Thanks to Lambdatest for providing us with this blog post.
Since the global pandemic, companies worldwide have rapidly accelerated their digital transformation initiatives. As more and more consumers are interacting with brands digitally, it has now become a strategic priority for every business to ensure that their digital products and services meet the expectations of their customers. This made testing of these digital products very essential as a negative digital experience will have a direct impact on the revenue stream. According to Forrester, prioritizing CX helps 66% of businesses enhance retention, and 60% of businesses increase customer lifetime value.
Software quality assurance (QA) ensures that your digital products are error-free, which helps in ensuring a positive customer experience, builds trust, and helps maintain brand reputation in the competitive online landscape. Yet, testing may be an expensive and time-consuming operation that drains a company’s resources significantly. Businesses must analyze ROI to effectively manage testing resources, prioritize activities that give the highest return, and identify areas for improvement. Businesses can make informed decisions using data-driven insights. Constant ROI tracking allows them to optimize their results and increase the quality of their digital products, ultimately leading to favorable outcomes.
In this blog post, we will look at why calculating ROI is important, and how a stronger software toolset can assist in unlocking the ROI of testing.
Why is ROI Important for Digital Testing?
ROI is an essential indicator for digital testing since it allows firms to calculate their testing process’s financial advantages and costs. Assessing ROI will enable organizations to make educated decisions about their testing efforts.
Organizations may assess the total return on investment of testing by comparing costs and benefits and making data-driven decisions about where to devote resources, what improvements to make to the testing process, and which initiatives to prioritize by comparing prices and benefits. Measuring ROI identifies which tests and modifications have the most significant impact on the customer experience and business outcomes, allowing companies to improve and enhance the testing process to boost the impact and ROI of future testing efforts.
Monitoring the ROI of digital testing allows firms to justify their time and money while proving to stakeholders the value of their testing program. If ROI analysis demonstrates that testing efforts boosted customer happiness, conversion rates, and revenue, this provides a compelling justification for future testing expenditure. Assessing ROI on digital testing can also aid in performance improvement by demonstrating which testing activities have the greatest influence on customer experience and business outcomes.
As a result, quantifying ROI is critical for businesses trying to enhance their online presence, improve user experience, and boost conversions and revenue through digital testing.
Increase ROI with a better Toolset
1. Test Automation
One of the most important advantages of a software toolset is the ability to automate testing. Test automation can reduce the time and effort required for manual testing, allowing resources to be focused on more important tasks. Automation can also improve testing accuracy by removing human errors and guaranteeing consistent test execution. Companies can achieve faster time-to-market and lower overall testing expenses by lowering the time and effort necessary for testing.
2. Test Infrastructure
Faster time-to-market, improved quality, lower costs, and higher customer satisfaction can all be achieved with better test infrastructure, which can raise ROI. It’s critical to invest in a strong and scalable infrastructure, make use of automated testing technologies, develop a thorough test plan, and have a dedicated testing staff in order to reap these benefits.
3. Test Intelligence and Observability
By identifying problems more quickly, prioritizing defects, doing risk assessments, enhancing testing effectiveness, raising quality, and improving customer happiness, test intelligence and observability can increase ROI. Investing in test intelligence and observability technologies to ensure the testing infrastructure provides real-time insights and data, and having a qualified testing team to continuously monitor the infrastructure are necessary to maximize ROI.
4. Better Test Coverage
A software toolset can also aid in increasing test coverage. Test coverage is the percentage of software code that is covered by tests. The greater the test coverage, the greater the trust in the software’s quality. A toolkit can assist in identifying parts of code that are not covered by tests and making recommendations for new tests to increase coverage. This can aid in ensuring that essential portions of the software are adequately tested, lowering the likelihood of defects or errors in production.
5. Integration with other tools
Integrating a software toolset with other tools is another advantage. Integration with project management solutions like JIRA, for example, can help to speed the testing process by automatically issuing tickets for failing tests. Integrating with version control systems such as Git can aid in the management of test code and the tracking of changes over time. Companies can develop a more effective and streamlined testing process by combining it with other solutions.
How to Calculate the ROI of Digital Testing
To calculate the ROI of digital testing, organizations must follow three key steps:
- Establish Objectives: The first stage is to define the testing program’s objectives. Companies should determine the particular objectives they hope to achieve through digital testing. For example, the goal could be to boost conversions, improve user experience, or lower bounce rates.
- Determine Costs: The next step is to figure out how much the testing will cost. This includes direct and indirect costs such as software license fees, testing equipment, and employee pay. Organizations should also consider the amount of time and resources needed for each testing activity.
- Benefits Assessment: The final phase is to assess the benefits of the testing process. Key metrics like conversion rates, bounce rates, time on site, and customer happiness must be tracked. By weighing the costs and advantages, organizations can determine the overall ROI of their digital testing program.
Formula to Calculate ROI: (Benefits – Costs) / Costs
Organizations can calculate the ROI of their digital testing efforts using this approach. A positive ROI implies that the advantages of the testing process outweigh the disadvantages, whereas a negative ROI suggests that the disadvantages outweigh the benefits.
Benefits of Measuring ROI for Digital Testing
Calculating ROI on digital testing has various advantages for businesses:
- Justification of Time and Money: By quantifying ROI, firms may justify to stakeholders the time and money spent on digital testing. ROI analysis enables firms to make informed decisions about where to deploy resources and prioritize efforts. According to Forrester Analytics survey data, 33% of global developers at the manager level or higher consider speeding up cycle time to be a top-three priority; 30% said the same about increasing the automation of software development lifecycle (SDLC) tasks.
- Assessing ROI on digital testing allows businesses to understand which testing activities have the most significant influence on customer experience and business outcomes, allowing them to improve the testing process continuously. Gartner predicts that by 2023, 40% of product and platform teams will have cut unexpected downtime by 20% by incorporating AIOps into their DevOps pipelines for automated change risk assessments. By intelligently combining the stack’s functionality, the AIOps platform organizes and integrates domain-specific IT monitoring and management tools. Connecting various tools to the AIOps platform acts as a coordinating layer, serving as the brain.
- Future Planning: Measuring ROI helps firms plan for future testing costs and align testing efforts with company goals. By prioritizing high-return activities, companies can allocate resources accordingly. Firms might allocate additional resources to evaluating a feature or capability that has a high ROI. A low ROI may prompt organizations to rethink their approach and either optimize the process or reallocate resources elsewhere. Businesses can guarantee their testing approach is successful and efficient by making data-driven decisions, which improves the quality of their digital products and services and drives positive outcomes.
Conclusion
In conclusion, by automating testing, connecting with other tools, enhancing test coverage, performing performance testing, and conducting security testing, a better software toolset can help unlock the ROI of testing. Companies can increase the quality of their software, lower the chance of defects or errors in production, and achieve a faster time-to-market by investing in a software toolset.
Author
Mudit Singh, Director, Marketing, LambdaTest.
A product and growth expert with 12+ years of experience in building great software products. A part of LambdaTest’s founding team, Mudit Singh has been deep diving into software testing processes working towards the aim of bringing all testing ecosystems to cloud. Mudit currently leads marketing and growth for LambdaTest as Director – Marketing.
Lambdatest is an EXPO Platinum partner at EuroSTAR 2023, join us in Antwerp