Drive Business Success Through Customer Education

Drive Business Success Through Customer Education A COMMISSIONED STUDY CONDUCTED BY FORRESTER CONSULTING ON BEHALF OF INTELLUM, MAY 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Formalized customer education programs have gone from a niche initiative enacted by only a select few organizations to being table stakes for successful customer engagement. As early adopters found significant success, competitors scrambled to catch up and prevent being left behind. However, effective education is complex, and navigating these murky waters is not always easy. In February 2024, Intellum commissioned Forrester Consulting to explore how the customer education landscape looks today, what benefits organizations are seeing from these programs, what challenges they are facing, and what makes a program successful. This study refreshes one commissioned by Intellum in 2019 and includes a look at how programs have changed over the past five years. Through this research, we found: 1. Customer education is growing — and changing — rapidly. Our data finds that average spending on customer education has nearly tripled in the past five years, and decision-makers expect it to more than double over the next two. Firms have shifted away from traditional workshops and certification programs toward prebuilt courseware and in-app guides. This accompanies a move away from programs being run entirely in-house to utilizing outsourcing and AI. 2. Organizations see massive benefits from their education programs. An astounding 96% have at least broken even on their education programs, with 86% seeing a positive return. And our data shows the average education program leading to a 38.3% increase in adoption of products targeted by training, 26.2% improvement in customer satisfaction, 35% increase in average lifetime value per trainee, 7.6% increase in revenue of products targeted by training, and a 15.5% decrease in customer support costs for trainees. Executive Summary And Key Findings

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. 3. Creating effective education comes with challenges. Creating an ideal customer education program is no easy task. Surveyed decision-makers reported struggling with finding the right technology and not having the right skills or resources in-house to maximize the potential of their programs. 4. Successful firms use vendors as true partners. In this study, we compared the organizations with the highest and lowest success in their education programs. The first key difference between these groups is that high-success organizations are far more likely to have formalized education programs. Low-success orgs tended to have only partially formalized programs or ad hoc initiatives. The second key difference is in how they utilize partners. When high-success orgs work with a third-party education vendor, they are far more likely to do so to get strategic help and skills that they don’t have in house, whereas low-success orgs tend to outsource just to speed up timelines and cut costs. As a result, high-success firms get far more out of these vendor relationships. 5. AI will play a crucial role in the future of education. In the months and years to come, the rapid proliferation of genAI will make a significant impact on the customer education landscape with use cases like accelerating content creation, personalizing learning paths, and automating data analysis. Even today, more than half of decision-makers reported that their organizations have begun using AI in their education programs, and 95% expect to do so within 18 months.

5 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Customer education programs are not all created equal and have changed significantly in the past five years. It is critical to understand how organizations are running these programs today and how things have changed.

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Customer education is a greater priority than it has ever been Annual Average Spending On Customer Education Over Time Spending has steadily risen over the past five years and decisionmakers expect it to rise even more soon. Base: 300 customer education decision-makers at organizations in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 2017 2019 2022 2024 2026 (proj.) $401K $780K $816K $1.1M $2.2M

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Most customers are offered education, and a good proportion utilize it — but there is still room to grow An average organization today offers education options to threequarters of its customer base. While this number is fairly high, it has barely grown compared to the 72% reported five years ago. Similarly, it is great to see more than half of customers utilizing education, but this has actually dropped from 53% in 2019. This leaves a great opportunity for organizations to market the value of their education to customers and deepen their engagement. Customers who are offered education programs by the average organization Customers who have utilized education for the average organization Products that have formal education offerings Who Is Being Offered Training? Are They Using It? Base: 300 education decision-makers in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 75% 51% 63%

8 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Now more than ever, education most often looks like one-time, quick-hit interactions like training documents or how-to videos. Only 16% are involved in more in-depth formal courses, down from 25% in 2019. Most customers utilize one-off education offerings “What percentage of your organization’s customers who have utilized education/training materials are engaging in the following ways?” Engaging in a formal certification program/course requiring more in-depth involvement Utilizing a series of training resources related to a similar topic Utilizing a single training resource for a one-time, quick-hit interaction Base: 300 education decision-makers in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 55% 29% 16%

