Why I Believe Product Design Will Be the Key Differentiator for Startups in 2025

Hey fellow hackers,

First things first. Let's get bias out of the way. I run a tiny product design & development studio, called Incomparable, which I've shared on IH a few times as we've grown. So admittedly, I am biased towards good design.

Now, I’ve been around the block a few times in the design world, and if there’s one thing I’ve learned, it’s this: great software starts with great design. As we gear up for another year of hustle and growth, I wanted to share why I believe product design is going to be the key differentiator for startups in 2025.

But don’t just take my word for it.

There’s some solid data backing this up. A 2016 report from Forrester, The Six Steps For Justifying Better UX, found that “…on average, for every dollar you spend on UX, there’s a 100X return!”

That’s not a typo—100X. And when companies built their UX on solid design systems, they saw websites converting 400% more consumers, a 16.6% jump in customers willing to recommend products, and a 14.4% increase in how much customers were willing to spend. That’s some serious ROI. So, yeah, if you’re a design leader or a startup founder, figuring out how to get that kind of return should be high on your to-do list.

User Experience Is No Longer Optional

Here’s the deal: today’s users are spoiled for choice. A slick marketing campaign might get someone through the door, but if your product doesn’t deliver an awesome user experience, they’re not sticking around. And I’m not just talking about pretty interfaces—I mean designing with empathy, solving real problems in ways that feel almost invisible because they just work.

Look at companies like Airbnb and LinkedIn. Airbnb didn’t just create another platform for finding lodging; they focused on making every interaction simple, seamless, and user-centric, from searching for a place to book to checking out after a stay. LinkedIn could have just been another social network, but by focusing on user experience and building a professional, easy-to-navigate platform, it became the go-to place for career networking.

By 2025, I think this expectation is only going to ramp up. Users are going to demand smooth, personalized experiences more than ever. The startups that prioritize UX design aren’t just going to meet these expectations—they’re going to blow them out of the water, building loyal communities of users who sing their praises from the rooftops (or at least on social media). For a startup, especially one bootstrapping it like I’ve been, investing in killer product design could be the difference between thriving and just scraping by.

Design Drives Innovation

We all know tech moves fast. What’s cutting-edge today is yesterday’s news by tomorrow. But innovation isn’t just about having the latest feature or the fanciest tech stack. It’s about solving old problems in new ways, and that’s where design comes in. Good design thinking—embracing experimentation, rapid prototyping, and user feedback—keeps you nimble and ready to adapt.

Just look at Linear, a startup that entered the project management software space—already crowded with giants like Trello and Jira. Linear focused on sleek, fast, and minimalistic design that prioritized user experience, leading to faster adoption among teams who wanted a better alternative. Their focus on performance and clean UX shows that there’s always room to innovate, even in saturated markets.

By 2025, the startups that can quickly pivot their product based on user needs are going to be the ones leading the charge. Think about Airbnb or Slack. They didn’t just win because they were first; they won because they designed products that people loved to use. They focused on the user experience from day one and iterated based on feedback. Their success wasn’t just in what they built but how they built it—with a laser focus on user-centric design.

Standing Out in a Crowded Market

Let’s face it: the startup scene is more crowded than a Friday night on Indie Hackers. Everywhere you look, there’s another SaaS product, another project management tool, another “revolutionary” app. How do you stand out? In my experience, the answer is almost always in the details of your user experience—the little design touches that make your product not just useful, but a joy to use.

By 2025, we’re going to be in even deeper waters. Differentiation will be make-or-break. Startups that use design to create memorable, sticky experiences will attract and retain users like magnets. Look at how Notion disrupted the productivity space—by combining beautiful design with powerful functionality, they created a tool that not only replaced many others but also became a preferred choice for teams and individuals alike. It’s the little things—those subtle animations, that thoughtful onboarding flow, the way your product anticipates user needs—that turn a “meh” into a “wow.” And those “wow” moments? They’re what keep users coming back and telling their friends.

Building Trust Through Design

Look, trust is a big deal. Especially with all the data breaches, scams, and shady practices out there. By 2025, building trust and credibility is going to be even more critical. And one of the best ways to build trust? Yep, you guessed it: solid product design.

A well-designed product feels trustworthy. It feels reliable. When a user can navigate your product easily, when everything feels intuitive and secure, they’re going to trust you more. And trust? That’s how you get loyal customers who stick with you for the long haul. Think about companies like Basecamp, which have built their entire brand on being straightforward, easy to use, and transparent. Their design choices reinforce these values at every turn, making their product feel safe and dependable.

The Financial Upside of Good Design

Now, let’s talk money. Investing in good design isn’t just a feel-good strategy; it’s a smart financial move. Better design leads to lower support costs, higher conversion rates, and less churn. As I mentioned earlier, Forrester’s research backs up that investing in UX yields significant returns. Startups that prioritize design from the outset see better user retention, faster growth, and more sustainable business models.

By 2025, I bet this financial upside is going to be even more evident. Startups that invest in quality design from the get-go are going to see the benefits not just in happier users, but in healthier bottom lines. It’s not just about keeping users happy—it’s about building a sustainable, profitable business.

So, where does that leave us? For all my fellow hackers and founders out there, it’s time to start thinking of design as your secret weapon. Not just as a checkbox to tick off, but as a core part of your strategy that influences every aspect of your business. The startups that understand this and leverage it are the ones that will thrive in 2025 and beyond.

That’s the approach we’re taking at Incomparable. We’ve built our business around these principles, and it’s paid off. So, if you’re looking to level up your product design game, feel free to check out our site or drop me a line.

Keep hacking, keep designing, and let’s make 2025 the year of great products!

Cheers,