Many firms struggle to effectively engage customers with continuous, individualized, and emotionally engaging experiences. Part of the challenge is in not understanding how customer journey influences why they engage, convert, and buy. Having the right tool to provide this visibility and help companies address these challenges can result in: 1) more new customers, 2) higher cross-sell and upsell potential, 3) increased customer retention, and 4) decreased cost to serve customers.
Amplitude is a digital analytics platform that provides organizations with full visibility into their customer journeys, which they can use to expose the realities of how customers are utilizing and engaging their companies. More than just improving visibility, organizations can then use the insights to build in more value for their customers that drives growth.
Amplitude commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Amplitude.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Amplitude on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four representatives of organizations that use Amplitude. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a composite organization that is trying to improve its digital capabilities and operates a consumer-facing application as part of its overall strategy.
Interviewees noted that prior to using Amplitude, their organizations lacked true visibility into how customers were using their products and offerings because they did not have a comprehensive digital analytics platform. If the organizations did use any tools for analytics, the data and metrics were often unreliable, which led employees to spend time checking whether or not they had the right data and information. These limitations led to an inability to understand customer trends and journeys within their digital products and experiences, and this created a lack of confidence when introducing new features and improvements that impacted the business growth and market opportunities they could capture.
Interviewees shared that after investing in Amplitude, their organizations’ product teams, data scientists, and engineers were able to realize significant time savings in various analytics and experimentation activities. Additionally, users from other teams like marketing or growth could directly access insights from the platform instead of having to put in requests for data and engineering teams to resolve. As a result, their organizations could make data-driven decisions, experiment with new features, and take needed steps to grow business.
Key Findings
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Revenue Impact Benefits
- Business growth from acquiring new customers and growing user base. Because of the experimentation Amplitude enables, the composite organization is able to test new customer acquisition and growth strategies. These tests enable the composite to see what works, what increases the adoption of their digital products, and does not. Over three years, the composite organization’s new customer business growth is worth $1.78 million.
For , new customer business growth might be worth over three years.
- Better monetization strategy of existing customer base. Amplitude’s experimentation capabilities support the monetization of the composite organization’s existing customer base. Over three years, improvements to its monetization strategy result in $2.1 million incremental profit to the composite organization.
For , improvements to its monetization strategy might result in in incremental profits over three years.
- Better customer retention. Using Amplitude gives the composite organization the visibility to see exactly where in the customer journey someone is likely to fall off. As a result, it is able to take preventive action to improve its customer churn rate. Over three years, the better retention rate translates to $1.3 million of incremental profit for the composite organization.
For , a better retention rate might translate to in incremental profits over three years.
Operational Efficiency Benefits
- Time savings in experiments and analytics activities. With Amplitude, the composite’s data scientists and engineers can go through an entire process of performing statistical analysis or projection of the outcome for a specific experiment in real time and the platform instantly generates the results. Over three years, these time savings for data scientists and engineers are worth $873,700 to the composite organization.
For , the time savings for data scientists and engineers might be worth over three years.
- Significant reduction of ad hoc requests for data and engineering teams from other teams. Using Amplitude saves the time of the composite’s data scientists and engineers by reducing the number of ad hoc requests they have to address. With Amplitude, other business units self-serve to obtain the information they need without having to ask data scientists and engineers to generate that information. Over three years, these time savings are worth $151,400 to the composite organization.
For , these time savings might be worth over three years.
- Cost savings from tech stack consolidation. Using Amplitude enables the composite organization to reduce its overall spend on its tech stack. Migrating from a different tool to Amplitude means the organization no longer needs to pay its legacy platform’s licensing fee. Instead of working with multiple vendors, the composite gains extra capabilities that enable it to reduce its stack to a single tool and payment. Over three years, this tech stack consolidation totals $1.6 million in savings for the composite organization.
For , tech stack consolidation might total in savings over three years.
Qualitative benefits. Benefits that provide value for the composite organization but that are not quantified in this study include:
- Creating an insights-driven business (IDB).Forrester defines an insights-driven business as a firm that drives tangible business outcomes by acting on insights sourced from its enterprise data.2 Interviewees noted that having Amplitude allowed their organizations to become IDBs. Employees across different teams and units rely on Amplitude to generate the numbers and quantitative data they need to make certain business decisions.
- Increased data literacy due to the democratization of analytics work. Interviewees shared that Amplitude’s self-service functionality promotes data democratization so that anyone at the company can execute analytics. It is no longer a process that can only data scientists, analysts, or engineers can handle. In turn, this elevates the work that more technical workers can do related to analytics and product experimentations.
- Better knowledge management. Interviewees shared that Amplitude provided their organizations with the ability to better manage information they have related to their product usage and analytics. This means they can rely on Amplitude as their single source for full visibility on customer journeys and can work on exploring insights about certain trends on demand.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
- Annual licensing for the Amplitude platform. The composite pays $675,000 for its Amplitude license in the first year, and this grows 3% each year. Over three years, this totals a PV of $1.8 million for the composite organization.
For , licensing for the Amplitude platform might total over three years.
- Amplitude setup and training costs. Setting up Amplitude requires the composite organization to spend some time on feasibility assessment. Once it makes a decision, it also needs time to deploy the solution throughout the organization and to provide user training, which it does gradually on a rolling basis. Over three years, these time investments cost the composite organization $480,000.
For , time investments in setup and training might cost over three years.
- Ongoing management costs. Once the composite organization sets up Amplitude, it dedicates a number of employees to manage it. This internal management includes performing data hygiene work, updating experimentation work, and periodically engaging with Amplitude account and customer success teams. Over three years, the cost of the time related to ongoing management of Amplitude totals $164,100.
