What design can do for your figures

The headline

Design can have a positive effect on all business performance indicators, from turnover and profit to market share and competitiveness.

Our research demonstrates this.

We looked closely at design alert businesses to gather proof. For example, for every £100 a design alert business spends on design, turnover increases by £225.

Whether you’re a design business talking to clients, or a business intermediary giving advice, these statistics could help you discuss the impact that design can have on performance.

The details

How can design contribute to business performance?

Almost half of UK businesses believe design contributes to some extent to increased market share (46%) and turnover (44%).

One in ten businesses identified at least one area where design made a great contribution to business performance. Nearly one in ten businesses (9%) thought that the development of new products and services had benefited from the use of design. 7% of businesses also attributed a great role for design in achieving increased market share, competitiveness and increased profit.

By how much can design increase market share?

On average, design alert businesses increase their market share by 6.3% through design.

Those in the retail, wholesale and leisure services and manufacturing sectors saw the biggest increases in market share – respectively 6.9% and 7.2%.

Some manufacturers reported having increased their market share by 100%. In other words, design helped them either completely take over a market or create a new one.

By how much can design increase turnover?

For every £100 a design alert business spends on design, turnover increases by £225.

Nearly half (46%) of design alert businesses saw turnover increase in the last twelve months by more than the amount they spent on design in the same year.

The average increase in turnover was £602,000. However, the mid-point (median) between the highest and lowest turnover figures was £100,000. This suggests that the impact of design on turnover varies considerably.

Spend on design also varies. The average was £267,000, but the median was £145,000.

By how much can design help increase profit?

For every £100 a design alert business spends on design, profit increases by £83.

Almost a third (30%) of design alert businesses saw profit increase by more than the amount they spent on design in the same year. However, this may underestimate the true contribution of design. Some businesses may not have seen a change in turnover or profit due to design, but the use of design may nonetheless have kept these measures constant.

The average increase in profit was £221,000, but the median was £10,000. Again, this indicates considerable variation between businesses in terms of design's effect on profit.

For some businesses, profit rose as much as, or more than, turnover. Here design is being used to trim costs rather than boost sales.

How many new products can design help to produce?

On average, design alert businesses develop 25 new products a year through design. Over two thirds (71%) launch at least one.

The impact of design on new product development varies. While the average number of new products was 25, the median number cited by businesses was three.

There’s a relationship between the number of new products and business size. Not unexpectedly, businesses with more employees and larger turnover tend to launch more products.

How many new services can design help to develop?

On average, design alert businesses develop two new services a year through design. But two thirds (68%) don’t launch any.

Larger businesses are more likely to develop new services, averaging 2.6 a year. Businesses in the property, finance and business services sector are the most likely to introduce new services. They average 2.2.

How many people can design help you employ?

Design alert businesses with more than 250 employees are most likely to increase staff numbers as a result of using design. On average, such businesses hired 13 new people in a year.

Compared to other performance indicators, increasing employment is the area where design has least impact.

Property, finance and business services businesses are most likely to employ more through design, with an average of 7.5 more employees.