The Impact of Good Design

 “Design adds value faster than it adds costs.”

– Joel Spolsky, web programmer, writer, and creator of Trello

“Design isn’t about beauty; it’s about market relevance and meaningful results.”

– a noteworthy designer, Adobe

In the first blog, I explained the problems companies might face in case they fail to provide effective web – and mobile designs. But what about the cases companies successfully drive their businesses by good design?

Here are some actual cases that prove that Customer-Centered Design is a crucial factor for the success of businesses.

Design-Driven Companies Outperformed S&P By 228% Over Ten Years

Based on the study conducted by the Design Management Institute, a company who have been examining the business performance of design-driven companies in the comparison with the S&P index over a decade in the United States, shows that the companies who are driven by excellent designs have maintained “significant stock market advantage, outperforming the S&P by 228%” (Westcott, 2014).

Design-led firms win the business advantages: focus on CX (customer experience) strategy and execution reaps rewards

“In this changing landscape of customer goals and choices, design becomes a key business advantage. A well-crafted experience – one based on deep customer understanding, effective visuals, and relevant interactions – can make the difference between a loyal, repeat customer and one who gives up and walks away unsatisfied.”

– Forrester Consulting, 2016

In July 2016, Adobe conducted the research commissioned by Forrester Consulting to test the hypothesis that “embedding design practices in digital CX strategy creates a tangible and measurable business advantage.”  After a qualitative survey of 339 digital CX decision-makers at enterprises located in the regions of North America, Europe, Asia, and Euro-Asia, the study found out that:

1.  Design-led companies mark more market share, more competitive advantages/wins, and more satisfied – and loyal customers

Figure 1:

2. Design-led companies make more investments to make the design even better

Figure 2:

List of Customer Experience – Led companies:

  1. Apple
  2. Coca-cola
  3. Ford
  4. IBM
  5. Intuit
  6. Procter&Gamble
  7. Starbucks
  8. Walt Disney
  9. Nike
  10. Zalando
  11. Netflix
  12. etc

In the next post, I will show the overview of User Experience Design. You will learn what exactly is the User (Customer) Experience Design is, the application area, and the difference between other kinds of design concepts.

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Bibliography

Forrester Consulting. (2016, October ). Design-led firms win the business advantage: A focus on CX strategy and execution reaps rewards. Retrieved from Adobe.com: https://landing.adobe.com/en/na/products/marketing-cloud/350450-forrester-design-led-business.html

Westcott, M. (2014, March 10). DESIGN-DRIVEN COMPANIES OUTPERFORM S&P BY 228% OVER TEN YEARS – THE ‘DMI DESIGN VALUE INDEX’. Retrieved from Design management Institute: https://www.dmi.org/blogpost/1093220/182956/Design-Driven-Companies-Outperform-S-P-by-228-Over-Ten-Years–The-DMI-Design-Value-Index

 

Hikaru Hanaoka

A student in MSC in Business Administration, major Online Business and Marketing. I am passionate about UX/UI design, online marketing, and business development. In my free time, you will find me at the climbing gym and nature. Looking forward to connecting with you!

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2 thoughts on “The Impact of Good Design

  1. The proficiency in design of the companies’ websites plays one of the major roles in attracting the consumers. Besides, it makes the company more competitive in the market. Even the investor is much more likely to have a deal with a design-driven company.
    I will be waiting for the next posts from this author. The statistics provided by the author proves one more time that the company only wins from the policy of good design.

  2. I like the definition of design being “Design isn’t about beauty; it’s about market relevance and meaningful results.”
    A lot of people confuse Design for making something look fancy, but really good design comes with functionality and the customer/user put first. Even though it’s not really surprising, but it’s impressive to see these clear results of design-driven companies outperforming other companies in proper statistics.

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