UX ROI: Better UX Can Mean 400% Higher Lead Conversion

Christoph Bogatzki, Cluma
Christoph Bogatzki
•
7
min read
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Yes, better UX pays off: Forrester reported that visit-to-lead conversion rates can be more than 400% higher on sites with a superior user experience, and visit-to-order conversion up to 200% higher on well-designed sites [1]. Across 72 case studies, Nielsen Norman Group found an 83% average improvement in target KPIs after usability redesigns [2].

For a SaaS company, whether better UX pays off is the question behind every design budget: will it bring in more trials, demos and paying customers, or is it just polish? The UX ROI research says it moves the numbers you report on. This report shows where that happens in a SaaS funnel, which changes drive it and how to prove it on your own product. More sourced data on design investment sits on the Cluma reports page.

Does better UX pay off? What the research says

We built this report on two sources anyone can open. Forrester analyst Mike Gualtieri set out how much better well-designed sites convert than poorly designed ones, and Nielsen Norman Group (NN/g), the usability research firm, collected 72 case studies of companies that redesigned for usability.

FindingSourceWhat it means for a SaaS team
Visit-to-lead conversion rates can be more than 400% higher on sites with a superior user experienceForrester, 2009 [1]More trial signups and demo requests from the traffic you already pay for
Up to 200% higher visit-to-order conversion on a well-designed site than on a poorly designed oneForrester, 2009 [1]More self-serve purchases and plan upgrades
Page abandonment rates up to 41% lower on well-designed sitesForrester, 2009 [1]Fewer visitors leaving your pricing or signup page
83% average improvement in target KPIs after usability redesigns, across 72 case studiesNielsen Norman Group, 2008 [2]A benchmark for what a focused redesign can do
Spending 10% of a development budget on usability should improve conversion by 83%Nielsen Norman Group, 2008 [2]A rule of thumb for sizing the investment

What did Forrester report about UX and conversion?

In a 2009 post, Forrester analyst Mike Gualtieri set out what it costs a company to leave user experience to chance, and conversion headed his list [1].

“A well-designed site can have up to a 200% higher visit-to-order conversion rate than a poorly designed site. And visit-to-lead conversion rates can be more than 400% higher on sites with a superior user experience.” [1]

Well-designed sites also have page abandonment rates up to 41% lower, the same post adds [1]. For a SaaS business, visit-to-lead is the line to watch. It's the step where a visitor becomes a trial, a demo request or a contact in your CRM, and it's where Forrester reported the widest gap.

How much does usability work improve results?

NN/g collected 72 case studies of redesigns aimed at usability and measured the change in the key performance indicator each project targeted. The average improvement was 83% [2].

NN/g left the outliers out of that average: projects that improved by a factor of 10 or more, and about 12% of projects landed there [2]. The firm also turned the data into a rule of thumb you can take into a budget meeting: “spending 10% of your development budget on usability should improve your conversion rate by 83%.” [2]

To make 83% concrete, take 2%, the conversion rate NN/g called common at the time [2], and an 83% lift turns it into about 3.7% (2 × 1.83 = 3.66). On the same traffic, that means 83% more signups, and a UX conversion rate gain like that costs nothing extra in ads.

Company-level research points the same way. Read what the McKinsey Design Index and the DMI Design Value Index found, or browse the SaaS design investment statistics.

Where does UX move revenue in a SaaS funnel?

Forrester and NN/g looked at websites broadly. In a SaaS business the same mechanics show up at four points, and each one has a metric you already track.

Signup and trial conversion

It's the homepage and landing pages that decide whether a visitor starts a trial. A headline that says who the product is for, one obvious call to action and a short signup form do more here than any clever animation. This is the visit-to-lead step from the Forrester comparison [1].

Onboarding and activation

A signup isn't a customer yet. Onboarding UX decides how fast a new user reaches the first moment of value: the first report, the first teammate invited, the first integration connected. Every extra step, vague label or empty screen with no hint of what to do next is a place where a trial can stall. Good onboarding design removes those moments one by one: a checklist that shows progress, sample data so the product never looks empty, and a clear next action on every screen until the user has seen the product work for them.

The pricing page

Buying intent peaks on the pricing page, and so does the cost of confusion. Make plans easy to compare at a glance and answer “what happens after the trial?” in plain words, and more people keep moving toward checkout. Lower abandonment on well-designed sites, as Forrester reported, is the effect to aim for [1].

Demo requests and lead forms

For sales-led SaaS, the demo form is the conversion. Cut it to the fields sales actually uses and let people book the slot right there, without a trip back to email. The shorter that path, the more interest turns into meetings in the sales calendar.

