Whether you sell to other businesses or directly to consumers, providing a seamless digital experience is essential for the success of your business. Investing in experience design (not to be confused with graphic or visual design) can lead to improved customer satisfaction, increased conversions, and ultimately higher revenue. However, as with any investment, it’s critical to measure the return on investment (ROI) to ensure that the efforts put into experience design are delivering tangible results. Let’s explore how to measure ROI when investing in experience design to optimize your eCommerce website.
Start by Defining Measurable Business Goals
Before embarking on a digital commerce project, it is vital to establish clear and measurable goals. These goals should align with the overall business objectives of the eCommerce website.
For example, goals could include reducing cart abandonment rates, increasing average order value, improving customer retention, or enhancing overall user satisfaction. Outcomes can also reflect internal improvements such as: enabling self-service, gaining operational efficiencies, and more. Defining these goals provide a basis for evaluating the effectiveness of the experience design investment.
In order to successfully measure your eventual outcomes, all business goals must define a baseline prior to initiating any experience design. For existing sites being improved upon, you simply capture current state insights and use those as a starting point.
For new experiences, it’s best to rely on industry standards as a baseline. However, you’ll want to be careful not to aggressively expect to meet those standards out of the gate. A successful user experience needs to live in the wild a bit in order to fully optimize the experience. Typically, 6 months post launch is the right time to start confidently measuring the performance of a new site.
A Few Ways to Measure Outcomes
When it comes to measuring your Return on Investment (ROI) of experience design, several key factors can be considered. Here's a few conceptual frameworks for an ROI model tailored to eCommerce experience design:
Remember, while ROI can be quantitatively measured through metrics and financial gains, it's also important to consider qualitative aspects such as improved user satisfaction, brand loyalty, and market differentiation. By combining these factors in your ROI model, you can create a comprehensive assessment of the impact of experience design on eCommerce success. Investing in experience design is a continuous process, and regular measurement and analysis is critical in helping to continuously optimize your digital channels.