A Forrester Total Economic Impact™ Study Commissioned By Adobe, June 2024
B2B and B2C marketers are often operating in a DIY or best-of-breed technology approach, which creates silos across customer data, insights, marketing planning, and marketing execution.1 These challenges can lead to downstream difficulties in engaging customers and thus limiting potential revenue growth. Adobe Experience Cloud can address these challenges with its end-to-end suite of applications built for supporting personalized customer experiences.
Adobe Experience Cloud is comprised of a suite of applications that support each step of creating the customer experience, including:
Adobe commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying applications from Adobe Experience Cloud.2 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Experience Cloud on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed representatives at four organizations and surveyed 116 employees using Adobe Experience Cloud at their organization. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a global, industry-agnostic enterprise-sized company with $5 billion in annual revenue and 15,000 employees.
Interviewees and survey respondents said that prior to using Adobe Experience Cloud, their organizations had several analytic, marketing technology (martech), and project management tools in place. Interviewees’ organizations also had some solutions built in-house to support performance analysis and content production. However, the variety in technologies used meant every tool did not fully integrate with each other. Teams using these tools frequently faced customer data incorrectly flowing through systems, either going missing, arriving at the wrong destination, or not exporting at all.
As a result, analysts at the interviewees’ organizations struggled to conduct deep analysis on campaign performance and create granular customer segments. In turn, marketers had difficulties personalizing customer experiences and ensuring customers received relevant messaging. Interviewees noted that project managers working to fix these issues regularly endured new and reoccurring technical errors, which led to campaign delays. Interviewees recognized these challenges were creating poor customer experiences and placing business opportunities at risk.
After investing in Adobe Experience Cloud, the interviewees were able to align data flows to create accurate customer profiles and segments. Marketers then built more engaging customer journeys with relevant notifications and content that could be updated in real time. Creation and management of these projects became streamlined and resulted in time savings across teams. Interviewees also saw increased business performance (e.g., higher conversions, increased consumer spending) around campaigns supported by Adobe Experience Cloud.
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Base:
116 global decision-makers at organizations that use Adobe Experience Cloud
Note: Showing top seven
responses
Source: A
commissioned study conducted by Forrester Consulting on behalf of Adobe, May
2024
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include the following:
Unquantified benefits. Benefits that provide value for the interviewees’ organizations but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
The financial analysis which is based on the interviews and survey found that a composite organization experiences benefits of $53.9 million over three years versus costs of $12.4 million, adding up to a net present value (NPV) of $41.5 million and an ROI of 333%.
(Showing “Agree” and “Completely agree”)
Base: 116 global decision-makers at
organizations that use Adobe Experience Cloud
Source: A commissioned study conducted by
Forrester Consulting on behalf of Adobe, May 2024
Return on investment (ROI):
Benefits PV:
Net present value (NPV):
Payback:
From the information provided in the interviews and survey, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Adobe Experience Cloud.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Adobe Experience Cloud can have on an organization.
Interviewed Adobe stakeholders and Forrester analysts to gather data relative to Adobe Experience Cloud.
Interviewed representatives at four organizations and surveyed 116 respondents at organizations using Adobe Experience Cloud to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ and survey respondents’ organizations.
Constructed a financial model representative of the interviews and survey using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees and survey respondents.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Readers should be aware of the following:
This study is commissioned by Adobe and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Adobe Experience Cloud.
Adobe reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Adobe provided the customer names for the interviews but did not participate in the interviews.
Forrester fielded the double-blind survey using a third-party survey partner.
Consulting Team:
Corey McNair
Carmen Serradilla Ortiz
Forrester interviewed representatives at four organizations and surveyed 116 respondents with experience using Adobe Experience Cloud at their organizations. For more details on these individuals and the organizations they represent, see Appendix B.
Prior to Adobe Experience Cloud, interviewees and survey respondents said their organizations leveraged several best-of-breed solutions to oversee end-to-end customer experiences, including analysis, content creation and orchestration, project management, and other tools. Some interviewees and survey respondents noted their organizations had also elected to build in-house solutions to support performance analysis and content production.
Both interviewees and survey respondents noted how their organizations struggled with common challenges as a result of this approach, including:
The interviewees and survey respondents searched for a solution that could:
Base: 116 global decision-makers at
organizations that use Adobe Experience Cloud
Source: A commissioned study conducted by
Forrester Consulting on behalf of Adobe, May 2024
Based on the interviews and survey, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees at four organizations and the 116 respondents, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite organization is a global, industry-agnostic enterprise-sized company with $5 billion in annual revenue and 15,000 employees. Among total revenue, $2 billion comes from e-commerce business. Before adopting solutions from Adobe Experience Cloud, the composite organization leaned a best-of-breed approach toward building customer journeys. However, this approach yielded limited insights with customer data residing in silos, solutions required regular maintenance to correctly work together, and marketers struggled to personalize customer experiences with relevant messaging.