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. The types of education being offered have shifted Most commons types of education being offered: 2024 1) In-app guides 2) Training videos 3) Training brochures, handbooks, and other printed materials 4) Published training documentation in online forums/communities, blogs, etc. 5) Prebuilt courseware or product/service training modules 2019 1) In-person training workshops 2) Training brochures, handbooks, and other printed material 3) Training videos 4) Real-time online training webinars/broadcasts 5) Certification programs (online or in-person) Over the past five years (notably, including the COVID19 pandemic), we have seen a significant rise in popularity for digital content like in-app guides and prebuilt courseware. In-person training and certifications have dropped considerably in that time. Prebuilt courseware has risen from 31% in 2019 to 53% in 2024. It is particularly popular in B2B SaaS, where 79% of organizations offer it. Base: 150 education decision-makers in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 2019 2024

10 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Organizations are increasingly replacing their in-house education teams with external partners and AI content creation. In-house education teams have dropped in popularity over the past five years “Which of the following does your organization use to support its customer education/customer training initiatives?” 23% 54% 81% 33% 36% 55% 64% Agency partner(s) AI content creation tools Dedicated customer education/customer training third-party vendor(s) In-house training/education team 2024 2019 Base: 300 education decision-makers in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 n/a

12 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. There’s a reason education programs have soared in popularity and investment. Organizations are seeing substantial returns from their investment, impacting customer experience and both the top and bottom lines.

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. 25% 33% 34% 34% 37% 37% 43% 45% 50% 54% Accelerate sales cycles Enable better cross-selling of adjacent products/services Accelerate client onboarding Increase customer enrichment/spending Win additional customers Reduce customer support costs Increase adoption of products/services Increase post-purchase usage and engagement Improve customer retention Improve customer experience Organizations are running customer education programs to boost customer experience, retention, and engagement … “Which of the following are the top priorities for your organization’s customer education/customer training initiatives during the next 12 months?” Base: 300 customer education decision-makers at organizations in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. … and they are seeing these benefits. Customer education is proving to significantly increase product adoption and customer satisfaction … Realized Benefits Of Customer Education Programs Increase in adoption of products targeted by training 38.3% Increase in engagement for products targeted by training 30.7% Increase in reported customer satisfaction rates 26.2%

15 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Business Outcomes Realized From Customer Education Initiatives … as well as greater lifetime value, win rates, and overall revenue … 34.6% Increase in average lifetime value per trainee Increase in win rates for new customers 22.3% Increase in average retention rates for products targeted by training 8.1% Reduction in sales cycle length 7.6% Increase in annual revenue for products targeted by training 7.5% Increase in average revenue per trainee 28.9% Base: 300 customer education decision-makers at organizations in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

16 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. … and reduction in support frequency and costs Decrease in number of support inquiries 15.5% Reduction in annual customer support cost 7.2% Base: 300 customer education decision-makers at organizations in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

17 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Forrester modeled the three-year financial impact of establishing a customer education program for a composite organization based in North America with $1 billion in annual revenue. This analysis leverages data from 122 respondents from organizations with fully formalized customer education programs that are moderately or very confident in their ability to track program impact. The customer education program drives many benefits including adoption, engagement, satisfaction, and beyond, which indirectly or directly lead to discrete financial results. These financial outcomes are consolidated in the financial model in their impact on increased customer retention, increased revenue per trainee, and reduced support costs. The Total Economic Impact™ Of A Customer Education Program Base: 122 education decision-makers in the US from organizations with fully formalized education programs and that are moderately or very confident in their organization’s ability to track their program’s impact Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 $6.71 in annual cash flow per $1 in annual spend by Year 3 56% 37% 7% Benefits By Category Improved customer retention Increased customer spending Support cost savings

