© 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
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