The representative interviews and financial analysis found that a composite organization experiences benefits of $7.79 million over three years versus costs of $2.46 million, adding up to a net present value (NPV) of $5.34 million and an ROI of 217%.
might experience benefits of over three years versus costs of , adding up to a net present value of and an ROI of .
Key Statistics
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Return on investment (ROI)
217%
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Benefits PV
$7.79M
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Net present value (NPV)
$5.34M
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Payback
<6 months
Benefits (Three-Year)
Incremental profit growth from user growth Incremental profit growth from better monetization of existing customer base Revenue retention from preventing custom churn Time savings related to product development and management work Time savings in addressing ad hoc requests from other teams Cost savings related to tech stackTEI Framework And Methodology
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment Amplitude.
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 Amplitude can have on an organization.
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Due Diligence
Interviewed Amplitude stakeholders and Forrester analysts to gather data relative to Amplitude.
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Interviews
Interviewed four representatives at organizations using Amplitude to obtain data about costs, benefits, and risks.
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Composite Organization
Designed a composite organization based on characteristics of the interviewees’ organizations.
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Financial Model Framework
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
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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 Amplitude 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 Amplitude.
Amplitude 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.
Amplitude provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Adi Sarosa
Isabel Carey
Drivers leading to the Amplitude investment
Interviews
| Role | Industry | Region | Annual Revenue | Estimated Number of Active Users |
|---|---|---|---|---|
| Chief architect | Social media | North America | Less than $10M | Less than 10M |
| Chief product officer | Entertainment | Global | $5B to $10B | 10M to 50M |
| Director of product management | Healthcare | North America | $5B to $10B | Less than 10M |
| Software engineer | Consumer application | Global | $100M to $500M | 10M to 50M |
Key Challenges
Interviewees noted that improving their organization’s digital analytics capabilities was a key priority. Without it, the company had limited to no visibility into how people were using its products, purchasing its offerings, and interacting with the organization. Continuing with this status quo would create a tremendous amount of business risk. The director of product management at a healthcare company told Forrester: “We had an industry study showing the majority of consumers [were] dissatisfied with their digital [experiences]. Half of them said they would switch providers to get that better experience.”
Prior to investing in Amplitude, interviewees’ organizations had varying degrees of what their analytics or experimentation environments looked like. For some, investing in Amplitude was their first venture into the analytics and experimentation space. Others already used a different tool to do their product analytics and experimentation work while some worked with different vendors and others tried building their own homegrown tools.
The interviewees noted how their organizations struggled with common challenges, including:
- Lack of analytics and visibility. Interviewees said that prior to using Amplitude, their organizations did not have a single source of truth for their enterprise data on customer journey and product usage. This led to a complete lack of ability to know how their products or applications were being used as well as an inability to do comprehensive analytics to generate key insights or trends to determine the best courses of action. The director of product management in healthcare said: “We were going to start the process of building an amazing patient portal experience, which was going to be a massive investment. Prior to [using] Amplitude, we didn’t have the analytics, so were essentially flying blind.”
- Irrelevant and inaccurate data and metrics. Some interviewees from organizations that used a different tool or vendor said they were dissatisfied with the types of data, metrics, and insights generated. The chief product officer at an entertainment organization shared: “There was a tool implemented, but nobody trusted [it]. The [measurement] features were not relevant. So, there was nothing done [with] the metrics and analytics generated from the tool.”
- Operational Inefficiency. Some interviewees said their organization tried working out a process to analyze its product usage on its own but that they quickly found the effort to be highly inefficient. The chief product officer at an entertainment company shared: “People were randomly tagging applications without a coherent strategy. I remember people trying for weeks to generate some KPI on graph, but [they] found they needed to double check and triple check everything.”
Investment Objectives
The interviewees’ organizations searched for a solution that could:
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Produce quality and in-depth analysis. Interviewees said their organizations were looking for a solution that could produce a higher-level user behavior analysis in terms of quality and depth. The chief architect at a social media company said: “Amplitude was able to give us more sophisticated, automated analysis [about user behavior]. So, [Amplitude was] not just taking a set of events, counting them, or splitting them on some dimensions. … [It was] also able to have some predictive insights about what might be most relevant to our business.”
The same chief architect added: “Amplitude is our primary source of both user segmentation and event data. We run campaigns that are targeted at a segment of users, and triggered by events that happen in the system. We use Amplitude’s Customer Data Platform (CDP) to synchronize cohorts for targeting segments and to stream events for campaign triggering. We can then get events reported back to Amplitude for the users who receive campaigns.”
- Generate insights with quick time to value. In addition to speaking about the quality of insights, interviewees also highlighted Amplitude’s ability to generate insights at a faster pace than other tools they compared it against. The same chief architect shared: “There were other vendors that had similar products, but [they] would have the data available in 6 to 12 hours from the time we did the data ingestion to the time we had the analysis. With Amplitude, it was basically instant.”
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Be accessible to different people, roles, and business units. Interviewees shared that their organizations were also looking for a tool with a self-service element to allow different people across the business to access the tool and extract the information or insights they need. A software engineer from a consumer application company noted: “The name of the game right now is self-serve. If we want to keep up with competitors, we need to keep up in terms of how fast we can gain insights. To do that, we cannot be waiting on data engineers and analysts to be performing ad hoc analysis.”
All in all, interviewees noted their organizations were looking for a product that could improve the overall digital experience of their consumers and users in order to drive better business outcomes.
Composite Organization
Based on the interviews, 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 four interviewees, 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 retail organization that’s trying to improve its digital presence from its legacy brick and mortar environment. It has 10 million monthly active users (MAUs) in the consumer application on which it plans to implement Amplitude. The consumer application drives revenue to the composite organization in two ways: 1) paying users pay a recurring subscription fee, and 2) the organization receives indirect revenue from third-party advertising based on the application’s total paying and nonpaying users.
