© 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
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