Deployment characteristics. There is not a single “correct” path to follow in the adoption of applications from Adobe Experience Cloud, nor is there an exact timeline. The path will vary based on company goals.
For the composite organization, Adobe Analytics, Adobe Experience Manager Assets, Forms, and Sites, and Adobe Target are deployed in Year 1. The composite organization adopts these solutions to build out its digital presence with Adobe tools, including its website and marketing material; analyze website performance; and test out responses to newly created content. It also begins migrating customer data over to Adobe Real-Time Customer Data Platform to begin understanding customer behavior across online and offline channels. Adobe Workfront is adopted to oversee work around projects originating from Adobe tools.
In Year 2, the composite organization adopts Adobe Campaign, Adobe Audience Manager, Adobe Customer Journey Optimizer, and Adobe Journey Analytics to begin creating customer journeys and building audience segments and customer profiles at which to target its messaging. By Year 3, the composite becomes more mature with these applications to create more personalized customer journeys and better understand which marketing approaches (e.g., channel, message type) perform best with customers.
Forrester assumes the composite organization continues to adopt additional Adobe Experience Cloud applications after the three-year period of analysis.
At the composite organization, 150 power users begin using Adobe Experience Manager in Year 1 as well as incorporating insights from Analytics and Target to their work. A portion of the users work toward building customer profiles in Real-Time CDP. As adoption of Adobe Experience Cloud applications grows and best practices are shared, the number of power users increases to 175 in Year 2 and 200 in Year 3.
For the analysis tools, there are 10 dedicated analysts to leveraging Adobe Analytics, Real-Time CDP, and Target in Year 1. The number of analysts also grows to 15 in Year 2 and 20 in Year 3 as more teams adopt the tools and begin incorporating Adobe Journey Optimizer into their workflows. Meanwhile, for technical support for Adobe projects there are 20 developers allocating 20% of their time toward these projects.
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Employee productivity on customer experience projects | $1,790,100 | $2,668,575 | $3,580,200 | $8,038,875 | $6,522,655 |
| Btr | Customer experience performance analysis efficiency | $245,700 | $515,970 | $786,240 | $1,547,910 | $1,240,499 |
| Ctr | Developer productivity on customer experience projects | $59,904 | $89,856 | $119,808 | $269,568 | $218,733 |
| Dtr | Efficiency in advertising, marketing, and technology costs | $3,400,000 | $4,300,000 | $5,120,000 | $12,820,000 | $10,491,360 |
| Etr | Profit from additional digital customer conversions | $6,400,000 | $8,000,000 | $9,600,000 | $24,000,000 | $19,642,374 |
| Ftr | Higher digital profit generation with Adobe Experience Cloud | $2,112,000 | $5,040,000 | $8,832,000 | $15,984,000 | $12,720,902 |
| Gtr | Profit from improved digital customer retention | $316,416 | $931,328 | $1,748,992 | $2,996,736 | $2,371,387 |
| Htr | Profit from additional offline conversions with Adobe Experience Cloud | $192,000 | $288,000 | $384,000 | $864,000 | $701,067 |
| Total benefits (risk-adjusted) | $14,516,120 | $21,833,729 | $30,171,240 | $66,521,089 | $53,908,977 | |
Evidence and data. Interviewees and survey respondents spoke of accelerated production timelines on creative projects with Adobe Experience Manager providing templates and tools to construct dynamic webpages and engaging pieces of content. Among survey respondents, two-thirds of Adobe Experience Cloud users (66.4%) saw a faster end-to-end timeline of campaign creation, and over half of those respondents (51.4%) identified recommendations on visualizations as a key feature driving efficiencies.
Among interviewees, Experience Manager’s core component library and its taxonomy for locating components was easy for users to learn, helping their organizations manage scale. For example, the tribe architect noted their manufacturing organization manages over 200 different websites from a single component library with Adobe, regularly leveraging headless content fragments across web pages and apps.
Interviewees also appreciated greater visibility of pages in the authoring stage requiring approval from managers or compliance; they were easier to find and receive sign off in quick order. The head of martech platforms at a financial services company cited that a planned 24-week implementation of a site with 40 to 50 pages took four weeks with Adobe in place.
Project timelines at the interviewees’ organizations were further accelerated by marketers being more equipped to quickly personalize content. With applications like Adobe Audience Manager and Real-Time Customer Data Platform, marketers found it easier to pull data sets and identify channel engagement around specific audience sets or customers, then quickly make changes in response through Campaign or Journey Optimizer.