Additionally, the composite has 50 employees (e.g., product managers, marketing managers, data engineers, data scientists, and product analysts) involved in product management.
Prior to using Amplitude, the organization used a variety of solutions to understand digital customer experience. These included business intelligence (BI) tools and a customer data platform (CDP). The organization wants a comprehensive digital analytics platform to replace these disparate tools.
Deployment characteristics. The composite organization plans to use Amplitude for its consumer application use case. It allocates 10 people to be involved in the six-month setup and deployment phase. After the tool is set up, the composite conducts ongoing training of 20 employees per year to gradually grow the number of people familiar with and comfortable enough to use Amplitude.
Quantified benefit data as applied to the composite
Total Benefits
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Incremental profit growth from user growth | $510,000 | $765,000 | $918,000 | $2,193,000 | $1,785,575 |
| Btr | Incremental profit growth from better monetization of existing customer base | $544,000 | $856,800 | $1,224,000 | $2,624,800 | $2,122,254 |
| Ctr | Revenue retention from preventing customer churn | $461,693 | $525,178 | $605,975 | $1,592,846 | $1,309,030 |
| Dtr | Time savings related to product development and management work | $144,500 | $307,063 | $650,250 | $1,101,813 | $873,677 |
| Etr | Time savings in addressing ad hoc requests from other teams | $47,520 | $61,776 | $76,032 | $185,328 | $151,379 |
| Ftr | Cost savings related to tech stack | $369,000 | $759,870 | $782,396 | $1,911,266 | $1,551,272 |
| Total benefits (risk-adjusted) | $2,076,713 | $3,275,686 | $4,256,653 | $9,609,052 | $7,793,187 |
Revenue Impact Benefits
Incremental Profit Growth From User Growth
Evidence and data. Interviewees noted that using Amplitude gave their teams and organizations the ability to see how their customers were using their offerings and which features or product characteristics resonated with users. As a result, they were able to experiment and introduce new capabilities that could attract new people to use their offerings.
- The chief architect at a social media company noted: “The more impactful story is the free user growth cycle. We are an application where the word of one person brings another to the platform. That’s how we acquire users. This can get very complicated very fast with a lot of multidimensional impacts. Having the level of control that we have over our data and being able to see things in Amplitude [as they happen] makes a huge difference.”
- The director of product management at a healthcare organization shared: “With Amplitude, we looked at the amount of people who weren’t paying their bills [and found] that we had made bill pay a separate login. After making it easier to pay bills on our app, we [saw] 90% of new users coming through the application.
Modeling and assumptions. Based on the customer interviews, Forrester assumes the following about the composite organization:
- The organization has 10 million MAUs.
has total active consumers per year.
- With the insights generated from analytics and experimentation introduced by Amplitude, the organization grows its user base by 5% in Year 1, by 7.5% in Year 2, and by 9% in Year 3.
- The average revenue per user (ARPU) is $15 per year.3
For , the ARPU is per year.
- The net margin of the composite organization is 8%.
Risks. The exact benefit realized by an organization can vary, depending on factors such as:
- The size of the organization and its number of customers or users.
- The organization’s industry, market, and competitive landscape, which can impact the ease of acquiring new customers.
- The organization’s industry and geographic location, which can impact the expected revenue per customer/user and net margin.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV of $1.8 million.
For , this benefit might have a three-year, risk-adjusted total PV of .
Incremental Profit Growth From User Growth
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Total annual revenue from all online business | Your Organization | $150,000,000 | $150,000,000 | $150,000,000 | |
| A2 | Total active consumers per year | Your Organization | 10,000,000 | 10,000,000 | 10,000,000 | |
| A3 | User growth per year with Amplitude | TEI case study | 5.0% | 7.5% | 9.0% | |
| A4 | Subtotal: New users acquired with Amplitude | A2*A3 | 500,000 | 750,000 | 900,000 | |
| A5 | ARPU | A1/A2 | $15 | $15 | $15 | |
| A6 | Net margin | TEI standard | 8% | 8% | 8% | |
| At | Incremental profit growth from user growth | A4*A5*A6 | $600,000 | $900,000 | $1,080,000 | |
| Risk adjustment | ↓15% | |||||
| Atr | Incremental profit growth from user growth (risk-adjusted) | $510,000 | $765,000 | $918,000 | ||
| Three-year total: $2,193,000 | Three-year present value: $1,785,575 | |||||
Incremental Profit Growth From Better Monetization Of Existing Customer Base
Evidence and data. Similar to the user growth benefit, interviewees also said their organizations used the analytics and experimentation from Amplitude to explore ways to provide more value to their existing customer and user bases. As a result, they were able to create better monetization strategies. For digital application users, this could be in the form of shifting free to paying users or optimizing path to purchase. For more traditional businesses, this could be about upsell and cross-sell levers with behavioral insights to maximize ARPUs and average order values. All of the resulting insights generated through Amplitude allowed the organizations to better understand their existing customer bases.
- The director of product management at a healthcare company said: “With Amplitude, we were able to look at specific user segments, [conduct] an A/B test, and find that with the new feature we introduced, our new version performed 39% better than our old version.”
- The software engineer at a consumer application added: “A lot of focus currently is on increasing paid users via subscription or microtransactions. The experiments [that we do on Amplitude] tell us in real time what the expectations would be if we launched this product or that feature to the broader audience.”
- The chief product officer at an entertainment company noted: “With Amplitude, we were able to triple our conversion rate of people becoming paid consumers. By being able to focus on how people discover our content, we have been able to improve engagement and conversion.”
Modeling and assumptions. Based on the customer interviews, Forrester assumes the following about the composite organization:
- The organization has 10 million MAUs.
has total active consumers per year.
- Prior to using Amplitude, 2% of this user base converted into paying users per year.
At , consumers currently convert from free to paying at a rate of .
- With Amplitude, this conversion rate improves by 20% in Year 1, by 30% in Year 2, and by 40% in Year 3.
- The composite’s average revenue per paying user (ARPPU) is $200 per year.4
For , the ARPPU is per year.
- The composite’s net margin is 8%.
Risks. The exact benefit realized by an organization can vary, depending on factors such as:
- The size of the organization and its number of customers or users.
- The organization’s industry, market, and competitive landscape, which can impact the decision-making process of target customers to purchase additional offerings.
- The organization’s industry and geographic location, which can impact the expected revenue per customer/user and net margin.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV of $2,100,000.
For , this benefit might have a three-year, risk-adjusted total PV of .
Incremental Profit Growth From Better Monetization Of Existing Customer Base
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Total active consumers at start of year | A2+A4PY | 10,000,000 | 10,500,000 | 11,250,000 | |
| B2 | Current conversion rate from free to paying consumers | Your Organization | 2% | 2% | 2% | |
| B3 | Improvement in conversion rate with Amplitude | TEI case study | 20% | 30% | 40% | |
| B4 | Subtotal: New paying users acquired with Amplitude | B1*B2*B3 | 40,000 | 63,000 | 90,000 | |
| B5 | ARPPU | C7 | $200 | $200 | $200 | |
| B6 | Net margin | A6 | 8% | 8% | 8% | |
| Bt | Incremental profit growth from better monetization of existing customer base | B4*B5*B6 | $640,000 | $1,008,000 | $1,440,000 | |
| Risk adjustment | ↓15% | |||||
| Btr | Incremental profit growth from better monetization of existing customer base (risk-adjusted) | $544,000 | $856,800 | $1,224,000 | ||
| Three-year total: $2,624,800 | Three-year present value: $2,122,254 | |||||
Revenue Retention From Preventing Customer Churn
Evidence and data. The third area in which interviewees noted their organizations are conducting insights and experimentation with Amplitude is to understand how best to keep customers and users from leaving (e.g., improving retention rate, reducing churn). Interviewees said using features on the Amplitude platform such as behavioral cohorts to group users who share similar traits or characteristics gave them the ability to better engage with their users.
- The chief architect at a social media company noted: “We’ve run a number of tests in the retention or churn-prevention category. We have been adding features to allow people to connect with each other more easily. We had to go through a few iterations of these features. The few first attempts didn’t improve the overall usage metrics as we hoped. Running the experiment through Amplitude allowed us to dive deeply into the behavior of the two cohorts to understand why our first attempt didn’t work.”
- The chief product officer at an entertainment company said: “In terms of engagement, we have improved by 15% [due to Amplitude]. With Amplitude, we can focus on how people discover content, improve features, and track user-renewal rates.”
- The software engineer at a consumer application organization added: “[With Amplitude,] we can see where exactly users are dropping off in their journey and experience of using our app.”
Modeling and assumptions. Based on the customer interviews, Forrester assumes the following about the composite organization:
- The composite’s number of paying users per year is based on its conversion rate with Amplitude.
- Prior to using Amplitude, 94.3% of the paying users dropped off within the first 30 days of converting from being a free user to becoming a paying user.5
At , the current churn rate for paying consumers is .
- With Amplitude, this churn rate reduces by 15% each year.
- The composite’s average revenue per paying user (ARPPU) is $200 per year.6
For , the ARPPU is per year.
- The composite’s net margin is 8%.
Risks. The exact benefit realized by an organization can vary, depending on factors such as:
- The size of the organization and its number of customers or users.
- The organization’s industry, market, and competitive landscape, which can impact the benchmark customer churn rate and the percentage improvement Amplitude can introduce.
- The organization’s industry and geographic location, which can also impact the expected revenue per customer/user and net margin.
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 $1,309,030.
For , this benefit might have a three-year, risk-adjusted total PV of .
Revenue Retention From Preventing Customer Churn
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Total active paying consumers per year before Amplitude | Your Organization | 200,000 | 210,000 | 225,000 | |
| C2 | Paying users with Amplitude | C1+B4 | 240,000 | 273,000 | 315,000 | |
| C3 | Current churn rate for paying consumers | Your Organization | 94.3% | 94.3% | 94.3% | |
| C4 | Reduction in churn rate with Amplitude | TEI case study | 15% | 15% | 15% | |
| C5 | Subtotal: Newly acquired paying users retained due to Amplitude | C2*C3*C4 | 33,948 | 38,616 | 44,557 | |
| C6 | Annual direct revenue from paying consumers | Your Organization | $40,000,000 | $40,000,000 | $40,000,000 | |
| C7 | ARPPU | C6/C1 | $200 | $200 | $200 | |
| C8 | Net margin | A6 | 8% | 8% | 8% | |
| Ct | Revenue retention from preventing customer churn | C5*C7*C8 | $543,168 | $617,856 | $712,912 | |
| Risk adjustment | ↓15% | |||||
| Ctr | Revenue retention from preventing customer churn (risk-adjusted) | $461,693 | $525,178 | $605,975 | ||
| Three-year total: $1,592,846 | Three-year present value: $1,309,030 | |||||
Operational Efficiency Benefits
Time Savings Related To Product Development And Management Work
Evidence and data. As noted previously, interviewees shared that prior to using Amplitude, their organizations’ use of analytics and experimentation of product usage or new features was highly inefficient. Similarly, trying to target specific user groups to help build specific marketing campaigns was too time-consuming. This became an issue because it limited what the organizations could do to improve their offerings and grow their business. According to Forrester’s Data and Analytics Survey, 2022, 80% of data and analytics decision-makers said their organization used or planned to use A/B and multivariate testing in the following 12 months.7 To identify and deliver the next best experience on a consistent basis, brands need to run multivariate tests on a massive scale.
Interviewees said that by moving to Amplitude, their organizations could quickly set up this work through the platform, natively integrate with analytics, and insights are generated instantaneously. Having a consolidated platform for analytics, customer data management, data activation, and experimentation led to time savings for data scientists and engineers. As a result, interviewees noted that data engineers and scientists became much more productive in their work to understand ways to improve products and offerings. In general, we should speak of interviewee experiences in past tense.
- The chief architect at a social media company said: “Thinking about productivity in experiments per year and how rapidly we can build, deploy, read, [and] iterate on that cycle, ideally, we would complete this cycle every week. That would be 12 iterations per quarter. Without Amplitude, we [could] only do one or two iterations per quarter.”
- The chief product officer at an entertainment firm noted: “My product analytics team can now do things that if they had to do it in the previous environment, it would have taken a lot of time. For our data scientists and engineers who know how to use the tool, [Amplitude] saves a lot of time.”
- The software engineer at a consumer application company added: “[Previously,] our data scientists were doing statistical significance calculations manually. The ability of Amplitude to almost real-time calculate that and … recommend actions [out of the box] based on those outputs is tremendously helpful. At the moment, we only do one experiment a month, but we expect to be able to do 10 to 20 experiments a month by end of year.”
Modeling and assumptions. For the purpose of the composite organization, Forrester assumes:
- There are 50 employees involved in product management, analytics, and experimentation work.
At , there are employees involved in digital product management, digital marketing, and data work.
- Taking into account user training and change management that needs to be done to get these employees to fully convert to Amplitude, the percentage of work impacted by this tool is 5% in Year 1, 10% in Year 2, and 20% in Year 3.
- By using Amplitude, the composite’s employees realize 80% time savings in Year 1, and these savings gradually increase to 85% in Year 2 and to 90% in Year 3.
- Taking into account the different roles, seniority, and level of involvement in this work, the average fully burdened annual salary of an employee involved is $170,000.8
- The composite’s productivity recapture from the realized time savings is 50%. This is the percentage of time they can dedicate to additional effort, work, and activities as a result of the time savings.
Risks. The exact benefit realized by an organization can vary, depending on factors such as:
- The adoption rate of the organization’s product management, analytics, and experimentation teams and how quickly they are willing to shift to using Amplitude.
- The organization’s change management and user training.
- The organization’s industry and geographic location, which can impact the fully burdened annual salaries of employees.
- The skills and capabilities of the organization’s employees, which can impact the roles and seniority of people who need to be involved in this work.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV of $873,700.
For , this benefit might have a three-year, risk-adjusted total PV of .
Time Savings Related To Product Development And Management Work
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Employees involved in digital product management, digital marketing, and data work (e.g., A/B Testing, feature flagging, and funnel analysis) | Your Organization | 50 | 50 | 50 | |
| D2 | Percentage of work impacted | TEI case study | 5% | 10% | 20% | |
| D3 | Productivity improvement with Amplitude | TEI case study | 80% | 85% | 90% | |
| D4 | Fully burdened annual salary of an involved employee | TEI standard | $170,000 | $170,000 | $170,000 | |
| D5 | Productivity recapture | TEI standard | 50% | 50% | 50% | |
| Dt | Time savings related to product development and management work | D1*D2*D3*D5 | $170,000 | $361,250 | $765,000 | |
| Risk adjustment | ↓15% | |||||
| Dtr | Time savings related to product development and management work (risk-adjusted) | $144,500 | $307,063 | $650,250 | ||
| Three-year total: $1,101,813 | Three-year present value: $873,677 | |||||
Time Savings In Addressing Ad Hoc Requests From Other Teams
Evidence and data. Interviewees noted that the self-service aspect of Amplitude enabled team members from different units to access the platform and gather the information or insights needed. Prior to using Amplitude, these team members would need to ask for this information in the form of ad hoc requests to data scientists, engineers, product managers, and leaders. The exact requests could vary in type and complexity, but they almost always took time away from the person’s core work and responsibility. But interviewees said that with Amplitude, a team member making the request can access that data on the platform themselves. This reduces the backlog of ad hoc requests that is created and, as a result, data scientists and engineers can recapture that time and focus on more strategic and complex activities.
- The chief architect at a social media company noted: “Doing ad hoc analysis based on what product managers or marketing people were asking with Amplitude is faster. Thinking about the time we spend addressing those requests, we are now able to do that 50% faster. This is because it’s easier to do funnel analysis and segmentation with Amplitude.”
- The software engineer at a consumer application added: “For behavioral analytics, a lot of that analysis had to be done by data analysts and engineers. We would create ad hoc reports based on what product managers or marketing [teams] were asking. With Amplitude, we can make 70% to 80% of those requests self-serve, which would free up data analysts and data engineers to do things that are more interesting, more value-add, and just overall free up time for those teams to move faster.”
Modeling and assumptions. For the purpose of the composite organization, Forrester assumes:
- The composite’s data scientists and engineers receive an average of 600 ad hoc requests from other business units per year.
At , the data/engineering/analytics team receives an average of ad hoc requests from other business units per year.
- The average amount of time needed to complete each request is 2 hours.
At , the average amount of time needed to complete each ad hoc request is hours.
- With Amplitude, the composite realizes time savings of 50% in Year 1, 65% in Year 2, and 80% in Year 3.
- The fully burdened hourly salaries of data scientists and engineers is $88.
Risks. The exact benefit realized by an organization can vary, depending on factors such as:
- The type and complexity of the request, which impacts how long it will take to address each request and the percentage that can be addressed with self-service.
- The workload the organization’s data scientists and engineers currently handle at the time of request and the amount of time they can take to address the ad hoc request.
- The criticality of the request to the overall success of the business
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV of $151,400.
For , this benefit might have a three-year, risk-adjusted total PV of .
Time Savings In Addressing Ad Hoc Requests From Other Teams
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| E1 | Average number of ad hoc requests to data/engineering/analytics team | Your Organization | 600 | 600 | 600 | |
| E2 | Average number of hours to complete each request | Your Organization | 2 | 2 | 2 | |
| E3 | Time savings with Amplitude | TEI case study | 50% | 65% | 80% | |
| E4 | Fully burdened hourly salary of an involved employee | TEI standard | $88 | $88 | $88 | |
| Et | Time savings in addressing ad hoc requests from other teams | E1*E2*E3*E4 | $52,800 | $68,640 | $84,480 | |
| Risk adjustment | ↓10% | |||||
| Etr | Time savings in addressing ad hoc requests from other teams (risk-adjusted) | $47,520 | $61,776 | $76,032 | ||
| Three-year total: $185,328 | Three-year present value: $151,379 | |||||
Cost Savings Related To Tech Stack
Evidence and data. Interviewees noted that by moving to Amplitude, their organizations realized cost savings to their tech stacks.
Many interviewees said cost savings are simply the result of being able to discontinue their company’s spend on the license fee for its legacy platform. Others said the cost savings came in form of vendor consolidation and that Amplitude’s features allow their organization to no longer need to work with multiple vendors because Amplitude has multiple capabilities.
- The chief product officer at an entertainment company said, “Without Amplitude, we probably would have to spend another 20% to 25% on our analysis tooling budget.”
- The director of product management at a healthcare company noted, “If we used a separate vendor for experimentation, that would [cost] 50% to 100% more on top of what we pay for Amplitude.”
- Finally, some interviewees also noted their organization saved in the form of labor it would have had to hire if it didn’t use Amplitude.
- The chief architect at the social media company shared, “If I didn’t have Amplitude, I would imagine I would have needed 10% more people on my data and engineering team to do analytics and experimentation.”
Modeling and assumptions. For the purpose of the composite organization, Forrester assumes:
- The composite retires its legacy solution and saves on the effort required to maintain the solution.
- The annual cost of the composite’s legacy tech stack totals $810,000 in Year 1, and this increases by 3% each year. This total is calculated from the spend for the legacy analytics products, which cost the same as the annual cost of Amplitude.
At , the annual cost of legacy tools retired is in Year 1, in Year 2, and in Year 3.
- The composite saves an additional 20% by retiring other tools and avoiding spend that can be avoided with Amplitude.
- The composite tasks one product analyst with dedicating 10% of their time to maintaining its legacy solutions.
- The fully burdened annual salary of the product analyst is $100,000.
- By moving to Amplitude, the organization reduces 50% of its annual legacy cost in Year 1 and 100% of the annual legacy cost in years 2 and 3.
Risks. The exact benefit realized by an organization can vary, depending on factors such as:
- The complexity of the organization’s legacy environment and the functionality that can be replaced with Amplitude.
- The organization’s industry and geographic location, which can impact the fully burdened annual salaries of employees.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV of $1.6 million.
For , this benefit might have a three-year, risk-adjusted total PV of .
Cost Savings Related To Tech Stack
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| F1 | Cost of legacy tech stack | Assumption | $810,000 | $834,300 | $859,329 | |
| F2 | Employees involved in maintaining legacy solution | Assumption | 1 | 1 | 1 | |
| F3 | Fully burdened annual salary of an employee involved in maintaining legacy solution | TEI standard | $100,000 | $100,000 | $100,000 | |
| F4 | Percentage of time dedicated to maintaining legacy tech stack | TEI case study | 10% | 10% | 10% | |
| F5 | Percentage reduction in tech stack annual cost | TEI case study | 50% | 100% | 100% | |
| Ft | Cost savings related to tech stack | $410,000 | $844,300 | $869,329 | ||
| Risk adjustment | ↓10% | |||||
| Ftr | Cost savings related to tech stack (risk-adjusted) | $369,000 | $759,870 | $782,396 | ||
| Three-year total: $1,911,266 | Three-year present value: $1,551,272 | |||||
Qualitative Benefits
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
- Creating an insights-driven business. Forrester data indicates that the most advanced IDBs consistently outpace their competition and deliver faster revenue growth.9 Interviewees shared that using Amplitude created a cultural shift in how their organizations operate. They said that its features and capabilities make Amplitude the hub on which their organization acquires most if not all data it needs. This includes all types of customer data they need to be informed about their customers, and it takes this into account before making any decisions related to how best to move the company forward. The director of product management at a healthcare company said: “[Using] Amplitude is not about reducing or avoiding tech stack spend. It’s more about having access to quantitative data in decision-making to ensure our team is working on the right things and measuring progress.”
- Increased data literacy due to the democratization of analytics work. Interviewees also noted that the self-service feature of Amplitude is a tremendous benefit. Beyond just the time savings for data scientists and engineers who no longer need to address ad hoc requests from colleagues, the self-service ability means non-technical employees improve their skills and capabilities while working with data, and this has the potential to speed up decision-making, monetizing product enhancements, and doing what’s right for the business. The same director of product management in healthcare noted, “We have democratized the analytics where all my product managers, analysts, engineers, and designers are using Amplitude [to do their work].”
- Better knowledge management. Interviewees shared that by having Amplitude as their organization’s main platform for storing data, information, and knowledge regarding their customers, they have a one-stop shop to explore insights into customer journeys, trends, and other analytics work. The engineer at a social media company told Forrester: “With this visibility, we have the ability to have detailed control and detailed ability to follow threads all the way through. We can have multiple eyes on these problems we are trying to understand.”
Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Amplitude and later realize additional uses and business opportunities, including:
-
Development in data and analytics maturity. In the long run, the combination and interplay between the different benefits Amplitude allows organizations to mature related to their data and analytics capabilities. The time savings, cost savings, and virtuous cycle between product teams, data teams, and others in improving their knowledge results in the organization as a whole being able to tackle more complex activities that can further benefit the company.
The software engineer at a consumer application company said: “With time savings realized from Amplitude, we hope our data engineering team can focus more on machine learning capabilities, both real-time and [asynchronous]. We want to give data engineering and data science teams the ability to work together to build a lot more ML models that can give recommendations on how to better the user experience and increase engagement.”
- Impact on speed and agility of business. Additionally, the time savings the implementing organization can realize directly impacts the speed at which its business can operate, adjust, and adapt to certain situations. The operational efficiencies described earlier directly contribute to how fast and frequently an organization can realize the revenue impact benefits, and this creates a virtuous cycle of productivity improvements and business growth.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
Quantified cost data as applied to the composite
Total Costs
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Gtr | Software license fees | $0 | $706,650 | $727,850 | $749,685 | $2,184,185 | $1,807,187 |
| Htr | Internal labor costs related to setting up Amplitude and user training | $471,108 | $3,608 | $3,608 | $3,608 | $481,932 | $480,081 |
| Itr | Internal labor costs related to ongoing management of Amplitude | $0 | $66,000 | $66,000 | $66,000 | $198,000 | $164,132 |
| Total costs (risk-adjusted) | $471,108 | $776,258 | $797,458 | $819,293 | $2,864,117 | $2,451,400 |
Software License Fees
Evidence and data. Interviewees’ organizations pay annual license fees based on their specific situations.
Modeling and assumptions. For the purpose of the composite organization, Forrester assumes:
- The composite pays Amplitude $675,000 for its licensing fee in Year 1, and this increases by 3% each year.
might pay Amplitude in Year 1, in Year 2, and in Year 3.
- Pricing may vary. Contact Amplitude for additional details.
Costs will vary based on customer size, scope and complexity. The costs below are merely estimates and do not constitute quotes.
Risks. The exact cost and time invested by an organization can vary, depending on factors such as
- The amount of data and information to be analyzed.
- The exact features the organization implements with the Amplitude platform.
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV of $1.8 million.
For , this cost might have a three-year, risk-adjusted total PV of .
Software License Fees
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| G1 | Software license and professional services | Your Organization | $0 | $673,000 | $693,190 | $713,986 | |
| Gt | Software costs | G1 | $0 | $673,000 | $693,190 | $713,986 | |
| Risk adjustment | ↑5% | ||||||
| Gtr | Software costs (risk-adjusted) | $0 | $706,650 | $727,850 | $749,685 | ||
| Three-year total: $2,184,185 | Three-year present value: $1,807,187 | ||||||
Cost And Time Investment Related To Setup And Implementation
Evidence and data. Interviewees noted that setting up Amplitude at their organizations required involvement from different team members. The process typically started by evaluating the needs and use cases of Amplitude at their organizations. Once that was decided, the companies needed to migrate data, set up governance processes, and start training users.
- The engineer at a social media company shared, “Most of the initial time was spent for evaluation. There were two to three of us at the time [who were] involved in the process.”
- The chief product officer at an entertainment firm said: “POC [proof of concept] was three months. Once we proved the value, it took another three months to deploy the solution to other parts of the organization.”
- The engineer at a consumer application added, “We had data analysts, data scientists, engineers, and a few managers … involved in the setup.”
Modeling and assumptions. For the purpose of the composite organization, Forrester assumes:
- Setting up Amplitude takes the composite six months, and this includes POC work to assess if Amplitude is the right fit and full deployment of the platform.
For , setting up Amplitude might take years. This includes both POC work and full deployment of the platform.
- 10 employees dedicate 50% of their time to setup and deployment.
At , setup and deployment might involve employees dedicating 50% of their time.
- The fully burdened annual salary of an involved employee is $170,000 (or $82 per hour).
- The 10 employees involved in setup are then involved in 4 hours of user training.
At , all employees involved in setup and deployment undergo 4 hours of user training.
- Once the platform is set up, the organization trains 20 employees with a more streamlined, 2-hour user-training session each year.
Once the platform is set up, might train employees per year with more streamlined, 2-hour training sessions.
Risks. The exact cost and time invested by an organization can vary, depending on factors such as:
- The complexity of the organization’s product analytics and experimentation environment.
- The expectations about which capabilities and functionalities need to be set up immediately as opposed to progressively over time.
- The organization’s industry and geography, which can impact the assumed fully burdened annual salaries of employees.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV of $480,000.
For , this cost might have a three-year, risk-adjusted total PV of .