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Net present value (NPV) $14.1M Payback period 7 months The Total Economic Impact Of A Customer Education Program Return on investment (ROI) 372% -$5M $0M $5M $10M $15M $20M Initial Year 1 Year 2 Year 3 Three-Year, Risk-Adjusted Financial Analysis For A $1 Billion Composite Organization Total costs Total benefits Cumulative net benefits Base: 122 education decision-makers in the US from organizations with fully formalized education programs and that are moderately or very confident in their organization’s ability to track their program’s impact Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

19 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Returns on investment have been overwhelmingly positive for customer education: 86% have seen positive returns, and an additional 10% have broken even 96% Have seen a positive return or broken even on their customer education initiatives Base: 300 customer education decision-makers at organizations in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

22 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Organizations struggle with a lack of the right tech, skills, and resources to maximize the potential of their customer education efforts 2% 27% 31% 36% 42% 50% 52% My organization doesn’t have any developmental challenges with its customer education/customer training efforts Lack of budget Lack of knowledge on how to create an education program Lack of content volume Lack of personnel to moderate and/or manage training resources Lack of technical skills for building/providing training resources Lack of tools for building/providing training resources Base: 300 education decision-makers in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 “Which of the following developmental challenges has your organization faced with its customer education/customer training efforts?” 98% have experienced issues along the way.

23 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. These challenges result in poorerquality education, hurting user satisfaction and lessening demand “Which of the following organizational and/or external challenges has your organization faced with its customer education/customer training efforts?” 4% 30% 37% 43% 49% 55% My organization doesn’t have any organizational or external challenges with its customer education/customer training efforts Lack of executive support for customer education/customer training Lack of localization/customization for global audiences Poor quality of training/education content Lack of customer interest/demand Low satisfaction with training experiences/bad user experience Base: 300 education decision-makers in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

25 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. To better understand what makes a successful customer education program, we grouped respondents based on their success metrics and examined the differences between higher- and lower-success programs. Results were illuminating on the strategy and mindset needed to create a truly valuable holistic education program.

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. We broke organizations into five groups based on their success levels. Defining success 15.8% 22.0% 21.9% 17.9% 20.8% 28.3% 22.0% 27.2% 33.3% 19.7% 24.5% 31.3% 21.8% 32.8% 36.1% 21.6% 26.6% 40.6% 26.4% 30.6% 41.5% 30.0% 35.1% 38.9% 24.8% 31.3% 39.8% 41.6% 45.8% 52.4% Increase in average retention rates for products targeted by training Increase in win rates for new customers Increase in average lifetime value per trainee Increase in reported customer satisfaction rates Increase in engagement for products targeted by training Increase in adoption of products targeted by training

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. 5.5% 5.9% 4.9% 5.7% 12.1% 7.1% 6.6% 6.7% 6.1% 12.5% 7.5% 7.7% 7.2% 7.3% 14.1% 8.3% 8.3% 7.8% 8.2% 14.2% 8.8% 9.4% 9.5% 12.8% 24.7% Increase in average revenue per trainee Increase in annual revenue for products targeted by training Decrease in annual customer support cost Decrease in sales cycle length Decrease in number of support inquiries High success Medium to high success Medium success Medium to low success Low success Base: 300 customer education decision-makers at organizations in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. For this study, we examined the extremes — the highest- and lowest-success organizations. High-success firms see substantially greater benefits from their customer education programs. Defining success 5.5% 5.9% 4.9% 5.7% 12.1% 15.8% 22.0% 21.9% 17.9% 20.8% 28.3% 8.8% 9.4% 9.5% 12.8% 24.7% 24.8% 31.3% 39.8% 41.6% 45.8% 52.4% Increase in average revenue per trainee Increase in annual revenue for products targeted by training Decrease in annual customer support cost Decrease in sales cycle length Decrease in number of support inquiries Increase in average retention rates for products targeted by training Increase in win rates for new customers Increase in average lifetime value per trainee Increase in reported customer satisfaction rates Increase in engagement for products targeted by training Increase in adoption of products targeted by training High success Low success Base: 120 education decision-makers in the US, with 60 each in the “high-success” and “low-success” groups Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