The director of customer experience (CX) capabilities at a retailer said: “In the past, you would have to build in expectations around a delay when making a big tweak to a campaign because of the manual pull of customer data. There’s a nimbleness now in being able to execute at scale and make changes on the fly. … It’s a key time savings to take a campaign that was targeted around a group of people and pivot to a different group because you don’t have to make any changes to data, the campaign iterates [personalized messaging] based on the data source.”
Adobe Workfront tied efficiencies for marketers together by providing visibility into the status of projects and what team members were currently working on. Less time was wasted on back-and-forth communication between members on projects, Workfront’s self-service functionality made it easy for marketers to broadly adopt across organizations and quickly see time savings.
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Risks. Differences across organizations that may impact the benefits include the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $6.5 million.
Base: 116 global decision-makers at
organizations that use Adobe Experience Cloud
Source: A commissioned study conducted by
Forrester Consulting on behalf of Adobe, May 2024
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Number of FTEs (full-time equivalent non-IT) working on digital projects (e.g., content, digital assets, marketing campaigns, etc.) | Composite | 150 | 175 | 200 | |
| A2 | Percentage efficiency on first-run digital projects with Adobe Experience Cloud solutions | Survey | 20% | 25% | 30% | |
| A3 | Subtotal: Time savings on first-run digital projects | A1*A2*1,560 working hours | 46,800 | 68,250 | 93,600 | |
| A4 | Percentage efficiency on digital project iterations with Adobe Experience Cloud solutions | Survey | 30% | 40% | 45% | |
| A5 | Subtotal: Time savings on digital projects | A1*A4*520 working hours | 23,400 | 36,400 | 46,800 | |
| A6 | Fully burdened hourly rate for an employee | TEI standard | $60 | $60 | $60 | |
| A7 | Productivity recapture | TEI standard | 50% | 50% | 50% | |
| At | Employee productivity on customer experience projects | (A3+A5)*A6*A7 | $2,106,000 | $3,139,500 | $4,212,000 | |
| Risk adjustment | ↓15% | |||||
| Atr | Employee productivity on customer experience projects (risk-adjusted) | $1,790,100 | $2,668,575 | $3,580,200 | ||
| Three-year total: $8,038,875 | Three-year present value: $6,522,655 | |||||
Evidence and data. Among survey respondents, 82.8% agreed that Adobe Experience Cloud makes it easier for their team to analyze the success of a marketing campaign. This was the most agreed upon statement in the survey. Over half of these respondents (50.2%) found it easier to create a unified view of customer from multiple data sources, and nearly 48% of respondents said it decreased time to generate reports and analysis. Adobe Analytics was one of the most common applications from Adobe Experience Cloud interviewees’ and survey respondents’ organizations adopted due to the level of insight depth provided and integration flexibility with other solutions. The tribe architect at a manufacturing company shared that they have 450 projects with tags in Adobe Analytics’ dashboards, providing immediate access to various teams and agencies with which they work.
Alongside Adobe Analytics, the interviewees noted their organizations were increasingly relying on Customer Journey Analytics and Real-Time CDP for deeper insights on campaign performance. The director of CX capabilities at a retailer said: “We’re using Customer Journey Analytics more than I thought we would because of the attribution we can do on campaigns. It’s a book of record for us to get quick reads on campaigns.” This interviewee’s organization used it alongside Real-Time CDP to analyze customer journeys and segments, extract data points, and make activation points in the customer journey around that data to activate it in shaping personalized experiences. While the process was more involved relative to Adobe Analytics, the tribe architect noted their organization was able to run continued analysis and implementation of those insights at scale.
With the addition of Adobe Target at interviewees’ organizations, there was greater flexibility in identifying how new messages performed with customers and then adjusting messaging based on engagement. The interviewees’ organizations started with a limited number of personalized experiences since building variants of a customer journey could take a lengthy amount of time to test. Adobe Target streamlined A/B testing of personalized experiences for the interviewees’ organizations to quickly see what engaged customers and further scale out the breadth customer journeys.
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Risks. Differences across organizations that may impact this benefit include the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.2 million.