Which UX improvements drive conversion?

A full redesign isn't the only route to results. Most gains come from four kinds of work, and in our experience a senior designer spots quickly which one a funnel needs first.

ImprovementWhat it looks likeWhere it shows up
ClarityOne message per page, labels in the words your customers use, a visual hierarchy that points to the next stepHomepage, landing pages, pricing
Less frictionShorter forms, fewer steps, sensible defaults, no dead ends in onboardingSignup, onboarding, demo form
TrustConsistent visual quality, customer proof close to the call to action, clear terms on plans and cancellationPricing page, checkout, demo form
Speed of iterationSmall design changes shipped often, each measured against a baselineEvery step of the funnel

Speed is the one teams underrate: one big redesign every few years gives a single data point. A steady rhythm of smaller improvements, each checked against your numbers, compounds instead: every change teaches the team something about its users, and the next change starts from a better baseline. Each measured change also gives the team its own version of the before-and-after numbers NN/g collected across 72 projects [2].

How do you measure UX ROI on your own funnel?

Published benchmarks help make the case for the ROI of UX, and a before-and-after on your own funnel closes it, because it shows the board exactly where the money moved and when.

  1. Pick one flow you already track, such as visit to trial, trial to activation or pricing page to checkout.
  2. Record the baseline over a normal period, with traffic and conversion rate side by side.
  3. Ship one focused design change to that flow, and note the date.
  4. Compare a period of the same length afterwards, and note anything else that changed, like a campaign or a price change.
  5. Turn the lift into revenue, as in the example below.

Here's the arithmetic with assumed numbers, ready for your own. Assume 10,000 visitors a month and a 2% visit-to-trial rate: that's 200 trials. Lift the rate by the 83% NN/g average [2] to 3.66% and the same traffic brings about 366 trials (10,000 × 0.0366), or 166 more each month.

Multiply those extra trials by your trial-to-paid rate and your average contract value, and the result is the monthly revenue the design work added. We use the NN/g average because it's a published benchmark with its method on the page. It's a stand-in until your own data is in.

How can you get senior UX without hiring a team?

Once the numbers are in view, the next question is design capacity. The measure-and-improve loop works best with senior design capacity that stays with the product month after month, across the product, the website and the pricing page, and that's hard to build with a single hire.

Cluma is a modular design subscription for SaaS teams, built for that gap. Each module works like a senior-led designer seat for one discipline, such as uShip for product and UX/UI design or uPublish for websites. Every deliverable is senior-owned and senior-reviewed, at one flat monthly rate per module.

Here's how the work runs:

  • Everyday design tasks, like an ad, a social post or a one-pager, are delivered in about 48 hours.
  • Bigger projects, like an onboarding redesign, a new pricing page or a website, move milestone by milestone, with progress roughly every 48 hours.
  • One request is in progress per module, with as many as you like queued behind it, all in a private Trello board.
  • Modules can be added or removed month to month, and you can pause anytime.

Cluma is design only: your developers build what we design. That keeps the handoff clean and lets the measure-and-improve loop above run at the pace your team ships.

Want to know which part of your funnel better UX would move first? Book a call and we'll look at it together, or compare the modules on the pricing page.

About the data

  • Forrester, 2009 [1]. A short blog post comparing well-designed sites with poorly designed ones. It doesn't name the report, sample or method behind the figures, and it describes a gap between sites, not the result of one redesign. The original URL now redirects, so the reference links the Internet Archive copy.
  • Nielsen Norman Group, 2008 [2]. 72 case studies of usability redesigns on the web in general, with no SaaS breakout. Outliers of 10x or more were removed from the average.
  • The worked example uses assumed traffic and the 2% baseline from NN/g to show the arithmetic. It's not a forecast for any one product.

Every figure in this report links to its source, so it can be checked before it goes into the next deck.

References

  1. Forrester Research, Mike Gualtieri, Leaving User Experience To Chance Hurts Companies, blog post, 15.10.2009. Read from the Internet Archive copy of 07.12.2021, because the original URL now redirects to a Forrester customer experience page. Scope: website conversion, well-designed versus poorly designed sites. Weakness: a short summary with no report, sample or method named.
  2. Jakob Nielsen, Nielsen Norman Group, Usability ROI Declining, But Still Strong, 21.01.2008. 72 case studies, outliers of 10x or more removed. Scope: general web usability. Weakness: 2008 data, no SaaS breakout.
Christoph Bogatzki, Cluma
Cluma Editorial
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