29 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. High-success firms are far more likely to have fully formalized customer education programs “Which of the following best describes your organization’s customer education/customer training efforts?” 78% 17% 5% 35% 45% 20% Fully formalized: We have a dedicated customer education/customer training program and/or team Somewhat/partially formalized: We have planned customer education/customer training initiatives, but they are just a part of our overall marketing program/content Ad hoc: We have occasional customer education/customer training efforts, but we have no formal program or strategy High success Low success Base: 120 education decision-makers in the US, with 60 each in the “high-success” and “low-success” groups Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. This is is particularly true when it comes to working with third-party education vendors Low-success organizations use education vendors at a higher rate than high-success organizations. However, when they use these vendors, it is as part of an ad hoc or only partial program. Base: 161 customer education decision-makers at organizations using a third-party education vendor Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 Using vendors in formalized program Using vendors in a nonformalized program Low success High success 61% 39% 22% 78%

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Low-success firms don’t utilize their vendors in a strategic way … 24% 44% 51% 80% 43% 52% 30% 57% We did/do not have the required expertise/skills in-house We wanted an outside perspective to think about our customer education/customer training program in innovative ways It costs less to use a third party It is faster to use a partner High success Low success “Why did/does your organization utilize a third-party customer education/customer training vendor for its customer education/customer training efforts?” When high-success organizations choose to outsource, they are much more likely to do so to gain expertise, skills, and innovation around customer education that they don’t have in-house. When low-success organizations outsource, it is far more likely to do so simply to cut costs and speed up the process. Base: 161 customer education decision-makers at organizations using a third-party education vendor Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. … which results in high-success orgs getting far more out of their education partners “How important was the role of a third-party customer education/customer training vendor in helping your company realize its current benefits from its customer education/customer training program?” 35% 52% 13% 0% 0% 15% 63% 20% 2% 0% Crucial Very important Somewhat important Not very important Not at all important High success Low success Base: 161 customer education decision-makers at organizations using a third-party education vendor Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 The strategic way in which highsuccess firms deploy their education partners results in them getting much more out of the relationships and allows the vendor to play a critical role in shaping the education vision and strategy.

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. “How important does your organization consider each of the following to be for running a successful customer education/customer training program?” (Showing “High-success” responses) Data access, technology, and guidance from partners are what high-success organizations point to as driving their programs’ effectiveness 52% 57% 58% 63% 70% 70% 73% 80% Gamification Personalized content and learning paths across audiences Certification programs Content creation support Platform/software scalability Support and guidance from my organization's platform/software vendor Mobile accessibility Access to multiple types of data Base: 60 education decision-makers in the US at “high-success” organizations Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

35 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. As customer education programs continue to grow, organizations must adapt and evolve their programs to keep up. Current programs already look significantly different than those of five years ago. The next five years, however, may hold an unprecedented rate of change.

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Going forward, organizations seek to implement dedicated platforms, expand channels, and hire new partners “Which of the following is your organization planning to do to improve its customer education/customer training efforts?” 32% 32% 35% 35% 38% 40% 49% Increase budget for customer education/customer training Hire new employees with customer education/customer training knowledge Hire a dedicated customer education/customer training thirdparty vendor for content creation Create new types of customer education/customer training content Hire a creative/marketing agency/vendor for content creation Implement customer education/customer training in new channels Implement a dedicated customer education/customer training platform Base: 300 customer education decision-makers at organizations in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. AI is also poised to play an enormous role in education. More than 99% of respondents plan to leverage AI in the next 18 months, and adoption is growing rapidly Base: 300 customer education decision-makers at organizations in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024 TIMELINE OF AI ADOPTION “When does your customer education team plan to leverage AI as part of its work?” Using today Will use within six months Will use within six to twelve months Will use within 12 to 18 months Will use more than 18 months from now 51% 72% 87% 99.6% 95%

