[Infographic] Customer Data Platform ROI—Forrester Consulting Evaluated It, Here Are the Results

[Infographic] Customer Data Platform ROI—Forrester Consulting Evaluated It, Here Are the Results

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What is CDP ROI for organizations like yours? If you’ve been disappointed before by martech hype, you probably have a lot of questions about the return on investment (ROI) of customer data platforms (CDPs). How is CDP ROI calculated for uses like yours? And the bottom line: Should you invest in a CDP to help you with marketing and sales efforts to unify online and offline data, create and piece together unified customer data profiles, and easily handle targeting, segmentation, and personalized customer journeys?

That’s understandable; it’s not easy calculating expected gains and measuring costs. But a new study from Forrester Consulting, “The Total Economic ImpactTM (TEI ) of Arm Treasure Data,” hammers through the hype and shows all work, taking great care to ensure no detail is left uncovered or unexplained. The study offers transparent analysis of the Treasure Data enterprise Customer Data Platform that demonstrates CDP ROI of 802 percent.

Forrester Consulting’s respected analysts interviewed CDP users—spanning different industries like food and beverage, mobile applications, automobiles, and travel, most with millions of customer records—culminating in a representative “typical” composite organization used to model ROI.

With the help of Treasure Data CDP, the interviewees mentioned more closed sales with improved conversion and close rates, increased transactions with more real-time segmentation and messaging, improved customer retention, and campaign operating costs savings. In the end, the numbers span over three years, risk-adjusted.

Using these typical costs and benefits, Forrester calculated total CDP return on investment (ROI), CDP present value (PV), and CDP net present value (NPV). The results, detailed in this infographic, are eye-opening.

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If you’re interested in learning more about how Forrester Consulting calculated CDP ROI, CDP PV, and CDP NPV for Arm Treasure Data, get your complimentary copy of the Forrester Consulting TEI study here.

Text version of infographic:

The Total Economic Impact of Treasure Data CDP

Through four customer interviews and data aggregation, Forrester concluded that Arm Treasure Data’s Customer Data Platform (CDP) has the following three-year financial impact.

Summary of Benefits

Three-year risk-adjusted

  • $8.6M Margin from new sales attributable to Arm Treasure Data
  • $1.3M Larger customer sales
  • $838K Improved customer retention
  • $3.5M Campaign operating costs savings
  • 802% ROI
  • $14.2M Benefits PV
  • $12.6M NPV

Treasure Data CDP by the Numbers

  • +6 Close rate percentage point improvement
  • +1 Conversion rate percentage point improvement
  • 10% Deal size increase
  • +1-2 Customer retention percentage point improvement
  • 7% Advertising and marketing budget cost reduction

Voice of the Customer

“I would say that Treasure Data is the perfect solution because they are scalable, we can put a huge amount of data there, they are easy to use, and they will help us to add machine learning and artificial intelligence. ”

—CDP global implementation lead, food and beverage company

“Once we were able to combine dealership customer data with digital marketing results, we were able to better optimize our online advertising and increased our conversion rates to more than 5% for this segment.”

—Chief marketing data scientist, automotive company

This document is an abridged version of a case study commissioned by Treasure Data titled: The Total Economic Impact™ Of Arm Treasure Data, October 2019.

© 2019 Forrester Research, Inc. All rights reserved. Forrester is a registered trademark of Forrester Research, Inc.

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JC Quiambao
JC Quiambao
JC Quiambao is a passionate and detail-oriented sales and marketing professional with more than six years of experience in business development, events, email marketing, lead generation, and content creation. He's had experience with client-facing engagement and managing campaigns. Outside of work, he enjoys playing disc golf, rock climbing, and creating meals in the kitchen with his wife.
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