© 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
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