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. “What does your organization plan to leverage AI for in its content creation programs going forward?” AI use case plans include content creation, personalized learning paths, data analysis, and more Organizations have plans to leverage AI for a wide variety of use cases 73% Accelerating content creation 61% Personalizing learning paths 60% Data analysis and visualization 58% Assessment creation 52% Transcription and translation 43% More efficiently planning content Base: 300 customer education decision-makers at organizations in the US Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

39 © FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Create a formal education strategy for your business. Companies with less formal, ad hoc education programs see substantially lower benefits from education efforts than those with formalized programs. Set clear goals for what you want to achieve with customer education, and use that as a roadmap for developing and delivering educational content in a methodical way. Start with strategy — don’t piecemeal your program. Look for vendors who can be a true partner — and use them that way. Creating a customer education program requires substantial effort and planning, but don’t try to reinvent the wheel. There are several players in the education market that have the tools — and more importantly, the expertise — to improve your education programs. Companies with the most successful education programs are intentional about seeking about the right trusted partner and use outside vendors to learn best practices and optimize their strategies. Align customer education to the customer journey. While most programs make education resources available to all customers, not every customer takes advantage of those resources. Take time to understand your customer’s purchase journey, and identify key pain points in both pre- and post-purchase activity. Then, align customer education to the customer journey to ensure customers have visibility and access to educational materials. Break down internal silos that impact measurement. As customer education expands to impact more of the business (marketing and sales, as well as customer success), it’s critical to connect systems to tell a unified story about the impact of education. Silos hurt the quality of the education you create and also make it far harder to measure the impact of these programs Invest in upskilling your team. Like any other team, customer education professionals need learning and development. Invest in upskilling through industry conferences, mentorship programs, and other resources to future-proof their skill set. Key Recommendations

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Methodology In this study, Forrester conducted an online survey of 300 respondents. This study included respondents at enterprises as well as small and medium-size businesses. All respondents were based in the US. The study began in February 2024 and was completed in March 2024. Respondents were offered a small monetary incentive for their participation. Most questions were repeated from the 2019 study, but some were modified to reflect changes in the market, cite new trends, and explore new topics. Project Team Josh Blackborow, Senior Consultant Benjamin Brown, Principal Consultant ABOUT FORRESTER CONSULTING Forrester provides independent and objective research-based consulting to help leaders deliver key outcomes. Fueled by our customer-obsessed research, Forrester’s seasoned consultants partner with leaders to execute their specific priorities using a unique engagement model that ensures lasting impact. For more information, visit forrester.com/consulting. © Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. [E-59895]

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Demographics Industry (Showing Top Five) B2B SaaS 50% Manufacturing 4% Financial services 4% Retail 3% Consumer services 3% Respondent Level C-level executive 12% Vice president 32% Director 57% Employees 2 to 99 5% 100 to 499 23% 500 to 999 21% 1,000 to 4,999 31% 5,000 to 19,999 15% 20,000 or more 5% Department Customer education/training 25% Marketing/advertising 22% Sales 19% Customer success 16% Support 15% Account management 4% Country United States 100% Education Target Businesses only 51% Businesses and consumers 49%

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of technology initiatives to both senior management and other key business stakeholders. Total Economic Impact Approach Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization. Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution. Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated. Risks measure the uncertainty of benefit and cost estimates given 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. The risk adjustment of 20% used in this financial model was derived by multiplying the 66% of respondents who were “moderately confident” in their ability to track the impact of their customer education program by a 30% risk factor, without adding a risk factor for the remaining 34% of respondents who were “very confident” in their tracking. ! Return on investment (ROI) A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs. Present value (PV) The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows. Net present value (NPV) The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have higher NPVs. Discount rate The interest rate used in cash flow analysis to account for the time value of money. Organizations typically use discount rates between 8% and 16%. The composite organization uses a 10% discount rate. Payback period The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost. The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur. Appendix: Total Economic Impact (TEI) Methodology

