When was the last time your CEO asked you how your latest design initiative increased shareholder value? If you hesitated, you're not alone.

Many senior design leaders are exceptionally talented at creating intuitive products but struggle to connect their efforts to business outcomes directly and clearly articulate the business value of UX design. Yet, if design leaders want a seat at the strategic table, they must articulate design's impact in business terms.

At the end of the day, executives care about business outcomes and constantly ask themselves these two questions: Will it make me money? Will it save me money? As design leaders, we have to think in the same terms and be able to articulate the value of design efforts relative to how they will pay off for the organization.

Whether you work in a commercial enterprise, nonprofit, or some other type of company, every initiative needs resources: time, money, and human capital. These resources come at a measurable cost. Similarly, each department contributes value back to the organization - like increased efficiency, enhanced reputation, or direct revenue - which must also be measurable.

The same applies to UX design. Hiring skilled designers and conducting research is an investment. The investment we make in design must translate into greater organizational returns, or it becomes difficult to justify. Executives inherently understand this calculation; a clear return on investment is fundamental to gaining their support.

So, when business leaders evaluate a new initiative - be it a marketing campaign, a product launch, or operational changes - the following questions are top of mind:

How will this initiative:

• Increase revenue?
• Generate new business?
• Boost revenue from existing customers?
• Enhance shareholder value?
• Reduce operational costs?

Your design initiative has to address at least one of these key questions. Here's how you can frame your design initiatives to align clearly with business goals:

How Design Can Increase Overall Revenue

UX design increases revenue by creating seamless experiences that drive user actions. Take Amazon's one-click ordering as an example. By significantly simplifying the checkout process, Amazon reduced friction dramatically, directly boosting conversion rates and overall revenue.

Revenue can also be indirect. The Apple Wallet is another great example: users often load funds onto their Apple Cash accounts or link payment cards that hold temporary balances. While Apple doesn't charge consumers for these basic interactions, it benefits from the float - money sitting in accounts temporarily - that generates interest. Apple's frictionless payment experience encourages more transactions and funds held within its ecosystem. This is UX driving indirect revenue through user trust and convenience. Ask yourself: Can your UX improvements lead to more frequent interactions or behaviors that passively generate financial value?

How Design Can Increase Revenue from New Business

Acquiring new customers is expensive, but effective UX can significantly reduce these acquisition barriers.

Consider Airbnb's redesign of its platform to prioritize user reviews, clear pricing, and transparent booking processes. By directly addressing new users' uncertainties and concerns, Airbnb significantly lowered the barriers for first-time travelers, enabling easier decision-making and boosting bookings among new segments.

If your design reduces new users' initial hurdles, you directly facilitate growth in new customer segments, illustrating UX's impact on business expansion.

How Design Can Increase Revenue from Existing Business

Retaining existing customers is significantly less costly than acquiring new ones. Good UX directly supports retention and increases customer lifetime value. Instagram, for instance, continually enhances its user experience to facilitate in-app shopping, integrated e-commerce experiences, and subscriptions such as Meta Verified.

By streamlining product discovery, simplifying purchases, and enabling subscriptions seamlessly within the platform, Instagram generates ongoing revenue streams directly tied to user engagement and satisfaction.

Enhancing existing users' experiences can lead to increased renewals, higher upgrade adoption rates, and purchasing-related offerings. Improved UX directly translates into sustained revenue streams from your existing customer base.

How Design Can Increase Shareholder Value

Increasing shareholder value extends beyond immediate financial returns- it involves positioning your organization for long-term growth and stability. Shareholders, particularly institutional investors like pension funds, prioritize stability and sustained competitive advantage over quarterly fluctuations.

Can your UX initiative strengthen brand loyalty, boost retention rates, or foster innovation that sets your company apart from competitors? By delivering a user experience that ensures long-term satisfaction and ongoing engagement, UX can secure a strategic advantage that appeals to investors focused on sustained growth and stability.

How Design Can Decrease Operational Costs

Poor user experiences don't just frustrate customers - they significantly increase operational expenses. Complex interfaces generate high support call volumes, inefficient internal tools hamper productivity, and developing unused features wastes precious resources. Improving UX streamlines these inefficiencies, reducing associated costs. A well-designed enterprise tool that speeds workflows, reduces training time, or decreases unnecessary support interactions can demonstrate cost savings. UX initiatives simplifying processes and enhancing productivity provide concrete value by directly lowering operational costs.

Rationalizing Your UX Design Initiative

The next time you pitch a design project, frame your conversation around these business outcome focused questions. Demonstrating that your design initiative addresses at least one or two key business outcomes is powerful.

If your design reduces costs and attracts new business, you've built an even stronger case. And if you manage to check all five boxes? You've created an irrefutable argument for the strategic importance of design in your organization.

Great design isn't just about aesthetics or usability - it's about measurable impact, and the business value of UX design. It communicates clearly and convincingly with executives, stakeholders, and investors. Be sure you're speaking their language.