Customer Data Platform
April 16, 2024
Tealium’s Forrester TEI Report is now available and verifies the value in Tealium’s CDP. There are many ways to evaluate the beneficial impact of a piece of technology, but there’s no doubt that ROI is the leading metric of choice. Regardless of what a tool can do, if it doesn’t increase revenue, it’s not helping the bottom line.
To better help enterprises understand the benefits businesses realize by utilizing our Customer Data Platform (CDP), Tealium commissioned Forrester to conduct a Total Economic Impact™(TEI) report on the ROI of Tealium. Spoiler alert! The report found that companies of all shapes and sizes will see a positive economic impact from their investment in our CDP.
But the positive effects of choosing Tealium’s CDP go beyond even the amazing financial gains the report reveals.
Before we dive into the full scope of benefits, let’s discuss the report itself. The Forrester Total Economic Impact™(TEI) report methodology provides a rigorous cost-benefit analysis of future technology and business flexibility alongside associated risk. They recently updated their approach to interview a balanced pool of customers to ensure an even more realistic assessment of ROI performance. Evaluating the business value these enterprises experienced by deploying Tealium’s CDP, this study was fielded amongst a diverse, anonymous selection of the company’s participating customers.
This study interviewed five real customers and provides readers with a framework to evaluate the potential financial impact of Tealium’s CDP on your organizations. Based on the five organizations interviewed, Forrester created a composite customer (global, multi-billion-dollar retailer) who deployed Tealium and obtained benefits of $6.9 million and 363% ROI over three years, with a complete payback within less than six months of implementation.
Tealium’s Forrester TEI report also clarifies how after the investment in our CDP, these customers were able to maximize their customer data, add real-time data enrichment, and activate data downstream across the martech stack.
“If a visitor is clicking on the same thing over and over and it’s not working, or they are bouncing back and forth between the same two pages, we have an integration with Tealium that says, ‘Ben’s having a hard time here.’ And then I can write rules in Tealium to pop a chat to him or send him a follow-up email or offer him a promotion. We take those opportunities to reduce friction and give customers a better experience.” – Director of e-commerce, analytics, and tag management, e-commerce retail
The report also made clear that Tealium benefits organizations of all types. While the customers interviewed were all enterprises, they were from a range of industries, including eCommerce, healthcare, and financial organizations. eCommerce organizations, for example, have embraced digital transformation and have found value in marketing automation tools. And highly regulated industries like healthcare and financial services have recently faced acute challenges because of the COVID-19 pandemic. By losing many of the face-to-face opportunities they previously relied on, these verticals have been forced to embrace technology to facilitate one-on-one conversations and personalization with customers.
One of the most significant benefits of Tealium’s CDP was highlighted through customer experience personalization, which was shown to improve consumer confidence and drive customer acquisition. One healthcare business intelligence lead who participated in the survey shared a use case of advertisement copy optimization as a result of insights garnered through their CDP — “This resulted in a 22.8% lift in sales. Just this small change of copy is responsible for many hundreds of thousands of dollars, and I’m confident that 90%+ of this impact is due to Tealium,” stated the executive.
In total, Tealium’s Forrester TEI report quantified five benefits for Tealium’s total economic impact, including increases in customer reengagement, larger sales from improved segmentation and personalization, increased new revenue from right time data insights, productivity lift for data-adjacent teams, and better tech stack rationalization.
There were also a number of unquantified benefits that should be taken into consideration when calculating the total value of Tealium’s CDP.
For starters, Tealium’s CDP offers significantly better data visibility, which led to data governance improvements for the composite company. The financial impact of this benefit would be measured by quantifying avoided compliance fines, productivity improvements related to meeting regulations, legal costs, and brand protection from avoiding losing customer data to bad actors.
Personalization, which drives better customer experience, was also explored. Based on the findings from our 2022 State of the CDP Report, personalization is growing more critical for staying competitive in an ever increasing digital landscape. In the Forrester TEI report, the healthcare organization that was interviewed attributed the rating increase to their customer satisfaction score (CSAT) from 54 to 62 to the 3-year timeframe in which they have been using Tealium.
Finally, the report also outlines how targeting improvements had a positive impact on return on ad spend (ROAS). While not a revenue generating function per se, the financial implications of an improved ROAS can be hugely impactful to a company’s overall bottomline. As third-party cookies fall by the wayside, the value of a first-party data ad strategy becomes practically invaluable.
It’s imperative that organizations consider both the quantified and unquantified benefits covered within the report. The Forrester TEI report is a great resource for executives looking to evaluate the investment into Tealium’s CDP and its impact on the company’s growth goals. The ROI and net present value defined by the composite customer are a strong indicator of Tealium’s value. All the benefits outlined in the report show the many ways in which our customers thrive when implementing our CDP solutions.
Download Tealium’s Forrester TEI report here.