Base: 116 global decision-makers at
organizations that use Adobe Experience Cloud
Source: A commissioned study conducted by
Forrester Consulting on behalf of Adobe, May 2024
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| B1 | Number of employees overseeing performance analysis | Composite | 10 | 15 | 20 |
| B2 | Percentage efficiency in performance analysis | Survey | 25% | 35% | 40% |
| B3 | Subtotal: Time savings on performance analysis | A6*2,080 hours*A7 | 5,200 | 10,920 | 16,640 |
| B4 | Fully burdened hourly rate for a performance analyst | TEI standard | $70 | $70 | $70 |
| B5 | Productivity recapture | TEI standard | 75% | 75% | 75% |
| Bt | Customer experience performance analysis efficiency | B3*B4*B5 | $273,000 | $573,300 | $873,600 |
| Risk adjustment | ↓10% | ||||
| Btr | Customer experience performance analysis efficiency (risk-adjusted) | $245,700 | $515,970 | $786,240 | |
| Three-year total: $1,547,910 | Three-year present value: $1,240,499 | ||||
Evidence and data. Interviewees’ creative and marketing teams relied on their organizations’ developers and IT employees to support more technically challenging customer journey projects. Typically, these requests related to coding web pages but recently have grown to include incorporating generative AI into personalized content.
Adobe Experience Manager’s easy-to-use, low-code templates, alongside growing reuse of content fragments, drove self-service among marketers. Developers received fewer requests for support, primarily around web coding, and were pulled away from their day-to-day work less frequently. This benefit was felt broadly among survey respondents. Over half of Adobe Experience Cloud users (53%) cited reduced dependance on their technical team to support creative efforts as a benefit experienced from using the solution.
The head of martech platforms at the manufacturing organization noted that if a technical issue appeared around a webpage or fragment, it was easy for developers to apply a fix and ensure it carried over across multiple areas that were carrying the same coding or fragment if applicable, saving them more time. The director of martech platforms at the financial services organization moved away from bespoke content development toward content reuse with Adobe and reallocated a dedicated IT employee in three marketing divisions as they no longer needed their support.
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Risks. Differences across organizations that may impact this benefit include the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $219,000.
Base: 116 global decision-makers at
organizations that use Adobe Experience Cloud
Source: A commissioned study conducted by
Forrester Consulting on behalf of Adobe, May 2024
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| C1 | Number of developers supporting projects and development | Composite | 20 | 20 | 20 |
| C2 | Reduction in time spent supporting projects and development | Survey | 10% | 15% | 20% |
| C3 | Subtotal: Time spent supporting projects and development | C1*C2*416 hours | 832 | 1,248 | 1,664 |
| C4 | Fully burdened hourly rate for a developer | TEI Standard | $80 | $80 | $80 |
| Ct | Developer productivity on customer experience projects | C3*C4 | $66,560 | $99,840 | $133,120 |
| Risk adjustment | ↓10% | ||||
| Ctr | Developer productivity on customer experience projects (risk-adjusted) | $59,904 | $89,856 | $119,808 | |
| Three-year total: $269,568 | Three-year present value: $218,733 | ||||
Evidence and data. Survey respondents and interviewees stated their organizations reduced their spending on legacy third-party solutions, internal support costs, third-party services, and advertising costs with Adobe Experience Cloud. Ninety percent of survey respondents were also able to reduce costs on other solutions. Interviewees’ organizations that retired redundant point solutions avoided annual licensing or subscriptions costs and, importantly, the IT administrative labor costs and professional service fees for each one. These additive costs were significant because the interviewees’ organizations previously used upwards of a dozen products. No longer having to pay these fees to multiple vendors went a long way toward justifying their investments in Adobe Experience Cloud. For example, the head of martech platforms at the financial services company estimated that in the end Adobe Experience Cloud would save their organization between $7 million and $10 million in legacy tool licensing and support costs annually.
The same interviewee shared being able to reduce costs by bringing work previously performed by third-party service providers, such as agencies, in-house thanks to automations provided by Adobe Experience Cloud, saving multiple organizational units $2 million each. Similarly, the head of martech platforms from the pharmaceutical company noted that digital brand experiences associated with their products used to take between $500,000 and $1 million to build out, but that the ability to reuse prior-built content and templates within Adobe Experience Cloud reduced such expenses to tens of thousands of dollars each.
Lastly, interviewees optimized their ad spend utilizing Adobe Experience Cloud. With a better understanding of how different marketing channels and messages performed, interviewees’ organizations shifted spend from underperforming tactics to those tactics generating a higher return, resulting in net savings at scale. Interviewees specified that Adobe Audience Manager identified which customers receive advertising and where the organizations need to suppress repeat advertisements. Although the interviewees’ organizations reduced the volume and frequency of advertising to their customers, they continued to improve their return on ad spending. Interviewees noted that Adobe Campaign and Adobe Target, as well as Adobe Experience Platform-powered applications, helped advertisers optimize the appropriate number of ads customers receive, improve the cadence and sequencing of campaigns, and refine the relevancy of messaging. The interviewees’ organizations’ efficiency in ad spending enabled them to further stretch each dollar they spent.
