What are the elements to building a successful business? There are many, but one that companies sometimes overlook is the importance of design. The Design Management Institute released results from a study in December 2016 that covers their 2015 Design Value Index. In it, they looked at a “portfolio of 16 publicly traded stocks from companies considered to be ‘design-centric’ contingent on a set of criteria that reflects best practices in design management, [and it] shows a 211% return over the S&P 500. This marks the third year in a row [they] have seen such results in excess of 200% over the S&P.” As seen below, design-centric companies have a significantly better return overall compared to the S&P 500.
When you take a look at the design-centric companies on the list, you immediately can visualize their logo and branding, and for good reason — they’ve put design at the forefront of their business because it works! If the statistics from the Design Management Institute aren’t enough, an article from HowDesign says, “A slick website is nice to have. A slick website that converts is even nicer. Design isn’t just about making things look pretty; effective design should entice and persuade.” Design is exactly that, it persuades by differentiating a business and telling its story.
Additionally, in an article from Harvard Business Review the VP of Design at Blackboard noticed that with our ever more technological world, “companies today must contend with unprecedented technological and business complexity and that design can help simplify and humanize complex systems”. Making systems, websites, products, etc. more user-friendly for customers can be the difference of a sale or not!
So really, good design may seem like something that can a business can skimp on, but really, it is a factor in helping a business get noticed, remembered, and shared by customers.
Source: http://www.dmi.org/?page=2015DVIandOTW, https://www.inc.com/ayse-birsel/your-organization-cant-afford-to-ignore-good-design.html?cid=hmside1, http://www.howdesign.com/design-business/small-businesses-graphic-design-priority/, https://hbr.org/2015/09/design-as-strategy