Greater use of return on investment (ROI) analysis should be encouraged to ensure that design meets its commercial objectives. In our study, half the companies measuring the time taken to pay back an investment recovered their investment in one year. But the majority of companies surveyed (69%) did not measure their return on design investment.
The details
Do UK companies measure the return on design investment?
31% of UK companies measure return on investment.
Over half the larger companies questioned said they measure ROI, and overall the rates for calculating return on investment are three times higher than three years ago.
The relatively low rates of ROI analysis carried out by companies for design projects may be linked to the fact that that generally businesses feel they have a good understanding of the value of design, as identified elsewhere in this report.
How do UK companies measure ROI?
45% of companies calculate ROI from the percentage rate of return over a fixed time period (usually twelve months or less).
29% calculate a return from the time taken to pay back the investment.
What rate of ROI are UK companies getting from design investment?
50% of UK companies measuring the time taken to pay back an investment recovered their investment in one year.
A quarter recovered their investment in just six months and three-quarters within two years.
The most commonly reported rate of return from companies calculating a percentage return on design investment was 15%.