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Risks. Differences across organizations that may impact this benefit include the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $10.5 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Annual avoided costs from offloaded legacy solutions (e.g., legacy system and support costs) | Interviews | $500,000 | $750,000 | $1,000,000 | |
| D2 | Annual ad spending that can be optimized | Composite | $25,000,000 | $25,000,000 | $25,000,000 | |
| D3 | Percentage efficiency in ad spending with Adobe Experience Cloud solutions | Interviews | 15.0% | 17.5% | 20.0% | |
| D4 | Value of efficiency with ad spending | D2*D3 | $3,750,000 | $4,375,000 | $5,000,000 | |
| D5 | Annual avoided agency spend | Interviews | $0 | $250,000 | $400,000 | |
| Dt | Efficiency in advertising, marketing, and technology costs | D1+D4+D5 | $4,250,000 | $5,375,000 | $6,400,000 | |
| Risk adjustment | ↓20% | |||||
| Dtr | Efficiency in advertising, marketing, and technology costs (risk-adjusted) | $3,400,000 | $4,300,000 | $5,120,000 | ||
| Three-year total: $12,820,000 | Three-year present value: $10,491,360 | |||||
Evidence and data. Interviewees and survey respondents agreed that leveraging Adobe Experience Cloud increased the number of conversions happening across digital channels. Almost 92% of survey respondents saw digital conversions increase with Adobe Experience Cloud. Improvements started with performance analysis in Adobe Analytics and Customer Journey Analytics and leveraging Adobe Target for A/B tests on new content or marketing materials. Interviewees organizations’ then used Adobe Campaign to construct entire customer journeys and further personalized with Customer Journey Optimizer. Experience builders and marketers then easily filtered out touchpoints that proved to be ineffective. Similarly, the interviewees’ organizations easily carried over assets that were effective in previous customer experiences to new journeys through Adobe Experience Manager.
Interviewees said their organizations curated customer experiences around specific audience segments through Adobe Audience Manager and customer types through Real-Time CDP, ensuring greater messaging relevancy. Industry-specific products like Adobe Commerce (for retail) and Marketo Engage (for B2B) helped the interviewees’ organizations further target and personalize messaging to push toward conversions. Thanks to this, the tribe architect from the manufacturing company shared those digital sales tripled from Year 1 to Year 2, and they were expected to triple again by Year 3.
The head of martech platforms from a financial services firm attributed additional digital conversions to Adobe Experience Cloud enabling marketers to identify audiences they had not previously been able to engage and to do so without needing to leverage their data professional counterparts or IT partners. They said: “Early on, the marketing team identified an audience of 10,000 to 30,000 people that we hadn’t been able to connect with previously. Through this engagement, we got over 1,000 qualified leads that we could talk to from a sales point of view that we’d never even unlocked before.”
The director of CX capabilities from a retailer noted that engagement itself was driven by the ability to achieve clear-cut insights via Adobe Experience Cloud. They shared: “We were able to see how far out from different life events customers were engaging with related content and then meet them at those moments. Thanks to this, we consistently saw lifts of between 20% and 27% in campaigns versus controls.”
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Risks. Differences in organizations that may impact the benefits include the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $19.6 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| E1 | Number of visits to websites | Composite | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
| E2 | Growth in visits | Interviews | 1.0% | 1.5% | 2.0% | |
| E3 | Subtotal: Additional visits with Adobe Experience Cloud annually | Composite | 10,000,000 | 15,000,000 | 20,000,000 | |
| E4 | Conversion rate (blended) before Adobe Experience Cloud | Composite | 2.0% | 2.0% | 2.0% | |
| E5 | Average order value/customer conversion value | Composite | $100 | $100 | $100 | |
| E6 | Subtotal: Value of additional audience reach | E3*E4*E5 | $20,000,000 | $30,000,000 | $40,000,000 | |
| E7 | Improvement in conversions with Adobe Experience Cloud | Interviews | 10.0% | 12.5% | 15.0% | |
| E8 | Conversion rate (blended) with Adobe Experience Cloud | E2+(E2*E3) | 2.20% | 2.25% | 2.30% | |
| E9 | Additional converted audience | E1*(E4-E2) | 2,000,000 | 2,500,000 | 3,000,000 | |
| E10 | Subtotal: Value of additional conversions | E5*E9 | $200,000,000 | $250,000,000 | $300,000,000 | |
| E11 | Attribution to Adobe Experience Cloud | TEI standard | 40.0% | 40.0% | 40.0% | |
| E12 | Profit margin | TEI standard | 10.0% | 10.0% | 10.0% | |
| Et | Profit from additional digital customer conversions | E10*E11*E12 | $8,000,000 | $10,000,000 | $12,000,000 | |
| Risk adjustment | ↓20% | |||||
| Etr | Profit from additional digital customer conversions (risk-adjusted) | $6,400,000 | $8,000,000 | $9,600,000 | ||
| Three-year total: $24,000,000 | Three-year present value: $19,642,374 | |||||
Evidence and data. Interviewees and survey respondents also noted Adobe Experience Cloud improved their organizations’ average order value, increasing revenues from conversions that were already likely to happen or were not due to lift from the platform. For example, the highest number of survey respondents pointed to Adobe Experience Cloud’s influence on average order value/average deal size/customer value to be ‘very impactful toward revenue growth.
