The UX Fund: How Companies That Design Well Earn 450% More Than the Market
If someone told you "invest in design," you might think they're talking about aesthetics. But what if they told you "invest in design and you'll earn 450% more than the market"? That's a statement backed by numbers, not feelings.
The Story: What Is the UX Fund?
In 2006, a design consulting firm made a bold experiment — they founded an investment fund called the UX Fund. The idea was simple: we'll buy shares in companies that design the best user experiences and see if it pays off.
They chose companies like Apple, Google, Nike, Netflix, Starbucks — companies known for seriously investing in design and user experience.
After 10 years, the results were stunning:
- The UX Fund: 450% return
- The S&P 500: around 60% return
- The NASDAQ: around 93.2% return
Meaning the companies that designed well earned more than 4 times the market.
Why Does Good Design Make More Money?
1. Customer Retention
Good UX design keeps people coming back. Netflix doesn't just have great content — it has a smooth user experience that makes people not want to switch to a competitor. The autoplay, smart recommendations, easy navigation — all of this keeps users paying a monthly subscription.
The cost of acquiring a new customer is 5–7 times more expensive than retaining an existing one. So when design keeps customers around — that saves a lot of money.
2. Reducing Support Costs
When the design is clear and easy, people don't need to call technical support. Every support call costs the company money — on average around $15–25 per call. So if good design reduces calls by 30%, that saves millions annually for large companies.
3. Increasing Conversions
Every improvement in UX directly impacts the conversion rate. Many studies say that improving just the checkout flow can increase sales by 35%. Imagine that at the scale of a company like Amazon — every 1% increase in conversion is worth billions.
4. Premium Pricing
Companies that design well can charge higher prices. Apple is the clearest example — selling products at higher prices than competitors, and people pay happily. Why? Because the entire experience — from opening the box to using the device — is carefully designed.
This Isn't Just About Big Companies — It Applies to Small Businesses Too
"Sure, but that's Apple and Google — I'm a small startup." Fair point, but the same principle works at any scale.
Example: Small Online Store
A small online store invested in improving its checkout flow — simplified the steps from 5 to 3, added a progress bar, and removed unnecessary fields. The result? Cart abandonment dropped by 25%.
Example: SaaS Application
A SaaS app created a good onboarding flow — instead of leaving users to wander, it walked them step by step to the first "aha moment." The result? Trial-to-paid conversion increased by 40%.
How to Start Investing in Design Properly
1. Start with Data
Before changing anything, get familiar with your current numbers. What is the conversion rate? Where are people leaving the site? What is the most common complaint in technical support? These numbers will tell you where the biggest opportunity for improvement lies.
2. Focus on Pain Points
You don't need a complete redesign. Improving one page — like checkout for example — can make a big difference. Identify the biggest pain point and start there.
3. Measure Results
The most important thing — measure before and after. If you improved the checkout flow, compare the conversion rate before and after. If you improved onboarding, compare retention. Numbers are what prove that design is an investment not a cost.
4. Make Design a Continuous Process
The companies in the UX Fund didn't design well once and leave it at that. They are constantly testing, improving, and developing. Good design is a continuous process, not a project with a start and end date.
Why This Matters Now
At a time when every company is cutting costs and asking "what is worth spending on," the UX Fund provides a clear answer: design is worth it.
Not because it looks nice or is trendy — but because the numbers say it's an investment that delivers returns higher than the market itself. And that's not an opinion — that's 10 years of data.
Conclusion
The UX Fund proved that design isn't a luxury — it's a measurable competitive advantage. Companies that design well earn more, retain their customers more, and reduce their costs.
The question isn't "should we invest in design?" — the question is "how much are we losing by not investing in it?"