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Appendix: TEI Benefits, Table A: Improved Customer Retention Survey respondents reported that education programs were offered to 76.7% of customers, utilized by 51.1% of customers, and increased retention by 22.2%. Customers who were better educated were more likely to adopt solutions after purchase, to frequently engage with the solutions, to get the value they desired from the solutions, and ultimately, were more likely to remain customers. The composite organization earns $1 billion in annual revenue with a 12% operating profit margin. Forrester modeled a phased rollout of education to half the expected 76.7% of customers in Year 1. To account for potential variation and risks, Forrester adjusted this benefit downward by the survey-derived risk adjustment of 20%, yielding a three-year, risk-adjusted total present value (PV) (discounted at 10%) of $10.0 million for the composite organization. Ref. Metric Source Year 1 Year 2 Year 3 A1 Baseline annual revenue Composite $1,000,000,000 $1,000,000,000 $1,000,000,000 A2 Percentage of customers offered education programs Survey data 38.4% 76.7% 76.7% A3 Training utilization rate Survey data 51.1% 51.1% 51.1% A4 Increased product retention Survey data 22.2% 22.2% 22.2% A5 Incremental percentage of customers retained into the following year A2*A3*A4 4.4% 8.7% 8.7% A6 Cumulative top-line revenue growth from retained customers (A1+A6PY)*A5PY $0 $44,000,000 $90,828,000 A7 Operating profit margin Composite 12% 12% 12% At Improved customer retention A6*A7 $0 $5,280,000 $10,899,360 Risk adjustment ↓20% Atr Improved customer retention (risk-adjusted) $0 $4,224,000 $8,719,488 Atr Three-year total $12,943,488 Atr Three-year present value $10,041,989 Base: 122 education decision-makers in the US from organizations with fully formalized education programs and that are moderately or very confident in their organization’s ability to track their program’s impact Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Appendix: TEI Benefits, Table B: Increased Customer Spending Survey respondents reported that education programs were offered to 76.7% of customers, utilized by 51.1% of customers, and increased revenue per trainee by 8.3%. Increased revenue could be earned via additional purchases, higher average order value, increased spending on higher-tier offerings, or other forms of enrichment and increased spending for B2C and B2B companies. The composite organization earns $1 billion in annual revenue with a 12% operating profit margin. Forrester modeled a phased rollout of education to half the expected 76.7% of customers in Year 1. To account for potential variation and risks, Forrester adjusted this benefit downward by the survey-derived risk adjustment of 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $6.7 million for the composite organization. Ref. Metric Source Year 1 Year 2 Year 3 B1 Annual revenue A1+A6 $1,000,000,000 $1,044,000,000 $1,090,828,000 B2 Percentage of customers offered education programs A2 38.4% 76.7% 76.7% B3 Training utilization rate A3 51.1% 51.1% 51.1% B4 Increased revenue per trainee Survey data 8.3% 8.3% 8.3% B5 Top-line revenue growth from higher trainee spending B1*B2*B3*B4 $16,286,592 $33,962,125 $35,485,476 B6 Operating profit margin A7 12% 12% 12% Bt Increased customer spending B5*B6 $1,954,391 $4,075,455 $4,258,257 Risk adjustment ↓20% Btr Increased customer spending (risk-adjusted) $1,563,513 $3,260,364 $3,406,606 Btr Three-year total $8,230,482 Btr Three-year present value $6,675,324 Base: 122 education decision-makers in the US from organizations with fully formalized education programs and that are moderately or very confident in their organization’s ability to track their program’s impact Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Appendix: TEI Benefits, Table C: Support Cost Savings Survey respondents reported that education programs were offered to 76.7% of customers, utilized by 51.1% of customers, and reduced support costs by 7.4% for customers who participated in these programs. Support cost savings are driven by reduced contact volume and shorter request resolution from customers who leveraged the education program. The composite organization spends $26 million per year (2.6% of its annual revenue) on customer support and customer success programs. Forrester modeled a phased rollout of education to half the expected 76.7% of customers in Year 1. To account for potential variation