With Adobe Experience Cloud, interviewees noted their customers were so encouraged by their positive customer journeys that they were compelled to make multiple purchases, return for more services, or make transactions that carried premium value. For example, the director of CX capabilities from the retailer shared: “We could also do detailed cuts on our campaigns to extract nuanced learnings, comparing performance 16 days back to 30 days back to six months back. This helped us launch a campaign with 5% higher average order value than the control.”
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Risks. Differences in organizations that may impact the benefits include the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $12.7 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| F1 | Number of digital customers | E1*E8 | 22,000,000 | 22,500,000 | 23,000,000 | |
| F2 | Average order value/customer conversion value before Adobe Experience Cloud | Composite | $100 | $100 | $100 | |
| F3 | Percentage gain in revenue per conversion | Survey | 3% | 4% | 5% | |
| F4 | Average order value/customer conversion value with Adobe Experience Cloud | Y1:
F2+(F2*F3) Y2 and Y3: (F3*F4PY)+F4PY |
$103 | $107 | $112 | |
| F5 | Subtotal: Additional value generated with Adobe Experience Cloud | F1*(F4-F2) | $66,000,000 | $157,500,000 | $276,000,000 | |
| F6 | Attribution to Adobe Experience Cloud | TEI standard | 40% | 40% | 40% | |
| F7 | Profit margin | TEI standard | 10% | 10% | 10% | |
| Ft | Higher digital profit generation | F5*F6*F7 | $2,640,000 | $6,300,000 | $11,040,000 | |
| Risk adjustment | ↓20% | |||||
| Ftr | Higher digital profit generation (risk-adjusted) | $2,112,000 | $5,040,000 | $8,832,000 | ||
| Three-year total: $15,984,000 | Three-year present value: $12,720,902 | |||||
Evidence and data. According to interviewees and survey respondents, the impact of optimizing customer experiences with Adobe Experience Cloud solutions extended beyond driving conversions and greater profit generation; it also helped their organizations mitigate customer attrition. Teams managed customer exposure to content by analyzing the success of their responses to messaging and segmenting audiences based on which customers already interacted with touchpoints. Nearly 19% of survey respondents found that Adobe Experience Cloud’s influence on improving retention rate was very impactful.
Previously, interviewees stated that more customers would unsubscribe from emails or become less likely to make a purchase because of repetitive experiences. With Adobe Experience Cloud, marketing teams slowly reversed that effect and recovered lost business. Even with fewer messages delivered, the interviewees’ organizations still grew their business because of the relevance and effectiveness of their constructed customer journeys.
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Risks. Differences in organizations that may impact the benefits include the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) $2.4 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| G1 | Attrition rate | Composite | 20% | 20% | 20% | |
| G2 | Number of returning digital customers each year with previous attrition rate (excluding already retained customers listed in G4; rounded) | Y1:
(E1*E4)-(E1*E4*G1) Y2 and Y3: (E1*E8PY)-(E1*E8PY*G1) |
16,000,000 | 17,600,000 | 18,000,000 | |
| G3 | Improvement with Adobe Experience Cloud | Interviews | 3% | 5% | 6% | |
| G4 | Number of additionally retained digital customers (cumulative) | G1*G2*G3+G4PY | 96,000 | 272,000 | 488,000 | |
| G5 | Incremental annual revenue of retained customers | F4 | $103 | $107 | $112 | |
| G6 | Subtotal: Revenue from retained customers | G4*G5 | $9,888,000 | $29,104,000 | $54,656,000 | |
| G7 | Attribution to Adobe Experience Cloud | TEI standard | 40% | 40% | 40% | |
| G8 | Profit margin | TEI standard | 10% | 10% | 10% | |
| Gt | Profit from improved digital customer retention | G6*G7*G8 | $395,520 | $1,164,160 | $2,186,240 | |
| Risk adjustment | ↓20% | |||||
| Gtr | Profit from improved digital customer retention (risk-adjusted) | $316,416 | $931,328 | $1,748,992 | ||
| Three-year total: $2,996,736 | Three-year present value: $2,371,387 | |||||
Evidence and data. Beyond improved online revenue generation, interviewees whose organizations have physical business and storefronts saw offline revenue gains as well. Users built upon the experiences created in Adobe Campaign and targeted with solutions powered by Adobe Experience Platform, tying together online and offline engagement data into robust customer profiles through Real-Time CDP to create highly personalized digital messaging using Journey Optimizer and drive in-person business, which they could compare against digital performance with Customer Journey Analytics. Over 30% of respondents selected unifying customer data across channels (including digital and offline) as a key factor that drove the adoption of Adobe Experience Cloud.
