In January, Forrester published a Forrester CDP report that examines the cost savings and business benefits that come from adopting Tealium’s CDP ROI strategy.
To ascertain the primary benefits of CDP (Customer Data Platform) adoption, Forrester interviewed five Tealium adopters. After the interviews and financial analysis were completed, the data was pulled into a single source that served as a representative sample of the aggregate financial analysis.
Here are some of the main takeaways from the study.
Table of contents
Before Tealium
The Forrester CDP report showed that all five adopters came from a similar place before investing in Tealium’s CDP. Prior to implementing Tealium, customer data was disorganized, making extracted “insights” stale.
With limited automation options, the organizations were relying on time-consuming and costly manual labor for various tasks, reducing efficiency in data operations as a whole. Some of the more common challenges included slow data processing, stale insights leading to campaign lags, and data silos which made it impossible to develop a unified view of customer behavior.
The biggest Tealium benefits
The adoption of Tealium’s CDP provided significant improvements, the key advances being:
- a digital advertising, database operations, and web analytics productivity lift of 25%,
- an increase of 8.5% in re-engagement rates, and
- optimized tech stack savings worth more than $782,000.
With the combination of tag and customer data management, Tealium’s CDP offers, adopters were able to harvest omnichannel data, obtain a single customer view (SCV) and respond to audience cohorts accurately and quickly.
Forrester CDP Report: How Tealium Drives Huge ROI in 2022
Improved Reengagement
Attracting the customer’s attention is one thing, but keeping it is a challenge on a completely different level. For example, 25% of downloaded apps are never used. In view of this, re-engagement strategies are key to customer retention. But to know which strategy to invest in, you need actionable insights. This is what Tealium’s CDP excels in.
Forrester revealed that once Tealium’s solution identified potential causes of customer churn, executives could easily combat the issue with a carefully thought-out plan: be it follow-up messages or specialized promotion offers.
The Forrester CDP report aggregated financial analysis of Tealium’s benefits to reveal that a full 25% of the successfully re-engaged customers led to conversions, with an income margin of 10%.
Increased Purchase
The revenue growth stemmed from a CDP-driven, better understanding of customer behavior, which led to more informed decision-making.
The participants in Forrester’s study listed several vital improvements that led to increased sales, which they were able to undertake after studying the data provided by Tealium’s CDP:
- Reduced browse abandonment
- Reduced conversion abandonment
- Higher transaction value
- Higher close and conversion rates
Accounting for risks such as the average order value and income margin, the Forrester CDP report found that the three-year total present value (PV) would amount to more than $1.8 million for the representative composite company. 50% of this revenue increase is attributed directly to the Tealium CDP investment.
Productivity Lift
A huge issue for all the companies involved in the study was the amount of time being invested – and lost – in manual data processing. Tasks such as audience segmentation or writing SQL queries wasted valuable resources that could have been better applied elsewhere.
Tealium’s CDP automates essential processes such as these. Adopters reported that the pressure on the database operation team to quickly aggregate, organize, and distribute information to other departments lessens. In turn, the marketing team doesn’t have to push through a prolonged process of requesting data necessary for its own operation.
By relying on customer data to inform segmentation, Tealium’s solution cut the time necessary for this process down by a whole 80%.
However, the advantages of automated data management are not just limited to expedience. Removing the need for manual data entry also heightens data fidelity – significantly reducing the margin for error.
New Sales Due to Real-Time Data Access
A key Tealium benefit, according to all surveyed, is the platform’s speed.
The Forrester CDP report highlights that study’s participants had issues with their previous data management solutions. Data teams manually processing data meant that it would often be stale by the time marketing teams and higher executives needed to develop new campaign strategies and discuss larger business trends. Customer segments would be incorrectly personalized, campaigns underperformed, and the bottom line suffered.
As Tealium’s CDP processes data in real-time, all of these issues suddenly became a thing of the past for the organizations surveyed.
For those companies who use customer data to follow-up via phone calls, this change was ground-breaking. With Tealium’s platform processing the customer’s actions in milliseconds, answer rates improved by 150% just in the first year of CDP investment.
This reflected well in the profit margin, with new sales from real-time data access yielding a three-year total PV of more than $1.2 million for the composite analysis.
Nonquantifiable Improvements
While the quantifiable data found in Forrester’s survey is truly impressive, it would be a mistake to underestimate the value of several metrics that were also improved by the Tealium’s CDP, but are challenging to express in numbers.
Let’s focus on some of these broad, qualitative Tealium benefits that are equally important.
Firstly, consider the improved data visibility, which is inextricably linked with a wide set of improvements in data governance. Better data governance improves data compliance, ultimately leading to lower overall risk exposure. Not to mention all of the avoided fines, brand strength in the eyes of the consumers, and associated productivity leaps that stem from meeting rules, regulations, and standards.
Secondly, there is the broad non-quant improvement base that is gained from successful personalization. Personalization drives better customer experience, which, in turn, only further benefits overall corporate operations and brand image.
Finally, there is a clear link with an improved return on ad spend (ROAS). By contributing to digital marketing campaigns and channel advertising, Tealium CDP provided more cost-effective outcomes while performing at the same, or higher level, than legacy methods.
CDP ROI is on the rise
With all this in mind, Forrester’s study confirms that Tealium CDP provides across-the-board benefits to all facets of business operations – not just for clearly quantifiable metrics but also for the intangible and, ultimately, invaluable ones, such as customer experience and satisfaction.
Interested in how you can implement Tealium and reap the benefits of gathering all your customer data in a unified source? Then feel free to schedule a quick session with e-CENS.
Our team will guide you through all the use cases you may have for adopting a CDP ROI solution and help you chart out a future-ready roadmap. Connect with our team today.
And for the full Forrester CDP report, download: “The Total Economic Impact™ Of Tealium CDP”.
Read TEALIUM’s CDP ROI Case Study
Learn how EXPO 2020 DUBAI significantly improved conversion rates by 37% with the help of Tealium’s Customer Data Hub.
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