We’ve all made big time decisions based on the quality of design. Yet—in a time of shrinking budgets and the pressure to deliver value for the dollar, it can be hard to justify spending money on prettiness. So how do businesses measure the return on investment (ROI) of design?
If you did a little research, you’d find that companies from around the world know there’s a huge return on investment for good design. In order to calculate the ROI of design, it’s simply a matter of looking at the amount of money firms put into design, then comparing their investment to their growth in revenue.
Is it a lot of work? Absolutely. But the good news is, we’ve gathered some of the research so you don’t have to. Here’s some interesting stats from around the world on the ROI of design:
- According to a study in 2007, British firms that invested in design saw a 200% rise in stock performance. Each pound spent on design earned a return of 125% (British Design Council, 2007).
- In 2005, a study in Helsinki, Finland found that companies that invested most heavily in design did better in sales growth (Research Institute of the Finnish Economy, 2005).
- Based out of Copenhagen, Denmark, companies that invested in design had 22% to 40% higher growth than those who didn’t (Danish Design Centre, 2003).
- In Essen, Germany, researchers found design to be a “crucial driver of value” for many companies (Design Value – A Strategy for Business Success, 2010).
- And in 2010, a study conducted in Amsterdam, Netherlands found that an investment in design leads to better product performance (BNO-Association of Dutch Designers, 2010).
Each of these studies took a different approach to measuring the payoff on investment in design. Researchers in England looked at stock prices of publicly traded companies. This allowed them to compile a large historical data set on growth compared to the rest of the market.
But researchers in Denmark took a more direct, informational approach. They picked up the phone, called 1,000 companies throughout the country and conducted a survey on the ROI of design. They asked business owners how their investment in design affected growth and revenue.
Yet, all these studies on the ROI of design in different cities around the world came to the same conclusion: strong design and strong growth go hand in hand.
Your competitors may not see that spending money on design has a significant return on investment. But you do—and you have the data to prove it. Smart businesses see design not as an unwanted expense, but an investment in their company that continues to pay off.
So take pride in your brand, think about the big picture, and invest in your future.
Interested in learning more about the true ROI of design? Download our whimsical white paper with all the latest statistic on the ROI of design from around the world.
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