ROI (Return on Investment)
A financial metric that measures the profitability of an investment relative to its cost, expressed as a percentage.
Definition: A financial metric that measures the profitability of an investment relative to its cost, expressed as a percentage.
ROI (Return on Investment) quantifies the value generated by an investment compared to its cost.
Calculation
ROI = ((Gain from Investment - Cost of Investment) / Cost of Investment) × 100
UX Research ROI
Studies consistently show strong ROI for UX research investments:
- Every $1 invested in UX returns $100 on average
- Fixing a problem in development costs 10x less than post-launch
- Improved usability can increase conversion rates by 200% or more
Measuring UX ROI
- Reduced support costs
- Increased conversion rates
- Higher customer satisfaction scores
- Lower development rework costs
Related Terms
Conversion Rate
The percentage of users who complete a desired action (e.g., purchase, sign-up) out of the total number of visitors.
Key Performance Indicator (KPI)
A metric explicitly chosen to track progress toward a specific business or product goal. Not every metric is a KPI—only the ones tied to decisions you will actually make.
Mentions in the Knowledge Hub
This term is referenced in the following articles: