The Total Economic Impact™ Of Adobe Experience Cloud

Cost Savings And Business Benefits Enabled By Adobe Experience Cloud

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 Advertising
  • Adobe Analytics
  • Adobe Audience Manager
  • Adobe Campaign
  • Adobe Commerce
  • Adobe Customer Journey Analytics
  • Adobe Experience Manager Assets
  • Adobe Experience Manager Forms
  • Adobe Experience Manager Sites
  • Adobe Experience Platform
  • Adobe Journey Optimizer
  • Adobe Marketo Engage
  • Adobe Mix Modeler
  • Adobe Product Analytics
  • Adobe Real-Time Customer Data Platform (CDP)
  • Adobe Target
  • Adobe Workfront

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.

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Return on investment (ROI)

333%

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Net present value (NPV)

$41.5M

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.

“Which of the following benefits has your team experienced as a result of your investment in Adobe Experience Cloud solutions?”

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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

Key Findings

Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include the following:

  • Analysts are 30% faster at creating personalized digital customer experiences. Marketers at the composite organization save time with Adobe Experience Manager’s templates and assets enabling self-service to create end-to-end web experiences. Adobe Audience Manager and/or Real-Time CDP streamlines targeting messaging to specific audiences within experiences created with Adobe Campaign or Journey Optimizer. Adobe Workfront ensures project managers have full visibility over the status of projects, mitigating time spent on back-and-forth check-ins on progress. The composite organization recognizes over $6.5 million of value in productivity time savings over three years.

Increase in speed when iterating and revising in-flight digital customer experiences

45%

  • Analysts are 40% more efficient at analyzing marketing campaigns and content. Alongside Adobe Analytics, the composite organization uses Customer Journey Analytics and Real-Time CDP to better understand marketing performance drivers like engagement across specific audiences and channel attribution. These tools help analysts avoid manual work that would have been required to uncover similar insights. Adobe Target helps analysts quickly run A/B tests and determine which experiences perform better with audiences. The composite organization saves over 16,600 hours in time spent on analysis by Year 3 when using these tools.
  • Developers spend 20% less time supporting digital experience creation. At the composite organization, marketers send developer and IT support fewer requests as a result of increased self-service driven by Adobe Experience Manager’s low-code templates and content fragment reuse. Developer and IT recoup over 1,600 hours in bandwidth to reallocate toward more of their day-to-day tasks.
  • Ad spending at the organization is more efficient by 20%. With analytics tools providing deeper insights on campaign performance and tools to better target customers, marketers are more informed on when and where to allocate ad spending. Every dollar spent by the composite organization is stretched further to ensure relevant advertising reaches customers and spend doesn’t go to waste. By Year 3, the composite organization decreases its spending by $5 million.
  • Millions in costs toward legacy solutions are avoided. Prior to Adobe Experience Cloud, each of the solutions from the composite organization’s best-of-breed approach incurred maintenance and service fees. By Year 3 the composite organization avoids $1 million in annual fees by offloading those solutions in favor of the end-to-end Adobe Experience Cloud suite.
  • Digital customer conversions grows by 15%. Adobe Experience Cloud enables the composite organization to create more relevant, personalized content to engage customers. The size of website visitors grows as well as the number of customers making purchases, generating $300 million in revenue by Year 3.
  • Digital customer retention improves by 6%. Marketers personalizing messaging and fine-tuning ad spend practices results in customers receiving less repetitive experiences making them more favorable toward the organization and easier to retain. Greater retention of customers produces nearly $55 million in additional revenue by Year 3.
  • Profit per digital conversion climbs by 5%. More contextually relevant messaging from the composite organization makes customers feel more compelled to purchase higher-ticket items or take advantage of promotions. At the composite organization, greater spending per conversion results in $276 million in additional revenue by Year 3.
  • Offline customer conversions grow by 2%. The composite organization ties 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 it compare against digital performance with Customer Journey Analytics. These capabilities drive $12 million in annual revenue by Year 3.

Unquantified benefits. Benefits that provide value for the interviewees’ organizations but are not quantified for this study include:

  • Offline revenue generation. Through the three Adobe applications, interviewees’ organizations stitched together offline and online data to deepen customer insights and create richer customer experiences across all channels. Location data helped marketers tailor notifications to regional or local audiences more accurately, driving in-store foot traffic. Meanwhile, the real-time speed with which data was collected helped the interviewees’ organizations retarget faster, including follow-up phone calls with customers to close deals.
  • Call center savings. Interviewees delivered insights directly to call center operators during customer support calls, reducing the time it took operators to sufficiently answer customer questions and reducing call times.
  • Seamless Adobe connectivity and centralization of work. Interviewees noted that the common workflows of the Adobe applications eliminated technical gaps that could create headaches for employees. Data was correctly pulled through the applications and mitigated the occurrence of lengthy back-and-forth conversations between IT and marketing to address issues. Meanwhile, moving data between Adobe applications without transferring outside of the ecosystem eased concerns around data security.
  • Improved employee work experience. Interviewees appreciated having Adobe’s end-to-end customer journey tools to support their day-to-day work. Managers supervised projects to ensure employees received support so they did not feel overwhelmed with work and ensured projects met deadlines.

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

  • Adobe Experience Cloud software costs. The composite organization pays an annual cost based on the number and types of Adobe solutions used, the number of employees using the solutions, and/or or the scale at which they leverage the solutions.
  • Ongoing professional and managed service costs. The composite allocates costs to professional service firms to support implementation and ongoing management of Adobe Experience Cloud solutions.
  • Premium costs of new hires. The composite organization adds new hires that have previous expertise with leveraging solutions from Experience Cloud. It pays a premium for employees with this expertise.
  • Training costs. Power users of Adobe Experience Cloud solutions take upwards of a week each year to familiarize themselves with new Adobe products or stay current with changes made to existing products. Casual self-service users spend a couple of days taking training courses and educating themselves about the Adobe solution they use.

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%.

“On a scale of 1 to 5, how much do you agree with the following statements regarding Adobe Experience Cloud’s impact on your organization?”

(Showing “Agree” and “Completely agree”)

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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

Total additional profit from Adobe Experience Cloud use

$43.8 million

“At Adobe Summit, we saw the significant investment Adobe was making and the benefit of native integration capabilities. It’s ultimately what tipped the scales and pushed us from a best-in-breed strategy to a one solution to rule them all strategy.”

Head of martech platforms, financial services

Key Statistics

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    Return on investment (ROI):

    333%
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    Benefits PV:

    $53.9M
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    Net present value (NPV):

    $41.5M
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    Payback:

    <6 months
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Benefits (Three-Year)

Employee productivity on customer experience projects Customer experience performance analysis efficiency Developer productivity on customer experience projects Efficiency in advertisng, marketing, and technology costs Profit from additional digital customer conversions Higher digital profit generation with Adobe Experience Cloud Profit from improved digital customer retention Profit from additional offline conversions with Adobe Experience Cloud

TEI Framework And Methodology

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.

  1. Due Diligence

    Interviewed Adobe stakeholders and Forrester analysts to gather data relative to Adobe Experience Cloud.

  2. Interviews And Survey

    Interviewed representatives at four organizations and surveyed 116 respondents at organizations using Adobe Experience Cloud to obtain data about costs, benefits, and risks.

  3. Composite Organization

    Designed a composite organization based on characteristics of the interviewees’ and survey respondents’ organizations.

  4. Financial Model Framework

    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.

  5. Case Study

    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.

Disclosures

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

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