In the product design world, ROI (‘return on investment’) is a hot topic. Most designers agree that it is key to show ROI when you want to get hired. But how do you measure it? Or even more important… how do you sell it?
And that’s quite challenging, because measuring design ROI is completely different depending on where you work.
Are you working in-house? In an agency? Freelancing? Your way to prove your value changes based on your type of design role.
Let's take a look how you can measure design ROI in different job types so you can show your design worth regardless of where you work.
In my experience as a freelancer, your value is more about perception than hard numbers. This applies to design agencies, too.
Your clients are likely to pay you thousands of dollars per month. Focusing on hard numbers is a battle you will lose, because only a few companies are big enough for you to be able to return that amount of money in MRR (monthly recurring revenue) each month.
Instead, focus on showing before-and-after comparisons that show improvement. Those are hard to ignore!
At the same time, be the go-to design expert at your client for any design-related questions they have. Being the one that takes away obstacles by answering questions is a great way show your ROI.
There’s another reason why perceived value is a smart way to go. That reason is access go data. As freelancers, you do not always have access to analytics data.
You’re asked to get things done quickly or work on a 0-to-1 type project where there is no data yet. Or in other cases, your customer doesn’t want you to talk to users.
Both can happen on any project, but in my experience, it happens more often for freelance projects. This is another reason why perceived value is so important for freelancers and agency owners.
Working as an in-house designer can be a different situation in terms of measuring your ROI. You’re more likely to have access to data and can track how your designs affect business metrics. You usually have more time, too.
With access to data and analytics, you can do the following:
At the same time, in-house designers face a different challenge: attribution. When multiple teams work on a project, how do you prove which part of the success came from your design work?
As a freelancer, this is usually a bit easier. You’re hired to do a job. Finishing that job is your impact and return on investment. As you can see, both positions have their pros and cons!
"I came from an e-commerce background, so everything is conversion tracking. It's been ingrained in me. It's the life of selling physical or digital products online."
For both freelance designers and in-house designers, there are some universal strategies to better measure and communicate your design impact:
The above is all about ways of working. But when you start to track design ROI, you need actual metrics to achieve that way of working.
Here are our favorites:
One thing both agency and in-house designers potentially struggle with is the delay between design work and measurable results.
Your clients might not see financial returns until months after your work is complete. At the same time, your design might take weeks to implement and more time to gather enough data. You’ve moved on to different projects by then.
To prevent your design ROI from becoming completely invisible, you have to set early expectations about realistic timelines for results. You could also focus on the perceived value we mentioned earlier in this post until actual data-driven results come in.
If you're not already measuring your design impact, start today with whatever metrics you can access. Just knowing about conversion rates is enough to get started. Even simple before-and-after screenshots (potentially with user quotes) can help you get started to show your ROI.
Over time, develop more sophisticated tracking methods, like NPS and analytics, that make your design value undeniable. If you can succeed here, you’ll be a super valuable and in-demand designer.
Want to hear more about measuring your design ROI from both an agency and in-house perspective? Listen to our full Design Table podcast episode below!
"Design ROI is just about making things look good, right?”… Wrong! Great design isn't just about looking pretty. It's about stakeholder management, (perceived) added value, and so much more. In this episode, Tyler and Nick break down design’s ROI and how you measure it.