The director of CX capabilities at a retailer identified high-impact segments of business that regularly engaged with emails and shared this information with local in-store salespeople to reach out to those customers with more personalized templates. The interviewee noted that with Real-Time CDP, it had become easier to identify customers based on past purchases and engagement. They were just starting to use Journey Optimizer for experience orchestration to further personalize engagement with these customers but were already using Customer Journey Analytics often. The interviewee said: “We’re using Customer Journey Analytics more than I thought we would for attribution of particular campaigns. It acts as a book of record to get a quick read on campaigns. If we had the foresight, we would have used more Journey Optimizer capabilities earlier to get a read on those campaigns with Customer Journey Analytics.”
The interviewees at a financial services organization noted they plan to roll out the Real-Time CDP within the year based on the level of segmentation they could achieve from tests with the application. One of the early metrics they identified was an audience of thousands that were qualified leads but fell into a customer gap that was overlooked sales and hadn’t been targeted with a customer experience. The director of martech platforms said, “With the CDP, it puts more power in the hands of people that are closest to trying to reach their core customer group and then taking action to more efficiently engage them than they’ve had the ability to in the past.” The interviewee singled out the application as potentially being the most valuable player from the Adobe stack in driving offline performance in their future plans.
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Risks. Differences in organizations that may impact the benefit results include the following:
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $701,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| H1 | Annual offline revenue | Composite | $3,000,000,000 | $3,000,000,000 | $3,000,000,000 | |
| H2 | Percentage of revenue impacted by digital interactions | Composite | 20.0% | 20.0% | 20.0% | |
| H3 | Improvement in offline transactions with Adobe Experience Cloud | Survey | 1.0% | 1.5% | 2.0% | |
| H4 | Subtotal: Additional offline revenue with Adobe Experience Cloud | H1*(H4-H3) | $6,000,000 | $9,000,000 | $12,000,000 | |
| H5 | Attribution to Adobe Experience Cloud | TEI standard | 40.0% | 40.0% | 40.0% | |
| H6 | Profit margin | TEI standard | 10.0% | 10.0% | 10.0% | |
| Ht | Profit from additional offline conversions | H4*H5*H6 | $240,000 | $360,000 | $480,000 | |
| Risk adjustment | ↓20% | |||||
| Htr | Profit from additional offline conversions (risk-adjusted) | $192,000 | $288,000 | $384,000 | ||
| Three-year total: $864,000 | Three-year present value: $701,067 | |||||
Interviewees and survey respondents mentioned the following additional benefits that their organizations experienced but were not able to quantify:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Experience Cloud applications and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Itr | Adobe software costs | $0 | $2,200,000 | $2,200,000 | $2,200,000 | $6,600,000 | $5,471,074 |
| Jtr | Ongoing professional and managed services costs | $2,750,000 | $1,100,000 | $1,100,000 | $1,100,000 | $6,050,000 | $5,485,537 |
| Ktr | Premium cost of new hires | $0 | $68,640 | $137,280 | $205,920 | $411,840 | $330,565 |
| Ltr | Training costs | $0 | $316,800 | $475,200 | $633,600 | $1,425,600 | $1,156,760 |
| Total costs (risk-adjusted) | $2,750,000 | $3,685,440 | $3,912,480 | $4,139,520 | $14,487,440 | $12,443,936 | |
Evidence and data. Interviewees said their organizations paid a software fee based on the number of Adobe solutions leveraged and the scale to which the number of employees leveraged them. The exact amount the organizations paid for Adobe fees and associated costs varied.
Modeling and assumptions. Assumed costs for the composite organization are based on the following:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $5.5 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| I1 | Adobe software costs | Composite | $0 | $2,000,000 | $2,000,000 | $2,000,000 |
| It | Adobe software costs | I1 | $0 | $2,000,000 | $2,000,000 | $2,000,000 |
| Risk adjustment | ↑10% | |||||
| Itr | Adobe software costs (risk-adjusted) | $0 | $2,200,000 | $2,200,000 | $2,200,000 | |
| Three-year total: $6,600,000 | Three-year present value: $5,471,074 | |||||
Evidence and data. Several interviewees said their organizations leveraged Adobe Professional Services or an Adobe partner to assist with proofs of concepts and full implementation of the Adobe Experience Cloud stack. Pilot programs and proofs of concepts took several months to complete, and they required time from internal resources across IT, marketing, and lines of business.