and risks, Forrester adjusted this benefit downward by the survey-derived risk adjustment of 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.2 million for the composite organization. Ref. Metric Source Year 1 Year 2 Year 3 C1 Annual cost of customer support and success programs Composite $26,000,000 $26,000,000 $26,000,000 C2 Percentage of customers offered education programs A2 38.4% 76.7% 76.7% C3 Training utilization rate A3 51.1% 51.1% 51.1% C4 Reduced support cost Survey data 7.4% 7.4% 7.4% Ct Support cost savings C1*C2*C3*C4 $377,535 $754,087 $754,087 Risk adjustment ↓20% Ctr Support cost savings (risk-adjusted) $302,028 $603,270 $603,270 Ctr Three-year total $1,508,567 Ctr Three-year present value $1,226,386 Base: 122 education decision-makers in the US from organizations with fully formalized education programs and that are moderately or very confident in their organization’s ability to track their program’s impact Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. Survey respondents reported that the total annual budget for their customer education programs was equivalent to 0.038% of their organization’s total annual revenue two years ago, 0.068% of revenue today, and is expected to increase to 0.145% in two years. These costs include all third-party and internal labor costs to build, test, and run the program. Costs do not include training labor costs for customers’ users as those individuals are not employed by the composite. The composite organization is assumed to be a US-based company that earns $1 billion in annual revenue. Annual budgets for the Initial period and Year 2 are estimated using the midpoint of spending between the two-year intervals reported in the survey. To account for potential variation and unreported costs, Forrester adjusted this cost upward by the survey-derived risk adjustment of 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $3.8 million for the composite organization. Appendix: TEI Costs, Table D: Customer Education Program Budget Ref. Metric Source Initial Year 1 Year 2 Year 3 D1 Annual revenue B1 $1,000,000,000 $1,000,000,000 $1,044,000,000 $1,090,828,000 D2 Average total customer education budget as a percentage of revenue Survey data 0.051% 0.063% 0.104% 0.145% Dt Customer education program budget D1*D2 $510,000 $630,000 $1,085,760 $1,581,701 Risk adjustment ↑20% Dtr Customer education program budget (risk-adjusted) $612,000 $756,000 $1,302,912 $1,898,041 Dtr Three-year total $4,568,953 Dtr Three-year present value $3,802,086 Base: 122 education decision-makers in the US from organizations with fully formalized education programs and that are moderately or very confident in their organization’s ability to track their program’s impact Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. The Total Economic Impact financial analysis for a composite organization that earns $1 billion in annual revenue found that the composite organization experiences benefits of $17.9 million over three years versus costs of $3.8 million, adding up to a net present value (NPV) of $14.1 million, a payback period of 7 months, and an ROI of 372%. These results are based on an analysis of survey data from 122 customer education decision-makers in the US from organizations with fully formalized education programs and that are moderately confident or very confident in their organization’s ability to track their education program’s impact. Appendix: TEI Financial Summary Cash Flow Analysis (Risk-Adjusted Estimates) Metric Initial Year 1 Year 2 Year 3 Total Present Value Total costs ($612,000) ($756,000) ($1,302,912) ($1,898,041) ($4,568,953) ($3,802,086) Total benefits $0 $1,865,541 $8,087,634 $12,729,363 $22,682,538 $17,943,699 Net benefits ($612,000) $1,109,541 $6,784,722 $10,831,322 $18,113,584 $14,141,613 Annual dollars of benefits per $1.00 in annual costs $2.47 $6.21 $6.71 ROI 372% Payback period (months) 7.0 Base: 122 education decision-makers in the US from organizations with fully formalized education programs and that are moderately or very confident in their organization’s ability to track their program’s impact Source: A commissioned study conducted by Forrester Consulting on behalf of Intellum, March 2024

© FORRESTER RESEARCH, INC. ALL RIGHTS RESERVED. RELATED FORRESTER RESEARCH The Learning Management System And Experience Platform Landscape, Q4 2023, Forrester Research, Inc., October 13, 2023 CONTACT INTELLUM Explore More

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