Forrester TEI on CDP ROI: How a Customer Data Platform Paid Off in 4 Industries

Highlights from the Forrester TEI study The Total Economic Impact™ of Arm Treasure Data1

  • Representatives from companies in four different industries gave extensive interviews to Forrester for the study on financial returns on Arm Treasure Data enterprise Customer Data Platform (CDP).
  • Forrester used these interviews and financial modeling to arrive at ROI, NPV, and PV figures for a composite organization created from the interviews:
    • CDP ROI was 802%
    • CDP NPV hit $12.6 million
    • PV of CDP benefits reached $14.2 million
  • TEI Benefits came from:
    • More closed sales and larger dollar value per sale due to personalization
    • Higher customer lifetime value (CLV) due to personalized customer experiences
    • Increased attraction of new customers from better targeting and segmentation

Need to evaluate ROI on martech as part of your work? That’s tough to do, but new data and insights from Forrester Consulting on the return on investment on Arm Treasure Data enterprise Customer Data Platform (CDP) has just made it easier to understand CDP ROI. The complimentary study—“The Total Economic Impact™ of Arm Treasure Data”—focuses on the value of a CDP, the increasingly popular martech many firms use to improve sales, engender brand and customer loyalty, improve customer experiences, and improve targeting and segmentation.

Forrester Consulting TEI: Real Customers, Real Data, Real CDP Use Leads to 802% CDP ROI

If you’re considering investing in a CDP, you’ll appreciate the TEI’s thoughtful, detailed analysis of CDP ROI. Forrester generated the TEI study by first conducting detailed interviews with representatives at organizations in four industries: food and beverage, mobile media, automotive, and travel. The authors then used the data and insights from these real CDP users to create detailed financial models to determine the CDP ROI, net present value (NPV), present value (PV), and other important investment-return statistics for a composite organization based on the customer interviews.

The Forrester TEI study is particularly helpful if your title means you’re involved in buying martech, such as CTO, CMO, CEO, or CFO—which means you’ve seen your share of vague sales pitches. You already know that almost everyone who pitches martech to you will show you four-quadrant graphs (with the pitcher’s company typically in the upper right quadrant) and pull out lots of broad, unquantified general benefits, invariably ending with the message that you’ll make or save more money if you just sign on the dotted line. But they rarely show you how they arrived at their estimates for total CDP ROI or marketing ROI (MROI).

That’s because the details—if you can get them—often paint a different story from the sales pitch. What you really need to make a decision are specifics, the estimates and assumptions behind the ROI calculations and the vendor claims, preferably in an annotated spreadsheet or other accounting format.

Forrester Consulting TEI Details Reveal 802% CDP ROI

The Forrester CDP ROI study provides specifics, including several tables and spreadsheets, in its 22 pages and shows the thoughtful analysis that went into the TEI. Forrester summarizes the costs, as well as provides detailed estimates of the dollar value of each major benefit—helping you decide how much of the data for the “typical” company applies to your business, so you can come up with good estimates of the ROI for your particular organization.

And perhaps the best news is that as Forrester reports for the composite organization, the CDP ROI results are real and impressive for the Arm Treasure Data CDP: 802 percent ROI, $12.6 million NPV, and PV of $14.2 million.

To read the Forrester TEI for yourself, download the Forrester Total Economic Impact ROI study here. And if you’d like to know more about how to evaluate CDPs, increase ROI and MROI, and get impressive CDP ROI results of your own, check out these other CDP reports.

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1The Total Economic Impact™ of Arm Treasure Data, an October 2019 commissioned study conducted by Forrester Consulting on behalf of Arm Treasure Data.

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Tom Treanor
Tom Treanor
Tom Treanor heads up marketing at Arm Treasure Data. He focuses on marketing, martech, CDPs and digital marketing. Follow him on Twitter @RtMixMktg.
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