (As in, Yesterday Wasn't Soon Enough)

1. Audit Your Digital Experience (The Reality Check)

Time to rip off the band-aid and track what's actually happening on your site:

  • How long it takes for your site to look less like a loading screen and more like a business (aka. First Meaningful Paint)
  • How many users are playing "Where's Waldo" with your navigation (aka. Flow Completion Rates)
  • Whether your mobile experience is more "swipe right" or "uninstall immediately" (aka. Mobile Conversion Rates)
  • What your users really think (spoiler: those feedback scores might hurt your feelings)

2. Design Systems: Your New Best Friend
"Organizations with design systems save an average of 20-30% on development costs". That's like finding money in your jeans pocket, except it's thousands of dollars and it happens every month.

3. Mobile or Bust
Here's a wake-up call: "Mobile users are 5X more likely to abandon a task if the site isn't optimized". Translation? Your non-mobile-optimized site is basically a "Going Out of Business" sign written in pixels.

Reality Check: Every minute you spend not implementing these changes is another minute your competitors are stealing your lunch money.

The Bottom Line

The real ROI of design isn't in pretty pixels - it's in the invisible experiences that make customers forget they're using a designed product at all. When Allbirds redesigned their checkout process, they saw a 25% reduction in cart abandonment.

Here's your wake-up call: While you were reading this article, design-led companies just increased their market share by another percentage point.

(P.S. If you're still thinking design ROI is just about logos and landing pages, I've got some Web3 tokens to sell you.)

(P.P.S. The best time to invest in design was yesterday. The second best time is now.)

Now go make design decisions that'll have your accountant doing backflips. Because in 2024, design isn't just part of the business strategy - it IS the business strategy.

Hey, I'm eKat!

A recovering corporate eCommerce girly. Serial BS-slayer with a PhD in keeping it real. Clinically allergic to Comic Sans. Part-designer, part-strategist, 100% multi-passionate. Your favorite marketing bro's worst nightmare.

I occasionally start fires in the status quo while I spill the tea on all things design & eComm.

Obsessed with:

💣 Breaking rules that deserve it

🕳️ Turning chaos into cash

🤘 Making design actually work


WARNING: Subscription side effects may include sudden clarity and chronic profitability. Not responsible for sudden urges to rebuild your entire business strategy.

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