Is design giving you a return on your investment?
How much money could great design and branding make your business? That’s a question that every business asks itself before talking to a designer or design agency. This is even more relevant when today’s economy is in such a challenging state. Believe it or not, companies and organizations can and do exist without design input. So when a established company (that has up until now dodged design input) asks itself this question the answer may come back ‘we’ve done ok so far…’.
However, if the question was more about how different the picture could be with professional help the answer could be a little less dismissive. Measuring return on investment (ROI) is one of the strongest ways the design industry can show its worth.
Measuring return on investment (ROI) is one of the strongest ways the design industry can show its worth.
Measuring ROI of design is unfortunately notoriously difficult, in many ways, an imperfect science. How can you show design played an integral part in a company’s success? When design is just one of many areas in which an organisation has invested its money. If a company has £50,000 to spend, it could spend it on design, marketing, direct mail, all of the above or actually on any number of other business promotional services.
To understand ROI let’s clarify a couple of points. ‘Return’ could be something nice and definable such as sales, footfall or market share; but equally, it could be something a little less tangible such as brand awareness, public perception or even staff awareness or morale. Though these later ‘soft’ measures are more of a challenge to quantify, they are still measurable.
Return’ could be something nice and definable such as sales, footfall or market share; but equally, it could be something a little less tangible
Investment can also be defined in different ways; a design company’s fees is just part of the cost of a design project. Implementation costs are pretty much unavoidable in most projects and of course a clients time (something a lot don’t put a value on).
A simple ROI calculation in monetary terms is financial gain over total investment.
It can get a lot more complicated. Valuing the benefit in terms of awareness is a little more challenging and takes consumer research (usually quantitive) both before and after the project. This can be expressed in a percentage change of perception. Usually extremely useful especially if the questions are wider than just around the current project. It could be something that is undertaken on an annual basis to look at how your ‘brand’ is doing.
So to understand what your money is actually buying is driven by clarity about your business aims at the outset. This is vitally important for clients, but for designers it can help justify the costs for creative work, which is still seen by many as a luxury.
How can we help in all this?
Puur relishes the opportunity to help measure the impact of our design work. All our work is developed with the end audience and objectives in mind. Our work isn’t just pretty pictures, our work solves a challenge set by you. Give us a call today to chat over your needs and how we can help.