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $5.5 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| J1 | Ongoing professional and managed services costs | Composite | $2,500,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Jt | Ongoing professional and managed services costs | J1 | $2,500,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Risk adjustment | ↑10% | |||||
| Jtr | Ongoing professional and managed services costs (risk-adjusted) | $2,750,000 | $1,100,000 | $1,100,000 | $1,100,000 | |
| Three-year total: $6,050,000 | Three-year present value: $5,485,537 | |||||
Evidence and data. To effectively leverage Adobe Experience Cloud solutions, interviewees said their organizations sought new hires with previous experience using these products. Hiring new employees would have occurred organically with or without Adobe Experience Cloud, but the requirement for employees possessing prior Adobe solution knowledge meant organizations spent a small premium on new hires.
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $331,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| K1 | Number of employees hired annually where Adobe Experience Cloud experience is required | Composite | 0 | 5 | 10 | 15 |
| K2 | Fully burdened annual salary for an employee | TEI standard | $0 | $124,800 | $124,800 | $124,800 |
| K3 | Additional cost of employees with Adobe solution expertise | Interviews | 0% | 10% | 10% | 10% |
| Kt | Premium cost of new hires | K1*K2*K3 | $0 | $62,400 | $124,800 | $187,200 |
| Risk adjustment | ↑10% | |||||
| Ktr | Premium cost of new hires (risk-adjusted) | $0 | $68,640 | $137,280 | $205,920 | |
| Three-year total: $411,840 | Three-year present value: $330,565 | |||||
Evidence and data. Interviewees said employees spent a small amount of time learning to use the Adobe Experience Cloud solutions they leverage. Adobe Experience Cloud users are split into two types: power users who leverage them daily and self-service users who access one solution weekly, monthly, or infrequently.
Modeling and assumptions. For the composite organization, Forrester assumes the following:
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.2 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| L1 | Number of annual Adobe power users | Composite | 0 | 100 | 150 | 200 |
| L2 | Training hours per year for power users | Interviews | 0 | 40 | 40 | 40 |
| L3 | Number of self-service users added per year | Composite | 0 | 50 | 75 | 100 |
| L4 | Training hours per year for self-service users | Interviews | 0 | 16 | 16 | 16 |
| L5 | Fully burdened hourly rate for an employee | TEI Standard | $0 | $60 | $60 | $60 |
| Lt | Training costs | (L1*L2*L5)+(L3*L4*L5) | $0 | $288,000 | $432,000 | $576,000 |
| Risk adjustment | ↑10% | |||||
| Ltr | Training costs (risk-adjusted) | $0 | $316,800 | $475,200 | $633,600 | |
| Three-year total: $1,425,600 | Three-year present value: $1,156,760 | |||||
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($2,750,000) | ($3,685,440) | ($3,912,480) | ($4,139,520) | ($14,487,440) | ($12,443,936) |
| Total benefits | $0 | $14,516,120 | $21,833,729 | $30,171,240 | $66,521,089 | $53,908,977 |
| Net benefits | ($2,750,000) | $10,830,680 | $17,921,249 | $26,031,720 | $52,033,649 | $41,465,041 |
| ROI | 333% | |||||
| Payback | <6 months | |||||
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 IT initiatives to both senior management and other key business stakeholders.
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. TEI risk factors are based on “triangular distribution.”
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.
| Role | Industry | Region | Annual Revenue |
|---|---|---|---|
| Head of martech
platforms Director of martech platforms |
Financial services | HQ in North America | $10+ billion |
| Tribe architect | Manufacturing | HQ in North America; global operations | $5+ billion |
| Head of martech platforms | Pharmaceutical | HQ in North America; global operations | $50+ billion |
| Director of customer experience capabilities | Retail | HQ in North America; global operations | $5+ billion |
Survey Demographics
Base: 116 global decision-makers at
organizations that use Adobe Experience Cloud
Source: A commissioned study conducted by
Forrester Consulting on behalf of Adobe, May 2024
Base: 116 global decision-makers at
organizations that use Adobe Experience Cloud
Source: A commissioned study conducted by
Forrester Consulting on behalf of Adobe, May 2024
ChartNine.AEC.svg
Base:
116 global decision-makers at organizations that use Adobe Experience Cloud
Source: A commissioned study conducted by
Forrester Consulting on behalf of Adobe, May 2024
1 Source: Forrester’s Marketing Survey, 2024.
2 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 IT initiatives to both senior management and other key business stakeholders.
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