In an era where product competition is fierce and consumers are increasingly demanding, design has ceased to be merely decorative. It has become a key factor in business success. At Mindsailors, we have been observing for years how thoughtful investments in design translate into real financial benefits for our clients. But how can we accurately measure the return on investment in design?

Design ROI – or Return on Investment from Design – is a measure that allows us to determine the extent to which design investments translate into tangible business benefits. For many entrepreneurs, however, this remains a difficult area to quantify, full of seemingly soft metrics and subjective assessments. Meanwhile, contemporary research and methodologies demonstrate that design can – and should – be measured as rigorously as production costs or sales revenue.

Why is it worth measuring design ROI?

McKinsey & Company's research, conducted across a sample of 300 publicly traded companies over a five-year period, yielded a groundbreaking finding: companies in the top quartile of the McKinsey Design Index achieved 32% higher revenue growth and 56% higher shareholder returns than their industry peers. Importantly, these results were consistent across consumer goods, health technology, and retail banking.

These numbers are no accident. Companies that systematically invest in design and treat it as a strategic element of their business create products that are better tailored to user needs, which directly translates into higher customer satisfaction, greater loyalty, and ultimately, better financial results.

In our practice at Mindsailors, we've repeatedly seen how the right approach to product design - from user research, through concept, to production optimization - generates savings and creates a competitive advantage. We see this in designs from the medtech and IoT sectors, as well as in consumer products, where each design iteration can save months of delays and hundreds of thousands of ‘zlotych’ in production costs.

The Four Pillars of Design Maturity

McKinsey has identified four key areas that correlate most strongly with achieving above-average business results:

Analytical leadership – the best companies treat design as a top-level management issue. Design metrics, such as user satisfaction scores and usability ratings, are as crucial to decision-making as costs and revenue.

More than just a product – organizations that effectively leverage design create a comprehensive vision for the customer experience, integrating the design of physical products, digital interfaces, and services into a coherent whole.

More than just a department – ​​design isn't isolated within a single department. In our work, each design engages engineers, industrial designers, electronics specialists, and mechanics specialists. This multidisciplinary collaboration ensures solutions that are not only visually appealing but also feasible within budget and available technologies.

More than just a phase - the most successful companies adopt an iterative approach, constantly testing, learning, and adapting their designs based on real-world user data. Design thinking and rapid prototyping have become standard in innovation processes.

How exactly do you measure Design ROI?

The basic formula for design ROI is simple:

(Design Benefits - Design Costs) / Design Costs × 100 = ROI%.

The challenge, however, is correctly identifying and quantifying the benefits.

Quantitative Metrics (Hard ROI)

Increased sales and conversions – interface redesign or user experience optimization often leads to significant increases in conversion rates. Forrester Research shows that well-designed interfaces can increase conversions by up to 200%, and comprehensive UX improvements by up to 400%. For example, Bank of America nearly doubled its completion rate after redesigning its registration form.

Reduced technical support costs – an intuitive, well-designed product generates fewer helpdesk inquiries. One study found that improved user experience led to a 25% reduction in customer support calls.

Reduced time-to-market – well-thought-out design processes allow for the identification of problems in the early stages of product development, eliminating costly iterations in production. Our experience shows that early involvement of industrial designers and mechanical engineers in the concept phase helps avoid mistakes that could later cost weeks of delays.

Production savings - Design for Manufacturing (DFM) is our standard approach. Simplifying design, minimizing the number of components, and using standard parts not only speeds production but also significantly reduces costs.

Increased Customer Lifetime Value (CLV) - satisfied users are more likely to make repeat purchases and remain loyal to the brand, which increases their long-term value to the company.

Quality metrics (soft ROI)

Not all benefits can be directly expressed in money, but they can be converted into indirect financial estimates:

Customer Satisfaction Score (CSAT) and Net Promoter Score (NPS) - measuring satisfaction and willingness to recommend a product provides valuable information about the long-term potential of the product.

User experience (UX) quality - qualitative feedback, usability testing, and user behavioral observations allow you to identify areas for improvement, which can then be quantitatively validated.

Brand perception – well-designed products build a positive company image, which translates into trust and loyalty. Research shows that 59% of consumers choose a company specifically because of its good design, and 45% were willing to pay more for a product with higher design quality.

Practical application - market experience

While the examples of international giants such as Apple and IBM are inspiring, it is also worth taking a closer look at the real challenges we face in projects in Central and Eastern Europe.

The product design market in Poland is growing rapidly, and businesses are increasingly recognizing the value of investing in design. Polish companies have access to a range of support instruments, including R&D tax credits, which qualify expenditures on designing innovative products. For entrepreneurs, this means the possibility of recovering up to 19-30% of the costs incurred in developing new solutions.

Working with clients across a variety of industries - from medtech to IoT to consumer products - we see Design ROI materialize in practice. Designs requiring both an innovative approach to electronics and mechanics and a deep understanding of end-user needs demonstrate that the collaboration of a multidisciplinary team of designers, engineers, and prototyping specialists helps minimize the risk of production errors and effectively manage design budgets.

Design ROI in the local context

The Polish economy faces an opportunity for significant innovation growth, and design plays a key role in this. According to research, Polish companies are increasingly investing in research and development, but there remains a gap in the commercialization and effective implementation of innovations. A strategic approach to design is key – not as the final stage of "beautification," but as an integral part of the value creation process.

Global research indicates that companies with a mature design culture can outperform their competitors by up to two times in terms of revenue growth.

How do I start measuring Design ROI?

Define clear business goals – before you start measuring ROI, define what you expect from your design investment. Is it increased sales? Reduced production costs? Improved customer satisfaction?

Choose the right metrics – depending on your goals, choose the metrics that best reflect your progress. Combine quantitative metrics (conversions, revenue, time to market) with qualitative metrics (user satisfaction, NPS).

Collect data before and after implementation – to prove the impact of design, you need a baseline. Conduct measurements before starting a design project, then monitor changes.

Use A/B testing and prototyping – rapid iteration and user testing of concepts allows you to identify the most effective solutions before full implementation, minimizing risk and costs.

Engage a multidisciplinary team – At Mindsailors, we employ a model where industrial designers work closely with mechanical, electronic, and software engineers. This ensures that designs are not only compelling but, above all, feasible within budget and technical requirements.

Document and communicate results – regularly share measurement results with stakeholders. Transparency in Design ROI reporting builds trust and facilitates the acquisition of resources for future projects.

Design as a strategic investment

Design ROI isn't just about numbers - it's about shifting the mindset of design from a "necessary cost" to a "strategic investment." Companies that can effectively measure and manage their return on design investment gain a competitive advantage, bring products to market faster, and build stronger customer relationships.

At Mindsailors, we treat every project as an opportunity to create real business value. Our process - from research and concept, through mechanical and electronics design, to implementation support - is designed to maximize ROI at every stage. We know that effective design combines innovation with practicality, aesthetics with functionality, and vision with feasibility.