Internal Labor Costs Related To Setting Up Amplitude And User Training
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| H1 | Set up time (years) | Your Organization | 0.5 | 0.0 | 0.0 | 0.0 | |
| H2 | Employees involved | Your Organization | 10 | 0 | 0 | 0 | |
| H3 | Fully burdened annual salary an employee involved | TEI standard | $170,000 | $170,000 | $170,000 | $170,000 | |
| H4 | Percentage of time dedicated | TEI case study | 50% | 50% | 50% | 50% | |
| H5 | Subtotal: Total cost of time investment related to setting up Amplitude | H1*H2*H3*H4 | $425,000 | $0 | $0 | $0 | |
| H6 | User training time (hours) | TEI case study | 4 | 2 | 2 | 2 | |
| H7 | Users trained | Your Organization | 10 | 20 | 20 | 20 | |
| H8 | Fully burdened hourly salary of a user | TEI standard | $82 | $82 | $82 | $82 | |
| H9 | Subtotal: Total costs investment related to user training | H6*H7*H8 | $3,280 | $3,280 | $3,280 | $3,280 | |
| Ht | Internal labor costs related to setting up Amplitude and user training | H5+H9 | $428,280 | $3,280 | $3,280 | $3,280 | |
| Risk adjustment | ↑10% | ||||||
| Htr | Internal labor costs related to setting up Amplitude and user training (risk-adjusted) | $471,108 | $3,608 | $3,608 | $3,608 | ||
| Three-year total: $481,932 | Three-year present value: $480,081 | ||||||
Internal Costs Related To Management Of Amplitude
Evidence and data. Interviewees said that once their organizations set up Amplitude, they dedicated employees to do ongoing management activities. This could include building and adding features, handling ticket requests, or being involved in recurring touchpoints with the Amplitude team on how best to take advantage of the platform.
- The engineer at a social media company shared: “There are two people who occasionally go through and do data hygiene work. They spend about 10% of their time [on this], which I think they should be doing a lot more.”
- The chief product officer at an entertainment firm added: “We have someone on my team in charge of the management of Amplitude. Anytime we have an issue or have a question, that is the person we call. We also have another person responsible for checking that everything is working fine.”
- The director of product management in healthcare told Forrester: “We made sure that each team had one person who knew how to do analytics tickets. We’re building features, handling tickets, [and] everything.”
Modeling and assumptions. For the purpose of the composite organization, Forrester assumes that:
- Two employees dedicate 30% of their time to ongoing management of Amplitude.
At , employees might dedicate 30% of their time to ongoing management of Amplitude.
- The fully burdened annual salary of an involved employee is $100,000.
Risks. The exact cost and time invested by an organization can vary, depending on factors such as:
- The complexity of the organization’s product analytics and the environment work being conducted.
- The skill set, knowledge, and capabilities of the organization’s employees.
- The organization’s industry and geography, which can impact the assumed fully burdened annual salaries of employees.
Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three-year, risk-adjusted total PV of $164,100.
For , this cost might have a three-year, risk-adjusted total PV of .
Internal Labor Costs Related To Ongoing Management Of Amplitude
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| I1 | Employees involved | Your Organization | 0 | 2 | 2 | 2 | |
| I2 | Percentage of time dedicated to management of Amplitude | TEI case study | 30% | 30% | 30% | 30% | |
| I3 | Fully burdened annual salary of an involved employee | TEI standard | $100,000 | $100,000 | $100,000 | $100,000 | |
| It | Internal labor costs related to ongoing management of Amplitude | I1*I2*I3 | $0 | $60,000 | $60,000 | $60,000 | |
| Risk adjustment | ↑10% | ||||||
| Itr | Internal labor costs related to ongoing management of Amplitude (risk-adjusted) | $0 | $66,000 | $66,000 | $66,000 | ||
| Three-year total: $198,000 | Three-year present value: $164,132 | ||||||
Consolidated Three-Year Risk-Adjusted Metrics
Cash Flow Chart (Risk-Adjusted)
Total costs Total benefits Cumulative net benefits-
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.
Cash Flow Analysis (Risk-Adjusted Estimates)
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($471,108) | ($776,258) | ($797,458) | ($819,293) | ($2,864,117) | ($2,451,400) |
| Total benefits | $0 | $2,076,713 | $3,275,686 | $4,256,653 | $9,609,052 | $7,793,187 |
| Net benefits | ($471,108) | $1,300,455 | $2,478,229 | $3,437,360 | $6,744,935 | $5,341,787 |
| ROI | 218% | |||||
| Payback period (months) | <6 |
Appendix A: Total Economic Impact
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.
Total Economic Impact Approach
-
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.
Appendix B: Supplemental Material
Related Forrester Research
“Now Tech: Customer Analytics Technologies, Q1 2022,” Forrester Research, Inc., January 18, 2022
“Now Tech: Journey Management Platforms, Q4 2021,” Forrester Research, Inc., December 21, 2021
“The Business Impact Of Digital Experience Technology Is Profitable Growth,” Forrester Research, Inc., March 1, 2021
“The ROI Of CX Transformation,” Forrester Research, Inc., January 22, 2021
Appendix C: Endnotes
1 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.
2 Source: “The State Of The Insights-Driven Business, 2022,” Forrester Research, Inc., August 24, 2022.
3 Average revenue per user (ARPU) is the amount of money an application generates from all users and revenue streams for the application. Source: “Fundamentals Of Financial Forecasting Guide,” Wall Street Prep.
4 Ibid.
5 The average retention rate across 31 categories by Day 30 is 5.7%. Source: “Mobile Growth Basics: User Retention,” Mobile Growth Association, January 9, 2023.
6 Average revenue per paying user (ARPPU) is the amount of money an application can expect to generate from its paying users over a set period of time, excluding nonpaying users and revenue gained from sources other than paying users. Source: “Fundamentals Of Financial Forecasting Guide,” Wall Street Prep.
7 Source: “The Future Of Customer Insights Will Power Next Best Experiences,” Forrester Research, Inc., March 15, 2023.
8 Fully burdened salary includes both the direct wages and indirect costs of hiring and employment. Burden rate refers to indirect costs of employment beyond direct compensation that are including but not limited to hiring costs, training costs, financial services, paid time off, sick leave, expenses, retirement contributions, payroll taxes, incremental technology, and workplace costs for the employee.
9 Source: “The State Of The Insights-Driven Business, 2022,” Forrester Research, Inc., August 24, 2022.
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