6 Ways Design Impacts the ROI of Custom Software Development

Alejandro Córdoba Borja
Tres Astronautas
February 7, 2024
2 min
Key Points:
  • Good UX increases user retention, reducing CAC costs and increasing CLTV.
  • Good design reduces support costs by improving user self-sufficiency.
  • Good design helps products achieve fast product-market fit, reducing time to market.
  • Good design reduces resistance to change, streamlining implementation and adoption.
  • Good design improves competitive advantage, attracting and retaining customers.
  • Good design increases productivity of the development team, leading to cost savings.

Design plays a crucial role in the return on investment (ROI) of custom software development projects. An effective and well-executed design can significantly impact the success and profitability of such projects. Here are six ways design impacts the ROI of custom software development:

1. Good UX Increases User Retention and Reduces CAC Costs

A well-designed software application with a focus on user experience (UX) can increase user retention rates. When users have a positive experience using the software, they are more likely to continue using it and become loyal customers. This reduces the cost of acquiring new customers (CAC) and increases the customer lifetime value (CLTV), leading to a higher ROI.

2. Good Design Reduces Costs of the Development Team

A well-designed development process and user-friendly tools can significantly increase the productivity of the development team. When developers have streamlined workflows, intuitive tools, and clear design guidelines, they can work more efficiently and deliver high-quality software within shorter timeframes. This increased productivity leads to cost savings and a higher ROI.

3. Good Design Reduces Support Costs

A thoughtfully designed user interface and intuitive workflows can significantly reduce the need for extensive user support. When users can easily navigate the software and understand its functionalities, it decreases the number of support tickets and the resources required to address them. This reduction in support costs directly contributes to a higher ROI.

4. Good Design Helps Products Achieve Fast Product-Market Fit (PMF)

Designing custom software with a focus on meeting user needs and solving their pain points helps products achieve fast product-market fit. By conducting user research and incorporating user feedback during the design process, software developers can ensure that the product aligns with market demands. This reduces the time and resources required to make adjustments post-launch, leading to a higher ROI.

5. Good Design Reduces Resistance to Change

Change management is a significant challenge in software development projects. However, good design can help mitigate resistance to change. When software applications are well-designed and user-friendly, users are more likely to embrace and adopt the changes. This reduces the time and effort required for user training and change implementation, resulting in a higher ROI.

6. Good Design Improves Competitive Advantage

A well-designed software application can provide a competitive advantage in the market. A visually appealing and user-friendly interface can attract and retain customers, differentiate the organization from competitors, and enhance its brand image. This competitive advantage can result in increased market share, customer loyalty, and ultimately, a higher ROI.

By prioritizing design and focusing on user experience, custom software development projects can achieve a higher ROI. Good UX increases user retention and reduces CAC costs, while good design reduces support costs. Additionally, good design helps products achieve fast product-market fit, reduces resistance to change, improves competitive advantage, and increases the productivity of the development team. These factors collectively contribute to maximizing the ROI of custom software development.